Megasoft Ltd Q2FY26 – From Telecom Dinosaur to Pharma-Defence Phoenix: ₹400 Cr Land Sale, UK Aerospace Buy, and a 414% Profit Resurrection

1.At a Glance

Megasoft Ltd (BSE: 532408, NSE: MEGASOFT) — once known for dull telecom services — has suddenly become the Bollywood remake of a corporate thriller: old plot, new characters, and dramatic twists. Market cap stands at ₹1,550 crore, and the stock, priced around ₹210 as of November 7, 2025, has rocketed77.9% in 3 monthsand169% in a year. The company’s Return on Capital Employed (ROCE) of 8.74% looks modest, but theProfit After Tax (PAT)of ₹138 crore in FY25 makes one raise an eyebrow — especially when last year’s sales were ₹0 crore.

How did a telecom relic with zero operating income turn into a profit machine? The answer lies buried in its “other income” – a mysterious ₹216 crore that outshines its rent receipts and property sales. Its P/E of 11.2 looks sane until you realize the E in that equation is from land deals, not software.

Withno debt (₹3.89 crore only)and a comically highcurrent ratio of 8.39, Megasoft is the corporate version of a guy who sold his ancestral land, bought a drone startup in the UK, and now calls himself an aerospace entrepreneur.

So buckle up, because this quarter, Megasoft didn’t just make profits — it made headlines.

2.Introduction

Once upon a time, Megasoft was your run-of-the-mill IT and telecom player. Then came the existential crisis. Around 2022, the management decided: “Why code when we can conquer Pharma and Defence?” And thus began a bizarre yet fascinating pivot.

The company divested its software division for a grand ₹1 crore — barely enough for a mid-size Bengaluru flat — and invested over ₹1,353 million inExtrovis AG, a Swiss pharma firm dabbling in chemical R&D. In 2025, it sold36.52% of Extrovis for $15 million (approx ₹125 crore)— because why not? That’s almost 12,000% profit on paper for a company that used to chase telecom clients.

Meanwhile, it’s been busy turning into an arms dealer of sorts. Through its subsidiarySigma Advanced Systems, Megasoft now has ambitions in defence electronics. As of October 31, 2025, Sigmaacquired the entire Nasmyth Group (UK)forGBP 17.8 million (~₹213 crore)— giving it direct access to aerospace manufacturing.

The cherry on top? Itsold property worth ₹400.39 crore in April 2025, booked a profit of₹184.6 crore, and reported ahalf-year PBT of ₹168.2 crore.

So yes, it’s technically a “telecom” company — just one that now sells land, rents properties, and buys British defence firms. Somewhere between those activities, it also fought the GST department, which slapped a ₹28 crore demand (under protest, ₹5 crore already paid).

From a fallen IT phoenix to a cash-rich asset flipper, Megasoft is now scripting its second act — a pharma-defence crossover that even Netflix might struggle to believe.

3.Business Model – WTF Do They Even Do?

Megasoft’s business model today can be described as “corporate buffet”: a little real estate, a bit of pharma, some aerospace, and a sprinkle of litigation.

Here’s the lineup:

• Telecom Legacy– Dead, gone, buried.
• Pharma Ambitions– Invested inExtrovis AG(Swiss-based R&D company) and intends to acquire drug formulation firms or distressed pharma assets.
• Defence and Aerospace– Through its subsidiarySigma Advanced Systems, it provides solutions to PSUs, armed forces, and paramilitary services. Post itsNasmyth Group UK acquisition, it’s now into aerospace component manufacturing.
• Renting Real Estate– The actual revenue backbone, contributing83% of FY23 revenue, withrental and interest income making up 93%.
• Corporate Incubator Role– Management claims it will offer central technology, leadership, and finance support to subsidiaries. Think of it as a wannabe Tata Sons — if Tata Sons had just one building and a GST case.

In essence, Megasoft has become a holding company in disguise. It’s leasing out old telecom properties, redeploying that cash into foreign acquisitions, and calling it “diversification.”

Does it sound chaotic? Of course. But in a world where startups call layoffs “right-sizing,” this might just work.

4.Financials Overview