ASM Technologies - ASM Technologies

📊 BSE: 526433 🏢 Computers - Software & Consulting 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Operating income grew 41.89% YoY to INR 289.28 Cr in FY25, driven by a ramp-up in the Design-Led Manufacturing (DLM) business and increased share from existing customers. H1 FY26 revenue reached INR 277 Cr, a 151.8% increase over H1 FY25.

Geographic Revenue Split

Approximately 45-50% of revenue is derived from international markets, including the USA, Singapore, UK, Canada, Japan, and Mexico, providing a diversified footprint that cushions against regional downturns.

Profitability Margins

PAT margin improved significantly to 8.66% in FY25 from -3.51% in FY24. Operating margins rose to 17% in FY25 from 4.16% in FY24 due to better fixed-cost absorption and a higher mix of DLM business.

EBITDA Margin

EBITDA margin stood at 19.7% in Q2 FY26, supported by operating leverage and an improved service-manufacturing mix, compared to 17% for the full year FY25.

Capital Expenditure

The company has planned a massive capital expenditure of INR 760 Cr, comprising INR 510 Cr for facilities in Karnataka and INR 250 Cr for Tamil Nadu to expand DLM and precision engineering capabilities.

Credit Rating & Borrowing

The company maintains a 'Stable' outlook from Crisil Ratings. Interest coverage ratio improved to 4.6 times in FY25 from 1.01 times in FY24, reflecting a significantly strengthened ability to service debt.

⚙️ Operational Drivers

Raw Materials

Specific raw materials include electronic components, semiconductor sub-assemblies, and mechanical parts required for prototyping and Design-Led Manufacturing.

Import Sources

Sourced globally, primarily from hubs in Singapore, Japan, and the USA, aligned with the company's international delivery locations.

Capacity Expansion

Currently operates 4 manufacturing facilities and 6 development centers. Planned expansion includes two cutting-edge facilities in Dabaspet (Karnataka) and Sriperumbudur (Tamil Nadu) to support the ESDM sector.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company utilizes a robust hedging framework and stringent cost controls to manage input price volatility.

Manufacturing Efficiency

Inventory turnover ratio was 10.38 on a consolidated basis for FY25, reflecting efficient movement of goods relative to sales.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

Growth will be achieved through a INR 760 Cr investment in new DLM facilities in Karnataka and Tamil Nadu, targeting the semiconductor and electronics supply chain. The company is shifting toward IP-led innovation and non-linear growth models to move beyond traditional engineering services.

Products & Services

Engineering R&D services, embedded system designs, semiconductor equipment prototypes, value engineering, and electronic manufacturing solutions.

Brand Portfolio

ASM Technologies, RV Forms and Gears.

New Products/Services

Next-generation solutions include AI-enhanced industrial analytics, predictive maintenance for heavy machinery, and MLOps for industrial AI.

Market Expansion

Targeting expansion in the semiconductor, electronic equipment, and transportation verticals across India, USA, and Japan.

Strategic Alliances

Signed MoUs with the Governments of Karnataka and Tamil Nadu for large-scale ESDM investments.

🌍 External Factors

Industry Trends

The ER&D industry is evolving toward AI, electrification, and semiconductors. India's share is expected to expand materially this decade due to the growth of Global Capability Centers (GCCs).

Competitive Landscape

Highly competitive sector requiring continuous capability upgrades to transition from traditional engineering to AI and Robotics.

Competitive Moat

Durable advantages include a 30-year track record, deep domain expertise in semiconductor equipment, and an integrated 'design-to-manufacturing' model that creates high switching costs for clients.