Fidel Softech Ltd. (FIDEL)
SME CapIT stocks · SME cap · NSE
Fidel Softech assists clients globally with innovative technology-driven solutions and services in local languages, aiming to break language barriers. Offerings include IT & Consulting (Enterprise, FinTech, AI, Cloud, Bilingual IT) and Language Localization & Engineering (Software, MTPE, Multilingual LLM), plus Japan-India Business Consulting.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 0/100PAT -12% YoY · margin compression · Rev +128% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹37.9 Cr | +127.9% | +1.8% |
| EBITDA | ₹4.4 Cr | +3.3% | -3.7% |
| Operating margin | 11.7% | -1410 bps | -66 bps |
| PAT | ₹3.2 Cr | -12.4% | -26.7% |
| PAT margin | 8.4% | -1343 bps | -326 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q4 FY26 Revenue grew 155% YoY to ₹37.27 Cr, with PAT up 42% YoY to ₹4.34 Cr. For FY26, revenue surged 85% YoY to ₹102.35 Cr, and PAT increased 50% YoY to ₹14.05 Cr, achieving the ₹100+ Cr annual revenue milestone.
Fidel Softech demonstrates strong top-line growth, driven by strategic acquisitions and a shift to a hybrid global delivery model. While full-year margins saw slight moderation due to investments, management expects improvement as overseas scale matures. The company is actively building a scalable global platform with a focus on AI-enabled services and strategic M&A.
Consolidated Sales Performance by Division
Latest issuer-disclosed distribution across 2 reported categories.
Geographic Expansion
Deepening US, Japan, and India presence with niche Japan strength, leveraging existing and new competencies.
AI-Enabled Services
Multiplier for existing capabilities (language localization, managed services, enterprise delivery) and entry into deeper client engagements.
Strategic M&A
Mapped to clear opportunities for faster market access and cross-sell, without equity dilution.
Managed Services & Enterprise Solutions
Focus on these areas as part of building towards 5X growth in 5 years.
New Hires
66 new hires in Q4 FY26, strengthening execution capacity.
AI as a Growth Multiplier
Management views AI as an enabler, expanding demand rather than replacing it, with growing engagement in AI proof-of-concepts.
Strong Global Positioning
Established US-Japan-India corridor with unique strength in Japan, characterized by high entry barriers and strong differentiation.
Hybrid Delivery Model
Evolution to onsite strength in Japan/US backed by scalable offshore capabilities, enabling larger deals and improved pricing power.
Margin Moderation
Slight margin moderation in FY26 due to scaling and investments, with margin improvement expected as overseas scale matures.
Market and Geopolitical Conditions
The ambitious '5x in 5 years' revenue target is stated to be subject to market and geopolitical conditions.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing overall annual growth and the impact of strategic acquisitions. QoQ comparison is important for understanding sequential momentum, especially given the recent business expansion and integration of acquired entities.
New Customer Additions
20 new customers added in Q4 FY26.
Managed Services Contract Win
Secured a 100M JPY annual managed services contract in Japan.
AI Services Contribution
AI services contributed approximately ₹3 Cr in FY26.
Employee Base
500+ Global Employees across Fidel Group worldwide.
Long-Term Revenue Ambition
Building toward 5X revenue in 5 years, with a ₹300 Cr revenue ambition over the next 3-3.5 years.
CAGR and Margin Targets
Targeting 30–40% CAGR with double-digit PAT margins and margin expansion at scale.
NSE Main Board Migration
Planning migration to NSE Main Board, subject to conditions.
Strategic M&A Approach
M&A is disciplined and strategy-led, focusing on capability enhancement, market access, new clients, and talent strength.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Revenue Growth | FY26: 85% YoY | Sustained 30-40% CAGR towards the 5X in 5 years target. |
| PAT Margins | FY26: 13.7% (PAT/Revenue) | Improvement towards double-digit PAT margins as overseas operations mature and scale. |
| Offshore Component Scaling | Shift to hybrid delivery with increased onsite component. | Increase in offshore components to scale, driving overall margin expansion. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
47NeutralSMA20 -7.1% / mo · MACD +
Technical chart
FIDELdaily · 1Y · AUTO+10.1%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 50.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 falling (~7.7% over last month) — short-term momentum negative.
- RSI(14) at 50 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 29% off 52W high · 31% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 54 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 54 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 56.5%.
- Quality contributes 16/20 to the score.
Main drags
- Penalty bucket subtracts 8 points.
- Cash flow is weaker at 1/10; verify the latest quarterly trend.
- Valuation is weaker at 14/30; verify the latest quarterly trend.
IT valuation: PE and EV/EBITDA against growth and margins
Asset-light IT companies deserve valuation support only when growth, margins, and cash conversion hold up.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 66th percentile of the scored universe and 62nd percentile within IT. Main check: cash conversion is weak at 43/100.
Healthy Trust Lite: Promoter holding is 73.1%. Key concern: Only 1 years of positive FCF.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · IT: 62nd pctile, median 69 · SME: 85th pctile, median 64
18 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 73.1%.
- ▸Promoter pledge is zero.
- ▸ROCE is 25.9%.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸Only 1 years of positive FCF.
- ▸OPM spread across recent quarters is 15%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 14.40
- P/B
- 3.49
- EV/EBITDA
- 14.00
- Market Cap
- 195.00Cr
Profitability
- ROE
- 25.80%
- ROCE
- 25.90%
- ROA
- 11.76%
- Dividend Y
- 1.58%
Growth (CAGR)
- Revenue 5Y
- 66.85%
- EPS 5Y
- 24.72%
- Revenue 3Y
- 6.00%
- EPS 3Y
- 6.00%
Balance Sheet
- Debt/Equity
- 0.77
- Interest Coverage
- 16.00×
- Altman Z
- 4.01
- Book Value
- 40.70
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 1/5
- OCF
- 8.00 Cr
- EPS TTM
- 9.64
Shareholding
- Promoter Hold
- 73.06%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 37%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.