Synopsis: With a profit fall of 63 percent YoY, this Rs 3700 crore market cap stock has seen its share fall by 8 percent soon after it announced its Q3FY26 result. The same stock has given a compounded return of 50 percent in the last 3 years.
A smallcap company in the semiconductor and system design industry, that has more than 1,600 engineers across India and the USA saw its stock plunge significantly after announcing its Q3FY26 result. The company in context also has a partnership with the world’s largest independent semiconductor foundry TSMC.
With a market cap of Rs 3,744 Cr, Moschip Technologies Ltd saw its stock hit an intraday low of Rs 196 which is 9 percent lower than the previous close of Rs 209. While this company stock has given a compounded return of 50 percent in the last three years.
Q3FY26 Result
In the latest quarterly result the company has seen its revenue from operations increase by 18 percent YoY, from Rs 126 Cr in Q3FY25 to Rs 149 Cr in Q3FY26, while the QoQ increased by only 2 percent from Rs 146 Cr. Talking about the net profits, the company saw this number fall by 63 percent going from Rs 11 Cr in Q3FY25 to Rs 4 Cr in Q3FY26, while the QoQ decreased by 66 percent from Q2FY26’s Rs 12 Cr.
In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 30 percent YoY, from Rs 332 Cr in 9MFY25 to Rs 431 Cr in 9MFY26. The net profits for the same period grew by 12.5 percent going from Rs 24 Cr to Rs 27 Cr.
The company has a 3 year sales CAGR of 47 percent, while the TTM is at 39 percent. The company’s 3 year profit CAGR is at 73 percent, while the TTM number is at 60 percent. The company has a ROCE of 12 percent and a ROE of 11 percent.
Why did the Profits fall?
Following the implementation of the new Labour Codes by the Government of India, companies have seen a rise in employee-related benefit costs. MosChip Technologies was impacted by higher gratuity and leave encashment liabilities amounting to Rs 581 lakh. This additional burden was recognized as a one-time Exceptional Item in the financial results for the period ended 31 December 2025. The move reflects regulatory compliance and does not impact the company’s core operating performance.
MosChip Technologies revised salaries for eligible employees during the quarter ended 31 December 2025, resulting in higher operating expenses and a temporary decline in EBITDA and operating margins. Management stated that the salary hikes are a strategic investment aimed at improving employee retention, enhancing productivity, and building long-term organizational strength. While margins were impacted in the short term, the company expects these measures to support sustainable growth and operational stability over the long run.
Launched AgenticSky
MosChip Technologies has launched AgenticSky, a breakthrough framework designed to help OEMs build adaptable, trusted, and autonomous products for the emerging Agentic AI era. The platform features reusable and configurable AgenticSky Cores, including Vision Core, HMI Core, ControllerCore, and WearableCore, all powered by the reconfigurable AgenticSky Fabric.
This architecture enables intelligent products to perceive, interpret, decide, and interact like digital companions. Moving beyond one-off AI experiments, AgenticSky offers a scalable foundation for next-generation connected ecosystems across healthcare, industrial automation, and consumer electronics.
Incorporated in 1999, MosChip Technologies Limited is a publicly listed semiconductor and product engineering services company headquartered in Hyderabad, India. The company specializes in turnkey ASIC design, mixed-signal IP, semiconductor and system engineering, and IoT solutions.
MosChip is a member of the TSMC Design Center Alliance (DCA), enabling it to offer specialized turnkey ASIC services. With over 1,600 engineers across India and the USA, the company serves sectors such as aerospace & defence, automotive, consumer electronics, medical, and telecommunications, supporting customers from concept to commercialization.
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