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    S A Tech Software India Ltd

    SATECH
    Information Technology·24 May 2025
    Management Summary

    SA Tech Software India Limited reported a landmark FY25, crossing ₹100 crores in revenue with robust growth across all key financial indicators, including a 39% YoY revenue increase and a 99% PAT surge. The company launched an AI-enabled IT Asset Leasing platform, SATLeasing, and approved a new subsidiary in Canada to support global expansion. Management provided an optimistic FY26 guidance, targeting ₹135 crores in revenue and ₹20 crores in EBITDA, driven by AI integration and strategic market expansions, despite minor working capital delays.

    Highlights

    6

    • Revenue reached ₹100 crores in FY25, reflecting a robust 39% year-on-year growth.

    • EBITDA came around ₹12.88 crores, up 45% YoY, with an EBITDA margin of 12.86%.

    • Profit after tax stood at ₹7.43 crores, showing a 99% increase compared to the last Financial Year, with a profit margin of 7.47%.

    • EPS came up to ₹6.33 per share, a 55% jump from FY24.

    • Launched SATLeasing, India's first AI-enabled IT Asset Leasing platform, redefining infrastructure lifecycle management.

    • Board approved a new subsidiary in Canada, aligning with North American expansion strategy.

    Concerns

    2

    • Initial segment report showed a significant drop in GCC revenue, later clarified as a clerical mistake and a smaller half-yearly decline from ₹23 crores to ₹22 crores.

    • Delays in working capital cycle payments from some clients, expected to normalize to 45-65 days in the next 2-3 months.

    What Changed2

    vs Q2 FY26

    Guidance items11 → 6 (-5)Risks discussed4 → 2 (-2)

    Key financials

    Single quarter

    06 metrics
    1. 01Revenue₹100 Cr+39%YoY
    2. 02EBITDA₹12.88 Cr+45%YoY
    3. 03PAT₹7.43 Cr+99%YoY
    4. 04EBITDA Margin12.9%
    5. 05Profit Margin7.5%

    Segment breakdown

    GCC
    ₹22 Cr Revenue (Half-Yearly)50% Revenue Share
    Consulting
    50% Revenue Share
    List

    Order Book

    medium confidence

    Pipeline

    deal pipeline tcv

    Pipeline in process for new GCCs; 3 GCCs expected to be signed this financial year.

    "Management indicates a healthy pipeline for new GCCs and expects to sign 3 more this financial year, contributing to future growth."

    Source:
    Q&A

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Debt

    Debt disclosed

    M&A

    New Subsidiary in Canada

    acquisition · announced

    Liquidity

    Liquidity disclosed

    Company is comfortable with its cash flow and does not expect to raise debt or equity.

    Guidance & targets

    6
    CategoryTargetPriority
    Revenue
    Revenue Target
    ₹135 crores
    		High
    Revenue
    Revenue Growth
    35%
    		High
    Profitability
    EBITDA Target
    ₹20 crores
    		High
    Revenue Mix
    GCC Revenue Share
    60%
    		High
    Revenue Mix
    India Revenue Share
    40%
    		High
    Reporting
    Reporting Frequency
    Quarterly results
    		High

    GCC Revenue Growth & Stability

    next quarter
    CurrentReported ₹22 crores (half-yearly basis), down from ₹23 crores (half-yearly FY24)
    TargetGrowth and stabilization, contributing to 60% of revenue mix as per guidance

    Why it matters

    GCC is a key growth driver and strategic focus; its performance is critical for overall revenue targets and the shift in revenue mix.

    Manoj Joshi: Yes, our GCC revenue is not decreasing our number of clients with whom we are talking is not decreasing. This is the area where we are going to see robust growth in the next few years, in coming years, coming months. The reason for just a small drop in GCC revenue, may be because of the holidays and all those things, but we don't see any reason of GCC being slowing down.

    How to verify

    key_financials.segment_breakdown[name='GCC']

    Risks & concerns

    2
    RiskSeverity

    GCC Revenue Fluctuation

    Initial reported drop in GCC revenue was a clerical error; corrected figure showed a minor half-yearly decline, attributed to holidays, with management asserting robust demand and pipeline for future growth. — Analyst downplayed

    low

    Working Capital Cycle Delays

    Delays in payments from some clients are extending the working capital cycle, but management expects normalization to 45-65 days within 2-3 months. — Management acknowledged

    medium

    Q&A highlights

    8

    “Part of the segment statement has been revised has been filed. There was a clerical mistake in the segment report. The comparative bill numbers are from Rs. 23 crores it has come down to Rs. 22 crores on a half yearly basis in the GCC segment.”

    Clarified a significant reported decline in GCC revenue was a clerical error, correcting investor perception of segment performance.

    asked by Ankur

    2 min read6 chapters

    Detailed Narrative

    01

    Landmark FY25 Performance and Robust Growth

    SA Tech Software India Limited achieved a landmark year in FY25, crossing the ₹100 crores revenue milestone, representing a robust 39% year-on-year growth. EBITDA increased by 45% to ₹12.88 crores, resulting in a 12.86% margin. Profit after tax saw a significant 99% increase to ₹7.43 crores, with EPS rising 55% to ₹6.33 per share. These strong financial outcomes were driven by operational efficiency and strategic investments in infrastructure, employee growth, and AI integrations.

    02

    Strategic Product Launch: SATLeasing

    The company launched SATLeasing, India's first AI-enabled IT Asset Leasing platform, aimed at redefining infrastructure lifecycle management. This platform is a technology-driven solution, not capital-intensive, designed to simplify the leasing business, particularly in the IT sector. Management sees significant potential for this new offering over the next 5-10 years in India.

    03

    Global Expansion Initiatives and GCC Focus

    SA Tech is actively pursuing global expansion, with the Board approving a new subsidiary in Canada to strengthen its North American presence. Sales teams are also being built across Europe and the Middle East, with new salespeople onboarded in London. The company sees great potential in these regions, particularly for its GCC and AI services, and expects formal operations to commence as business grows. The GCC segment achieved revenue parity with consulting at 50% in FY25, and management expects to sign 3 new GCCs this financial year.

    04

    AI Integration and Efficiency Drive

    AI is being integrated across all internal processes, from HR to sales, to improve operational efficiency and performance. The company is also offering a new AI product called HonestAI, which focuses on delivering business functions and applications rapidly (4-6 weeks) in a B2B model. This AI-first approach is expected to significantly enhance efficiencies, improve operating performance, and drive both top-line and bottom-line growth.

    05

    Financial Outlook and Reporting Changes

    For FY26, SA Tech has set a revenue target of approximately ₹135 crores, representing a 35% jump from FY25, with an expected EBITDA of around ₹20 crores. The company aims to shift its revenue mix to 60% from GCC and 40% from India, reversing the current 40% GCC and 60% India split. Furthermore, SA Tech announced that it will be providing quarterly financial results going forward⏳, moving from its previous half-yearly reporting.

    06

    Capital Structure and Working Capital Management

    The company repaid ₹7-8 crores of long-term loans to banks following its IPO process, including a specific repayment of ₹7.36 crores. While long-term borrowings have decreased, short-term borrowings have increased due to an extended working capital cycle. Management acknowledged delays in payments from some clients, which are expected to normalize📎 the working capital cycle to 45-65 days within the next 2-3 months. The company stated it is comfortable with its cash flow and does not anticipate needing to raise additional debt or equity.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.