Tera Software reported a 163% year-on-year increase in net profit to ₹2,480.47 lakh for the financial year ended March 31, 2026. The Hyderabad-based e-governance solutions provider also saw its revenue from operations more than double, rising 121% to ₹23,804.53 lakh compared to ₹10,764.38 lakh in the previous fiscal year.

The Board of Directors recommended a final dividend of ₹1.20 per equity share, amounting to a total payout of ₹1.50 crore. The dividend is subject to shareholder approval at the upcoming Annual General Meeting scheduled for September 29, 2026.

Financial Performance

The company’s Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) grew by approximately 149% to ₹4,063.43 lakh on a standalone basis. This expansion in operating margins contributed significantly to the bottom-line growth, with Profit Before Tax jumping 161% to ₹3,248.03 lakh.

Operational Highlights

Tera Software attributed its strong performance to effective execution of strategic initiatives across its core business segments. Key projects driving growth included:

• BharatNet Projects: Completion of the Odisha BharatNet Phase-II Project and securing a share of ₹3,502.78 crore in the BSNL BharatNet Phase-III Middle Mile Network Project consortium.
• Smart Cities: Continued implementation of the Davanagere Smart City ICT Project.
• Utility Automation: Securing fresh spot billing orders aggregating ₹273.11 crore from various Distribution Companies (DISCOMs) in Uttar Pradesh for the period 2025-27.

What the Numbers Show

The company’s net profit margin expanded significantly, rising from approximately 8.8% in FY25 to 10.4% in FY26. This margin improvement occurred despite a 96% increase in finance costs, which rose to ₹744.57 lakh from ₹379.18 lakh in the prior year. The ability to maintain top-line growth while managing rising interest expenses indicates robust operational leverage during the period.

Corporate Governance Updates

During the year, Tera Software acquired the remaining 26% equity shares of TS Innovations Private Limited, making it a wholly-owned subsidiary effective June 13, 2026. The Board also reconstituted several committees following the completion of Mr. Divakar Atluri’s term as an Independent Director and the appointment of Mr. Veera Brahma Rao Arekapudi.

The 32nd Annual General Meeting will consider the re-appointment of Non-Executive Director Mr. T. Bapaiah Chowdary and approve the remuneration for Vice President Mr. T. Rajasekhar.

Tera Software reported its Q1 financial results, posting a significant year-on-year increase in revenue while consolidated net profit remained stable compared to the same period last year. The results reflect a meaningful expansion in the company's top-line performance, even as profitability held steady on an annual basis.

Q1 Financial Performance

The company's consolidated revenue rose sharply to 499M rupees in Q1, compared to 327M rupees in the corresponding quarter of the previous year. Meanwhile, consolidated net profit was unchanged at 46M rupees, matching the 46M rupees recorded in the year-ago period. The following table summarises the key financial metrics:

Key Highlights

• Revenue growth: Consolidated revenue increased from 327M rupees to 499M rupees on a year-on-year basis.
• Profit stability: Consolidated net profit remained flat at 46M rupees year-on-year.
• The top-line expansion was not accompanied by a corresponding increase in net profit during the quarter.

Tera Software's Q1 results demonstrate a substantial improvement in revenue generation compared to the year-ago quarter. However, the flat net profit figure indicates that the higher revenue did not translate into incremental bottom-line gains during the period.