Sigma Solve Reports Robust Growth and Margin Expansion in Q2 FY26
About the company
Sigma Solve Limited, a fast-growing technology solutions provider specializing in digital transformation, AI, and enterprise software, delivered a strong Q2 FY26 performance. Supported by global demand for customized digital solutions, the company achieved healthy revenue growth and substantial improvement in operating margins.
Financial highlights
| Parameter | Q2 FY26 | Q2 FY25 | Change (YoY) |
|---|---|---|---|
| Revenue (₹ Cr) | 25.58 | 20.63 | +24% |
| EBITDA (₹ Cr) | 7.64 | 4.97 | +54% |
| EBITDA Margin (%) | 29.8 | 24.0 | +580 bps |
| Net Profit (₹ Cr) | 6.84 | 5.18 | +32% |
The company showcased strong profitability driven by demand for AI-enabled enterprise solutions and higher repeat business from global clients.
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Peer comparison
| Company | Revenue (₹ Cr) | EBITDA Margin (%) | PAT (₹ Cr) |
|---|---|---|---|
| Sigma Solve | 25.58 | 29.8 | 6.84 |
| Sonata Software | 1,763 | 12.1 | 119 |
| Persistent Systems | 2,850 | 14.8 | 310 |
Despite its smaller scale, Sigma Solve’s EBITDA margins are among the highest in the mid-tier IT space, reflecting superior cost efficiency and niche specialization.
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SWOT analysis
| Strengths | Weaknesses |
|---|---|
| Strong recurring client base and high-margin digital projects. | Relatively small global footprint compared to Tier-I players. |
| Opportunities | Threats |
| Growing AI and enterprise automation demand. | Currency volatility and global IT spending slowdown. |
Investment view
Short Term: Momentum may continue as margin expansion sustains earnings visibility.
Medium Term: Client diversification and AI-led projects to drive steady top-line growth.
Long Term: Promising outlook due to high operational efficiency and consistent profitability.
Investor takeaway
Sigma Solve’s strong financial results underscore its ability to capitalize on the rising digital transformation wave. Its high margins and disciplined cost control make it a potential multibagger in the small-cap IT space for long-term investors.
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Related queries on it stocks
- Why Are Small-Cap IT Firms Like Sigma Solve Outperforming?
- How Will AI Integration Impact Tech Companies’ Margins?
- What Are the Key Catalysts for Indian IT Mid-Caps in FY26?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions.
