SoftTech Engineers Limited ( SoftTech Engineers ) reported a modest improvement in profitability for the first quarter of FY27, with consolidated net profit rising 5% year-on-year to ₹115.87 lakh. This performance followed a 23% surge in revenue from operations to ₹3,328.46 lakh, compared to ₹2,701.29 lakh in the corresponding period last year.

The company’s standalone results showed stronger bottom-line growth, with net profit increasing 18% year-on-year to ₹191.89 lakh. Standalone revenue from operations climbed 25% to ₹3,222.02 lakh. Despite the top-line growth, total expenses rose significantly, reflecting increased operational costs across both standalone and consolidated entities.

Financial Performance

The financial data reveals divergent trends between revenue growth and expense management. While revenue expanded sharply, employee benefit expenses and other operational costs absorbed much of the gain, limiting margin expansion. EBITDA stood at ₹96 million (₹960 lakh) with a margin of 29.77%, compared to ₹77 million (₹770 lakh) and 29.79% in the prior year.

On a standalone basis, profit before tax grew 18% to ₹259.51 lakh, outpacing the 25% revenue growth to ₹3,222.02 lakh. Basic earnings per share (EPS) stood at ₹0.75 on a consolidated basis and ₹1.39 on a standalone basis, up from ₹0.69 and ₹1.18 respectively in Q1FY26.

What the Numbers Show

A key observation is the disparity between standalone and consolidated profitability. While standalone net profit rose 18%, consolidated net profit grew only 5%. This divergence suggests that subsidiaries contributed disproportionately to operating expenses or lower-margin activities during the quarter. Employee benefit expenses rose 2% consolidated but fell 2% standalone, indicating cost pressures may be concentrated within specific group entities rather than the holding company itself. Additionally, EBITDA margin remained nearly flat at 29.77% versus 29.79% in the prior year, suggesting that operational efficiency gains were offset by higher input or overhead costs despite significant revenue growth.

Board Appointments and Governance

In its meeting held on August 12, 2026, the Board of Directors approved several key governance changes:

• Chief Growth Officer Appointment: Rahul Gambhir was appointed as Chief Growth Officer, effective August 17, 2026. Gambhir brings over 30 years of experience from global brands including Johnson & Johnson and Red Bull.
• Independent Director Re-appointment: Dr. Rakesh Kumar Singh was re-appointed as an Independent Director for a second consecutive term, subject to shareholder approval at the upcoming Annual General Meeting (AGM). His term will run from August 12, 2027, to August 11, 2032.

The company’s 30th AGM is scheduled for September 29, 2026, to be conducted via Video Conferencing and Other Audio-Visual Means (OAVM).

Fund Utilization Compliance

SoftTech Engineers submitted statements confirming no deviation or variation in the utilization of funds raised through preferential issues dated October 5, 2022, and December 23, 2024.

From the October 2022 issue of ₹33.29 crore, ₹33.14 crore has been utilized towards business expansion and general corporate purposes. From the December 2024 issue of ₹40.01 crore, ₹26.17 crore has been deployed for business plan financing and growth initiatives. The Audit Committee reviewed and noted these disclosures.

Softtech Engineers Limited reported a 37.4% year-on-year increase in revenue to ₹128.30 Cr for the financial year 2025-26 (FY26), driven by strong growth in its SaaS and pay-per-use segments. Profit After Tax (PAT) for the period stood at ₹9.57 Cr, marking a significant recovery from the previous year. The company shared these details during an analysts and institutional investors meeting held on June 23, 2026, in Mumbai as part of the GIA Flagship Conference 2026.

Financial Performance

The company’s operational efficiency improved alongside revenue growth, with EBITDA rising 36.9% year-on-year to ₹34.39 Cr. The EBITDA margin was maintained at 27% in FY26. Pay-per-use revenue, a key indicator of recurring income, grew by 38.6% to reach ₹31.72 Cr, constituting 25% of the total revenue.

Operational Efficiency

Softtech Engineers achieved a robust improvement in its cash conversion cycle, which reduced by 58% over five years to 169 days in FY26 from 362 days in FY22. Days Sales Outstanding (DSO) improved by 43% to 260 days, reflecting faster collections and tighter credit controls. The company attributed this efficiency to milestone-linked billing and the immediate cash realization enabled by pay-per-use transactions.

Strategic Outlook

The company outlined its strategic priorities for FY27, focusing on scaling industrial SaaS, strengthening recurring revenue, and international expansion. Key initiatives include converting the Letter of Intent (LOI) for CivitTwin into a full deployment, growing transaction volumes for its Transferable Development Rights (TDR) platform, and expanding its presence in Germany, the Middle East, and the USA. Softtech aims to improve EBITDA margins, reduce DSO below 200 days, and grow PAT toward double digits in the coming year.

The disclosure regarding the analyst meeting was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The investor presentation has been uploaded to the company’s website.