Analysis Article • Jul 26
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- 7D-5.3%
- 3M2.9%
- 1Y-9.7%
- YTD-5.6%
Over the last 7 days, the Software industry has dropped 5.3%, driven by a pullback from Oracle Financial Services Software of 9.4%. Meanwhile, KPIT Technologies actually outperformed within the industry, gaining 5.3% in the last week. Overall the industry is down 9.7% in 12 months. Looking forward, earnings are forecast to grow by 15% annually.
Industry Valuation and Performance
Has the Indian Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 27 Jul 2026 | ₹2.6t | ₹530.8b | ₹88.2b | 27.2x | 29.8x | 4.9x |
| Wed, 24 Jun 2026 | ₹2.6t | ₹581.0b | ₹79.3b | 30.3x | 33.3x | 4.5x |
| Fri, 22 May 2026 | ₹2.5t | ₹576.4b | ₹78.6b | 26.7x | 32.2x | 4.4x |
| Sun, 19 Apr 2026 | ₹2.4t | ₹552.5b | ₹77.8b | 27.5x | 31.1x | 4.4x |
| Tue, 17 Mar 2026 | ₹2.1t | ₹552.2b | ₹77.7b | 24.1x | 27.2x | 3.8x |
| Thu, 12 Feb 2026 | ₹2.4t | ₹517.3b | ₹74.2b | 32.7x | 31.9x | 4.6x |
| Sat, 10 Jan 2026 | ₹2.6t | ₹506.2b | ₹74.4b | 35.4x | 34.6x | 5.1x |
| Mon, 08 Dec 2025 | ₹2.7t | ₹507.5b | ₹74.4b | 37x | 36.2x | 5.3x |
| Wed, 05 Nov 2025 | ₹2.7t | ₹491.2b | ₹68.5b | 40.3x | 39.2x | 5.5x |
| Fri, 03 Oct 2025 | ₹2.7t | ₹485.2b | ₹69.9b | 38.5x | 38x | 5.5x |
| Sun, 31 Aug 2025 | ₹2.6t | ₹485.5b | ₹69.9b | 37.2x | 37.1x | 5.3x |
| Tue, 29 Jul 2025 | ₹2.7t | ₹477.4b | ₹69.0b | 38.1x | 38.6x | 5.6x |
| Thu, 26 Jun 2025 | ₹2.8t | ₹484.4b | ₹71.2b | 35.4x | 39.6x | 5.8x |
| Sat, 24 May 2025 | ₹2.8t | ₹485.5b | ₹69.2b | 30.5x | 40.1x | 5.7x |
| Mon, 21 Apr 2025 | ₹2.4t | ₹472.9b | ₹64.3b | 29.6x | 37.6x | 5.1x |
| Wed, 19 Mar 2025 | ₹2.4t | ₹473.0b | ₹64.5b | 27.8x | 37.2x | 5.1x |
| Fri, 14 Feb 2025 | ₹2.8t | ₹473.3b | ₹65.4b | 36.5x | 42.2x | 5.8x |
| Sun, 12 Jan 2025 | ₹3.2t | ₹465.9b | ₹67.4b | 38.8x | 47.9x | 6.9x |
| Tue, 10 Dec 2024 | ₹3.5t | ₹466.5b | ₹70.2b | 40.1x | 49.4x | 7.4x |
| Thu, 07 Nov 2024 | ₹3.3t | ₹462.4b | ₹70.9b | 34.4x | 46.1x | 7.1x |
| Sat, 05 Oct 2024 | ₹3.3t | ₹453.4b | ₹66.6b | 35.1x | 49.5x | 7.3x |
| Mon, 02 Sep 2024 | ₹3.4t | ₹452.9b | ₹66.7b | 42.1x | 51x | 7.5x |
| Wed, 31 Jul 2024 | ₹3.3t | ₹449.5b | ₹66.9b | 40.3x | 49.9x | 7.4x |
| Fri, 28 Jun 2024 | ₹3.1t | ₹438.2b | ₹64.4b | 39.3x | 48.1x | 7.1x |
| Sun, 26 May 2024 | ₹2.8t | ₹441.4b | ₹64.8b | 38.2x | 42.6x | 6.3x |
| Tue, 23 Apr 2024 | ₹2.7t | ₹432.2b | ₹62.1b | 40.4x | 43.9x | 6.3x |
| Thu, 21 Mar 2024 | ₹2.7t | ₹432.0b | ₹62.0b | 35.7x | 43.9x | 6.3x |
| Sat, 17 Feb 2024 | ₹2.9t | ₹432.0b | ₹62.0b | 39.4x | 46.8x | 6.7x |
| Mon, 15 Jan 2024 | ₹2.7t | ₹411.1b | ₹53.6b | 38.5x | 49.5x | 6.5x |
| Wed, 13 Dec 2023 | ₹2.5t | ₹411.1b | ₹53.4b | 39.9x | 45.9x | 6x |
| Fri, 10 Nov 2023 | ₹2.3t | ₹408.9b | ₹52.0b | 37.6x | 43.8x | 5.6x |
| Sun, 08 Oct 2023 | ₹2.3t | ₹458.4b | ₹57.9b | 33.6x | 40.2x | 5.1x |
| Tue, 05 Sep 2023 | ₹2.3t | ₹453.0b | ₹57.6b | 36x | 39.9x | 5.1x |
| Thu, 03 Aug 2023 | ₹2.1t | ₹450.2b | ₹56.6b | 32.3x | 37.7x | 4.7x |
Price to Earnings Ratio
37.7x
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 29.8x which is lower than its 3-year average PE of 40.9x.
- The 3-year average PS ratio of 5.8x is higher than the industry's current PS ratio of 4.4x.
Past Earnings Growth
- The earnings for companies in the Software industry have grown 16% per year over the last three years.
- Revenues for these companies have grown 10% 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 | -1.36% | |
| Tech | -1.33% | |
| Software | -5.26% | |
| Systems Software | -0.09% | |
| Application Software | -6.79% | |
Industry PE
- Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 35.1x.
- Analysts are expecting annual earnings growth of 14.2%, which is higher than its past year's earnings growth of 9.4% per year.
- Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 54.7x.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 17% 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 14% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| KPITTECH KPIT Technologies | ₹583.20 | 5.3% +₹7.9b | -52.5% | PE24.9x | |
| TANLA Tanla Platforms | ₹599.75 | 4.7% +₹3.6b | -2.3% | PE14.9x | |
| TAC TAC Infosec | ₹540.65 | 15.5% +₹1.5b | 21.9% | PE50.4x | |
| ROUTE Route Mobile | ₹568.55 | 1.1% +₹400.1m | -37.4% | PE14.4x | |
| 3IINFOLTD 3i Infotech | ₹19.74 | 7.9% +₹298.7m | -16.4% | PE11.9x |
