MosChip Technologies Ltd Q2FY26 FY25-26 — From Hyderabad to 5nm Glory: The ₹509 Cr SoC Gamble That Turned a Design Shop Into a Chip Dream Factory

1. At a Glance

Move over Bangalore coders—Hyderabad just dropped a silicon bomb. MosChip Technologies, the ₹5,075 crore cap semiconductor hopeful, just reported Q2FY26 numbers that read like the trailer of India’s chip revolution: revenue ₹146.9 crore (+17% YoY), PAT ₹12.2 crore (+25%), and an operating margin holding near 11%. The stock sits pretty at ₹264, up 57% in three months, yet priced like a luxury watch—P/E at a dizzying 119 and P/BV at 13.8.

If semiconductor dreams were cricket matches, MosChip just survived the powerplay with no wickets down. Debt is mild at ₹48 crore (D/E = 0.13), ROE is 11.2%, and promoter holding at 44.3% is slightly thinned but stable. The firm’s pivot from design services to full-blown turnkey ASICs and RISC-V platforms is both brave and risky. But hey, this is the same country that made Chandrayaan land on the moon—dreams are meant to be over-engineered.

2. Introduction

Semiconductors are the new gold rush, and MosChip is the guy showing up with both a shovelanda YouTube channel explaining how to use it.

This Hyderabad-based design house isn’t just drawing circuits anymore—it’s drawing attention. From its modest start as a fabless chip design firm to bagging a ₹509 crore contract for a 5nm HPC SoC (yes, that’s “High-Performance Computing System-on-Chip” for the jargon crowd), MosChip has gone from obscurity to semiconductor startup poster child.

The numbers are spicy. Over the last five years, sales have compounded at 36% annually, profits at 26%, and stock price at a ridiculous 88%. The company even acquired US-based Softnautics for ₹142 crore, half cash, half stock—because why not buy your way into Silicon Valley when you’re on a roll?

And yet, behind the memes of “India’s Nvidia in making,” lies a small-cap balancing on a wafer-thin edge: high valuations, erratic cash flows, and a big promise of “Design-Linked Incentives” that might age like a government file.

But let’s not ruin the fun. The story deserves a good look—one circuit at a time.

3. Business Model – WTF Do They Even Do?

Imagine a hybrid between Infosys, Tata Elxsi, and a NASA intern. That’s MosChip.

Their core gig:designing and delivering Application-Specific Integrated Circuits (ASICs)—custom chips made for specific devices like defense systems, smart meters, wearables, or automotive controls.

They run three verticals:

• Semiconductor Design (≈80% of revenue)– They design chips for clients who either don’t have their own R&D muscle or want to outsource it cheaply to India.
• Embedded & IoT Systems (≈20%)– They make the hardware+software ecosystems that connect these chips to actual devices.
• Turnkey ASIC Solutions– The holy grail: not just designing, but owning the whole value chain from architecture to tape-out. That’s where the real margin—and the real risk—lives.

The company boasts partnerships with AMD, Microchip, Siemens, and Tenstorrent (Canada’s RISC-V star). So while Nvidia sells GPUs, MosChip sells the brains that design the GPUs.

Still, let’s keep it real. This is not TSMC. It’s a design house with big brains, not big fabs. They’re the architects, not the bricklayers of the semiconductor mansion.

4. Financials Overview

Annualised EPS = ₹0.63 × 4 = ₹2.52At CMP ₹264 →P/E = 104x(P/E not for the faint-hearted).

Commentary:If this valuation were a Bollywood hero, it would be Ranveer Singh—loud, energetic, but slightly over-priced for the role.

5. Valuation Discussion – Fair Value Range

Let’s crunch the three-way math:

A. P/E Method:Industry P/E = 26xAnnualised EPS = ₹2.52→ Fair Value =