SAHANA - Sahana Systems

📊 NSE: SAHANA 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/14/2025 12:38

💰 Financial Performance

Revenue Growth by Segment

Standalone revenue from operations grew 101.97% YoY to INR 108.41 Cr in FY25. The Softvan subsidiary, focused on deep-tech and defense, achieved 35% of its revenue from new client acquisitions.

Geographic Revenue Split

The company operates in India and international markets including the U.S., Canada, Saudi Arabia, and Argentina. H1 FY26 performance was specifically supported by growth in international business.

Profitability Margins

FY25 standalone PAT margin was 15.9% (INR 17.27 Cr profit on INR 108.41 Cr revenue). H1 FY26 showed significant improvement with a PAT margin of ~24% due to an improved mix of digital projects.

EBITDA Margin

H1 FY26 EBITDA margin reached ~33%, driven by higher utilization and a shift toward higher-margin digital engineering and defense-tech offerings.

Capital Expenditure

Property, plant and equipment increased from INR 0.33 Cr to INR 6.99 Cr in FY25. Capital work-in-progress stood at INR 7.67 Cr as of March 31, 2025.

Credit Rating & Borrowing

Current borrowings were reduced by 71.7% to INR 3.57 Cr in FY25 from INR 12.64 Cr in FY24. Finance costs for FY25 were INR 0.25 Cr, representing 0.23% of total revenue.

⚙️ Operational Drivers

Raw Materials

Technical human capital (Employee benefit expenses: INR 10.94 Cr, 10.1% of revenue) and outsourced service costs (Operation and maintenance expenses: INR 67.77 Cr, 62.5% of revenue).

Import Sources

Global talent markets and international technology stacks; operations span North America, APAC, and the Middle East.

Key Suppliers

Not disclosed in available documents; primarily technology vendors and specialized service providers.

Capacity Expansion

Expanding into EV infrastructure in Andhra Pradesh and scaling global operations in APAC, Middle East, and North America to build long-term sustainable business lines.

Raw Material Costs

Cost of services grew 121.5% YoY to INR 67.77 Cr, representing 62.5% of total revenue in FY25.

Manufacturing Efficiency

Staff utilization rates are a key efficiency metric, driving the EBITDA margin to ~33% in H1 FY26.

Logistics & Distribution

Not applicable for the delivery of digital and software-based services.

📈 Strategic Growth

Expected Growth Rate

66%

Growth Strategy

Scaling high-margin defense-tech and AI-led product engineering; entering EV infrastructure in Andhra Pradesh; global expansion in APAC and North America; and pursuing strategic acquisitions to strengthen deep-tech capabilities.

Products & Services

AI/ML solutions, cloud services, cybersecurity, defense-tech platforms, fintech platforms, EV infrastructure, and digital engineering services.

Brand Portfolio

Sahana System, Softvan, Sourceved, Softvan Lab.

New Products/Services

EV infrastructure projects in Andhra Pradesh and electronic warfare products are expected to contribute significantly to the target of INR 1,000 Cr consolidated revenue by FY28.

Market Expansion

Targeting APAC, Middle East, and North America for global scaling; expanding domestic EV footprint in Andhra Pradesh.

Strategic Alliances

Strategic acquisitions of specialized firms like Softvan to enhance capabilities in deep-tech and the defense ecosystem.

🌍 External Factors

Industry Trends

Rapid growth in AI/ML and defense-tech; industry shifting towards higher-margin product-led services; Sahana is positioning as a deep-tech provider.

Competitive Landscape

Competes in the digital engineering and IT solutions space, differentiating through specialized defense and EV infrastructure verticals.

Competitive Moat

ISO/CMMI certifications and specialized defense-tech capabilities for the Indian Army create high entry barriers and significant switching costs.

Macro Economic Sensitivity

Highly sensitive to Indian government defense budget allocations and global corporate spending on digital transformation.

Consumer Behavior

Increasing government and corporate demand for AI-led digital transformation, cybersecurity, and sustainable infrastructure.

Geopolitical Risks

Operations in North America and the Middle East create sensitivity to international trade barriers and geopolitical stability.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Companies Act 2013, Indian Accounting Standards (IND AS), and Guidance Note on Audit of Internal Financial Controls.

Environmental Compliance

Entering the EV infrastructure space in Andhra Pradesh to build a long-term sustainable business line; specific ESG compliance costs not disclosed.

Taxation Policy Impact

Effective tax rate of ~24.3% in FY25 (INR 6.19 Cr tax on INR 25.43 Cr PBT).

Legal Contingencies

No material misstatements or frauds reported by auditors; audit trail facility maintained throughout the year; specific court case values not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Working capital intensity of service-driven business vs product-driven business; potential impact on cash flow conversion depending on tender milestones.