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Methodhub Software IPO: Tech Surge or Short-Term Spike?

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Methodhub Software IPO Review

Methodhub Software IPO Review| Methodhub Software IPO GMP| Methodhub Software IPO Date| Methodhub Software IPO Price Band

Critical Dates Table

EventDate
IPO Open DateFriday, December 5, 2025
IPO Close DateTuesday, December 9, 2025
Basis of AllotmentWednesday, December 10, 2025
Refunds InitiationThursday, December 11, 2025
Credit to DematThursday, December 11, 2025
Listing DateFriday, December 12, 2025 (Tentative)

Methodhub Software Ltd. is the latest entrant in the SME segment, aiming to capitalize on the global demand for digital transformation. With a massive 136% revenue jump in FY25 and a focus on cutting-edge tech like AI and Cloud, this IPO has caught the eye of aggressive investors. However, sudden growth spikes often warrant a closer look.

This “Deep Dive” analysis covers the company’s business model, financial health, peer comparison, and Grey Market Premium (GMP) to help you decide if this is a value pick or a bull trap.

Deep Dive Analysis

1. Business Model: The Digital Enabler

Methodhub Software Ltd., incorporated in 2016, operates as a pure-play IT services provider. Unlike traditional IT firms that rely heavily on legacy maintenance, Methodhub positions itself as a “Next-Gen” partner.

Core Services:

  • Data & AI Services: Modernizing data architecture and deploying AI models.
  • Cloud Services: Migration, strategy, and management (AWS/Azure).
  • Cybersecurity: Identity and Access Management (IAM) and threat protection.
  • ERP/CRM Integration: Streamlining business processes for enterprises.

Target Industries:

The company has successfully diversified its vertical focus, reducing reliance on a single sector. Key verticals include BFSI (Banking, Financial Services, Insurance), Healthcare & Life Sciences, Telecom, and Automotive.

Geographic Footprint:

Methodhub is not just an Indian player; it has a significant operational footprint in the USA and Canada through its subsidiaries. This allows them to bill in hard currency (USD), which aids margins but exposes them to US economic cycles.

2. Financial Performance: The “Hockey Stick” Growth

The financial data presents a classic “hockey stick” growth curve, which is both exciting and risky.

Key Financial Metrics (₹ in Crores):

MetricFY 2023FY 2024FY 2025H1 FY 2026 (Sep ’25)
Revenue₹35.91₹57.59₹136.01₹80.22
Growth %–60%136%–
Net Profit (PAT)₹1.34₹5.41₹11.50₹10.35
PAT Margin3.7%9.4%8.5%12.9%
EBITDA₹9.04₹9.42₹17.00₹14.79

Analysis:

  • Explosive Revenue: The jump from ₹57 Cr to ₹136 Cr in just one year is phenomenal. This suggests they secured large contracts or successfully expanded their US client base.
  • Margin Expansion: The PAT margin has improved significantly in the first half of FY26 (12.9%), indicating better operational efficiency or higher-value billing rates.
  • Sustainability Question: Investors must ask: Is this 136% growth a one-time event due to a specific large project, or is it a sustainable trend?

3. Valuation & Peer Comparison

At the upper price band of ₹194, Methodhub Software is asking for a valuation that needs to be justified by its growth.

Valuation Metrics:

  • P/E Ratio (Post-Issue): Approximately 17.6x – 24x (based on FY25 earnings).
  • Return on Net Worth (RoNW): A staggering 26.92%.
  • ROE: 42.57% (Pre-IPO).

Peer Comparison:

CompanyP/E RatioRevenue (₹ Cr)EPS (₹)
Methodhub Software~17.6x136.09.93
Esconet Technologies36.2x230.36.11
InfoBeans Tech21.3x394.815.58
Silver Touch Tech40.5x288.022.00

Verdict on Valuation:

Compared to peers like Silver Touch (40x P/E) and Esconet (36x P/E), Methodhub appears undervalued or reasonably priced, provided its growth numbers are genuine and sustainable. The IPO pricing leaves some money on the table for investors.

4. SWOT Analysis

Strengths:

  • High Growth: Few companies can boast >100% YoY revenue growth.
  • Efficient Capital Use: An ROE of over 40% demonstrates management is highly efficient at using shareholder equity to generate profit.
  • Dollar Revenue: Exposure to US markets acts as a hedge against INR depreciation.

Weaknesses:

  • Client Concentration: The top 10 clients contribute nearly 92% of revenue. The loss of a single major client could be catastrophic.
  • Lot Size Barrier: The minimum retail application is 1,200 shares (2 lots) worth ₹2,32,800. This high entry barrier may reduce retail participation, potentially impacting listing volume.

Opportunities:

  • AI Boom: As companies rush to adopt GenAI, Methodhub’s “Data & AI” vertical is perfectly positioned to capture this demand.
  • SME to Mainboard: With current revenue levels, the company is a prime candidate for migration to the Mainboard in the next 2-3 years, which would unlock significant value.

Threats:

  • US Recession: A slowdown in the US economy would directly impact their primary revenue stream.
  • SME Liquidity: Like all SME stocks, liquidity can be an issue post-listing.

5. Grey Market Premium (GMP)

As of December 5, 2025

The Grey Market Premium for Methodhub Software is showing volatility.

  • Current GMP: ₹35 per share
  • Estimated Listing Price: ₹229 (₹194 + ₹35)
  • Estimated Listing Gain: ~18%

Note: GMP is not an official indicator. It reflects unregulated market sentiment and can change rapidly before the listing day.

Conclusion: Apply or Avoid?

The Verdict: Apply for Long-Term (High Risk)

Methodhub Software presents a compelling case on paper. The financials are stellar, the valuation is cheaper than peers, and the sector (AI/Cloud) is hot. However, the client concentration risk (92%) is significant.

  • For Listing Gains: The current 18% GMP is decent but not explosive. It offers a moderate buffer.
  • For Long-Term: If the company maintains even half of its current growth rate, it could be a multi-bagger. The high entry ticket (₹2.3L) filters out weak hands, potentially stabilizing the stock post-listing.

Recommendation: Suitable for high-risk investors with a surplus capital of ₹2.3L+. Conservative investors should skip due to the SME nature and client concentration risks.

Frequently Asked Questions (FAQ)

1. What is the minimum investment for Methodhub Software IPO?

Retail investors must apply for a minimum of 2 Lots (1,200 shares), which amounts to ₹2,32,800.

2. Is Methodhub Software an SME or Mainboard IPO?

This is an SME IPO listed on the BSE SME platform.

3. What is the P/E ratio of Methodhub Software?

The post-issue P/E ratio is approximately 17.67x, which is lower than the industry average, making it attractively valued.

4. When will the Methodhub Software IPO shares be allotted?

The basis of allotment is expected to be finalized on Wednesday, December 10, 2025.

5. Who are the peers of Methodhub Software?

Key peers include Esconet Technologies, InfoBeans Technologies, and Silver Touch Technologies.

Methodhub Software IPO Review| Methodhub Software IPO GMP| Methodhub Software IPO Date| Methodhub Software IPO Price Band

Subscription:

DaysAnchorQIBNIIBNII(>10L)SNII(<10L)RetailTotal
Day-113.353.995.910.140.241.95
Day-214.914.486.270.901.122.94
Day-3

Subscription and GMP consider only of Open to Close

GMP Trend:

DaysGMP
Day-1₹35(18.04%)
Day-2₹23(11.86%)
Day-3₹
The grey market premium (GMP) is the price at which an IPO is traded in an unofficial/unregulated grey market prior to its listing. The GMP reflects how a particular company’s IPO issue might react on the day of listing. A positive GMP premiumsignals that the IPO is likely to be at profit while a negative GMP indicates that the IPO is likely to be at a discount.
It should be noted that IPO GMP is subject to extreme volatility, so an investment decision based solely on Patel Retail IPO GMP will prove risky. Therefore, before to investing, consider all factors and make the right investment decision whether to invest in Patel Retail IPO or not.

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