SoftTech Q1 FY27: SaaS share rises to 31 percent as revenue grows 25 percent

SoftTech Engineers Limited began FY27 with another quarter of double digit growth. In Q1 FY27, standalone revenue from operations rose 25 percent year on year to INR 3,222.02 lakhs. EBITDA also grew 25 percent to INR 960.07 lakhs, keeping the EBITDA margin broadly steady at 29.8 percent even as the company continued to invest in manpower and product development. Profit after tax increased 17.8 percent to INR 191.89 lakhs.

The operating story this quarter was the steady shift toward recurring revenue. SaaS revenue came in at INR 1,003.25 lakhs, up 55.6 percent year on year, and contributed 31 percent of total Q1 revenue, compared with 25 percent in the year ago quarter. The presentation positions this as evidence of a more annuity style revenue base.

On a consolidated basis, revenue from operations grew 23.2 percent to INR 3,328.46 lakhs. EBITDA rose 22.7 percent to INR 905.67 lakhs, with a margin of 27.2 percent. Consolidated PAT increased 5 percent year on year to INR 115.87 lakhs.

A quarter defined by mix and cost scaling

SoftTech’s product mix shifted meaningfully in Q1 FY27. CivitPLAN and CivitPERMIT accounted for 65 percent of standalone revenue, up from 50 percent a year ago. CivitINFRA contributed 11 percent versus 24 percent in Q1 FY26. The remaining 24 percent came from other lines.

In parallel, owned products made up 90 percent of sales mix, up from 84 percent in the year ago quarter. The sales type split showed 41 percent recurring revenue in Q1 FY27 compared with 38 percent in Q1 FY26, indicating continued progress, even though one time licenses still constituted the larger share at 59 percent.

Costs moved in line with this evolving mix. Standalone COGS fell 19 percent year on year to INR 287.48 lakhs, which management attributed to lower third party product sales. Employee cost was broadly flat at INR 667.10 lakhs.

The major movement came in other expenses, which rose 69 percent to INR 1,307.38 lakhs. Management attributed the increase mainly to higher license utilisation and higher technical and professional fees, both described as scaling with sales growth. Depreciation and amortisation increased 21 percent to INR 683.47 lakhs due to higher capitalised development costs.

Order visibility and marquee wins

SoftTech reported a sizeable funnel for future execution. The confirmed order book stood at INR 22,041 lakhs, while orders in pipeline were disclosed at INR 48,982 lakhs. While pipeline numbers can vary in conversion and timing, the company’s disclosure provides a measurable view of demand in progress.

The company highlighted two marquee orders achieved in the quarter. The first was ODPS 3.0 in Gujarat valued at INR 2,000 lakhs. The second was Mitsubishi WMS Sustain valued at INR 120 lakhs. The presentation links these wins to extending the company’s footprint in mission critical urban governance platforms and deepening the SaaS annuity base for the coming quarters.

Strategy: keep government leadership, add a corporate engine

The strategic narrative is built around a dual engine model. The company describes its government sector business as proven and compounding over two decades, supported by entrenched relationships across urban local bodies, industrial boards, and state departments. It also states that eTDR and the Smart Governance Platform are expected to extend this footprint further.

Alongside this, SoftTech is sharpening focus on corporate enterprise clients for digital transformation. The logic is to leverage experience built on large and complex government projects to serve developers, contractors, and enterprises, with the Civit SUITE and Civit TWIN positioned as key platforms.

Three corporate growth segments were specifically called out.

First is the eTDR Exchange, described as live in Mumbai since Jun’26, with a model that is stated to be zero cost to government and monetized through transaction fees. The company also cites multi state traction through a Maharashtra mandate, a proposal with Andhra Pradesh, and interest from Telangana, NCR, Rajasthan, and Haryana. The presentation claims there is no competitor currently in the eTDR exchange space.

Second is the Civit SUITE private sector rollout. SoftTech states it is extending from government to developers and contractors, describing the corporate market as large and high paying with a low credit cycle. It also reports 35 plus private clients onboarded in pilot outreach and notes an aggressive dedicated outreach program underway.

Third is Civit TWIN, described as an AI led proposal clearance tool for architects, launched in Mumbai and endorsed by the CM. The company states it will be offered via a SaaS subscription model layered on the existing 18 state Civit PERMIT base. The presentation also claims there is no direct market competition.

Takeaways from Q1 FY27

Q1 FY27 reinforced two messages. First, the business is scaling with SaaS growing materially faster than the rest of the portfolio, lifting SaaS contribution to 31 percent of revenue. Second, the company is investing for expansion, visible in the sharp rise in other expenses and the higher depreciation from capitalised development costs, even as EBITDA margin held steady at the standalone level.

With a disclosed confirmed order book of INR 22,041 lakhs and pipeline of INR 48,982 lakhs, and with new initiatives like eTDR Exchange, Civit SUITE, and Civit TWIN positioned for wider rollout, the next few quarters will likely be judged on how effectively SoftTech converts pipeline into revenue while maintaining discipline on scaling costs.