Sahana System Limited

Business overview Sahana System Limited is a deep-tech service company operating as a digital product engineering partner. The company serves multiple industries including defense, fintech, edutech, and healthcare, and specializes in master system integration for government and enterprise segments. Its operations extend across India, the US, Southeast Asia, the African subcontinent, and the Latin American subcontinent.

Key facts (H1 FY '26 / half year ended September 30, 2025)

• Consolidated revenue for H1 FY '26 was INR 114 crores, with an EBITDA of 33% and PAT of 24%.
• Standalone revenue for the parent organization in H1 FY '26 was INR 69 crores, with EBIT of 27% and PAT of 19%.
• Revenue mix for the group: 60% from government projects and 40% from enterprise segments (of which 30% is overseas, 10% is aided enterprise business).
• For the standalone entity, 76% of revenue came from existing customers, while 24% was from new customer acquisition.
• Mr. Pratik Ramjibhai Kakadia serves as the Chairman and Managing Director.
• The company has a wholly-owned subsidiary, Sahana Defense, and other subsidiaries including Softvan, Sourceved, and Softvan Lab.

Recent developments (from H1 FY '26 concall)

• Secured a prestigious project with the Indian Navy to upgrade an RF testing and chip point-of-contact designing facility at NEU Jamnagar.
• Acquired projects with Dredging Corporation of India for IoT and AI capability upgrades, and a digital twin project for Tuticorin port with IPRCL.
• Delivered SAMVAD v2.0, a media monitoring tool, to the Ministry of Information Broadcast, serving 58 cabinet ministries including the Prime Minister's office.
• Awarded 2 patents, with 6 more under positive processing, out of 12 applications.
• Provided consolidated revenue guidance of ~INR 210 crores for FY '26, ~INR 350 crores for FY '27, and ~INR 500 crores for FY '28, aiming for INR 5,000 crores in approximately 6 financial years.
• Eligible for main board migration from July next year.

Key risks flagged by management

• Managing significant cash flow requirements for large-scale government projects, which may necessitate additional funding (e.g., OD/CC facilities from banks, equity dilution) if projects materialise faster than anticipated.
• Seasonality in business, particularly with government projects, where H2 revenue recognition can be significantly influenced by the timing of mobilization advances and year-end budget exhaustion.

Pros

• Demonstrated strong financial performance in H1 FY '26, meeting or exceeding internal projections.
• Diversified service portfolio and customer base across critical sectors and geographies, providing multiple growth avenues.
• Secured high-value, marquee government and defense projects, indicating specialized capabilities and market trust.

Cons

• High working capital intensity, particularly for service-driven government projects, requiring careful cash flow management.
• The EV charging station business, while recurrent, is described as not being a "very high-margin business."
• Some investor feedback suggested a desire for more frequent financial updates (e.g., quarterly results) and more explicit quantification of order books.