💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations decreased by 5.71% YoY, falling from INR 1,351.31 lakhs in FY24 to INR 1,274.17 lakhs in FY25. The business operates in two primary segments: Information Technology services and Infrastructural facilities (leasing), though specific growth percentages for each were not broken down in the provided summary.

Geographic Revenue Split

The company is domiciled in India with its registered office in Hyderabad. Specific regional revenue splits are not disclosed, but the company maintains significant infrastructural facilities in the Software Units Layout, Madhapur.

Profitability Margins

Net Profit Margin for FY25 stood at 46.26% of total income, a slight decrease from 51.26% in FY24. The decline is attributed to a 5.71% drop in operational revenue and a 4.39% increase in total expenses.

EBITDA Margin

EBITDA margin is approximately 71.72% for FY25, calculated from a Total Income of INR 1,866.85 lakhs and operating expenses excluding depreciation (INR 185.74 lakhs) and finance costs (INR 32.98 lakhs). This high margin is heavily supported by 'Other Income' of INR 592.68 lakhs, which constitutes 31.75% of total income.

Capital Expenditure

Historical capital expenditure is reflected in the Property, Plant and Equipment (PPE) balance of INR 977.18 lakhs and Investment Property of INR 1,944.02 lakhs as of March 31, 2025. PPE saw a net decrease from INR 1,068.43 lakhs in FY24 due to depreciation of INR 185.74 lakhs.

Credit Rating & Borrowing

The company reported finance costs of INR 32.98 lakhs for FY25, a minor decrease of 2.68% from INR 33.89 lakhs in FY24. The company stated it has not raised any new loans during the year and has no sanctioned working capital limits in excess of INR 5 crore.

⚙️ Operational Drivers

Raw Materials

As a service-oriented company (IT and Leasing), there are no physical raw materials. The primary cost driver is human capital, with employee benefit expenses totaling INR 112.57 lakhs, representing 15.07% of total expenses.

Import Sources

Not applicable for IT services and property leasing operations.

Key Suppliers

Not disclosed as the company does not engage in manufacturing; however, it utilizes custodians for its portfolio of investments which are verified for existence during audits.

Capacity Expansion

Current capacity is represented by Investment Property valued at INR 1,944.02 lakhs and PPE of INR 977.18 lakhs. No specific expansion plans or timelines for new infrastructural units were disclosed in the documents.

Raw Material Costs

Not applicable. Operational costs are driven by 'Other Expenses' of INR 415.47 lakhs (up 13% YoY) and employee costs of INR 112.57 lakhs.

Manufacturing Efficiency

Not applicable. Efficiency is measured by the utilization of leased spaces and the productivity of IT service delivery.

Logistics & Distribution

Not applicable as services are delivered digitally or through physical property leasing.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company focuses on two pillars: providing IT services and leveraging its real estate assets for leasing income. Growth is supported by a strong balance sheet with Other Equity of INR 9,539.16 lakhs and a significant interest-bearing cash position (Interest income of INR 440.73 lakhs from fixed deposits).

Products & Services

Information technology services, software development, and infrastructural facilities including the leasing of office spaces and properties.

Brand Portfolio

SoftSol India Limited.

New Products/Services

Not disclosed in the provided annual report segments.

Market Expansion

The company operates primarily out of Hyderabad; specific expansion plans into new geographic regions were not detailed.

Market Share & Ranking

Not disclosed.

Strategic Alliances

The company has an investment portfolio that represents a principal element of its net assets, though specific partner names for JVs were not listed.

🌍 External Factors

Industry Trends

The industry is shifting toward hybrid work models, which may impact the long-term demand for physical 'Infrastructural facilities' and leasing spaces. The company is positioned as a provider of both the technology and the physical space for tech firms.

Competitive Landscape

Competes with other IT service providers and commercial real estate developers in the Hyderabad Hitech City area.

Competitive Moat

The company's moat is built on its debt-free status and ownership of prime real estate in Hyderabad's tech corridor (Madhapur). This provides a stable asset base and recurring rental income, which is sustainable as long as the region remains a tech hub.

Macro Economic Sensitivity

Highly sensitive to interest rate fluctuations due to INR 440.73 lakhs in interest income, and sensitive to the growth of the Indian IT sector which drives demand for its services and office spaces.

Consumer Behavior

Shift toward outsourced IT services and flexible office space requirements.

Geopolitical Risks

Not specifically detailed, though IT service exports are generally subject to international trade relations and visa regulations.

⚖️ Regulatory & Governance

Industry Regulations

Subject to the Companies Act 2013, Indian Accounting Standards (Ind AS), and SEBI regulations. It is not required to be registered under section 45-IA of the RBI Act.

Environmental Compliance

Not disclosed; the company has no unspent Corporate Social Responsibility (CSR) amounts for the year.

Taxation Policy Impact

The company's current tax expense for FY25 was INR 277.18 lakhs on a PBT of INR 1,120.09 lakhs, representing an effective tax rate of approximately 24.75%.

Legal Contingencies

The company reported that there are no undisputed statutory dues payable for more than six months. No specific high-value pending court cases were quantified in the provided text.

⚠️ Risk Analysis

Key Uncertainties

The valuation and existence of the portfolio of investments is cited as a Key Audit Matter, representing a significant portion of net assets. Any impairment in these investments (Ind AS 36) would directly impact the bottom line.

Geographic Concentration Risk

High concentration in Hyderabad, Telangana, where its registered office and primary infrastructural assets are located.

Third Party Dependencies

Dependent on KFin Technologies Limited for registrar and share transfer services and various custodians for investment holdings.

Technology Obsolescence Risk

As an IT service provider, the company faces risks if it fails to update its service offerings in line with rapid technological shifts.

Credit & Counterparty Risk

The company maintains significant cash balances with banks (INR 100.43 lakhs) and fixed deposits, exposing it to banking sector counterparty risk.