Sahana Systems FY26: Tripled Revenue, Single-Digit Multiple
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1. At a Glance
Sahana Systems tripled consolidated revenue in four years: from ₹24 Cr (FY23) to ₹331 Cr (FY26). The latest full-year results show ₹331 Cr in sales against ₹75 Cr net profit and a 30% operating margin — acceleration hard to miss. Yet the market prices it at just 10x annualized earnings, nearly a third of the information-technology peer band.
A 9-month snapshot (H1 FY26) shows ₹217 Cr revenue and ₹43 Cr profit, implying a pat margin holding steady near 20%. Profit growth trails revenue growth, a normal lag when a company scales capex and team-building — but it raises a question worth watching.
The company holds ₹18 Cr net debt against ₹331 Cr annualized revenue — negligible. Return on equity sits at 32%, return on capital employed at 40%. These are not the metrics of a company eating cash or burning cash for show.
Orders and pipeline (defense, digital twin, government systems, ev charging, surveillance) suggest the company has sight lines beyond FY26. Management projects ₹210 Cr revenue for FY26, ₹350 Cr by FY28, ₹1,000 Cr by FY28 on a consolidated basis — claims that merit scrutiny, not assent.
The wrinkle: working capital days ballooned from 149 (FY26) to something unknown post-March, a sign the company is funding its own growth on customer payment cycles.
2. Introduction
Incorporated in 2012 and listed on NSE SME in June 2023, Sahana System Limited operates across five business vectors: IT services (software development, web/mobile apps, AI/ML), digital marketing, hardware trading, and newer ventures in defense electronics and port infrastructure software. Management’s framing positions the company as a “system integrator” for government, defense, and enterprise customers.
Recent major capital events: in November 2025, the board allotted 1,59,673 fully convertible warrants at ₹1,440 each (25% upfront, remainder on conversion within 18 months), raising ~₹5.7 Cr. The firm also incorporated three new subsidiaries (Sahana Healthtech, Sahana Marine-Infra Tech, Sahana Techanalysis) and deepened ownership of Sahana Defence Limited (formerly Softvan), the defense-focused subsidiary.
Promoter Pratik Ramjibhai Kakadia holds 49.95% directly, with family members adding ~3.5% — promoter grip at 57.3%, down from 62.88% in June 2023 as public holding expanded and a sliver of FII/DII trickled in (0.70% FII, 0.59% DII as of March 2026).
In May 2026, the board recommended a 10% final dividend (₹1 per share), the first payout after three years of earnings retention.
3. Business Model: WTF Do They Even Do?
Sahana operates as a “software and systems solutions” umbrella. The parent (standalone) derives roughly three-quarters of revenue from IT services (bespoke software, integration, implementation); a quarter from hardware trading and allied services.
The consolidated picture — parent plus nine subsidiaries — shifts the mix: Sahana Defence (defense electronics, RF measurement, surveillance, electronic warfare), Softvan Labs (services), Sourceved Technologies (data/cloud), and Applie Infosol (emerging) each occupy niches.
Within the parent: the company pitches web-app development, mobile apps, AI/ML, chatbots, UI/UX design, and digital marketing under its commercial services arm. A second arm (emerging as of FY25/26) is “system integration for government and critical infrastructure” — supplying software, embedded systems, and iot layers to government ministries, ports, railways, and the indian navy.
Within the defense subsidiary: RF measurement facilities (used in ship outfitting, drone detection, electronic warfare), radar, cyber, and cloud partnerships. The port/marine arm (Marine-Infra Tech) supplies digital twin software and operational optimization tools. The power arm (EV charging) uses a shared-revenue model in Andhra Pradesh: Sahana controls the charger management system, embeds IoT sensors, and splits per-charge revenue with the state.
Geography: domestic focus. FY23 exports were ~6% of revenue; H1 FY26 concall hints at ~₹20 Cr cumulative export revenue (mostly US enterprise software, recurring), with Thailand, Africa, and Latin America listed as “tenders in progress.”
This is not a single-product, single-channel outfit. It’s a conglomerate of software, hardware, and services cobbled around a government-facing thesis. Margin profile differs by vertical: software margins run 25–35%, hardware trades at lower pull, government projects promise recurring services revenue but front-load capex and milestone payment delays.
4. Financials Overview
Figures are consolidated, in ₹ crore.
Metric
FY24
FY25
FY26
Revenue
69.05
167.45
331.15
EBITDA (~% margin)
23.4 (34%)
56.9 (34%)
~99 (30%)
PAT
18.21
35.47
67.87
EPS
21.42
40.14
76.80
YoY Growth:
Revenue FY24–FY25: +143% | FY25–FY26: +98%
PAT FY24–FY25: +95% | FY25–FY26: +91%
From the concall (November 2025), management provided FY26 mid-point targets: consolidated revenue “crossing ₹210 Cr” (implying ~₹200–220 range for the 9-month H1 period ended September 30, 2025). The actual H1 result (9 months to March 31, 2026) showed ₹217 Cr revenue and ₹43 Cr PAT, supporting an annualized run-rate of ~₹290 Cr (9 months to ₹217 Cr → 12 months ~₹290 Cr annualized).
Full-year FY26 (April 2025 to March 2026) delivered ₹331 Cr, confirming acceleration in the second half.
The operating margin compressed from 34% (FY25) to ~30% (FY26), a 400bp slide. Management attributed this to higher employee costs (workforce ramped from 106 (FY24) to 400 (FY26 projected)), capex for defense infrastructure, and one-off items.
PAT margin remained stable at ~20%, suggesting tax and interest remained well-contained.
From concall: standalone (parent-only) H1 FY26 showed ₹69 Cr revenue (vs ₹114 Cr consolidated), operating margin 27%, PAT margin 19%. Management benchmarked full-year standalone against FY25’s ₹108 Cr and 24% EBIT, signaling a 50–100% revenue uplift within the standalone business.
5. Market Expectations & Historical Multiples
This section describes how the market is currently pricing the company and how that compares with its own history and peer group. It is descriptive, not predictive.
