Oracle Financial Services Software Limited

Technology — Software - Infrastructure · NSE

₹10,386.00+₹136.00 (+1.33%)

DalalBaazaar Score

78 / 100

🟢 Good

Verdict

ATTRACTIVE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:03 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Oracle Financial Services Software Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Oracle Financial Services Software Limited, together with its subsidiaries, provides information technology (IT) solutions to the financial services industry worldwide. It operates in two segments, Product Licenses and Related Activities; and IT Solutions and Consulting Services.

IndustrySoftware - Infrastructure

SectorTechnology

Employees8,347

Annual revenue₹7,672 Cr

How does it make money?

Turns over ₹7,672 Cr a year. Of every ₹100 of sales, about ₹34 reaches shareholders as profit, with ₹51 left at the operating level before interest, tax and depreciation. Each of its 8,347 employees supports ₹91.9 lakh of revenue a year, the signature of a people-led business.

EBITDA margin50.5%

Net margin34.4%

Revenue / employee₹91.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 43.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 49.9% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE43.2%

ROE49.9%

Peer median ROE32.0%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 8.6% and earnings to grow about 3.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+8.6%

Est. earnings growth+3.9%

Analysts2

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +35% while net margin moved +9% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+35%

Margin effect+9%

DalalBaazaar Score

78/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 26.9x already prices in growth
✓ P/E is 22% below its own historical median of 34.4x — cheap by its own standards
✗ P/B of 13.05x is a steep premium to book
✓ Dividend yield of 3.85% pays you to wait

Quality vs. Valuation

Company Quality

82/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

51/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

26.9x

3Y Median

34.4x

40 monthly readings · mean 34.2x · range 18.6x–53.0x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 22% below its 3y median of 34.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 63% above the peer median of 16.5x.

vs. its own history

Cheap

34.4x median over 40 months · -22%

vs. sector peers

Expensive

16.5x median of 4 peers · +63%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

26.9x

P/B

13.05x

EV/EBITDA

23.0x

PEG

2.00

Dividend Yield

3.85%

What's Good / What's Bad

🟢 What's Going Well8

Margins are improving
EBITDA margin is up from 47.5% to 50.5% over 3 years.
Debt is being paid down
Total debt is down 53% over 3 years.
Cash generation is improving
Free cash flow is up 50% over 3 years.
Return on equity is rising
ROE has improved from 24.2% to 33.7%.
Return on capital is rising
ROCE has improved from 31.6% to 43.2%.
High return on capital employed
ROCE of 43.2% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 26.9x the stock trades 22% below its own median of 34.4x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 43.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 47.5% to 50.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 53% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 22% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 63% above the peer median. That premium needs a reason that persists, or it closes.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 10.4% CAGR
Latest reported year was 68.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 49%✓ 50.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹2,587 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 40%✓ 43.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

11 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

8 good · 2 neutral · 1 weak

Market Cap

₹90,464 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

26.9x

Fair

Fairly valued against the generic band

P/B Ratio

13.05x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹386.15

Profitable

Profitable on a per-share basis

ROE

49.9%

Strong

Strong capital efficiency

ROCE

43.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.57x

Low

Conservative leverage

Revenue Growth (YoY)

68.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

120.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

3.85%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹3,088 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹10,386

P/E (Forward)

22.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

30.9%

Good

Assets are working hard

Operating Margin

59.6%

Good

Healthy core-business profitability

Net Margin

38.2%

Good

Strong bottom-line conversion

Current Ratio

4.41

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.51

Defensive

Steadier than the market

52W Range Position

66%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

10654.5 / 11358.8

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

41.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,698 Cr	₹6,373 Cr	₹6,847 Cr	₹7,672 Cr	+10.4%
EBITDA	₹2,704 Cr	₹3,192 Cr	₹3,400 Cr	₹3,876 Cr	+12.8%
EBITDA Margin	47.5%	50.1%	49.7%	50.5%	—
PAT (Net Profit)	₹1,806 Cr	₹2,219 Cr	₹2,380 Cr	₹2,639 Cr	+13.5%
EPS	₹208.25	₹254.76	₹272.52	₹302.11	+13.2%
ROE	24.2%	28.2%	28.5%	33.7%	—
ROCE	31.6%	35.2%	36.9%	43.2%	—
Total Debt	₹69 Cr	₹43 Cr	₹46 Cr	₹33 Cr	-22.3%
Free Cash Flow	₹1,720 Cr	₹1,761 Cr	₹2,164 Cr	₹2,587 Cr	+14.6%

🟢 Revenue has grown at 10.4% a year over 3 years.

🟢 EBITDA has grown at 12.8% a year over 3 years.

🟢 EBITDA Margin has risen from 47.5% to 50.5% over 3 years (+3.1 pts).

🟢 PAT (Net Profit) has grown at 13.5% a year over 3 years.

🟢 EPS has grown at 13.2% a year over 3 years.

🟢 ROE has risen from 24.2% to 33.7% over 3 years (+9.5 pts).

🟢 ROCE has risen from 31.6% to 43.2% over 3 years (+11.7 pts).

🟢 Total Debt has shrunk at 22.3% a year over 3 years.

🟢 Free Cash Flow has grown at 14.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9,934 Cr

Total Liabilities

₹2,107 Cr

Total Debt

₹33 Cr

Cash & Equivalents

₹1,483 Cr

Operating Cash Flow

₹2,638 Cr

Capex

-₹52 Cr

Shareholding (proxy)

Institutional Holding

13.3%

Insider Holding

72.4%

Corporate Actions

Next Earnings

23 Oct 2026

Dividend Rate

₹400

Ex-Dividend Date

07 May 2026

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹13,175

+26.9% vs CMP

Target Range

₹11,750 – ₹14,600

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

3 mixed3 general

Oracle Financial Services Software publishes Q1FY27 results in newspapers

scanx.trade, 18 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Oracle Financial Services Software (NSEI:OFSS) Stock Forecast & Analyst Predictions

Simply Wall Street, 08 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

The Banking Software Revenue Mystery: What the License Revenue Test Really Reveals

Kalkine India, 16 Oct

Why Oracle Shares are falling today? Explained

India Infoline, 21 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

OFSS Outlook for the Week

Equitypandit, 09 Oct

Oracle Financial Services Software Ltd Sees Significant Open Interest Surge Amid Mixed Price Action

MarketsMojo, 15 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong17.9/20

🟢Financial HealthStrong16.6/20

🟢GrowthStrong13.4/20

🟢ProfitabilityStrong13.5/15

🟡ValuationFair8.8/15

🟢RiskLow7.5/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓Revenue growth stays above 8% a year10.4% CAGR
✓EBITDA margin holds above 49%50.5%
✓Free cash flow remains positive₹2,587 Cr
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 40%43.2%