SoftTech Engineers Limited , a pioneer in digital solutions for urban infrastructure and smart cities, has reported impressive financial results for the second quarter of fiscal year 2025-26. The company's performance demonstrates resilience and growth in a competitive market landscape.

Financial Highlights

SoftTech Engineers achieved a revenue of Rs 25.71 crore in Q2 FY2025-26, marking a significant 12% increase from Rs 22.93 crore in the same quarter of the previous fiscal year. This growth underscores the company's strong market position and increasing demand for its innovative solutions.

The company's financial performance for Q2 FY2025-26 is summarized in the following table:

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed a robust increase of 18.01% year-over-year, reaching Rs 7.60 crore. The EBITDA margin improved from 28.00% to 30.00%, indicating enhanced operational efficiency.

Profit After Tax (PAT) also saw a significant rise of 27.13%, increasing from Rs 1.29 crore in Q2 FY2024-25 to Rs 1.64 crore in Q2 FY2025-26. However, it's worth noting that the Earnings Per Share (EPS) decreased from Rs 0.36 to Rs 0.13, which may be due to factors such as an increase in the number of outstanding shares.

Order Book and Future Prospects

SoftTech Engineers has secured significant orders, further strengthening its market position:

1. Andhra Pradesh Capital Region Development Authority (APCRDA) order worth Rs 28.91 crore (including tax) for a duration of 5 years and 5 months.
2. Airports Authority of India (AAI) order valued at Rs 17.67 crore (including tax) for a 5-year period.

These new contracts have contributed to a robust order book of Rs 241.93 crore, providing visibility for future revenue streams. Additionally, the company is anticipating a potential Dubai-Oman order worth Rs 334 crore, which could significantly boost its international presence and order book further.

Conclusion

SoftTech Engineers' Q2 FY2025-26 results reflect the company's ability to capitalize on the growing demand for digital solutions in urban infrastructure and smart cities. The substantial increase in revenue, improved profitability, and a strong order book position the company well for sustained growth in the coming quarters.

Investors and stakeholders will likely keep a close watch on the potential Dubai-Oman order and the company's execution of its current projects, as these factors could play a crucial role in SoftTech's future performance and market valuation.

SoftTech Engineers Limited has announced the cancellation of its proposed acquisition of Eximietas Developer Private Limited (EDPL), citing difficulties in completing the Share Purchase Agreement. This development comes after the initial announcement of the acquisition on September 30, 2025.

Key Details of the Termination

Regulatory Compliance

SoftTech Engineers Limited has duly informed the National Stock Exchange of India Limited and BSE Limited about this development, in accordance with Regulation 30(7) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Company's Statement

In its official communication, SoftTech Engineers stated, "It is hereby informed that due to difficulties in completing the Share Purchase Agreement the Company has decided not to proceed with the said acquisition and has consequently terminated the Share Purchase Agreement (SPA) and Memorandum of Understanding (MOU) which shall stand cancelled."

The company emphasized that the cancellation of the proposed acquisition does not entail any financial liability on SoftTech Engineers Limited.

This termination marks a significant shift in SoftTech Engineers' strategic plans, which were initially set in motion less than a month ago. The company's decision to withdraw from the acquisition underscores the complexities involved in corporate transactions and the importance of thorough due diligence in the merger and acquisition process.

Investors and market watchers will likely be keen to observe how this development might impact SoftTech Engineers' future growth strategies and potential alternative paths for expansion the company might explore.