1. At a Glance
Sasken Technologies is that quiet kid in the IT services classroom who once topped exams, then decided to sit in the last bench and overthink life. As of Q3 FY26, the company clocks a market cap of ~₹1,899 crore, trading around ₹1,254, down ~15% in 3 months and a painful ~33% over 1 year. Meanwhile, quarterly revenue jumped to ₹250 crore (up 73% YoY) and PAT came in at ₹9.14 crore (up ~34% YoY). Sounds exciting, right? Hold your confetti.
Margins are still modest with OPM at ~6.7%, ROCE stuck at ~7.4%, and ROE at a sleepy ~6%. The company is nearly debt-free, pays dividends generously, and proudly flashes a $57 million order book. Yet, the stock trades at a P/E of ~45, well above the industry median of ~26, despite returns that feel more like a fixed deposit having an existential crisis.
So the big question: Is Sasken finally waking up… or just stretching before hitting the snooze button again?
2. Introduction
Sasken Technologies was founded in 1989, back when “product engineering” meant actual engineering and not a PowerPoint with buzzwords. Over three decades, Sasken built deep expertise in embedded systems, telecom stacks, semiconductors, automotive software, and IoT—basically the nerdy stuff that looks brilliant in brochures and terrifying in margin statements.
Unlike large IT services firms that print money by billing armies of coders, Sasken plays in a narrower, more specialized sandbox: chip-to-cognition product engineering. This is high-skill, high-entry-barrier work—but also cyclical, client-concentrated, and brutally sensitive to global tech spending.
FY25 and FY26 have been volatile. Revenues suddenly spiked (thanks in part to acquisitions and order execution), but profitability didn’t quite keep up. Add exceptional charges, tax notices, GST demands, and regulatory fines, and you get a company that looks busy… but slightly stressed.
So is Sasken a misunderstood specialist ready for a comeback, or a legacy player struggling to monetize relevance in a world obsessed with AI hype and cloud logos?
3. Business Model – WTF Do They Even Do?
Let’s simplify.
Sasken helps global OEMs and
tech companies design, build, test, and launch products—especially where hardware meets software. If Infosys is a five-star buffet, Sasken is a niche café that only serves handcrafted molecular gastronomy.
Their service verticals include:
- Semiconductors – chip validation, integration, and testing (zero-defect launches or bust).
- Automotive – IVI, telematics, ADAS, and connected car platforms for OEMs and Tier-1s.
- Consumer Electronics – smart TVs, speakers, appliances, phones (yes, even your fridge is judging you).
- Telecom – deep 2G to 5G stack expertise, including 3GPP standards.
- SatCom – one of the few firms globally working on end-to-end satellite phones.
- Industrials & Transportation – IIoT platforms, cloud-enabled public transport systems, open APIs.
Revenue-wise, ~74% comes from Time & Material contracts, with the rest from fixed-price work. Translation: most revenue grows linearly with headcount, not magically with IP.
Geographically, revenue is split fairly evenly across North America (~31%), India (~31%), and Europe (~23%).
The catch? Customer concentration is high. Top 10 clients contribute ~66% of revenue, and the total customer count has fallen sharply over the years. Fewer customers, bigger dependencies. Comforting? Depends on your risk appetite.
4. Financials Overview
Quarterly Performance (Q3 FY26)
(Consolidated, ₹ crore)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 250.13 | 144.52 | 255.49 | 73.1% | -2.1% |
| EBITDA | 25.63 | 6.09 | 15.00 | 321% | 70.9% |
| PAT | 9.14 | 9.03 | 10.50 | 34.4% | -13.0% |
| EPS (₹) | 5.12 | 6.00 | 6.44 | -14.7% | -20.5% |
Annualised EPS Rule (Q3):
Average of Q1, Q2, Q3 EPS × 4
Q1: ₹6.24 |
