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Sahana Systems
Our verdict on Sahana Systems isn’t the consensus take — see where we landed, and the one risk the bull case glosses over.
See the verdict — free →Does management do what it says?
The company achieved a PAT of INR 27.67 crore in H1 FY26 alone, which already exceeds the FY24 consolidated revenue benchmark of INR 18.21 crore. (1 exceeded across 1 tracked commitment)
“this financial we are targeting that we would be reaching around 210-ish in terms of the revenue.”
While the specific UK technology PAT target wasn't explicitly isolated, the company reported a significant jump in consolidated PAT to 24% (INR 27.36 Cr for H1) and mentioned scaling deep-tech services globally. (1 in progress across 1 tracked commitment)
“you mentioned that we were planning to take our UK technology international and for that, could itself turn into an opportunity size which could take our PAT to the levels of the last year consolidated revenue... Sir, to answer to your first question, obviously, we are planning the horizon of very near future.”
See the full cited Management analysis of Sahana Systems
How durable is the business?
The enterprise segment maintains a 40% share, but management highlighted a 24% growth in business from existing US enterprise customers compared to the previous year. (1 expanding across 1 engine)
“40% comes from enterprise, out of that 40%, 30% is overseas, 10% is aided enterprise business, which is also indirectly associated with government.”
The company's technology moat is strengthening through 'Make in India' IP in electronic warfare, specifically custom-made radar and anti-drone systems that are 1/10th the cost of competitors. (3 expanding)
“DEFENCETECH Delivering AI-powered anti-drone systems, radar solutions, and electronic warfare tools for national and defense forces”
See the full cited Business Model analysis of Sahana Systems
Where does growth come from?
The company is showing a strong upward trajectory in consolidated revenue, with H1 FY25 already reaching nearly 76% of the total FY24 consolidated revenue. (2 accelerating across 2 signals)
“Revenue from operations 114.16 52.64 116.9%”
The company is projecting a steep upward trajectory in consolidated revenue, moving from a current H1 base toward a target of INR 500 crores by FY28, representing a clear acceleration in scale. (2 accelerating, 3 new trend across 5 signals, 2 leading indicators)
“this financial we are targeting that we would be reaching around 210-ish in terms of the revenue... it will cross up to INR500 crores by the upcoming year in terms of the revenue growth, sir.”
See the full cited Future Growth analysis of Sahana Systems
What could break the thesis?
Negative cash flow from operations worsened significantly from a positive ₹25.36 Cr in FY24 to a negative ₹18.73 Cr in FY25 on a standalone basis. Consolidated operating cash flow is also deeply negative at ₹48.35 Cr. (3 intensifying, 1 emerging, 1 easing, 5 high-severity)
“I was watching your cash flow and it is on negative side. So I am hoping that probably you have high working capital. So you have sufficient working capital for achieving that kind of revenue or you need to raise the funds?”
The risk is easing slightly as the company successfully acquired 24% new customers in the parent entity and 35% in the Softvan subsidiary during H1. (1 easing)
“for Sahana as a standalone, we have achieved 76% of the revenue from our existing customers. We have acquired 24% of new customers.”
See the full cited Risk analysis of Sahana Systems
Read the full thesis on Sahana Systems
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