ASM Technologies Ltd Q2FY26 – From Semiconductors to Semantics: When 806% Profit Growth Meets 108x P/E Madness

1. At a Glance

ASM Technologies Ltd just pulled off a financial glow-up that makes a Bollywood makeover montage look subtle. The Bengaluru-based engineering and product development company closedQ2FY26with a swagger —revenue of ₹154 crore,PAT of ₹19.1 crore, andyear-on-year (YoY) sales growth of 171%, whileprofit shot up a cosmic 569%. That’s not a typo — five hundred sixty-nine percent.

Themarket capnow lounges at₹5,988 crore, as the stock trades at₹4,105, boasting a108x P/Eand anEV/EBITDA of 61.4x— perfect for investors who think “valuation” is just a suggestion.

ItsROEsits at16.8%,ROCEat19.3%, and adividend yieldof 0.1%, basically a tip jar. Promoter holding?58%, with a slight increase in recent quarters. ASM’s 6-month return is a sizzling172%, making it one of those rare midcaps that turned smallcap dreams into small fortune stories.

But behind the glitz, theoperating marginhas been on a wild ride — from11.15% in FY23to4.12% in FY24, now rebounding with20.4% OPM TTM. The company’s storyline reads like a start-up that never stopped pivoting: IoT, VR, semiconductors, cybersecurity, and probably Mars by FY27.

So buckle up, dear reader — this isn’t your usual IT story. It’s a rollercoaster through engineering, equity, and entrepreneurial enthusiasm — with a seat reserved for anyone brave enough to stomach a 108x P/E.

2. Introduction – The Engineering Comedy of Valuation Errors

Some companies build products; some build valuations. ASM Technologies somehow manages both — with equal passion and questionable restraint.

Founded in the ancient times of 1992 (back when floppy disks roamed free), ASM has grown from an engineering services firm into a global R&D consultant with offices spanningUSA, Singapore, UK, Canada, Mexico, and Japan. But the magic trick? Turning “engineering services” into “shareholder serotonin.”

The last 12 months have been nothing short of a suspense thriller. In FY24, the company’s margins got squished like a bad samosa — all thanks toproject delays, under-absorbed employee costs, and office refurbishments. Analysts called it “short-term pain.” Investors called it “Friday sale.”

Then came the redemption arc: acquisitions, fund raises, and semiconductor dreams. TheQ2FY26 resultsdropped like a plot twist — revenue tripled, profit skyrocketed, and ASM became the new IT crush for smallcap enthusiasts.

But before you mistake it for Infosys 2.0, remember — thedebt is ₹86 crore, andP/E is 108x, which means for every ₹1 in earnings, investors pay ₹108 in faith. ASM isn’t just engineering products; it’s engineering optimism.

Ever seen a smallcap pull a Persistent Systems cosplay? You have now.

3. Business Model – WTF Do They Even Do?

ASM’s business model can be summed up as: “We do everything techy enough to sound futuristic.”

The company operates in two major zones:

1. Engineering Services:Think design, simulation, and product development for sectors likesemiconductors, aerospace, medical devices, and automotive. Basically, if it moves, beeps, or glows, ASM has probably helped design a part of it.
2. Product R&D & Smart Solutions:Through its ventures and subsidiaries (likeForms & Gears,RV Forms,Kogence, andPolylogyx), ASM has planted flags inIoT, VR, cybersecurity, and smart manufacturing.

They even launchedSmartfix 4.0— a precision fixture that literally talks back, transmitting data to end-users. Imagine Alexa, but for your CNC machine.

The company’s global network ensures offshore development centers feed data, design, and code to international clients acrosssemiconductors, hi-tech, medical equipment, and aerospace.

And in case that sounds too normal, they have ajoint venture with HHV Groupfor India’s first semiconductor-focused equipment manufacturing unit. Because why just engineer when you can