1. At a Glance – The “Engineer Who Forgot Profitability” Story
₹1,647 crore market cap. ₹1,085 stock price. Down ~28% in 3 months. ROE of just 5.97%. And yet—Q3 FY26 revenue up 73% YoY.
Welcome to Sasken Technologies Ltd, where growth is sprinting like Usain Bolt, but profitability is still tying its shoelaces.
This is that classic IT midcap story:
- Big clients ✔️
- Fancy buzzwords like AI, 5G, IoT ✔️
- Global presence ✔️
- Margins… “under construction” 🚧
Latest quarter?
- Revenue: ₹250.13 crore
- PAT: ₹9.14 crore
- Order book: $57 million
- EBITDA margin improved to ~10%
Sounds impressive… until you realize:
- Net margins are still thin
- ROCE just 7.41%
- Profit growth actually negative long-term
So what is Sasken?
A comeback story?
Or just another IT company stuck in “investment phase forever”?
Let’s investigate like a slightly sarcastic financial detective.
2. Introduction – Silicon Dreams, Margin Nightmares
Sasken is not your typical IT services company.
While most companies sell “body shopping” (aka billing developers by the hour), Sasken positions itself as a deep-tech product engineering firm. Think:
- Chips
- Embedded systems
- Automotive software
- Satellite communication
Basically, the stuff your car, phone, and maybe even your smart fridge runs on.
Founded in 1989, this company has been around longer than:
- The internet boom
- Dot-com crash
- And probably your favorite fintech startup’s founder
Yet… despite 30+ years:
- Scale is still “moderate”
- Margins have declined
- Growth has been inconsistent
But recently something changed.
Enter:
- Borqs acquisition (2025)
- AI + semiconductor focus
- Massive order book jump
Management is now saying:
“We are scaling with discipline”
Translation:
“Boss, this time growth real hai.”
But investors are like:
“Bhai, margin bhi dikha do.”
And that tension… is where the story gets interesting.
3. Business Model – WTF Do They Even Do?
Imagine this:
You’re a global company building:
- Smart glasses
- EV infotainment systems
- Satellite phones
You don’t want to build the tech yourself. Too complex. Too expensive.
So you call Sasken.
Sasken’s job:
👉 Design
👉 Develop
👉 Test
👉 Launch
Basically, they are the “behind-the-scenes engineers” of global tech.
Key Segments
1. Semiconductor
They help integrate chips and test them for zero-defect launch.
2. Automotive
- IVI (Infotainment)
- ADAS
- Telematics
Yes, your car is becoming a smartphone. Sasken is coding it.
3. Consumer Electronics
Smart TVs, speakers, IoT devices.
4. SatCom
Rare capability—end-to-end satellite phone development.
5. Telecom
30+ years in 2G → 5G evolution.
Revenue Model
- Time & Material: 74%
- Fixed Price: 26%
Translation:
Most revenue = billing engineers per hour.
The Real
