Tera Software (NSE:TERASOFT) ROCE %: 27.13% (As of Mar. 2026)


NSE:TERASOFT Tera Software Ltd NSE:TERASOFT
74 GF Score
Price ₹407.20
GF Value ₹323.84
Valuation Modestly Overvalued
! 1 Warning Sign
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What is Tera Software ROCE %?

Tera Software NSE:TERASOFT -4.13% 74 ROCE % is 27.13% as of Mar. 2026. GuruFocus rates NSE:TERASOFT with a GF Score™ of 74/100 and a GF Value™ of ₹323.84 (Modestly Overvalued). The stock has 1 warning sign investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Tera Software's annualized ROCE % for the quarter that ended in Mar. 2026 was 27.13%.

Tera Software  (NSE:TERASOFT) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Tera Software ROCE % Related Terms

Tera Software ROCE % Historical Data

* Premium members only.

The historical data trend for Tera Software's ROCE % 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.

Tera Software ROCE % Chart

Tera Software Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.20 12.24 7.20 13.19 28.41

Tera Software Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.83 26.63 29.70 30.10 27.13
NSE:TERASOFT
74GF Score
Tera Software Ltd NSE:TERASOFT
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Tera Software ROCE % Calculation

Tera Software's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=399.221/( ( (2133.011 - 881.13) + (3250.751 - 1691.799) )/ 2 )
=399.221/( (1251.881+1558.952)/ 2 )
=399.221/1405.4165
=28.41 %

Tera Software's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=422.976/( ( (0 - 0) + (3250.751 - 1691.799) )/ 1 )
=422.976/( ( 0 + 1558.952 )/ 1 )
=422.976/1558.952
=27.13 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 27.13% mean?
Tera Software (NSE:TERASOFT) has a ROCE % of 27.13% as of Mar. 2026.
Is Tera Software's ROCE % too high?
Tera Software's current ROCE % is 27.13%. The Software industry median ROCE % is 5.28. Tera Software's value of 27.13% is 413.8% above this industry median. Overall, Tera Software has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tera Software's ROCE % compare to IBM and ACN?
Tera Software's ROCE % of 27.13% can be compared against companies in the Software industry. The industry median ROCE % is 5.28. Tera Software's value of 27.13% is 413.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Software company?
The median ROCE % among Software companies is 5.28, based on 2,711 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tera Software's current ROCE % of 27.13% is 413.8% above 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tera Software's current ROCE % is 27.13%. 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 ₹323.84, compared to a current price of ₹407.20 — trading 25.7% above its estimated fair value. The current ROCE % is 27.13% and 413.8% above the Software industry median of 5.28. Tera Software's overall GF Score™ is 74/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Tera Software (NSE:TERASOFT), the current ROCE % is 27.13% 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 ₹407.20 is trading 25.7% above its estimated GF Value™ of ₹323.84. GuruFocus considers Tera Software to be Modestly Overvalued.

Key valuation signals for NSE:TERASOFT:

  • ROCE %: 27.13%
  • GF Value™: ₹323.84 vs. price of ₹407.20 (25.7% above fair value)
  • GF Score™: 74/100 with 1 warning sign
  • Industry Position: 413.8% above the Software median

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 Business Description

Other Exchanges 533982:India
Address Road No. 55, Plot No. 1107, No. 8-2-293/82/A/1107, Jubilee Hills, Hyderabad, TG, IND, 500033
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.
74GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹407.20
Price
₹323.84
GF Value