Dove Soft IPO 0.86x Subscribed: CPaaS Player’s Profit More Than Doubles in 2 Years

Dove Soft Limited’s Rs 73.26 crore SME IPO was subscribed 0.86 times by the end of Day 2 on October 1, 2026, with bids received for around 54.23 lakh shares against 62.70 lakh shares available in the net offer. At the upper price band of Rs 111 per share, the bids were worth approximately Rs 60.19 crore.

Among investor categories, the Non-Institutional Investor (NII) portion was subscribed 1.19 times, while the Qualified Institutional Buyer (QIB) portion was subscribed 1 time. Individual investors subscribed around 0.55 times their allotted portion. The IPO remains open for bidding until October 5. The 3.30 lakh shares reserved for the market maker are a firm reservation and are excluded from the public subscription calculation.

What does Dove Soft do?

Incorporated in 2011, Dove Soft provides integrated cloud communication solutions to enterprises as well as over-the-top (OTT) platforms. Its services include transactional SMS, WhatsApp messaging solutions, voice services, automated voice calls, email communication and other digital products. Its wider platform also covers RCS and other communication channels.

The company acts as an aggregator between telecom operators and clients. In simple terms, Dove Soft connects businesses with telecom and communication networks and provides the technology required to send messages, calls and other customer communications at scale. Its clients can access these services through web-based platforms and APIs instead of building separate communication infrastructure for each channel.

Dove Soft caters to clients across several industries, including telecom, information technology, travel and tourism, entertainment, media, advertising and events, retail, Real Estate, healthcare and cosmetics, Banking, Financial Services and Insurance (BFSI), automobiles, e-commerce, and food and beverages. Its services are used for functions such as transactional alerts, customer notifications, authentication, marketing communication, customer engagement and other operational communication requirements.

The business model also explains why relationships with telecom operators and vendors are important. According to the offer document, Dove Soft purchases messaging, voice and other communication capacity from telecom operators and vendors before providing those services to clients. The company operates through prepaid as well as postpaid arrangements, while enterprise customers can have longer payment cycles.

Financial Performance of Dove Soft

Dove Soft reported revenue from operations of Rs 273.98 crore in FY26, compared with Rs 187.74 crore in FY25 and Rs 119.73 crore in FY24. Revenue therefore increased by approximately 45.9 per cent in FY26, after growing nearly 56.8 per cent in the previous financial year.

Profit after Tax increased from Rs 10.27 crore in FY24 to Rs 16.54 crore in FY25 and Rs 23.40 crore in FY26. PAT grew around 41.5 per cent YoY in FY26 and has more than doubled over the two-year period from FY24 to FY26.  

EBITDA also increased steadily, rising from Rs 14.77 crore in FY24 to Rs 24.13 crore in FY25 and Rs 32.78 crore in FY26. However, margins did not expand alongside revenue. EBITDA margin moderated to 11.96 per cent in FY26 from 12.86 per cent in FY25, while PAT margin eased to 8.54 per cent from 8.81 per cent.

SMS still dominates the revenue mix

While Dove Soft offers several communication channels, its business remains heavily dependent on SMS.

SMS generated approximately Rs 242.78 crore in FY26, accounting for 88.61 per cent of revenue from operations. Voice accounted for around 4.79 per cent, WhatsApp for 2.76 per cent and RCS for 2.19 per cent.

This distinction is important when looking at Dove Soft as an omnichannel CPaaS company. The company has built products across WhatsApp, RCS, voice, email and digital communication, but these newer channels currently contribute a much smaller share of revenue than SMS.

There are, however, signs of growth in some of these newer services. RCS revenue increased to approximately Rs 5.99 crore in FY26 from Rs 0.73 crore in FY25, while WhatsApp revenue rose to around Rs 7.56 crore from Rs 3.15 crore over the same period. Digital marketing revenue also increased to approximately Rs 4.50 crore from Rs 0.90 crore.

The pace at which these businesses grow will therefore be an important metric to follow, particularly if Dove Soft intends to reduce its dependence on SMS over time.

Dove Soft IPO structure

Dove Soft’s IPO comprises 66 lakh equity shares. This includes a fresh issue of 53.28 lakh shares and an Offer for Sale of 12.72 lakh shares. At the upper price band of Rs 111, the fresh issue is worth approximately Rs 59.14 crore, while the OFS amounts to around Rs 14.12 crore, taking the total issue size to Rs 73.26 crore.

The IPO has a price band of Rs 104 to Rs 111 per share and a lot size of 1,200 shares. Individual investors are required to apply for a minimum of two lots, or 2,400 shares, which translates into an investment of approximately Rs 2.66 lakh at the upper price band.

The issue opened on September 30, 2026 and will close on October 5, 2026. The basis of allotment is tentatively scheduled for October 6, followed by credit of shares on October 7. The shares are expected to list on the BSE SME platform on October 8, 2026.

Disclaimer: The article is for informational purposes only and not investment advice