/** blogpostTitle: SoftTech FY26: A platform pivot backed by growth, with cash discipline still in focus blogpostSlug: softtech-fy26 blogpostShortTitle: SoftTech FY26 platform pivot and cash focus blogpostCoverImageDescription: Ultra-realistic corporate finance visual of a clean office desk with a laptop showing a revenue and EBITDA line chart rising from FY22 to FY26, with two colored lines (revenue and EBITDA) and FY26 values highlighted near the end of the chart. Beside it, a second small dashboard panel shows a cash conversion cycle trend dropping from very high levels to a lower FY26 value, with separate DSO and CCC lines. Neutral lighting, modern professional aesthetic, no logos, no text labels. */

SoftTech FY26: A platform pivot backed by growth, with cash discipline still in focus

SoftTech Engineers closed FY26 with a clear rebound in scale and profitability. On a consolidated basis, revenue from operations rose to INR 132.90 crore from INR 95.25 crore in FY25, while EBITDA increased to INR 32.19 crore from INR 22.27 crore. Profit after tax improved to INR 5.33 crore from INR 1.33 crore.

The same direction shows up in the standalone numbers as well. Standalone revenue was INR 128.30 crore and EBITDA INR 34.39 crore. Standalone PAT rose to INR 9.57 crore from INR 4.14 crore a year ago. For a company that operates heavily in government-led deployments, the year was positioned as both a recovery and a validation cycle.

What stood out in management commentary was not just growth, but the framing of a strategic transition. SoftTech described FY26 as a “platform-led future,” moving from discrete products to platforms that can scale through transactions, subscriptions, and repeatable deployments. That theme connects several FY26 highlights: growth in pay-per-use revenue, a significant improvement in collections metrics, and the launch of transaction-led platforms like CivitTDR.

FY26 in numbers: growth plus a sharper revenue mix

The presentation placed FY26 as a step-up year on scale. Standalone revenue increased to INR 128.30 crore versus INR 93.36 crore in FY25, while EBITDA rose to INR 34.39 crore versus INR 25.13 crore. On margins, standalone EBITDA margin stayed broadly stable at 26.8%.

A quality marker repeatedly referenced was the expansion in pay-per-use revenue. SoftTech reported SaaS or pay-per-use revenue of INR 31.72 crore in FY26, which it stated was 25% of revenue. The pay-per-use line has grown steadily over five years, rising from INR 11.75 crore in FY22 to INR 31.72 crore in FY26.

The other operational marker was working-capital improvement. The company disclosed that DSO declined to 260 days in FY26 from 372 days in FY25, while the cash conversion cycle fell to 169 days from 270 days. The direction is constructive, even if the absolute level remains elevated. The presentation also noted free cash flow improved from negative INR 4.85 crore in FY25 to negative INR 0.09 crore in FY26.

Product-to-platform: why the model matters

SoftTech has long been associated with building permission automation, beginning with AutoDCR and now the Civit suite. In the call, management highlighted that its permitting technology has been adopted across more than 1,500 cities and 18 states. But the FY26 narrative shifted toward how the company monetises, not only what it deploys.

Pay-per-use is the first part of that shift. Management described a model where the solution is hosted on cloud, customised upfront, and revenue is earned based on permits issued, typically on a per-square-foot basis. Importantly, payments are linked to service delivery and are received from applicants or through government treasury flows, which management linked to better cash realisation.

The second part of the shift is platforms that can scale by replication. In the investor presentation, SoftTech positioned three platform tracks:

• An AI Permit Twin Platform, with traction cited through BMC and a Germany launch plan
• A Development Rights Transaction Platform, launched in Mumbai with replication potential across other cities and states
• A Manufacturing and Industrial Platform, linked to CivitMetaverse and orders mentioned from Metawolf

This is a meaningful strategic framing because it attempts to bridge government credibility to industry-focused, cash-efficient platforms. Management also described internal AI adoption for productivity and embedding AI/ML/GIS into products, alongside building IoT and metaverse capability.

CivitTDR: transaction-led revenue with high operating leverage

CivitTDR emerged as the most discussed monetisation lever on the call. Management described it as an exchange platform to enable online trading of development rights certificates. The business model was stated clearly: SoftTech earns 0.5% of each transaction executed on the platform.

Two details shaped investor interest. First, management said the platform became mandatory for transactions in BMC from 10 May. Second, management stated that the TDR transaction value in BMC area in the prior year was about INR 8,000 crore. Management did not provide a formal revenue guidance based on this, and also cautioned that some transactions were already executed before the mandatory date and would still be utilised. Still, it is evident why investors see operating leverage in this model.

Management also discussed replication potential beyond BMC into other parts of the Mumbai region and other cities, noting that TDR has become important for infrastructure execution. Early adoption indicators were shared qualitatively, including registrations and initial transactions, though no verified run-rate was disclosed.

FY27 priorities and guidance: growth, recurring mix, and tighter cash discipline

For FY27, management provided explicit growth guidance. The company stated it is targeting about 25% to 27% growth in FY27. It also stated a longer-term objective of reaching around INR 300 crore revenue over the next three to four years, while maintaining EBITDA profitability in the 25% to 30% range.

In operational terms, the “way forward” priorities included scaling industrial SaaS, increasing pay-per-use share by 10% to 15% every year, launching subscriptions, and improving DSO below 200 days. International expansion was described with specific regions: Germany (CivitPermit and Twin), the Middle East (CivitBuild deals), and the USA (Civit.ai or CivitTwin/BIM services).

Germany, in particular, was described as a staged execution plan. Management said it has presented solutions to authorities and the architect community, and is moving through prototyping and process mapping before going fully commercial. It also disclosed that a subsidiary has been created and a German sales leader recruited.

Takeaways

SoftTech’s FY26 performance combines a strong top-line step-up with a clearer commercial direction. The company’s pay-per-use base is expanding, collections metrics have improved, and new platforms were positioned as scalable growth engines.

At the same time, the documents make it clear that working-capital intensity is still a defining operational constraint. Even with improvement, DSO at 260 days and a 169-day cash conversion cycle keep cash discipline in focus. FY27 execution will likely be judged on how quickly transaction-led platforms scale, whether international initiatives convert into tangible orders, and whether cash conversion continues to improve alongside growth.