Home / All Reports / Benchmarking Studies /Software Development Services — India, FY 2025-26
Benchmarking Studies
Software Development Services — India, FY 2025-26
A transactional net margin method (TNMM) benchmarking study for captive and third-party software development service providers in India, with 18 accepted comparables and the full search and rejection trail.
| Jurisdiction | India |
|---|---|
| Industry | Software |
| Tested party | Software development service provider (captive / low risk) |
| Method | TNMM |
| Financial year | FY 2025-26 |
| Profit level indicator | Operating Profit / Operating Cost (OP/OC) |
| Accepted comparables | 18 (from an initial screen of 1,412) |
| Data source | S&P Capital IQ, Capitaline, TP Catalyst |
| Length | PDF report (48 pages) + Excel workbook |
| Last updated | 15 August 2026 |
| Licence | Single-firm licence — unlimited internal client deliverables |
| Format | PDF + XLSX |
What is inside
- Full search strategy: database, screens applied, and the order they were applied in
- Rejection matrix — every rejected company with the reason recorded, so the study survives scrutiny
- Financial data for all accepted comparables across three years
- Arm’s-length range with quartile calculation and the working shown
- Functional, asset and risk (FAR) profile of the tested party used for the screen
- Excel workbook with live formulas — adjust the tested party’s margin and the range recalculates
Who this is for
Accountancy and consulting firms preparing a Local File or defending a transfer pricing position for an Indian software development entity. The study is supplied unbranded so it can be inserted into your own deliverable under your own cover.
What this is not
This is a benchmarking study, not a full Local File. It does not include entity-specific FAR analysis, intercompany agreements, or the narrative sections of a documentation set. If you need those, the Local File Template Pack covers the structure, and custom engagements are handled through the main practice.
Licence and restrictions
One purchase licenses one firm. You may use this in an unlimited number of your own client deliverables. You may not resell it, redistribute it, or share the source files outside your firm.