Methodhub Software IPO

Methodhub Software claims to have built and maintained enduring relationships with key clients across India and international markets. These associations are supported by the company’s technological expertise and domain knowledge, which allow it to collaborate closely with multiple departments within client organisations.

The company claims to operate on a scalable business model centred around technology integration, resource optimisation, and cost efficiency. This model enables it to expand into new technology-driven sectors while maintaining quality across existing offerings. Methodhub Software also claims that this structure allows it to adapt to market changes, develop sector-specific products, and achieve economies of scale.

Methodhub Software claims to prioritise continuous innovation as a key business driver, integrating emerging technologies, tools, and methodologies into its delivery processes. The company emphasises consistent monitoring of market trends to ensure its solutions remain relevant and forward-looking. It also claims to have systems that capture client feedback and industry insights, using them to refine and update its service offerings.

The company claims to cater to multiple industry verticals, including BFSI, healthcare, telecommunications and technology infrastructure, oil and gas/energy, and automotive and transport.

The company has witnessed a consistent increase in its revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 35.49 crore (standalone) in FY23 to Rs 56.80 crore (consolidated) in FY24 and Rs 134.86 crore (consolidated) in FY25. PAT increased from Rs 1.34 crore (standalone) in FY23 to Rs 5.41 crore (consolidated) in FY24 and Rs 11.50 crore (consolidated) in FY25.

The top customer accounted for Rs 25.65 crore (32.09 percent) (consolidated) of the company’s revenue for the period ended September 30, 2025; Rs 41.91 crore (31.08 percent) (consolidated) in FY25; Rs 16.01 crore (28.18 percent) in FY24; and Rs 11.20 crore (31.57 percent) (standalone) in FY23. Any loss or reduction of business from this client, termination or non-renewal of contract, or unfavourable changes in commercial terms could adversely affect the company’s business, revenue, and financial condition.

Methodhub Software derives a substantial portion of its revenue from clients in the telecom and tech infrastructure sectors. They accounted for Rs 25.65 crore (32.09 percent) (consolidated) of the company’s revenue for the period ended September 30, 2025; Rs 42.76 crore (31.71 percent) (consolidated) in FY25; Rs 14.49 crore (25.52 percent) (consolidated) in FY24; and Rs 8.68 crore (24.46 percent) (standalone) in FY23. Any decline in demand or change in technology trends within this sector could adversely impact the company’s business, financial performance, and cash flows.

The top supplier accounted for Rs 5.93 crore (10.57 percent) (consolidated) of the company’s total purchases for the period ended September 30, 2025; Rs 5.40 crore (22.70 percent) (consolidated) in FY25; Rs 8.08 crore (36.98 percent) in FY24; and Rs 2.47 crore (22.34 percent) (standalone) in FY23. The company does not maintain long-term contracts with this vendor, and any failure in timely delivery or cessation of supply without an immediate alternative could adversely impact Methodhub Software’s operations, financial condition, and cash flows.

The company reported negative cash flow from operating activities amounting to Rs 2.13 crore (consolidated) for the period ended September 30, 2025. This was primarily due to an increase in trade receivables, short-term loans, and advances. Negative cash flow from investing activities stood at Rs 0.58 crore (consolidated) for the period ended September 30, 2025, Rs 5.42 crore (consolidated) in FY25, Rs 0.99 crore (consolidated) in FY24, and Rs 2.34 crore (standalone) in FY23. This was mainly due to the purchase of property, plant, and equipment, and changes in deposits. Furthermore, the company reported negative cash flow from financing activities amounting to Rs 2.02 crore (consolidated) in FY24, and Rs 5.14 crore (standalone) in FY23, largely driven by proceeds from equity issuance and share premium, partially offset by repayments of borrowings and finance costs. Continued negative cash flows in future periods may restrict the company’s ability to sustain operations, fund expansion, or pursue growth initiatives, thereby adversely affecting its liquidity and financial position.

Methodhub Software’s business depends significantly on the timely collection of receivables from customers. As of September 30, 2025, trade receivables stood at Rs 61.32 crore (consolidated), representing 76.72 percent of the company’s revenue from operations. This is an increase from Rs 42.15 crore (31.26 percent) (consolidated) in FY25, and Rs 17.87 crore (31.46 percent) (consolidated) in FY24. The company’s daily sales outstanding (DSO) stood at 119 days as of September 30, 2025, up from 96.31 days in FY25, reflecting delays in collections. Any failure to collect these receivables on time due to customer defaults, weak macroeconomic conditions, or inaccuracies in assessing client creditworthiness could adversely affect the company’s liquidity, cash flows, and financial position.

Methodhub Software operates globally, with subsidiaries in the US and Canada. Revenue from international clients accounted for 81.01 percent (consolidated) of the company’s total revenue for the period ended September 30, 2025; 74.48 percent (consolidated) in FY25; 51.55 percent (consolidated) in FY24; and 49.01 percent (standalone) in FY23. Conducting business across multiple jurisdictions exposes the company to foreign exchange fluctuations, complex tax regimes, and compliance with differing legal systems. Any regulatory, political, or economic instability in these regions, or failure to comply with local laws and contractual obligations governed by foreign courts, could adversely affect the company’s reputation, cash flows, and financial performance.

The company, its directors, and promoters are involved in certain ongoing legal proceedings, including criminal and tax-related disputes. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.

As of September 30, 2025, the company had contingent liabilities of Rs 27.5 crore (consolidated). If any of these liabilities materialise, it could adversely affect the company’s financial condition.

As of October 31, 2025, the company had outstanding financial indebtedness of Rs 34.36 crore (consolidated). Failure to service or repay these loans can harm the company’s operations and financial position.