01 — At a Glance
The Sleeper Stock That Decided to Wake Up (Sort Of)
- 52-Week High / Low₹4,596 / ₹1,109
- Q3 FY26 Revenue₹116 Cr
- Q3 FY26 PAT₹9.3 Cr
- Q3 FY26 EPS₹6.38
- Annualised EPS (Q3×4)₹25.52
- Book Value₹202
- Price to Book11.3x
- Debt / Equity0.18x
- YoY Revenue Growth (Q3)+79%
- Return 1-Year+80.1%
The Spicy Bit: ASM delivered Q3 FY26 with revenue at ₹116 crore (up 79% YoY), PAT at ₹9.3 crore (up 79%), and EPS at ₹6.38. The annualised EPS stands at ₹25.52, making the current P/E 54.4x — which is what happens when the stock goes up 80% in a year and the concall hasn’t even mentioned the new wireless acquisition yet. The company just approved a ₹79.57 crore investment in Asmaitha Wireless Technologies (51% stake). Yes, while selling engines and making gears, they’re now into wireless. This is what happens when your engineering team gets bored with precision.
02 — Introduction
Engineering Brilliance Meets Strategic Chaos: A Love Story
Welcome to ASM Technologies. No, not the semiconductor equipment company in Taiwan that everyone mistakes them for. This is the Indian engineering-led design and manufacturing powerhouse that has spent the last three decades quietly building parts for everyone’s devices while the stock market played ಕನ್ನಡ (ignored it completely).
Founded in 1992 by Mr. Rabindra Srikantan (who has an MS in Computer Engineering and an apparent addiction to building businesses), ASM started as an IT consulting shop. Then, around 2016, they had an epiphany: “Why sell software when we can make actual things?” Result? A pivot into Design-Led Manufacturing (DLM). Fast forward to 9M FY26, and DLM contributes 53% of consolidated revenue. The engineering research and development (ER&D) side still does ER&D (shocking, I know).
The company now operates across six development centers, six manufacturing facilities (with two fresh ones commissioned in Bengaluru this quarter), and has a global presence in the USA, Singapore, UK, Canada, Japan, Thailand, and Mexico. Oh, and Vietnam. They just added Vietnam because apparently the Asia expansion checklist wasn’t complete.
Financial snapshot? Q3 FY26 posted ₹116 crore revenue (79% YoY growth), ₹9.3 crore PAT (same 79%), and cranked out an annualised EPS of ₹25.52. Meanwhile, the company’s doing strategic investments in wireless companies, announcing ₹760 crore in capex across Tamil Nadu and Karnataka, and generally acting like they’re preparing for a quadruple-sized business in the next 24 months.
From the Management Concall (Jan 2026): “We commissioned two new manufacturing facilities in Bengaluru during Q3, strengthening our capacity to service growing demand.” Translation: Our old factories are now as congested as a Delhi metro during monsoon. Also, “enquiry momentum remains healthy” — which in management-speak means “our order book isn’t empty but we’re not celebrating yet.”
03 — Business Model: WTF Do They Even Do?
They Make Stuff. Precision Stuff. For Nerds.
At the core, ASM operates two symphonies: Design-Led Manufacturing (DLM) and Engineering Research & Development (ER&D). Neither is glamorous. Both are essential.
DLM: They design something (could be a component for a semiconductor machine, a solar panel assembly fixture, or a medical device contraption). Then they prototype it, validate it, and manufacture it — often in batches for customers who don’t want to set up their own factories. The clientele spans semiconductors, hi-tech, medical equipment, automotive, aerospace, and increasingly, consumer electronics. In Q3 FY26, DLM was 61% of revenue. They make parts for machines that make parts for devices that everyone uses but nobody knows were manufactured by a Bangalore-based company.
ER&D: Some customers just need the brainpower. ASM’s ER&D team does the engineering research, product development, and technology validation. No manufacturing, just pure intellectual firepower across 3 development centers in India and several overseas. In Q3 FY26, ER&D was 39% of revenue. The 9M FY26 split was 53% DLM / 47% ER&D — showing the manufacturing business ramping hard.
Geographically, Q3 FY26 was 75% domestic, 25% exports. Compare this to FY25: 56% domestic, 44% exports. Someone’s losing the export business. Or maybe they’re just saying “exports are hard, let’s focus on making money from Indian customers instead.” Either way, the domestic pivot is real.
Q3 DLM61%Revenue Mix
Q3 ER&D39%Revenue Mix
Domestic75%Q3 Geographic
Exports25%Q3 Geographic
Competitive Moat Note: In the “highly specialized engineering manufacturing” space, there are maybe 3-4 Indian players doing this at scale. ASM’s advantage: 30+ years of customer relationships, deep technical expertise, and the ability to go from design concept to production in weeks instead of months. Disadvantage: working capital cycle is killer (more on that later), and they’re not a household name.
💬 Have you ever used a product and wondered who engineered the components? Drop a guess — half these medical devices, automotive sensors, and semiconductor tools were probably touched by an Indian engineering team.
04 — Financials Overview: Q3 FY26 Numbers
The Arithmetic That Made Analysts Say “Finally!”
Result type: Quarterly Results | Q3 FY26 EPS: ₹6.38 | Annualised EPS (Q3×4): ₹25.52 | Full-year FY25 EPS: ₹21.28
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 116.02 | 64.74 | 154.46 | +79.2% | -24.8% |
| EBITDA | 19.60 | 11.89 | 30.41 | +64.9% | -35.5% |
| EBITDA Margin % | 16.9% | 18.4% | 19.7% | -150 bps | -280 bps |
| PAT | 9.31 | 5.19 | 19.12 | +79.4% | -51.3% |
| EPS (₹) | 6.38 | 4.40 | 13.11 | +45.0% | -51.3% |
The Weird Part (QoQ Collapse): Q2 FY26 (Sep 2025) had ₹154.46 cr revenue. Q3 dropped to ₹116 crore. That’s a 24.8% sequential decline. EBITDA fell 35.5%. PAT halved. Management says it’s because Q2 had “exceptional items” and a “high booking month” due to project commencement. So, Q3 is the “normal” quarter. Got it. This means annualised run-rate should be roughly ₹464 crore revenue based on Q3, not the ₹616 crore implied by Q2. The YoY growth (79% in Q3) is real and impressive. The momentum, however, looks lumpy. Really lumpy. Like a pothole-filled road in Mumbai.
05 — Valuation: Fair Value Range
Is This Stock Worth ₹2,275 or Just Worth a Laugh?
