💰 Financial Performance

Revenue Growth by Segment

The company achieved a turnover of INR 58.16 Cr in H1 FY26, representing approximately 44.7% of its full-year standalone guidance of INR 130 Cr. The EMS segment is projected to grow at 25-30% per annum, while the IT Hardware & Memory segment is targeted at 20% annual growth. The subsidiary, Sahasra Semiconductors (SSPL), contributed INR 9.44 Cr in FY25 and is projected to reach INR 10 Cr in FY26, scaling to INR 125 Cr by FY28.

Geographic Revenue Split

The company is focusing on higher-margin exports to the USA and parts of Europe to drive profitability. While specific percentage splits by country are not disclosed, the strategic shift toward these markets is intended to offset domestic margin pressures.

Profitability Margins

Standalone PAT margin improved significantly to 15.49% in H1 FY26 compared to 9.13% for the full year FY25, a 6.36 percentage point increase. The company targets a long-term Net Profit Margin of 14-15% and expects the subsidiary to achieve 10-12% profit margins starting from FY27.

EBITDA Margin

The company has set a target EBITDA margin of 20% for FY26 and FY27. This is supported by a strategy to reduce operating expenses, which have already seen a reduction compared to the previous fiscal year, thereby increasing the 'delta' for net profitability.

Capital Expenditure

Total planned IPO-funded capex is INR 88.89 Cr, comprising INR 65.97 Cr for a new manufacturing facility in Bhiwadi, Rajasthan, and INR 22.92 Cr for the subsidiary, Sahasra Semiconductors. As of September 30, 2025, only INR 11.71 Cr (17.7%) of the Bhiwadi capex has been utilized, with significant machinery yet to be ordered.

Credit Rating & Borrowing

The company reported a standalone Debt-to-Equity ratio of 0.19 in H1 FY26, up from Nil in FY25. The subsidiary, SSPL, has a higher leverage with a Debt-to-Equity ratio of 1.06 as of H1 FY26. Specific interest rate percentages were not disclosed.

⚙️ Operational Drivers

Raw Materials

Specific raw material names like silicon wafers or specialized polymers are not listed, but the company identifies 'machinery, components, sub-parts, and programming software' as critical inputs for making goods ready for sale, representing the bulk of the IPO capex allocation.

Import Sources

Not explicitly disclosed, though the company's focus on European and US markets for final products suggests global sourcing standards for components.

Capacity Expansion

The company is installing additional plant and machinery at a new facility in Bhiwadi, Rajasthan. Two new production lines are currently being ordered for the ELCINA cluster. The subsidiary has already prepared production lines for eSIM ICs following a successful European customer audit.

Raw Material Costs

Management noted that expenses have been reduced compared to the previous year through better control. The company allocated INR 40 Cr from IPO proceeds specifically to fund working capital requirements to manage raw material procurement and inventory.

Manufacturing Efficiency

The company is focused on achieving a 'cash break-even' for its semiconductor subsidiary in FY26. Standalone current ratio stands at a healthy 4.20, indicating strong short-term liquidity to support manufacturing operations.

📈 Strategic Growth

Expected Growth Rate

25-30%

Growth Strategy

Growth will be driven by a 72.70% acquisition of Sahasra Semiconductors (aiming for 85%), expansion into the European eSIM market, and a INR 6 Cr R&D investment in IT Hardware and Memory. The company is also shifting its sales mix toward higher-margin exports to the USA and Europe.

Products & Services

eSIM ICs, Memory products (SD cards/USB), LED lighting solutions, and IT Hardware (motherboards and related EMS services).

Brand Portfolio

Sahasra, Sahasra Semiconductors (SSPL).

New Products/Services

New product lines in IT Hardware and Memory are expected to grow at 20% per annum. The eSIM IC production for European customers is a major new revenue driver for FY26.

Market Expansion

Targeting the ELCINA cluster in Bhiwadi for manufacturing expansion and increasing market penetration in the USA and Europe for high-margin EMS exports.

Strategic Alliances

Successfully signed a contract with a European customer for eSIM IC production following a rigorous assessment audit.

🌍 External Factors

Industry Trends

The industry is shifting toward localized semiconductor packaging and eSIM technology. Sahasra is positioning itself as an early mover in the Indian semiconductor space, despite the current lack of a supporting ecosystem.

Competitive Landscape

The company operates in the competitive EMS and emerging semiconductor packaging industry, competing with both domestic EMS players and global semiconductor firms.

Competitive Moat

The company's moat is built on its integrated EMS and semiconductor packaging capabilities, which are rare in the Indian SME sector. This is sustained by high entry barriers in semiconductor cleanroom setups and successful international quality audits.

Macro Economic Sensitivity

The business is sensitive to the global electronics demand cycle, particularly in the USA and Europe, and the development of India's semiconductor policy framework.

Consumer Behavior

Increasing demand for eSIM technology in telecommunications and high-performance memory in IT hardware is driving the company's product roadmap.

Geopolitical Risks

Trade relations with the USA and Europe are critical as the company targets these regions for higher-margin revenue.

⚖️ Regulatory & Governance

Industry Regulations

The company complies with the Companies Act 2013 and SEBI (LODR) Regulations. It maintains cost records under Section 148(1) and has undergone a Secretarial Audit for FY25 with no major non-compliances reported.

Taxation Policy Impact

The company maintains a provision for deferred tax; however, the specific effective tax rate percentage was not detailed in the summary financials.

Legal Contingencies

The company confirmed that no applications or proceedings are pending under the Insolvency and Bankruptcy Code (IBC), 2016. No other major pending court cases were disclosed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the utilization of IPO funds; there was a 5.33% deviation (INR 3.52 Cr) in Bhiwadi capex and a routing of INR 2.85 Cr of subsidiary capex through a general business account rather than a dedicated capex account.

Geographic Concentration Risk

While expanding exports, the company remains heavily concentrated in its Rajasthan and Delhi-NCR manufacturing hubs.

Third Party Dependencies

Dependency on specialized machinery vendors is high, as evidenced by the management's note that some purchased machines did not match the specific vendor details in the original prospectus.

Technology Obsolescence Risk

High risk in the semiconductor and IT hardware space, which the company is mitigating through a INR 6 Cr R&D budget.

Credit & Counterparty Risk

The subsidiary SSPL shows a low current ratio of 0.41 in H1 FY26, suggesting potential liquidity pressure or high short-term liabilities that could affect counterparty confidence.