Methodhub Software Ltd. IPO Analysis

08 December 2025

Methodhub Software Limited is an emerging IT services provider focused on delivering technological solutions primarily to the North American market. Methodhub Software Limited was incorporated in 2016 and has evolved into a specialised IT services partner. The company facilitates digital transformation for enterprises by providing software development, cloud infrastructure, and data analytics services. It distinguishes itself through a hybrid delivery model that integrates nearshore capabilities with offshore support to ensure time-zone overlap and seamless collaboration for US-based clients. 

Parameter	Details
Issue Type	Fresh Capital-cum-Offer for Sale Fresh Issue - ~85%, OFS ~ 15%
Issue Size	INR 103.02 crores
Price Band	₹190 to ₹194 per share
Lot Size	600 shares
Net Issue	53,10,309 shares
NII Portion	Not less than 15% of the Net Offer
QIB Portion	Not more than 50% of the Net Offer
Retail Portion	Not less than 35% of the Net Offer
Listing Platform	BSE SME
Issue Opens	December 5, 2025
Issue Closes	December 9, 2025
Listing Date	December 12, 2025

Now, let’s move to what’s working for the company and what’s not.

Strengths	Risks
They have deep expertise and infrastructure(subsidiaries in the USA and Canada) tailored specifically for the high-margin North American market.	Heavy reliance on the US market means economic downturns or visa policy shifts there could severely impact revenue.
They offer a wide range of IT and consulting services—cloud, data & AI, cybersecurity, ERP/CRM, recruitment delivery and IT infrastructure—allowing it to provide end‑to‑end solutions.	Significant revenue is derived from a limited number of large clients, creating dependency risk. The top client contributes for 32.09% of revenue and works in the same industry, and their top 10 clients contribute 91.95% of their revenue.
Revenue has nearly quadrupled from FY23 ₹13.44 million to ₹115.01 million in FY25, with PAT margins expanding significantly, while net worth increased more than tenfold.	Failure to keep pace with evolving technologies and customer needs could erode competitiveness and difficulties in integrating new businesses or achieving expected synergies could hurt profitability.
The company serves clients across BFSI, energy, healthcare, telecom and automotive sectors, reducing reliance on any single industry.	Promoter holding is going to decrease by around 9 % post issue which is to be precise from 35.29% to 26.84%.

Geographic Breakdown :-

Industry Overview

Market size -

India remains the top offshoring destination for global IT services. According to the IBEF report, IT spending in India is expected to grow 11.1 % in 2024 to US$138.6 billion. The National Association of Software and Service Companies (NASSCOM) projects India’s IT exports to reach ₹1,795,920 crore (US$210 billion) in FY 2025, with 5–6 % growth anticipated in FY 2026.

Key trends and growth drivers -

• AI & GenAI Integration: There is rapid adoption of Artificial Intelligence in enterprise workflows, driving demand for specialized implementation partners.

• Hybrid Delivery: A shift from pure offshore models to "Nearshore + Hybrid" models is occurring to ensure better communication and agility.

• 5G & IoT: Expansion of connectivity is creating new requirements for infrastructure management and edge computing solutions.

Growth drivers

• Rising technology spending by global clients across BFSI, energy, healthcare and telecom sectors.

• Increased adoption of AI, cloud and cybersecurity solutions, creating demand for MethodHub’s service offerings.

• Offshore advantage: India’s cost‑competitive talent pool supports margin expansion for global clients.

Company positioning in the industry

MethodHub positions itself as a multi‑service provider delivering end‑to‑end IT solutions across key industry verticals. It differentiates by combining cloud, data & AI, cybersecurity and ERP/CRM expertise with recruitment delivery services, enabling it to offer both project execution and staffing. The company’s acquisitions in the US and Canada enhance its on‑site presence and broaden its client base.

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