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Methodhub Software

• Methodhub Software is coming out with an initial public offering (IPO) of 53,94,000 shares in a price band of Rs 190-194 per equity share. 
• The issue will open on December 05, 2025 and will close on December 09, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 19.00 times of its face value on the lower side and 19.40 times on the higher side.
• Book running lead manager to the issue is Horizon Management.
• Compliance Officer for the issue is Muthukrishnan Shanmuga Thevar.

Profile of the company

Methodhub Software is an Information Technology (IT) services provider conducting business through offices across four locations in India and through its Subsidiaries in the USA and Canada. The company offers next-gen business solutions to enhance the digital transformation journey of clients across the globe. As of October 31, 2025, the company along with its Subsidiaries served 29 customers with support of 294 employees and independent consultants, who have domain expertise and experience in evolving technologies. It leverages the combined expertise of its domain experts and technology specialists to deliver solutions in a manner that produces desired output for its customers. The company caters enterprises across sectors through consulting, delivery, support services and execution capabilities.

The company is positioned in offering specific solutions to key industries such as Banking, Financial Services and Insurance (BFSI), Oil & Gas/Energy, Healthcare and Life Sciences, Telecom/Tech Infrastructure, Automotive/Transport, Information Technology (IT) Consulting. Its services are structured around these six core verticals, allowing it to deliver targeted, industry-specific solutions that meet the desired needs of each sector. It offers a wide range of IT and Consulting Services such as Cloud Services, Data & AI Services, Cybersecurity, ERP/CRM Integration, IT Infrastructure, Recruitment Delivery Services and Combined Offerings. In addition, it provides bespoke IT solutions supported by a dedicated and well-managed IT team and a team of seasoned professionals to ensure continuous monitoring and support according to the client’s specific needs.

The Information Technology industry is a continuously evolving industry, and it endeavor to exploit these technological advances to reach audience in India and globally to provide growth, efficiency and advancement in the business objectives. The company’s success lies in the strength of its relationship with its clients and expertise in the industry. The company has been able to build long standing relationship with its existing clients which include Indian and multinational corporations. Its team, through their vast experience, efficient and timely delivery, is able to source new business for the company.

Proceed is being used for:

• Repayment and/ or prepayment, in full, of certain outstanding loans (including foreclosure charges, if any) availed by the company
• Augmentation of long-term working capital requirements of the company
• Investment in its wholly owned subsidiary MethodHub Consulting Inc. (USA) for augmentation of long term working capital requirements in MethodHub Consulting Inc. (USA)
• Unidentified inorganic acquisitions and general corporate purposes

Industry Overview

The IT & BPM sector has become one of the strongest pillars of India’s economy, contributing significantly to growth, employment, and public welfare. In April 2025, the industry recorded 16% YoY growth in hiring, driven by the rising adoption of artificial intelligence, cloud modernisation, and the expansion of Global Capability Centres (GCCs). India’s AI Mission has also added momentum by securing 38,000 GPUs in September 2025, tripling its original target of 10,000 and strengthening compute power for researchers, startups, and enterprises developing advanced AI models. India’s IT industry revenue has expanded from $118 billion in FY15, including $100 billion in exports, to an estimated $283 billion in FY25, with exports contributing $224 billion. IT exports rose 12.48% in FY25, up from $199.5 billion in FY24, with STPI-registered units contributing Rs 10.64 lakh crore ($124.56 billion). Export of IT services remained the largest contributor, accounting for more than 65% of total IT exports.

India’s IT growth is being increasingly driven by new hubs beyond traditional metros. Non-metro cities such as Udaipur, Vizag, Coimbatore, and Nagpur recorded over 50% IT hiring growth in H1 2025, significantly higher than Bengaluru and NCR at 12-15%. This reflects a structural shift as tier-II and tier-III hubs attract demand in AI, cloud, and cybersecurity while offering cost savings of around 30%. Mid-tier IT companies also reported stronger growth than their larger counterparts in FY25, highlighting their agility in navigating uncertain global conditions, although sustaining this momentum in FY26 remains a challenge. The domestic market is also expanding steadily. IT spending in India is estimated to have grown 11.1% in 2024 to reach $138.6 billion, up from $124.7 billion in 2023. The Indian software product industry is projected to reach $100 billion by 2025 as companies expand globally and strengthen delivery centres.

India continues to be the world’s leading offshoring destination, trusted for its ability to deliver both onshore and off-shore services at scale. The sector is now entering a new phase, with emerging technologies such as AI, cloud, cybersecurity, and data engineering opening fresh avenues for growth. IT spending in India is expected to rise 11.1% year-on-year to $161.5 billion in 2025, up from $145.4 billion in 2024. The domestic public cloud services market, which grew to $3.8 billion in the first half of 2023, is projected to touch $17.8 billion by 2027. By 2026, widespread adoption of cloud technologies could generate 14 million jobs and add nearly $380 billion to India’s GDP. With a robust talent base, rising demand from non-metro hubs, and continued global confidence in its IT capabilities, India’s technology industry is well-positioned to cement its role as a driver of digital transformation worldwide. 

Pros and strengths

Catering to diversified industrial verticals: The company derives its strength from serving a wide range of industries, which enables it to maintain a balanced and resilient revenue model. With 99.15% of its income generated through domestic and export sales, it has built a diverse client base across geography and industry verticals that reduces dependence on any single market or industry cycle. This diversification not only mitigates business risks but also provides it with continuous opportunities to expand and adapt its services to evolving sectoral needs.

Continuous innovation: In the software services industry, competitiveness is determined by the ability to remain current with emerging technologies and market trends. The company has adopted continuous innovation as a key business driver, ensuring that its service offerings evolve in step with industry developments. It continuously tracks the developments and upcoming technologies to identify and integrate new tools, platforms, and methodologies into its delivery model. This approach enables it to design and implement solutions that not only address the immediate requirements of its clients but also anticipate future demands of their businesses.

Scalable business model: The company’s business model is structured around technology-driven solutions and the integration of people, processes, and resources to ensure sustainability and expansion. The model emphasizes the formation of competent teams to deliver digital engineering solutions, the contribution of the marketing function in customer engagement and acquisition, and the role of management in identifying and implementing emerging technologies. It also covers budgeting and oversight of the production lifecycle to maintain cost efficiency and achieve economies of scale. The structure of the model allows the company to extend its operations into new sectors that are technology intensive, while simultaneously enhancing its existing range of offerings.

Risks and concerns

Significant revenue reliance on top clients: The company generates a significant portion of its revenue from operations from its top client and top 10 clients who for the six months period ended September 30, 2025 represented 32.09% and 91.95% of its revenue from operations, respectively. Any loss or reduction of business from these clients or customers could reduce its revenue and adversely affect its business, results of operations, cash flows and financial condition.

High supplier concentration risk: The company relies on its key suppliers for various aspects of its information technology infrastructure. Its Top 10 suppliers accounted for 32.09%, 65.94%, 72.13% and 56.72% of its total expenses for the six months period ended September 30, 2025, Fiscals 2025 and 2024 on a consolidated basis and for 2023 on a standalone basis, respectively. Any failure on part of its suppliers to supply in a timely manner or if they ceased supplying products/services to it and it was unable to find a supplier to replace it, it could have an adverse effect on its business, financial condition, results of operations, and cash flows.

Vulnerability to cyberattacks and system disruptions: Data networks are vulnerable to attacks, unauthorised access and disruptions. Any unauthorized access to its network or data, including internal breaches, cyberattacks or system vulnerabilities, could harm its reputation, create additional liability and adversely affect its financial condition, results of operations and cash flows. Additionally, losses or liabilities that are incurred as a result of any of the foregoing or failure of its IT systems could adversely affect its business, cash flows, financial condition and results of operations.

Outlook

MethodHub Software is an Information Technology (IT) services provider. The company offers next-gen business solutions to enhance the digital transformation journey of clients across the globe. The company is catering to diversified industrial verticals. It has experienced leadership and skilled workforce On the concern side, the company generates a significant portion of its revenue from operations from its top client. Any loss or reduction of business from these clients or customers could reduce its revenue and adversely affect its business, results of operations, cash flows and financial condition. Moreover, the company relies on its key suppliers for various aspects of its information technology infrastructure. Any failure on part of its suppliers to supply in a timely manner or if they ceased supplying products/services to it and it was unable to find a supplier to replace it, it could have an adverse effect on its business, financial condition, results of operations, and cash flows.

The company is coming out with a maiden IPO of 53,94,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 190-194 per equity share. The aggregate size of the offer is around Rs 102.49 crore to Rs 104.64 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operation rose to Rs 1,348.58 million in FY 2025 from Rs 568.02 million in FY 2024, registering an impressive increase of 137.42%. For FY?2024-25, the restated profit after tax stood at Rs 115.01 million, compared to Rs 54.08 million in FY?2023-24, representing an increase of 112.67%. 

The company’s strategy includes pursuing selective acquisitions and forming technology alliances that complement and strengthen its existing business operations. Through such initiatives, it seeks to expand its client base, gain entry into new sectors, and integrate advanced technology capabilities that create synergies with its service offerings. In line with this approach, the company has identified potential acquisition opportunities in the United States and has signed a letter of intent with a few target companies. Preliminary business and financial due diligence have been conducted, and the targets have been assessed as viable from both a valuation and strategic fit perspective. These acquisitions, proposed to be funded through the proceeds of the Issue, are expected to enhance its technological footprint and broaden its market reach.