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Tera Software Limited (TERASOFT) Fair Value & Analysis

Technology · IN · Market cap ₹5.0B

TS Tera Software Limited TERASOFT · NSE
Price₹404.45
Fair Value₹285.83
Upside-29.3%
Quality56/100
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Evidence: High Range ₹200.08 – ₹479.42

Fair value as of: Jul 3, 2026

From 17 valuation models · updated today

Share price −10.4% over the past month.

Price vs Fair Value (12 months)

₹579.35 ₹282.14 Fair Value ₹285.83 Jul 2025 Jul 2026

12‑month range ₹282.14 – ₹579.35 · fair‑value band ₹200.08 – ₹479.42 · the ₹404.45 price screens above the ₹285.83 fair value. As of Jul 3, 2026.

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Analysis

Tera Software Limited (TERASOFT) currently trades at ₹404.45, while our model-based Fair Value estimate is ₹285.83 — implying the stock looks roughly 29.3% overvalued today. We read business quality at 56/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium — the entry price still matters most (evidence: high).

Over the trailing twelve months, Tera Software Limited generated revenue of ₹2.4B at a net margin of 10.4%. Revenue grew 122.7% year over year. It earns a return on equity of 18.5%. Net debt stands at ₹341M. Fundamentals as of Jul 3, 2026

Key figures & financial health

Revenue (TTM) ₹2.4B
Revenue growth (YoY) +123%
Net margin 10.4%
Return on equity 18.5%
Free cash flow −₹233M FY2026
P/E ratio 20.2
More key figures
Operating margin 14.2%
EPS (TTM) ₹19.81
EPS growth (YoY) +120%
Net debt ₹341M FY2026

Figures from reported company fundamentals (EODHD) · as of Jul 3, 2026. TTM = trailing twelve months.

About the company

Tera Software Limited provides IT and integrated related products and services worldwide. It operates through Integrated Solutions, Technical Division, Projects Division, and Others segments. The company offers E-governance and development of enterprise information system for tax/GST, public distribution system, tax automation, registration of land record, road transport and vehicle registration authorities, total revenue management and spot billing system, computer education in schools, fiber network infrastructure, modern record room preparation, AADHAR enrolment, creation of national population register, common service centres, and IT infrastructure, smart metering, and other services. It provides cutting-edge technologies, such as IoT and data analytics to smart cities solutions, which includes traffic, fleet, licensing plates, security, building control, water distribution, sanitation, transit, and street lightings. Tera Software Limited was incorporated in 1994 and is …

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Tera Software Limited reported revenue of ₹2.4B in FY2026 versus ₹1.3B in FY2022, a compound +17.0%/yr. Reported net income was ₹248M in FY2026.

Revenue +17.0%/yr
FY22 ₹1.3B
FY23 ₹1.2B
FY24 ₹845M
FY25 ₹1.1B
FY26 ₹2.4B
Net income
FY22 −₹13.0M
FY23 ₹34.7M
FY24 ₹34.4M
FY25 ₹94.1M
FY26 ₹248M

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6 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Jul 3, 2026).

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Frequently asked questions

Is Tera Software Limited (TERASOFT) undervalued?
As of Jul 3, 2026, our model estimates a fair value of ₹285.83 versus a price of ₹404.45 — about −29% (overvalued). Model-based estimate, not financial advice.
What is the fair value of TERASOFT?
Our model-based fair value for Tera Software Limited is ₹285.83 (as of Jul 3, 2026), built from audited fundamentals. The current price is ₹404.45.
What is the quality score of TERASOFT?
Tera Software Limited has a Quality Score of 56/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Tera Software Limited (TERASOFT)?
Tera Software Limited reported trailing-twelve-month revenue of about ₹2.4B (latest available figure, as of Jul 3, 2026).
What is the net profit margin of TERASOFT?
The net profit margin of Tera Software Limited is about 10.4%, meaning it keeps roughly 10.4% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.