1. At a Glance – Blink and You’ll Miss the Growth
Fidel Softech Ltd is one of those SME IT companies that quietly compounds while the market is busy debating TCS vs Infosys like a family WhatsApp group stuck in 2010. With a market cap of ~₹212 crore, a Q3 FY26 revenue of ₹25.3 crore, and PAT of ₹3.30 crore, the company just clocked ~79% YoY revenue growth and 100% YoY profit growth. Not bad for a firm most investors still think is “some localization wala company.”
At ₹154 per share, the stock trades at roughly 16x trailing EPS of ₹9.29, lower than the industry average, despite ROE of ~20.6% and OPM near 20%. Debt sits at a manageable ₹18.5 crore, promoters hold a comfy 73%, and dividends are already flowing (1.3% yield). For an SME IT firm, that’s rare discipline. Question is — is this a one-off Japan sugar rush, or the start of a structurally bigger story?
2. Introduction – From Translation Vendor to IT Polyglot
Fidel Softech Ltd was incorporated in 2004, back when “outsourcing” was India’s favourite buzzword and cloud meant actual clouds. The company started with language engineering and localization, especially Japan-focused projects, a niche most Indian IT firms avoid like documentation work on a Friday evening.
Fast forward two decades, Fidel has quietly evolved into a hybrid IT + LangTech + consulting company, mixing enterprise implementation, cloud infrastructure, and multilingual AI services. Unlike flashy SaaS startups burning VC cash, Fidel has taken the boring but profitable route — services, repeat clients, and slow expansion.
The Q3 FY26 numbers suggest
something has clicked. Revenue acceleration, margin stability, and overseas expansion announcements are all happening together. Coincidence? Or execution? Let’s dig.
3. Business Model – WTF Do They Even Do?
Think of Fidel as a Japan-savvy IT handyman with a multilingual brain.
Two core segments:
a) IT & Consulting Services (31% of Q2 FY25 revenue):
This includes enterprise solution implementation (Infor SyteLine, ServiceNow), cloud & managed services, cybersecurity support, automation, and bilingual staffing. Japan loves process, compliance, and long-term vendors — Fidel fits that cultural mould perfectly.
b) Language Localization & Engineering (69% of Q2 FY25 revenue):
This is the OG business. Software localization, translation, MTPE, interpretation, and now AI/ML + multilingual LLM services. Basically, if your software speaks only English and you want it to sound Japanese-polite or German-precise, Fidel is your guy.
The real edge? Japan geography expertise + tech delivery. That’s a niche moat. How many Indian IT SMEs can confidently sell into Japan without cultural face-plants?
4. Financials Overview – The Table That Actually Matters
| Metric | Latest Qtr (Dec 2025) | YoY Qtr (Dec 2024) | Prev Qtr (Sep 2025) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 25.30 | 14.15 | 23.15 | 78.8% | 9.3% |
| EBITDA (₹ Cr) | 4.11 | 2.19 | 3.01 | 87.7% | 36.5% |
| PAT (₹ Cr) | 3.30 | 1.79 | 2.78 | 84.4% | 18.7% |
| EPS (₹) | 2.40 | 1.30 | 2.02 | 84.6% | 18.8% |
