Artificial Electronics: ₹150 Cr in Sales, Zero Dividend, 475% Growth

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BSE:AEIM on TradingView

1 — At a Glance

A renamed software company that swallowed its own business and then doubled revenue in a single year. Sales climbed from ₹26.1 Cr to ₹150.1 Cr. Net profit jumped ₹2.83 Cr to ₹36.76 Cr—a 1,199% leap in the profit column.

The market has priced this at ₹102.45 per share, granting it a P/E of 7.7x. That multiple sits far below both its peer set (median 33.7x) and its own five-year stock CAGR of 108%.

But the balance sheet holds ₹109.79 Cr in debt against ₹27.67 Cr in equity capital. Cash flow turned negative in FY26: operating activity bled ₹157.67 Cr.

Watch the tension: hypergrowth in revenues clashing with negative cash generation and zero dividend payouts, while management juggles a capex spree across new facilities.

2 — Introduction

Artificial Electronics Intelligent Material Limited began life as Datasoft Application Software (India) Limited in 1992. In May 2024, it shed the old name and embraced a new identity, signalling—or claiming to signal—a pivot from pure software into something harder to classify.

The company’s stated business is software consultancy, software development, digital services, IT solutions, and research. The filing says it does “end-to-end software development,” “technology infrastructure services,” and “business process services.” Translation: it’s still a software and services shop, rebranded.

Recent corporate moves: On February 10, 2025, management signed an MoU with Maharashtra for a sapphire ingot and wafer manufacturing facility at Mihan SEZ, Nagpur—₹10,000 Cr investment promised over five years. On November 21, 2025, the company was allotted 11.28 acres in Nava Raipur for a semiconductor materials facility, with phase one due by May 2026.

The stock surged from ₹83 to ₹232 in twelve months, then fell back to ₹102.45 by mid-June 2026. This chop masks the real story: a capital raise that ballooned the share count.

3 — Business Model: WTF Do They Even Do?

On the operating side, AEIM takes in revenue from software consultancy. In the filing for FY24, the split showed consultancy fees at 99% of total revenue, dividend income at 1%. No product, no platform, no recurring recurring-revenue machine. It’s pure labour arbitrage—you staff a project, invoice the client, pocket the margin.

The operating margin widened to 32.8% in FY26, a healthy band for a software services play. But the business itself is commodity. Dozens of Indian IT shops offer the same thing.

What’s new is the noise: the company now talks about sapphire wafers, semiconductors, and heavy manufacturing. The MoU with Maharashtra is pageantry—the financial statements show no capex yet, no facility, no business segment. The announcements arrive before the money gets spent.

In a sentence: still a software consultancy, now wearing a semiconductor press release as a hat.

4 — Financials Overview

Figures are consolidated, in ₹ crore.

FY26 narrative:

Revenue swung hard: ₹150.1 Cr, up from ₹26.1 Cr. Operating profit (EBITDA proxy via reported numbers) hit ₹49.23 Cr before tax; net profit landed at ₹36.76 Cr. PAT margin expanded to 24.5%.

But here’s the wrinkle: the company raised capital twice. In October 2024, it issued 1.58 Cr shares at ₹18 each for ₹28.5 Cr. In November 2025, it issued another 0.98 Cr shares at ₹40 plus 1.18 Cr warrants at ₹40 each, together raising ₹53.66 Cr. The share count ballooned from 1.70 Cr to 2.77 Cr.

The EPS math: FY26 consolidated net profit ₹36.76 Cr, shares 2.77 Cr (year-end), yields ₹13.29 EPS. FY25 EPS was ₹1.67 on 1.70 Cr shares and ₹2.83 Cr profit. The leap is real but share dilution stole a chunk of the per-share gain.

Q4 FY26 snapshot:

Q4 revenue ₹46.01 Cr (up 1,019% YoY). Q4 net profit ₹11.92 Cr (up 2,149% YoY). Operating margin held at 34%, near-peak territory.

Annualised EPS from Q4: ₹11.92 Cr net profit × 4 / 2.77 Cr shares = ₹17.2 EPS (not applicable; FY26 is full-year). Use reported FY26 EPS of ₹13.29.

5 — Market Expectations & Historical Multiples

This section describes how the market is currently pricing the company and how that compares with its own history and peer group. It is descriptive, not predictive.

The market currently pays 7.7x earnings here, against a peer median of 33.7x in the Information Technology sector. Oracle Financial Services trades at 31.12x, Tanla Platforms at 13.80x, Capillary Tech at 134.19x. AEIM sits in the outlier corner—lowest in the peer set, including Technvision Ventures (a loss-making microcap at 14,571x, likely a data error).

What is the market pricing in?

At 7.7x, the market is pricing in either (a) skepticism about the sustainability of 475% growth, (b) concern about the capex commitments (sapphire wafer facilities absorb cash without near-term revenue), or (c) a discount for the debt pile and negative operating cash flow. The multiple suggests the consensus is that one of these headwinds will bite.

ROE sits at 30.1%—the company is generating strong returns on shareholder equity. But that return comes on a rising equity base (just diluted by capital raises), and it’s frontloaded by the FY26 profit spike.

The market does not appear to be pricing in a continuation of 475% growth or even a normalisation toward industry medians.

6 — What’s Cooking

Sapphire Wafer Plant, Nagpur: Management signed an MoU with Maharashtra