Sahana System Limited: Navigating Growth with Deep-Tech and Strategic Expansion

Sahana System Limited, a prominent deep-tech service company, has reported a robust financial performance for the first half of fiscal year 2026 (H1 FY26), underscoring its strategic initiatives and expanding market presence. The company achieved a consolidated revenue of INR 114.16 Crores, marking a significant 116.9% year-on-year growth compared to H1 FY25. This impressive top-line expansion was complemented by healthy profitability, with an EBITDA margin of 33.15% and a PAT margin of 24.23%, reflecting efficient operations and a favorable project mix.

The company's growth is largely attributed to its diversified service offerings and strong engagement with both government and enterprise clients. Sahana System Limited is a digital product engineering partner specializing in AI & ML, IoT, cloud services, cybersecurity, and electronic warfare. Its expertise spans various industries including defense, fintech, edutech, healthcare, and master system integration. The management highlighted that approximately 60% of the business originates from government projects, with the remaining 40% from enterprise segments, including a substantial overseas component. This balanced portfolio has enabled consistent performance and resilience across different market dynamics.

Strategic Initiatives Driving Future Growth

Sahana System Limited is actively pursuing several strategic initiatives to sustain its growth trajectory. A notable development is its entry into the Electric Vehicle (EV) industry, with plans to establish EV charging stations across Andhra Pradesh. This move, while not expected to be a high-margin business, is envisioned as a long-term, recurrent revenue stream, diversifying the company's portfolio into a sunrise sector. The company has partnered with an Original Design Manufacturer (ODM) for chargers and developed its own Content Management System (CMS) for these stations.

Furthermore, Sahana has significantly expanded its deep-tech capabilities through the acquisition of Softvan Group of Companies in 2023. This acquisition has enhanced its offerings in AI & ML, IoT, Big Data, and Electronic & Information Warfare, strengthening its position as a comprehensive technology solutions provider. The company's focus on the defense sector has also yielded substantial results, with recent orders worth approximately ₹30 Crores in shipping and port sectors, including a prestigious project to upgrade RF testing facilities for the Indian Navy at NEU Jamnagar. Another key project involves creating a digital twin for Tuticorin port, showcasing its advanced capabilities in master system integration.

Global Ambitions and Financial Outlook

Sahana System Limited is not only strengthening its domestic presence but also actively pursuing global expansion. The company aims to fortify its international footprint through new delivery hubs, strategic partnerships, and entry into high-potential markets such as the Middle East and APAC. This global outreach is supported by its existing presence in the US, Canada, Argentina, and Saudi Arabia, with ongoing opportunities in Southeast Asia, the African subcontinent, and Latin America.

Management has provided optimistic financial guidance, targeting approximately INR 210 Crores in revenue for FY26, INR 350 Crores for FY27, and INR 500 Crores for FY28. The company's long-term 'Vision 5000' aims to transform Sahana into a ₹5,000 crore deep-tech enterprise within the next 5 to 7 financial years, driven by organic growth, margin optimization, and disciplined capital allocation. Management also anticipates a slight increase in PAT over the next three years and is committed to maintaining double-digit growth, improving cash conversion, and enhancing working capital efficiency.

Sustained Growth and Disciplined Execution

Sahana System Limited's H1 FY26 performance reflects a company in a strong growth phase, effectively leveraging its deep-tech expertise and strategic market positioning. The management's focus on high-value contracts, diversified revenue streams, and a disciplined approach to capital allocation positions the company for sustained expansion. While acknowledging potential challenges such as working capital management and business seasonality, the company's proactive engagement in emerging sectors like EV infrastructure and its robust order book from critical government segments underscore its commitment to long-term value creation. Investors can look forward to continued innovation and strategic execution as Sahana System Limited progresses towards its ambitious Vision 5000.