Tera SoftwareNSE:TERASOFT +1.10%76 Current Ratio is 1.69 as of Mar. 2026, which is 2% above its 10-year median of 1.66. GuruFocus rates NSE:TERASOFT with a GF Score™ of 76/100 and a GF Value™ of ₹327.99 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 2,864 Software companies, Tera Software ranks worse than 53.49% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Tera Software's current ratio for the quarter that ended in Mar. 2026 was 1.69.
Tera Software has a current ratio of 1.69. It generally indicates good short-term financial strength.
The historical rank and industry rank for Tera Software's Current Ratio or its related term are showing as below:
NSE:TERASOFT'
s Current Ratio Range Over the Past 10 Years
Min: 1.36 Med: 1.66 Max: 2.01
Current: 1.69
During the past 13 years, Tera Software's highest Current Ratio was 2.01. The lowest was 1.36. And the median was 1.66.
NSE:TERASOFT's Current Ratio is ranked worse than 53.49% of 2864
companies
in the Software industry
Industry Median: 1.82
vs NSE:TERASOFT: 1.69
Tera Software (NSE:TERASOFT) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Tera Software Current Ratio Related Terms
Tera Software Current Ratio Historical Data
* Premium members only.
The historical data trend for Tera Software's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:TERASOFT vs IBM, ACN, FISV: Current Ratio Comparison
For the Information Technology Services subindustry, Tera Software's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tera Software Current Ratio vs Software Industry
For the Software industry and Technology sector, Tera Software's Current Ratio distribution charts can be found below:
* The bar in red indicates where Tera Software's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Tera Software (NSE:TERASOFT) has a Current Ratio of 1.69 as of Mar. 2026. This is near median its historical median of 1.66. Over the past decade, Tera Software's Current Ratio has ranged from 1.36 to 2.01. According to the industry distribution chart, Tera Software ranks #1532 out of 2864 companies in the Software industry, placing it in the top 53.5%.
Is Tera Software's Current Ratio too high?
Tera Software's current Current Ratio of 1.69 is near median its 10-year median of 1.66. Over the past 10 years, this metric has ranged from a low of 1.36 to a high of 2.01. The Software industry median Current Ratio is 1.82. Tera Software's value of 1.69 is 7.1% below this industry median. Based on the distribution chart, Tera Software ranks #1532 out of 2864 companies in the Software industry, which is below the industry midpoint. Overall, Tera Software has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tera Software's Current Ratio compare to IBM and ACN?
According to the Software industry distribution chart, Tera Software ranks #1532 out of 2864 companies for Current Ratio. This places Tera Software in the lower half of its industry. The industry median Current Ratio is 1.82. Tera Software's value of 1.69 is 7.1% below this benchmark. Historically, Tera Software's own Current Ratio has ranged from 1.36 to 2.01 over the past decade. While the company's 10-year median is 1.66 vs. the industry median of 1.82, Tera Software has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Software company?
The median Current Ratio among Software companies is 1.82, based on 2,864 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tera Software's current Current Ratio of 1.69 is 7.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median Current Ratio is 1.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tera Software's current Current Ratio is 1.69, which is near median its own 10-year median of 1.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tera Software stock overvalued right now?
Based on GuruFocus' analysis, Tera Software (NSE:TERASOFT) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹327.99, compared to a current price of ₹404.45 — trading 23.3% above its estimated fair value. The current Current Ratio is 1.69, which is near median its 10-year median of 1.66 and 7.1% below the Software industry median of 1.82. Tera Software's overall GF Score™ is 76/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Tera Software (NSE:TERASOFT), the current Current Ratio is 1.69 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tera Software (NSE:TERASOFT) Overvalued in 2026?
Based on GuruFocus' analysis, Tera Software stock appears to be overvalued.
The current stock price of ₹404.45 is trading 23.3% above its estimated GF Value™ of ₹327.99.
GuruFocus considers Tera Software to be Modestly Overvalued.
Key valuation signals for NSE:TERASOFT:
Current Ratio: 1.69 (near median its 10-year median of 1.66)
GF Value™: ₹327.99 vs. price of ₹404.45 (23.3% above fair value)
Industry Position: 7.1% below the Software median (#1532 of 2864)
No single metric tells the full story. See the NSE:TERASOFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tera Software Ltd is engaged in providing IT & Integrated services. The company provides IT and operational solutions such as fiber network infrastructure and services; installation, maintenance, and support services, as well as wireless and wired connectivity; digitization of land records; sales tax automation; and solutions for the automation and management of road transport and vehicle registration authorities, among others. The company's operating business segments include the Technical Division, which generates maximum revenue, Integrated Solutions, Projects Division, and Others.
76GF Score
Get the complete analysis for NSE:TERASOFT
Current Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:TERASOFT has been successfully added to your 
