1. At a Glance
Shradha AI Tech has gone from a dusty BSE listing to posting ₹6 Cr in quarterly revenue with margins above 60%. From ₹0 revenue in FY21 to ₹18 Cr TTM today, this mini-IT player is defying gravity—and maybe logic too.
2. Introduction with Hook
Think of Shradha AI Tech as that underdog character in a Netflix show: ignored, underestimated, then suddenly glow-up mode ON.
- Revenue Q1 FY26: ₹6.02 Cr
- Net Profit: ₹3.36 Cr
- OPM: 70%
- Dividend Payout: 38%
But… is this real business? Or another small-cap flex with strong “Other Income”?
3. Business Model (WTF Do They Even Do?)
SATL claims to operate across:
- Trading of Computers & Accessories
- Software Development
- Maintenance Services
- Telecom Equipment Sales
Yes, they’re into everything digital. But operationally, they mostly buy tech stuff, sell it, and sprinkle some “IT service” labels on the invoices.
The margin profile, however, screams low-cost software contracts or digital reselling—not pure-play development.
4. Financials Overview
| Metric | FY22 | FY23 | FY24 | FY25 | TTM |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 9.00 | 5.00 | 17.00 | 15.00 | 18.00 |
| Net Profit (₹ Cr) | 4.00 | 1.00 | 6.00 | 10.00 | 11.00 |
| EPS (₹) | 0.12 | 1.05 | 1.59 | 1.86 | 2.00+ |
| Dividend (%) | 0% | 60% | 48% | 38% | 38% |
From under ₹10 Cr revenue to ₹18 Cr in TTM—this is a microcap rocket ship, no doubt.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹39.0 |
| EPS (TTM) | ₹1.86 |
| PE Ratio | 20.9x |
| Book Value | ₹14.3 |
| P/B Ratio | 2.73x |
| ROE (TTM) | 13.6% |
EduInvesting FV Range:
- Base Case (PE 15–18x): ₹28–34
- Growth Case (PE 22–25x): ₹41–46
- Hype Case (Small-cap rerating): ₹50+
Verdict: Fairly valued if numbers are sustainable. Big if.
6. What’s Cooking – News, Triggers, Drama
Q1 FY26 Results Highlights:
- Revenue: ₹6.02 Cr (up 100% YoY)
- PAT: ₹3.36 Cr (up 100% YoY)
- OPM: 69.6%
- Dividend record date set: 8 Aug 2025
- 36th AGM on 29 Aug 2025
- Auditor reappointments done
Triggers to Watch:
- New software contracts
- Exports push
- Possible shift to platform/SaaS model?
- Promoter stake stability: 74.66% since Jun ’23
7. Balance Sheet
| Item | FY23 (₹ Cr) | FY24 (₹ Cr) | FY25 (₹ Cr) |
|---|---|---|---|
| Equity Capital | 12 | 12 | 12 |
| Reserves | 29 | 44 | 75 |
| Total Liabilities | 43 | 59 | 94 |
| Borrowings | 0 | 0 | 0 |
| Investments | 13 | 26 | 49 |
| Fixed Assets | 0 | 0 | 0 |
Takeaway:
- Zero debt
- Cash parked in investments, not operations
- Asset-light model with strong cash flow efficiency
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY23 | -2 | -1 | +16 | +13 |
| FY24 | +4 | -5 | -6 | -7 |
| FY25 | +9 | -6 | -2 | +1 |
Commentary:
Shradha AI throws off cash but reinvests heavily in financial instruments (likely mutual funds or equity). Not expanding infra = asset-light play.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | 17.8% |
| ROE (1Y) | 13.6% |
| EPS TTM | ₹1.86 |
| Dividend Yield | 1.28% |
| PE | 20.9x |
| Promoter Holding | 74.66% |
| OPM | 70% |
Verdict: Sexy, but needs proof of continuity.
10. P&L Breakdown – Show Me the Money
Quarterly Snapshot (₹ Cr)
| Quarter | Sales | PAT | OPM (%) | EPS |
|---|---|---|---|---|
| Q2 FY25 | 5.17 | 3.21 | 73.1% | 0.53 |
| Q3 FY25 | 3.07 | 2.22 | 64.8% | 0.36 |
| Q4 FY25 | 6.02 | 3.36 | 69.6% | 0.55 |
Consistency? Yes.
Transparency? Hmm… maybe.
Sales pattern looks stable, but too high a margin for a trading + IT services firm.
11. Peer Comparison
| Company | CMP (₹) | PE | ROE (%) | OPM (%) | PAT (₹ Cr) |
|---|---|---|---|---|---|
| TCS | 3,158 | 23.1 | 32.1 | 26.4 | 49,273 |
| Persistent Sys | 5,772 | 66.5 | 24.1 | 17.2 | 1,357.8 |
| Shradha AI Tech | 39.0 | 20.9 | 13.6 | 70.0 | 11.0 |
Peer group is obviously incomparable, but Shradha’s margin looks artificially high relative to its peers.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2025 | Jun 2025 |
|---|---|---|
| Promoters | 74.66% | 74.66% |
| Public | 25.34% | 25.34% |
| Shareholders | 14,283 | 14,283 |
- Retail interest ballooned from 600 to 14,000 in 1 year
- No dilution or major stake exit from promoters
Red flag or pre-bull run consolidation? You decide.
13. EduInvesting Verdict™
Shradha AI Tech is the sort of microcap story that gives you hope… and then anxiety. The financials are too good, margins too clean, and disclosures too polished for a company that barely crossed ₹15 Cr in annual sales.
The Positives:
- Debt-free, cash-rich
- High promoter holding
- EPS compounding at 100%+
- Regular dividends
The Suspects:
- 70% margins in “trading + software” = questionable
- No fixed assets, R&D, or infra investment
- Valuation fair, but depends on data integrity
So… is this the next multi-bagger?
Only if it’s not the next Mirage Tech Ltd.
Metadata
– Written by EduInvesting Team | 21 July 2025
– Tags: Shradha AI Tech, Smallcap IT, High Margin Stocks, BSE Microcaps, FY26 Earnings
