At a Glance

Accelya Solutions, the quiet airline IT whisperer, just served Q1 FY26 numbers with an EPS of ₹22.75 and net profit up 8.9% YoY to ₹34 crore. Revenue stayed flat-ish at ₹132 crore, but margins held their ground at 39%. Meanwhile, the company announced a ₹40 per share dividend – almost a 3% yield in one shot. ROE is an absurd 46%, ROCE a mind-blowing 54%. Yet the stock, down 23% YoY, trades at a modest P/E of 16 – practically screaming “value” while the IT giants hog the limelight.

Introduction

In the glitzy world of IT, where TCS and Infosys strut around like Bollywood stars, Accelya is that nerdy kid quietly acing every exam. It powers the backend of the airline industry – billing, settlements, cargo, revenue accounting – things you never notice but airlines can’t survive without. Unlike the IT behemoths chasing AI unicorns, Accelya sticks to what it does best: making airline operations less chaotic.

This quarter, the business is stable but not flashy. Revenue growth? Barely 3% YoY. Profit growth? 9% – just enough to keep investors awake. But the real kicker is the massive dividend and those juicy returns ratios. The market may have punished it (stock down 23% in a year), but fundamentals whisper “don’t ignore me”.

Business Model (WTF Do They Even Do?)

Accelya develops and maintains mission-critical software for the airline and travel industry. Think of it as the backstage crew ensuring the play goes smoothly while the audience claps for the actors (airlines).

Their offerings include:

• Passenger & Cargo Revenue Accounting – making sure airlines know what they earn.
• Clearing & Settlement – ensuring global ticketing transactions reconcile (because airlines can’t do math?).
• Analytics & Industry Solutions – helping airlines with data insights.

The model is sticky: once an airline integrates Accelya’s solutions, switching is as painful as changing your WhatsApp number. Revenue is recurring, margins are strong, but growth is tied to the slow-moving aviation industry.

Financials Overview

Time to crunch the beans (and the numbers).

Q1 FY26 Highlights:

• Revenue: ₹132 crore (+3%)
• EBITDA: ₹51 crore (margin 39%)
• PAT: ₹34 crore (+8.9%)
• EPS: ₹22.75

FY25 Full Year:

• Revenue ₹529 crore
• PAT ₹129 crore
• Net Margin: 24%
• ROE: 46%
• ROCE: 54%

Solid profitability, but revenue growth is moving like a delayed flight.

Valuation

Let’s check if this dividend darling is worth boarding.

1. P/E Method

• Price: ₹1,386
• Annualized EPS (Q1 x 4): ₹91
• Fair P/E: 18–20 (IT niche with high ROE)
• Fair Value: ₹1,638 – ₹1,820

2. EV/EBITDA

• EV: ₹2,068cr + Debt ₹62cr – Cash ~₹145cr ≈ ₹1,985cr
• EBITDA (annualized): ₹204cr
• Fair EV/EBITDA: 10–12x
• Fair Value: ₹1,350 – ₹1,600

3. DCF (Quick & Dirty)

Assume FCF growth 8%, WACC 10%, terminal growth 3%.

• Fair Value: ~₹1,500

Valuation Verdict: At P/E 16, Accelya trades at a discount to IT peers. For a high-ROE dividend machine, this is like getting business class at economy rates.

What’s Cooking – News, Triggers, Drama

• ₹40 Dividend: Generous payout (almost 3% yield) – management clearly loves rewarding shareholders.
• Airline Industry Recovery: Global travel is booming post-pandemic, meaning steady demand for Accelya’s services.
• Stock Underperformance: Down 23% in a year – Mr. Market is sulking.
• Low Growth: Sales growth is slow (5% CAGR over 5 years) – needs new contracts or expansion to re-rate.

Balance Sheet

Auditor Remark: Balance sheet is cleaner than a freshly mopped airport lounge, with negligible debt and high reserves.

Cash Flow – Sab Number Game Hai

Comment: Healthy operating cash flows, with most outflows going straight into dividends.

Ratios – Sexy or Stressy?

Verdict: Financially sexy, growth-wise stressy.

P&L Breakdown – Show Me the Money

Comment: FY24 saw a dip in PAT due to one-offs, FY25 bounced back. Growth still needs an espresso shot.

Peer Comparison

Takeaway: Accelya is a minnow compared to IT sharks but boasts superior margins and ROE at a bargain multiple.

Miscellaneous – Shareholding, Promoters

• Promoters: 74.66%
• FIIs: 2.34%
• DIIs: 0.34%
• Public: 22.66%

Promoter Bio: Owned by Vista Equity Partners – private equity folks who love cash flow more than life itself. Dividend policy shows they like to share the love.

EduInvesting Verdict™

Accelya is the software stock that behaves like a bond – stable, cash-generating, high-dividend, and unfashionably cheap. The airline industry is recovering, but growth here remains modest. The company’s monopoly-like positioning in its niche ensures steady profitability, yet it lacks the aggressive topline growth investors crave.

Strengths:

• Stellar ROE/ROCE.
• High dividends.
• Sticky client base in airlines.

Weaknesses:

• Low revenue growth.
• Small size compared to IT peers.
• Airline industry dependency.

Opportunities:

• Expanding into new airline tech solutions.
• Upselling analytics and automation services.

Threats:

• Airline bankruptcies, travel slowdowns.
• Currency fluctuations (global operations).
• Private equity parent possibly cashing out.

Final Word: At ₹1,386, Accelya trades like a forgotten gem. For income-seeking investors, it’s a dividend-paying cash cow. For growth junkies, it’s too slow. Either way, the stock offers a rare combo: IT margins, PE valuation, and steady payouts. Sometimes boring is beautiful.

Written by EduInvesting Team | 1 Aug 2025
SEO Tags: Accelya Solutions, Airline IT, Dividend Stocks, Q1 FY26 Results