1. At a Glance
Blue Cloud Softech is one of those companies that has been lurking around since 1991, doing “computer software and data processing” before it was cool. For years, nobody cared. Then suddenly, in FY24–25, the company discovered the holy trinity ofAI, blockchain, and acquisitions— and the stock turned from a sleepy IT smallcap into a meme-cap rocket (CMP ₹32, from ₹118 high, still 2x from pre-2023).
Latest stats:Revenue ₹772 Cr, PAT ₹48 Cr, ROE 44%, and a valuation hotter than Bangalore’s real estate (P/E ~29, P/B ~11). With FII stake at 23% and promoters holding only 34.6%, Blue Cloud is basically a publicly listed startup disguised as an IT firm.
2. Introduction
Imagine your uncle who ran a dusty cyber café suddenly reinventing himself as an “AI & Blockchain Government-Tech Consultant.” That’s basically Blue Cloud Softech’s story. The company started with software consulting and hardware trading, but now headlines scream:
- $9.36M coastal surveillance project in South America
- $8.9M MoU with Zanzibar govt for blockchain-based digital governance
- BluHealth v2.0 – AI health platform with $6M market potential
- $752 Cr acquisition of AIS Anywhere (US-based) via share swap
And yes, they’re raising$50M via convertible bondslike they’re Infosys 2.0.
The market is trying to decide: is this the next Tanla Platforms-type success story, or just another microcap pulling buzzword bingo?
3. Business Model (WTF Do They Even Do?)
Core Offerings
- Software Services– Designing & developing IT solutions, systems analysis, programming, maintenance.
- Data Processing & Consultancy– Old-school outsourcing.
- Hardware Trading– Yes, still sells components (because why not).
- ITeS + Networking– The catch-all bucket.
New Buzz
- AI-powered healthtech platform (BluHealth).
- Blockchain-based e-governance projects.
- Coastal surveillance & IoT-driven security projects.
- Global expansion via acquisition (AIS Anywhere).
Essentially, they’re trying to beInfosys + Tanla + Palantir + random hardware shopin one.
4. Financials Overview
Q1 FY26 vs Q1 FY25 vs Q4 FY25
| Metric | Jun ’25 | Jun ’24 | Mar ’25 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹206 Cr | ₹231 Cr | ₹184 Cr | -11% | +12% |
| EBITDA | ₹21 Cr | ₹19 Cr | ₹17 Cr | +11% | +24% |
| PAT | ₹14.4 Cr | ₹10.5 Cr | ₹13.0 Cr | +37% | +11% |
| EPS (₹) | 0.33 | 0.26 | 0.30 | +27% | +10% |
Annualised EPS = 0.33 × 4 =₹1.32CMP ₹32 → P/E =24x forward
Commentary: Revenue dipped YoY, but margins and profits improved. Translation: fewer projects, but better billing.
5. Valuation (Fair Value RANGE)
Method 1: P/E
- EPS (forward) = ₹1.3 – 1.5
- Assign fair P/E = 15x–25x (smallcap IT peers)
- FV = ₹20 – ₹38
Method 2: EV/EBITDA
- EBITDA (TTM) = ₹71 Cr
- EV = ₹1,485 Cr → Current EV/EBITDA ~21x
- Fair multiple = 10–15x
- FV = ₹710 – ₹1,065 Cr EV → Per share ₹16 – ₹25
Method 3: DCF (aggressive growth)
- Assume FCF ~₹50 Cr, growth 15%, discount 12%
- FV range = ₹1,200 – ₹1,600 Cr → ₹28 – ₹38 per share
👉Consolidated FV Range = ₹16 – ₹38(This FV range is for educational purposes only, not investment advice.)
6. What’s Cooking – News, Triggers, Drama
- AIS Anywhere Acquisition: Acquiring US-based AIS Anywhere for ₹752 Cr via equity swap. Size of deal vs market cap =massive. Either genius, or diworsification.
- Blockchain Zanzibar Deal: Signed MoU to digitize Zanzibar’s govt services. Sounds like a Netflix series pitch, but let’s see if execution matches the buzz.
- Coastal Surveillance Contract: $9.36M contract in South America. Expect Latin American politicians to finally say “Gracias, Cloud.”
- Convertible Bonds: Raising $50M → fresh ammo for global expansion, but also dilution alert.
- AI Health Platform v2.0: Entering health-tech, because apparently every IT firm must have AI + healthcare slide in their investor deck.
7. Balance Sheet
| Metric | FY24 | FY25 |
|---|---|---|
| Assets | ₹193 Cr | ₹351 Cr |
| Liabilities | ₹125 Cr | ₹229 Cr |
| Net Worth | ₹78 Cr | ₹122 Cr |
| Borrowings | ₹68 Cr | ₹94 Cr |
