1. At a Glance – Blink and You’ll Miss the Valuation
MosChip Technologies Ltd is currently sitting at a market cap of ~₹4,060 Cr, a stock price of ~₹210, and a P/E flirting with triple digits (≈99x) like it’s a badge of honour. Quarterly revenue came in at ₹149.39 Cr, up 18.4% YoY, while quarterly PAT dropped 15.4% YoY to ₹9.36 Cr, mostly because the company decided to swallow an exceptional labour liability of ₹5.82 Cr in one shot. ROCE stands at 11.9%, ROE at 11.2%, debt is modest at ₹48 Cr, and promoter holding has gently slid to ~41%.
This is not a sleepy IT services company anymore. This is a semiconductor design house trying to cosplay as India’s ASIC darling, armed with defence wins, HPC SoC announcements, RISC-V partnerships, and a valuation that assumes execution perfection. Curious already? Good. You should be.
2. Introduction – From “Who Is MosChip?” to “Why Is It So Expensive?”
For years, MosChip lived in the forgotten corners of the market—loss-making, ignored, and occasionally written off as “that chip design company which never scaled.” Then FY22 onwards happened. Revenues exploded, profitability finally stuck, and suddenly MosChip was no longer a turnaround story—it was a momentum stock with a semiconductor narrative.
India’s semiconductor push, defence localisation, DLI schemes, and the global RISC-V wave arrived at exactly the right time. MosChip leaned into this macro tailwind, transitioned from pure-play design services toward Turnkey ASICs, and started announcing contracts that sound more like press releases from global fabless giants than a Hyderabad-based midcap.
But here’s the catch: markets don’t pay 99x earnings for “potential.” They pay it for execution + scalability + visibility. So the real question isn’t whether MosChip is exciting. The question is—can it actually grow into this valuation without tripping?
3.
Business Model – WTF Do They Even Do?
Explaining MosChip to a lazy but smart investor goes like this:
- Earlier: “We design chips for others.”
- Now: “We design, integrate, validate, and deliver silicon. Sometimes end-to-end.”
Core Buckets
- Semiconductor Services (≈80%)
- Digital, analog & mixed-signal ASIC design
- SerDes IP
- Netlist-to-silicon execution
- Embedded & Systems (≈20%)
- Defence, aerospace, networking, industrial systems
- Product engineering & board-level design
- IoT & GenAIoT (emerging narrative)
- Smart meters, industrial IoT, AI-enabled edge devices
The strategic shift is clear: less manpower billing, more milestone-based ASIC contracts. That means higher ticket sizes, lumpier revenues, and much higher execution risk. Are you comfortable with that trade-off?
4. Financials Overview – The Numbers Don’t Lie, But They Do Smirk
Quarterly Comparison (₹ Cr)
| Metric | Latest Qtr (Dec FY26) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 149.39 | 126.16 | 146.94 | 18.4% | 1.7% |
| EBITDA | 15.13 | 17.06 | 16.82 | -11.3% | -10.0% |
| PAT | 4.34 | 11.06 | 12.15 | -60.8% | -64.3% |
| EPS (₹) | 0.22 | 0.58 | 0.63 | -62.1% | -65.1% |
Yes, PAT fell sharply. But before you panic, remember the ₹5.82 Cr exceptional labour code charge. Strip that out, and profitability looks far less dramatic.
Annualised EPS (Q3 rule)
Average EPS of Q1, Q2, Q3 FY26 × 4 ≈ ₹1.88, which matches TTM reality.
So the company isn’t collapsing. It’s digesting costs while scaling. Still, at 99x P/E, digestion better be flawless. What do you
