MOSCHIP - Moschip Tech.
📢 Recent Corporate Announcements
Moschip Technologies has approved the allotment of 3,99,870 equity shares to eligible employees following the exercise of stock options. The allotment, approved on February 26, 2026, involves shares with a face value of Rs. 2 each. Consequently, the company's total equity base has increased from 19,31,61,978 to 19,35,61,848 shares. This issuance results in a marginal equity dilution of approximately 0.2%, which is standard for employee incentive programs.
- Allotment of 3,99,870 equity shares pursuant to various MosChip Stock Option Schemes.
- Total number of equity shares increased from 19,31,61,978 to 19,35,61,848.
- The new shares carry a face value of Rs. 2 each and rank pari-passu with existing shares.
- The allotment was approved by the Nomination and Remuneration Committee via circular resolution.
MosChip Technologies has entered into a strategic partnership with Kerala Blasters FC to serve as the club's Official Technology Partner for the 2025-26 season. The collaboration involves co-developing an AI-driven athlete performance application using MosChip's proprietary AgenticSky WearableCore accelerator. This platform will convert wearable data into personalized insights for player health, readiness, and recovery. While financial details were not disclosed, the move demonstrates MosChip's expansion into the sports technology vertical and showcases its capabilities in Agentic AI and hardware-software integration.
- Official Technology Partner for Kerala Blasters FC for the 2025-26 football season.
- Co-developing an athlete performance app using MosChip’s AgenticSky WearableCore accelerator.
- Integration of Agentic AI to provide real-time insights into player health and recovery.
- Showcases MosChip's end-to-end engineering capabilities from hardware to cloud and AI.
MosChip reported a strong 30% YoY revenue growth for 9MFY26, reaching ₹431.92 Cr, though Q3 profitability faced headwinds. Q3FY26 EBITDA declined to ₹16.41 Cr from ₹18.32 Cr YoY, primarily due to strategic salary revisions and a one-time exceptional charge of ₹5.82 Cr related to new government Labour Codes. Despite the quarterly margin pressure, the company's 9-month PBT (before exceptional items) rose 40% to ₹35.00 Cr. The company also launched AgenticSky™, a new AI framework, to align with the projected $1 trillion global semiconductor market by 2026.
- 9MFY26 Revenue grew 30% YoY to ₹431.92 Cr, while PBT (before exceptional items) rose 40% to ₹35.00 Cr.
- Q3FY26 Revenue increased 18% YoY to ₹149.39 Cr, but EBITDA fell to ₹16.41 Cr due to higher employee costs.
- Recognized a one-time exceptional expense of ₹5.82 Cr for gratuity and leave liabilities under new Labour Codes.
- Launched AgenticSky™, a breakthrough framework for Agentic AI solutions in healthcare and industrial sectors.
- EBITDA margins for 9MFY26 compressed to 11.9% from 13.5% in the previous year period.
MosChip Technologies reported a consolidated revenue of ₹150.68 crore for Q3 FY26, marking an 18.2% increase year-on-year. However, net profit for the quarter declined significantly to ₹4.33 crore compared to ₹11.06 crore in Q3 FY25, primarily due to a one-time exceptional item of ₹5.81 crore related to new Labour Code provisions. The company's core Silicon Engineering segment continues to drive growth, contributing ₹121.02 crore to the top line. Additionally, the board approved the grant of 9.03 lakh new ESOP options and the allotment of 1.95 lakh shares under existing schemes.
- Consolidated revenue increased 18.2% YoY to ₹150.68 crore in Q3 FY26.
- Net profit dropped to ₹4.33 crore from ₹11.06 crore YoY due to a ₹5.81 crore exceptional charge for Labour Code adjustments.
- Silicon Engineering segment revenue grew to ₹121.02 crore from ₹99.31 crore in the previous year's quarter.
- Board approved the grant of 9,03,130 new ESOP options and allotted 1,95,909 equity shares upon exercise.
- Basic EPS for the quarter stood at ₹0.23 compared to ₹0.58 in the year-ago period.
MosChip Technologies reported a consolidated total income of ₹150.68 crore for Q3 FY26, an 18.2% increase over the same quarter last year. However, net profit declined to ₹4.33 crore from ₹11.06 crore YoY, largely due to a one-time exceptional charge of ₹5.82 crore for labor code adjustments. The company also announced the allotment of 1.96 lakh equity shares and the grant of 9.03 lakh new ESOPs to employees. Silicon Engineering remains the primary revenue driver, contributing over 80% of the total revenue.
- Total income rose 18.2% YoY to ₹15,068.44 lakhs from ₹12,741.71 lakhs.
- Net profit fell to ₹433.60 lakhs, impacted by a ₹581.86 lakh exceptional item related to new Labour Code provisions.
- Silicon Engineering segment revenue grew to ₹12,102.60 lakhs compared to ₹9,931.58 lakhs YoY.
- Employee benefit expenses increased significantly to ₹8,142.16 lakhs from ₹6,284.68 lakhs in the previous year's quarter.
- Board approved the allotment of 1,95,909 equity shares and granted 9,03,130 new ESOP options.
MosChip Technologies reported a total income of ₹150.68 crore for Q3 FY26, an 18% increase year-on-year. However, net profit plummeted by 60% YoY to ₹4.33 crore, largely due to a one-time exceptional expense of ₹5.82 crore for Labour Code adjustments. Operating margins were further pressured by an 18% QoQ rise in employee benefit expenses. While revenue growth remains steady in the Silicon Engineering segment, the bottom-line contraction is a point of concern for short-term valuation.
- Consolidated Total Income rose 18.2% YoY to ₹15,068.44 lakhs, though QoQ growth was flat at 1.5%
- Net Profit after tax fell to ₹433.60 lakhs from ₹1,105.98 lakhs in the year-ago period
- A one-time exceptional charge of ₹581.86 lakhs was recorded for gratuity and leave liability under new Labour Codes
- Silicon Engineering segment revenue grew to ₹121.02 crore, contributing 81% of total operations
- The company granted 9,03,130 new ESOPs and allotted 1,95,909 equity shares to employees
MosChip Technologies reported a consolidated total income of ₹150.68 crore for Q3 FY26, an 18% increase YoY, but net profit dropped significantly to ₹4.33 crore from ₹11.06 crore in the previous year. The bottom line was heavily impacted by a one-time exceptional expense of ₹5.82 crore related to the implementation of new Labour Codes. Additionally, employee benefit expenses rose to ₹81.42 crore, putting further pressure on margins. The company also granted 9.03 lakh new ESOPs to employees during the quarter.
- Total Income increased to ₹150.68 crore, up 18.2% YoY from ₹127.42 crore.
- Net Profit fell 60.8% YoY to ₹4.33 crore, largely due to a ₹5.82 crore exceptional item for Labour Code adjustments.
- Silicon Engineering segment revenue grew to ₹121.03 crore compared to ₹99.32 crore in the year-ago period.
- Employee benefit expenses increased by 29.5% YoY to ₹81.42 crore, impacting operating margins.
- Basic EPS declined to ₹0.23 for the quarter from ₹0.58 in the year-ago period.
MosChip Technologies has received shareholder approval for the appointment of Mr. Sandeep Himmatlal Shah and Dr. Yellamanchali Sreenivas Rao as Independent Directors for five-year terms. Mr. Shah brings over 30 years of experience, including a tenure as General Manager of Intel India, specializing in semiconductors and AI/ML. Dr. Rao, a former Director General at DRDO, adds 40 years of expertise in defense systems and strategic project leadership. These high-caliber appointments are expected to significantly strengthen the board's technical and strategic oversight in the semiconductor and defense sectors.
- Shareholders approved the appointments via special resolutions on January 20, 2026, through Postal Ballot.
- Both directors are appointed for a 5-year term effective retrospectively from October 24, 2025.
- Mr. Sandeep Shah offers 30+ years of global tech experience, having led large-scale engineering teams at Intel.
- Dr. Y. Sreenivas Rao brings 40+ years of defense and strategic experience from his leadership at DRDO.
- The appointments aim to enhance governance and provide domain expertise in MosChip's core business areas.
MosChip Technologies has announced the successful passage of three special resolutions via postal ballot with overwhelming shareholder support. The resolutions include the appointment of Mr. Sandeep Himmatlal Shah and Dr. Yellamanchali Sreenivas Rao as Independent Directors for five-year terms. Additionally, shareholders approved a revision in the remuneration terms for the Managing Director & CEO, Mr. Srinivasa Rao Kakumanu. All proposals were passed with over 99% of votes in favor, ensuring leadership continuity and governance compliance.
- Appointment of two Independent Directors for 5-year terms effective from October 24, 2025.
- Revision of remuneration for MD & CEO Mr. Srinivasa Rao Kakumanu approved with 99.11% favorable votes.
- Total of 8,03,30,220 votes were polled across a shareholder base of 3,58,714 as of the record date.
- The voting process was conducted via remote e-voting from December 22, 2025, to January 20, 2026.
MosChip Technologies has successfully delivered a custom System-on-Chip (SoC) to ISRO’s Space Applications Centre (SAC) for India’s Satellite Navigation Program. The project involved a full turnkey ASIC program using 28nm technology, covering everything from Netlist to packaged silicon. The company managed complex tasks including 10-layer package design and post-silicon validation, confirming functionality against specifications. This milestone demonstrates MosChip's advanced technical capabilities in the high-entry-barrier space and defense semiconductor market.
- Successful silicon bring-up of a custom SoC using advanced 28nm technology node for ISRO's SAC
- Completed end-to-end turnkey ASIC program including substrate design for a 10-layer FC-CBGA package
- Validated engineering samples on ATE, enabling SAC to proceed to the next stage of production
- Managed all critical phases from DFT architecture and physical design to post-silicon validation
MosChip Technologies Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by KFin Technologies Limited, confirms that all securities dematerialized or rematerialized during the quarter ended December 31, 2025, have been processed according to regulatory standards. This is a standard administrative filing required to ensure the accuracy of the company's electronic share records with NSDL and CDSL. It indicates that the company is maintaining its routine regulatory obligations without any reported discrepancies.
- Compliance certificate for the quarter ended December 31, 2025.
- Issued by Registrar and Share Transfer Agent (RTA), KFin Technologies Limited.
- Confirms processing of dematerialization and rematerialization requests within stipulated timelines.
- Submitted to both BSE and NSE as per listing requirements.
MosChip Technologies has approved the allotment of 2,73,222 equity shares to employees following the exercise of stock options under various ESOP schemes. The shares have a face value of Rs. 2 each and will rank pari-passu with existing equity. This allotment increases the company's total outstanding shares from 19,26,92,847 to 19,29,66,069. The dilution resulting from this issuance is minimal, representing approximately 0.14% of the post-allotment capital.
- Allotment of 2,73,222 equity shares of face value Rs. 2 each to eligible employees.
- Total paid-up equity shares increased to 19,29,66,069 from 19,26,92,847.
- Approval granted by the Nomination and Remuneration Committee via circular resolution on December 26, 2025.
- The new shares rank equally with existing shares in all respects including dividends.
Moschip Technologies has announced the closure of its trading window for all designated persons and their relatives starting January 1, 2026. This closure is a mandatory regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations, 2015, preceding the announcement of financial results. The window is being closed specifically for the review and approval of unaudited financial results for the quarter ending December 31, 2025. The trading window will reopen 48 hours after the board meeting results are officially disclosed to the exchanges.
- Trading window closure effective from January 1, 2026.
- Closure relates to the approval of unaudited financial results for the quarter ended December 31, 2025.
- Window to remain closed until 48 hours after the conclusion of the upcoming board meeting.
- Compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015.
MosChip Technologies has issued a postal ballot notice to seek shareholder approval for the appointment of two Independent Directors, Mr. Sandeep Himmatlal Shah and Dr. Yellamanchali Sreenivas Rao, for five-year terms. The company is also proposing a revision in the remuneration for MD & CEO Mr. Srinivasa Rao Kakumanu, effective from January 1, 2026, to March 31, 2027. The proposed annual package includes a fixed pay of ₹3.06 crore and a variable component of ₹54 lakh. Shareholders can participate in the e-voting process from December 22, 2025, to January 20, 2026.
- Appointment of two Independent Directors for 5-year terms starting October 24, 2025.
- Proposed revision of MD & CEO fixed remuneration to ₹3.06 crore per annum.
- Additional variable pay of ₹54 lakh per annum for the CEO based on milestone achievements.
- Revised compensation terms for the CEO cover a 15-month period ending March 2027.
- E-voting period for shareholders concludes on January 20, 2026, at 5:00 p.m. IST.
MosChip Technologies has initiated a postal ballot to obtain shareholder approval for the appointment of two independent directors for five-year terms. The board has also proposed a revision in the remuneration for MD & CEO Srinivasa Rao Kakumanu. Furthermore, 1,24,384 Employee Stock Options (ESOPs) were granted to eligible employees to incentivize performance. The voting process will conclude on January 20, 2026, with results determining these key leadership and compensation changes.
- Grant of 1,24,384 Employee Stock Options (ESOPs) to eligible employees under existing schemes.
- Proposed 5-year appointment of Sandeep Himmatlal Shah as Independent Director effective Oct 24, 2025.
- Proposed 5-year appointment of Dr. Yellamanchali Sreenivas Rao as Independent Director effective Oct 24, 2025.
- Revision in the terms of remuneration for MD & CEO Srinivasa Rao Kakumanu.
- Postal ballot voting period scheduled from December 22, 2025, to January 20, 2026.
Financial Performance
Revenue Growth by Segment
Silicon Engineering Solutions revenue grew 38.3% YoY from INR 135.12 Cr in H1 FY25 to INR 186.87 Cr in H1 FY26. Product Engineering Solutions revenue grew 89% YoY from INR 31.16 Cr to INR 58.91 Cr in the same period, driven by increased demand for embedded systems and AI-led design services.
Geographic Revenue Split
The United States accounts for a majority of the revenue (over 50%) due to the concentration of global semiconductor players. India-based revenue is gaining visibility through strategic collaborations with the Central Government for domestic semiconductor initiatives.
Profitability Margins
Operating margins improved to 12% in FY24. Standalone segment results for H1 FY26 indicate an operating margin of approximately 16.1% (INR 39.63 Cr profit on INR 245.78 Cr revenue), reflecting improved workforce utilization and a shift toward higher-margin turnkey ASIC projects.
EBITDA Margin
Operating profit has demonstrated a CAGR of 47.4%, significantly outperforming revenue growth. This margin expansion is attributed to the scalability of the design services model and the deployment of an internal talent pipeline which reduces recruitment costs.
Capital Expenditure
Intangible assets under development, representing R&D for new products like Smart Energy Meter ICs, increased by 142% from INR 9.04 Cr in FY24 to INR 21.89 Cr in FY25. Total property, plant, and equipment stood at INR 4.20 Cr as of March 2025.
Credit Rating & Borrowing
The company maintains a strong financial risk profile with nil external debt as of March 31, 2025. CRISIL notes that a decline in operating margins to 8-10% or significant debt-funded inorganic growth would be downward rating factors.
Operational Drivers
Raw Materials
Key inputs include Mask Tools (representing a significant portion of tangible asset costs), Lab Equipment, and Electronic Components. As a fabless company, physical raw materials are a smaller portion of costs compared to human capital.
Import Sources
Sourcing is primarily global, aligned with semiconductor foundry locations in Taiwan, Korea, and the US, while design tools are licensed from global EDA (Electronic Design Automation) vendors.
Key Suppliers
Not specifically named, but the company depends on global semiconductor foundries for ASIC fabrication and specialized subcontractors for raw material quality and supply.
Capacity Expansion
Current capacity includes 5 global design centers with a workforce of 1,250+ employees (up 13% YoY). Expansion is underway in Bangalore and Pune with larger office spaces to accommodate growing headcount and project complexity.
Raw Material Costs
Cost of materials consumed was INR 15.48 Cr in FY25, representing approximately 4% of total revenue. This reflects the company's transition toward a high-value design services model rather than pure hardware manufacturing.
Manufacturing Efficiency
Efficiency is measured by workforce utilization. The company has achieved a 40% revenue CAGR (2019-25) by optimizing the deployment of its 1,250+ engineers across Silicon and Product engineering projects.
Logistics & Distribution
Distribution costs are minimal as the primary output is intellectual property and design files delivered digitally to global clients and foundries.
Strategic Growth
Expected Growth Rate
15.40%
Growth Strategy
Growth is targeted through a transition from staff augmentation to high-value Turn-key ASIC projects and the development of Application Specific Standard Products (ASSPs) like Smart Energy Meter ICs. The company is also pursuing inorganic growth through acquisitions, following the successful integration of Gigacom and FirstPass.
Products & Services
ASICs (Application Specific Integrated Circuits), Smart Energy Meter ICs, Embedded Systems, AI-led products, and Digital Engineering services.
Brand Portfolio
MosChip, Softnautics (subsidiary).
New Products/Services
New offerings include Emulation services in the semiconductor segment and Digital Engineering in the software segment. The Smart Energy Meter IC is a key upcoming ASSP product.
Market Expansion
Expanding footprint in Bangalore and Pune (Q2 FY26) and strengthening international partnerships to support a global customer base.
Market Share & Ranking
The company is a leading Indian silicon and product engineering firm with a 26-year track record; it holds a niche position in the fabless ASIC design market.
Strategic Alliances
Collaborations with the Indian Central Government for revenue visibility and partnerships with global semiconductor design peers for offshore deployment.
External Factors
Industry Trends
The global semiconductor market is projected to grow from USD 755.28 billion in 2025 to USD 2,062.59 billion by 2032. The industry is shifting toward AI-integrated silicon and localized supply chains (India Semiconductor Mission).
Competitive Landscape
Competes with global design service providers and internal design teams of large semiconductor OEMs. Key differentiator is the ability to handle full turnkey ASIC projects.
Competitive Moat
Moat is built on 26 years of domain expertise and a scalable talent acquisition process. The internal training center provides a cost-effective talent pipeline that is difficult for smaller peers to replicate.
Macro Economic Sensitivity
Highly sensitive to global R&D spending in the electronics and automotive sectors. A slowdown in global tech spending could delay ASIC project initiations.
Consumer Behavior
Increasing demand for AI-enabled consumer electronics and industrial IoT systems is driving the need for MosChip's specialized product engineering services.
Geopolitical Risks
Trade barriers or restrictions on semiconductor technology transfers between the US and Asia could disrupt the supply chain for MosChip's global clients.
Regulatory & Governance
Industry Regulations
Subject to international IP protection laws and export control regulations related to high-end semiconductor technology.
Environmental Compliance
As a fabless design company, environmental impact is low, primarily related to office energy efficiency and e-waste management from lab equipment.
Taxation Policy Impact
Current tax is determined per the Income-tax Act, 1961. Deferred tax is recognized on temporary differences between carrying amounts and tax bases.
Legal Contingencies
The company maintains internal financial controls as per Section 143(3)(i) of the Companies Act; no major pending litigation values were disclosed in the provided reports.
Risk Analysis
Key Uncertainties
The cyclical nature of the semiconductor industry and the ability to attract/retain high-end technical talent are the primary business risks, with potential impact on project delivery timelines.
Geographic Concentration Risk
High concentration in the US market (over 50% revenue), making the company vulnerable to US economic cycles and regulatory changes.
Third Party Dependencies
Heavy reliance on third-party foundries for the 'Silicon' part of the business and subcontractors for raw material quality.
Technology Obsolescence Risk
Rapid shifts in silicon process nodes (e.g., moving to 3nm/2nm) require continuous R&D investment to prevent service obsolescence.
Credit & Counterparty Risk
Receivables are generally from blue-chip global clients with payment terms of 60-100 days, though long-pending debtors are monitored by rating agencies.