MosChip Technologies Falls 3% After Q4 Profit Declines 9% Despite Strong Revenue Growth

Synopsis: Shares of MosChip Technologies slipped nearly 3% after the company reported lower Q4 FY26 profit even though revenue continued to grow strongly. While yearly sales crossed Rs. 585 crore with solid growth, pressure on margins and profitability weighed on investor sentiment.

Shares of MosChip Technologies Ltd declined 2.99% to Rs. 204.15 after the company announced mixed Q4 FY26 results. Investors reacted negatively to the drop in profits despite healthy growth in revenue.

For the quarter ended March 31, 2026, the company reported consolidated net profit of Rs. 7.95 crore, down 8.73% from Rs. 8.71 crore in Q4 FY25. However, revenue from operations increased 13.74% year-on-year to Rs. 153.23 crore, supported by strong demand across semiconductor design, AI/ML, IoT, FPGA, and ASIC engineering services.

On a sequential basis, the performance improved significantly. Net profit jumped nearly 84.88% compared to the previous quarter, while revenue rose 2.57%, indicating better execution during the second half of the financial year.

EBITDA for the quarter rose 8.64% to Rs. 65.11 crore, showing that core operations remained healthy. However, higher costs, including employee expenses, depreciation, interest, or taxes, appear to have impacted the final profit numbers. 

For the full FY26 period, MosChip delivered strong growth overall. Revenue surged 25.34% year-on-year to Rs. 585.15 crore, while net profit increased 2.94% to Rs. 35.20 crore. The slower growth in profits compared to revenue suggests margin pressure as the company continues expanding operations and investing in new technologies and talent.

Beyond the financial numbers, MosChip continued to strengthen its long-term growth strategy during FY26 by expanding both its talent base and infrastructure. The company increased its engineering workforce to 1,779 employees from 1,510 last year, supported largely through its in-house ‘MAST’ training initiative. It also expanded operational capacity by leasing an additional 35,000 sq. ft. of office space, taking its total workspace footprint to nearly 150,000 sq. ft., while also enhancing its disaster recovery and operational systems.

On the technology front, MosChip made notable progress in its proprietary Smart Energy Meter IC project. The company completed digital subsystem validations and finalized communication protocol stacks, with the main full-chip tape-out scheduled for Q1FY27 and production-ready tape-out targeted for Q1FY28.

Additionally, the National Company Law Tribunal (NCLT) approved the merger of its wholly-owned subsidiaries, Softnautics Inc. and Softnautics Private Limited, during the year. The restructuring is expected to improve operational efficiency and strengthen design-to-delivery integration across the business.

Following the earnings announcement, shares of MosChip Technologies fell 3.65% to Rs. 202.51 on Thursday. The stock opened at Rs. 209 and remained under pressure throughout the session, touching an intraday low of Rs. 201.11 amid heavy selling activity. Despite the decline, the counter recorded strong trading volumes with turnover nearing Rs. 46 crore on the NSE.

Company Overview

MosChip Technologies Limited is a Hyderabad-based semiconductor and product engineering company specializing in ASIC design, FPGA solutions, embedded systems, IoT, AI/ML, mixed-signal IP design, and semiconductor verification services. The company serves clients across industries including automotive, consumer electronics, networking, and industrial applications, with operations spanning India and global markets such as Silicon Valley in the United States.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post MosChip Technologies Falls 3% After Q4 Profit Declines 9% Despite Strong Revenue Growth appeared first on Trade Brains.