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Indian (NIFTY) Software Industry Analysis

UpdatedDec 25, 2025
DataAggregated Company Financials
Companies75
  • 7D2.8%
  • 3M-5.4%
  • 1Y-24.5%
  • YTD-25.3%

In the last week, the Software industry is up 2.4%, with Tata Elxsi up 8.3%. However, the industry is down 24% over the past year. Looking forward, earnings are forecast to grow by 17% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 25 Dec 2025₹2.7t₹506.2b₹74.4b36.5x35.7x5.3x
Sat, 22 Nov 2025₹2.7t₹503.6b₹73.9b38.6x35.9x5.3x
Mon, 20 Oct 2025₹2.7t₹487.2b₹69.0b38.5x38.8x5.5x
Wed, 17 Sep 2025₹2.8t₹485.3b₹69.9b36x39.7x5.7x
Fri, 15 Aug 2025₹2.6t₹483.0b₹71.0b37.9x37.1x5.5x
Sun, 13 Jul 2025₹2.8t₹474.6b₹68.9b37.8x40.2x5.8x
Tue, 10 Jun 2025₹2.9t₹485.1b₹71.4b33.5x40.5x6x
Thu, 08 May 2025₹2.6t₹477.5b₹67.0b29.7x38.4x5.4x
Sat, 05 Apr 2025₹2.4t₹473.0b₹64.5b29.5x36.7x5x
Mon, 03 Mar 2025₹2.4t₹473.0b₹64.5b29.4x37.8x5.2x
Wed, 29 Jan 2025₹2.8t₹466.5b₹65.3b35.2x42.7x6x
Fri, 27 Dec 2024₹3.4t₹465.6b₹67.4b42.2x51.1x7.4x
Sun, 24 Nov 2024₹3.1t₹467.0b₹70.5b31.9x43.8x6.6x
Tue, 22 Oct 2024₹3.3t₹454.7b₹66.9b36.6x49.3x7.3x
Thu, 19 Sep 2024₹3.4t₹452.8b₹66.6b38x50.8x7.5x
Sat, 17 Aug 2024₹3.3t₹452.9b₹66.7b38.6x48.9x7.2x
Mon, 15 Jul 2024₹3.3t₹439.2b₹64.4b41.9x51.6x7.6x
Wed, 12 Jun 2024₹2.9t₹438.2b₹64.4b41x44.4x6.5x
Fri, 10 May 2024₹2.7t₹442.9b₹64.6b37.6x42.2x6.2x
Sun, 07 Apr 2024₹2.9t₹432.1b₹62.1b43.6x47.4x6.8x
Tue, 05 Mar 2024₹2.9t₹432.0b₹62.0b40.1x46.5x6.7x
Thu, 01 Feb 2024₹2.8t₹428.8b₹60.9b37.5x45.3x6.4x
Sat, 30 Dec 2023₹2.5t₹411.9b₹53.4b38.2x47.5x6.2x
Mon, 27 Nov 2023₹2.4t₹411.1b₹53.4b37.6x44.4x5.8x
Wed, 25 Oct 2023₹2.3t₹466.3b₹59.7b33.2x38.4x4.9x
Fri, 22 Sep 2023₹2.2t₹453.2b₹57.7b33.2x38.9x5x
Sun, 20 Aug 2023₹2.2t₹453.0b₹57.6b34.9x38.3x4.9x
Tue, 18 Jul 2023₹2.1t₹431.3b₹54.3b32.2x39.3x4.9x
Thu, 15 Jun 2023₹2.0t₹428.2b₹53.7b31.8x38.1x4.8x
Sat, 13 May 2023₹1.8t₹424.6b₹52.9b27.4x33.9x4.2x
Mon, 10 Apr 2023₹1.6t₹406.7b₹52.9b24.8x30.1x3.9x
Wed, 08 Mar 2023₹1.6t₹406.7b₹52.9b25.4x30.9x4x
Fri, 03 Feb 2023₹1.7t₹410.2b₹54.0b28.4x30.7x4x
Sun, 01 Jan 2023₹1.6t₹390.4b₹52.6b32.3x30.4x4.1x
Price to Earnings Ratio

30.4x


Total Market Cap: ₹1.6tTotal Earnings: ₹52.6bTotal Revenue: ₹390.4bTotal Market Cap vs Earnings and Revenue0%0%0%
Indian Software Industry Price to Earnings3Y Average 41.1x202320242025
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 36.0x which is lower than its 3-year average PE of 41.1x.
  • The industry is trading close to its 3-year average PS ratio of 5.7x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 12% per year over the last three years.
  • Revenues for these companies have grown 9.0% 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 Market1.60%
Tech2.35%
Software2.79%
Systems Software4.90%
Application Software1.52%
Industry PE
  • Investors are most optimistic about the Systems Software industry even though it's trading below its 3-year average PE ratio of 57.3x.
    • Analysts are expecting annual earnings growth of 17.8%, which is higher than its past year's earnings growth of 6.2% per year.
  • Investors are most pessimistic about the Application Software industry, which is trading close to its 3-year average of 33.9x.
Forecasted Growth
  • Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 18% over the next 5 years.
  • This is better than its past earnings growth rate of 6.2% per year.
  • In contrast, the Application Software industry is expected to see its earnings grow by 16% 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
500408 Tata Elxsi₹5.38k8.3%
+₹25.6b		-21.6%PE50x
KPITTECH KPIT Technologies₹1.22k4.1%
+₹13.2b		-15.1%PE42.9x
BLACKBUCK BlackBuck₹670.707.1%
+₹8.1b		29.5%PE40.4x
532466 Oracle Financial Services Software₹7.78k0.8%
+₹5.2b		-36.7%PE28.5x
SASKEN Sasken Technologies₹1.50k27.6%
+₹4.9b		-29.3%PE58x

Latest News

SASKEN
₹1,504.40
Sasken Technologies
7D
27.6%
1Y
-29.3%
INTELLECT
₹1,010.20
Intellect Design Arena
7D
-1.2%
1Y
10.4%

INTELLECT: AI Lending Wins Will Drive Stronger 2025 Outlook

Analysts have made a marginal upward revision to their price target on Intellect Design Arena to ₹1,222.5. This reflects slightly higher discount rate and valuation assumptions, while leaving core growth and profitability forecasts essentially unchanged. What's in the News Launched PF Credit tailored for the Philippines market, a suite of AI driven digital lending experts built on the Purple Fabric platform to speed up, de-risk and automate end-to-end credit operations for local banks (Key Developments) PF Credit for the Philippines embeds compliance with BSP, AMLC and Data Privacy Act norms, and aims to cut onboarding times by up to 10X, reduce NPA risk by up to 30 percent and improve loan recovery rates by up to 20 percent (Key Developments) NCBA rolled out Connect Plus, an upgraded transaction banking platform powered by Intellect's eMACH.ai Digital Transaction Banking stack, to deliver faster, more secure and more intuitive corporate banking services across Africa (Key Developments) The new NCBA platform provides integrated account services, payments, collections, liquidity and trade finance on a cloud native, microservices based architecture to speed product rollouts and enhance operational efficiency (Key Developments) The board has scheduled a meeting on October 31, 2025 to review unaudited financial results for the September quarter and half year, consider a change in management and address other business matters (Key Developments) Valuation Changes Fair Value: Unchanged at ₹1,222.5 per share, indicating no revision to the core valuation output.
KPITTECH
₹1,217.30
KPIT Technologies
7D
4.1%
1Y
-15.1%

KPITTECH: Upcoming Board Decisions On Acquisitions Will Drive Bullish Outlook

Analysts have slightly raised their price target for KPIT Technologies to bring it more in line with their unchanged fair value estimate of ₹1,311.76 per share, reflecting marginally higher discount rate assumptions and steady expectations for revenue growth, profit margins, and future valuation multiples. What's in the News Board meeting scheduled for November 10, 2025 to consider and approve the unaudited financial results for the quarter and half year ended September 30, 2025, along with the limited review report (company filing) Board meeting set for October 28, 2025 at 10:05 IST to evaluate the proposed acquisition of Caresoft, signaling potential inorganic expansion in automotive engineering services (company filing) On October 28, 2025 the board will also review planned strategic investments in N-Dream AG and Helm Ai, underscoring KPIT Technologies focus on gaming and autonomous software capabilities (company filing) The October 28, 2025 agenda includes consideration of granting 8,000 stock options to eligible employees under the KPIT Technologies Limited Restricted Stock Unit Plan 2022, highlighting continued use of equity-based incentives (company filing) Valuation Changes Fair Value Estimate is unchanged at ₹1,311.76 per share, indicating no reassessment of intrinsic value.
TANLA
₹547.30
Tanla Platforms
7D
-0.8%
1Y
-18.4%

TANLA: Interim Dividend Decision Will Drive Upside Into Upcoming Board Meeting

Analysts have modestly reiterated their outlook on Tanla Platforms, keeping the fair value estimate unchanged at ₹768.00 per share, as minor tweaks to the discount rate and long term assumptions were not enough to justify a revision in the target price. What's in the News Board meeting scheduled for October 17, 2025, to review unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025 (company filing) Consideration of an interim dividend for FY 2025-26 included on the October 17, 2025, board meeting agenda (company filing) Valuation Changes Fair Value Estimate: unchanged at ₹768.00 per share, reflecting negligible impact from updated assumptions Discount Rate: risen slightly to 15.18 percent from 15.12 percent, implying a marginally higher required return Revenue Growth: effectively unchanged at about 11.25 percent, indicating no material shift in top line expectations Net Profit Margin: broadly stable at around 12.49 percent, with no significant revision to profitability assumptions Future P/E: edged up slightly to about 20.92x from 20.89x, signaling a marginally higher implied earnings multiple
RATEGAIN
₹650.00
RateGain Travel Technologies
7D
-1.6%
1Y
-8.5%

RATEGAIN: AI Travel Solutions Will Drive Long Term Upside Potential

Analysts have raised their price target on RateGain Travel Technologies from ₹690 to ₹875, citing sharply upgraded long term revenue growth expectations despite slightly lower margin and discount rate assumptions. What's in the News Launched Rev-AI Clarity, an intelligent revenue assistant for car rental operators that converts complex demand and pricing data into conversational insights and decision ready recommendations (company announcement) Renewed a long term AirGain pricing intelligence contract with Singapore Airlines, extending a seven year partnership to support real time fare monitoring and revenue optimization (client announcement) Formed multiple strategic hotel tech partnerships, including integrations with Arpon Enterprise, HotelIQ, FLYR, and Oracle OPERA Cloud, to embed RateGain channel management and rate intelligence tools directly into partner platforms (client announcements) Expanded its relationship with Royal Orchid Hotels, which adopted RateGain's AI first UNO suite across its growing portfolio to boost direct bookings and unify commercial operations (client announcement) Issued fiscal 2026 guidance targeting approximately 55 to 60 percent year on year revenue growth over fiscal 2025, reflecting confidence in post acquisition scaling (corporate guidance) Valuation Changes Consensus Analyst Price Target has risen significantly from ₹690 to ₹875, implying a materially higher assessed fair value for RateGain Travel Technologies.
500408
₹5,379.55
Tata Elxsi
7D
8.3%
1Y
-21.6%

500408: Higher Revenue Expectations May Fail To Offset Margin Pressure

Narrative Update on Tata Elxsi Analysts have raised their fair value estimate for Tata Elxsi from ₹3,800 to ₹4,000. This reflects improved expectations for revenue growth, despite slightly lower margin assumptions and a modestly higher future price to earnings multiple.
BSOFT
₹449.40
Birlasoft
7D
4.1%
1Y
-22.5%

BSOFT: Higher Discount Rate Will Pressure Margins And Limit Upside Potential

Analysts have reduced their fair value estimate for Birlasoft to ₹318 from ₹350. This change reflects a slightly higher discount rate, modestly stronger revenue growth expectations, and a marginally lower projected profit margin and future P/E multiple.
TAC
₹768.75
TAC Infosec
7D
-3.7%
1Y
25.2%

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Dec 11
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BLACKBUCK
₹670.70
BlackBuck
7D
7.1%
1Y
29.5%

BlackBuck (NSE:BLACKBUCK) Has A Rock Solid Balance Sheet

Dec 09
BlackBuck (NSE:BLACKBUCK) Has A Rock Solid Balance Sheet
ONMOBILE
₹59.35
OnMobile Global
7D
-3.4%
1Y
-16.6%
543931
₹362.15
Veefin Solutions
7D
-5.0%
1Y
-43.4%
ZAGGLE
₹352.55
Zaggle Prepaid Ocean Services
7D
-0.6%
1Y
-35.6%

There May Be Underlying Issues With The Quality Of Zaggle Prepaid Ocean Services' (NSE:ZAGGLE) Earnings

Nov 22
There May Be Underlying Issues With The Quality Of Zaggle Prepaid Ocean Services' (NSE:ZAGGLE) Earnings
RAMCOSYS
₹587.55
Ramco Systems
7D
-2.4%
1Y
35.0%
532407
₹209.15
MosChip Technologies
7D
6.0%
1Y
-2.8%
MAPMYINDIA
₹1,700.90
C. E. Info Systems
7D
4.3%
1Y
5.0%

Earnings Miss: C. E. Info Systems Limited Missed EPS By 63% And Analysts Are Revising Their Forecasts

Nov 13
Earnings Miss: C. E. Info Systems Limited Missed EPS By 63% And Analysts Are Revising Their Forecasts
532466
₹7,781.75
Oracle Financial Services Software
7D
0.8%
1Y
-36.7%