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Indian (NIFTY) Software Industry Analysis

UpdatedApr 02, 2026
DataAggregated Company Financials
Companies76
  • 7D0.2%
  • 3M-24.8%
  • 1Y-22.6%
  • YTD-23.8%

Over the last 7 days, the Software industry has dropped 3.9%, driven by pullbacks in Tata Elxsi and Fractal Analytics of 2.0% and 3.1%, respectively. Overall the industry is down 25% in 12 months. Earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

Has the Indian Software Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 02 Apr 2026₹2.1t₹552.2b₹77.7b23.6x27.2x3.8x
Sat, 28 Feb 2026₹2.3t₹551.0b₹77.7b26.4x29.1x4.1x
Mon, 26 Jan 2026₹2.5t₹525.2b₹74.2b30.9x34x4.8x
Wed, 24 Dec 2025₹2.7t₹506.2b₹74.4b36.8x36x5.3x
Fri, 21 Nov 2025₹2.7t₹503.3b₹73.9b39.4x36.6x5.4x
Sun, 19 Oct 2025₹2.7t₹486.3b₹69.0b38.5x38.8x5.5x
Tue, 16 Sep 2025₹2.8t₹485.3b₹69.9b35.6x39.4x5.7x
Thu, 14 Aug 2025₹2.6t₹482.7b₹70.8b37.1x37.2x5.5x
Sat, 12 Jul 2025₹2.8t₹474.9b₹69.3b36.7x40.3x5.9x
Mon, 09 Jun 2025₹2.8t₹485.5b₹71.4b32.3x39.6x5.8x
Wed, 07 May 2025₹2.5t₹477.5b₹67.0b30.1x37.9x5.3x
Fri, 04 Apr 2025₹2.4t₹473.0b₹64.5b29.9x37.9x5.2x
Sun, 02 Mar 2025₹2.4t₹473.0b₹64.5b29.4x37.8x5.2x
Tue, 28 Jan 2025₹2.8t₹465.6b₹65.2b35.1x43.5x6.1x
Thu, 26 Dec 2024₹3.4t₹465.6b₹67.4b42.1x50.6x7.3x
Sat, 23 Nov 2024₹3.1t₹467.0b₹70.5b31.9x43.8x6.6x
Mon, 21 Oct 2024₹3.4t₹454.7b₹66.9b36.6x50.3x7.4x
Wed, 18 Sep 2024₹3.5t₹452.8b₹66.6b37.5x52.6x7.7x
Fri, 16 Aug 2024₹3.2t₹452.8b₹66.6b37.4x47.9x7x
Sun, 14 Jul 2024₹3.3t₹439.2b₹64.4b41.9x51.6x7.6x
Tue, 11 Jun 2024₹2.8t₹437.8b₹64.2b41.4x44.3x6.5x
Thu, 09 May 2024₹2.8t₹442.9b₹64.6b38.4x42.8x6.2x
Sat, 06 Apr 2024₹2.9t₹432.1b₹62.1b43.6x47.4x6.8x
Mon, 04 Mar 2024₹2.9t₹432.0b₹62.0b39.2x46.7x6.7x
Wed, 31 Jan 2024₹2.7t₹425.4b₹60.4b38.1x44.9x6.4x
Fri, 29 Dec 2023₹2.5t₹411.8b₹53.4b40.4x47.4x6.1x
Sun, 26 Nov 2023₹2.4t₹411.1b₹53.4b37.6x44.4x5.8x
Tue, 24 Oct 2023₹2.3t₹466.3b₹59.7b33.2x38.4x4.9x
Thu, 21 Sep 2023₹2.3t₹453.2b₹57.7b33.9x39.2x5x
Sat, 19 Aug 2023₹2.2t₹453.0b₹57.7b35.8x38.3x4.9x
Mon, 17 Jul 2023₹2.1t₹431.3b₹54.3b32.1x39.3x4.9x
Wed, 14 Jun 2023₹2.0t₹428.6b₹53.7b31.3x38.1x4.8x
Fri, 12 May 2023₹1.8t₹423.0b₹53.0b28.4x33.7x4.2x
Sun, 09 Apr 2023₹1.6t₹406.7b₹52.9b24.8x30.1x3.9x
Price to Earnings Ratio

30.1x


Total Market Cap: ₹1.6tTotal Earnings: ₹52.9bTotal Revenue: ₹406.7bTotal Market Cap vs Earnings and Revenue0%0%0%
Indian Software Industry Price to Earnings3Y Average 41.2x202420252026
Current Industry PE
  • Investors are pessimistic on the Indian Software industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 26.0x which is lower than its 3-year average PE of 41.2x.
  • The 3-year average PS ratio of 5.8x is higher than the industry's current PS ratio of 3.7x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 14% per year over the last three years.
  • Revenues for these companies have grown 11% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Indian Tech industry?

IN Market-2.14%
Tech-0.38%
Software0.21%
Application Software0.69%
Systems Software-0.79%
Industry PE
  • Investors are most optimistic about the Systems Software industry even though it's trading below its 3-year average PE ratio of 56.8x.
    • Analysts are expecting annual earnings growth of 21.8%, which is higher than its past year's earnings decline of 12.2% per year.
  • Investors are most pessimistic about the Application Software industry, which is trading below its 3-year average of 34.4x.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 22% over the next 5 years.
  • This is better than its past earnings decline of 12% per year.
  • In contrast, the Application Software industry is expected to see its earnings grow by 18% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
532466 Oracle Financial Services Software₹6.88k4.3%
+₹24.6b		-11.4%PE24.5x
CAPILLARY Capillary Technologies India₹485.653.1%
+₹1.2b		n/aPE174.7x
TANLA Tanla Platforms₹419.001.8%
+₹1.0b		-12.4%PE11.3x
ZAGGLE Zaggle Prepaid Ocean Services₹217.493.5%
+₹1.0b		-38.7%PE22.7x
BSOFT Birlasoft₹349.650.6%
+₹628.8m		-10.8%PE21x

Latest News

DRCSYSTEMS
₹15.18
DRC Systems India
7D
15.6%
1Y
-43.2%
500408
₹4,128.20
Tata Elxsi
7D
-2.0%
1Y
-21.1%

500408: New Auto Software Alliances Will Test Fairly Priced Future Earnings Multiple

Analysts have reduced the fair value estimate for Tata Elxsi from ₹4,200 to ₹3,700, reflecting updated views on discount rates, revenue growth, profit margins, and a lower future P/E multiple. What's in the News Tata Elxsi and Terumo Corporation inaugurated the Terumo Tata Elxsi Offshore Development Center to support development of cardiac and vascular solutions, combining design, engineering, regulatory and AI capabilities for global markets (Key Developments).
KPITTECH
₹674.30
KPIT Technologies
7D
0.1%
1Y
-48.6%
RATEGAIN
₹479.65
RateGain Travel Technologies
7D
-3.2%
1Y
6.3%

RATEGAIN: AI Commerce And Payments Platform Expansion Will Support Future Upside

Analysts have maintained their overall fair value estimate for RateGain Travel Technologies at ₹719.88, while making only marginal tweaks to inputs such as the discount rate and future P/E assumptions. This has led to a largely unchanged price target rationale.
ZAGGLE
₹217.49
Zaggle Prepaid Ocean Services
7D
3.5%
1Y
-38.7%
TANLA
₹419.00
Tanla Platforms
7D
1.8%
1Y
-12.4%

OTT Pricing And Authentication Shifts Will Pressure Messaging Economics Yet Leave Long Term Upside

Catalysts About Tanla Platforms Tanla Platforms provides communications platform as a service and related messaging solutions to enterprises and telcos. What are the underlying business or industry changes driving this perspective?
BSOFT
₹349.65
Birlasoft
7D
0.6%
1Y
-10.8%

BSOFT: Lower Future P E And Trimmed Fair Value Will Restrain Upside

Analysts have trimmed their fair value estimate for Birlasoft from ₹318 to about ₹304.51. Modest adjustments to the discount rate, revenue growth and future P/E expectations are only partly offset by a slightly higher projected profit margin.
AURIONPRO
₹783.25
Aurionpro Solutions
7D
-1.5%
1Y
-51.7%

AURIONPRO: Data Centre Wins Will Support Future Earnings

Analysts have kept the price target for Aurionpro Solutions steady at ₹1,545, citing unchanged assumptions around fair value, revenue growth, profit margin and future P/E, with only marginal adjustments to model inputs such as the discount rate. What's in the News Largest ever order win in the data centre segment, with a multi year, AI ready green data centre project in India valued at close to ₹3,500 million for a hyperscale operator, covering design, engineering and full MEP execution (Client announcement).
MAPMYINDIA
₹863.55
C. E. Info Systems
7D
-3.1%
1Y
-50.5%

MAPMYINDIA: Future Mapping Investments And Public Transport Expansion Will Drive Upside

Analysts have kept their price target for C. E.
INTELLECT
₹635.90
Intellect Design Arena
7D
-3.2%
1Y
-6.9%

INTELLECT: AI Partnerships And New Platforms Will Support Future Upside Potential

Analysts have trimmed their price target on Intellect Design Arena by ₹210, from about ₹1,195.75 to ₹985.75, as they now apply a slightly lower assumed profit margin and P/E multiple, despite only small adjustments to discount rate and revenue growth inputs. What's in the News Fintel PLC signed non binding heads of terms with Intellect Design Arena to form a 50:50 joint venture to build an AI led financial advisory platform for the UK retail financial services market, subject to regulatory approvals (Strategic Alliances).
FRACTAL
₹798.05
Fractal Analytics
7D
-3.1%
1Y
n/a
532466
₹6,883.00
Oracle Financial Services Software
7D
4.3%
1Y
-11.4%
532408
₹152.75
Sigma Advanced Systems
7D
-5.2%
1Y
188.6%
543931
₹266.70
Veefin Solutions
7D
8.7%
1Y
-10.0%
CAPILLARY
₹485.65
Capillary Technologies India
7D
3.1%
1Y
n/a
BLACKBUCK
₹575.55
BlackBuck
7D
-2.6%
1Y
39.7%