MosChip Technologies Q1 FY27 net profit crashes 78% to ₹2.45 crore
Synopsis
MosChip Technologies posted a near-78% crash in quarterly net profit, with revenue falling 14% year-on-year. The company blamed milestone-linked revenue recognition in its Turnkey ASIC business — but with margins shrinking and sequential declines steeper still, the results raise questions about near-term earnings visibility for one of India's listed semiconductor plays.
Key Takeaways
MosChip Technologies reported a 77.56 per cent year-on-year fall in consolidated net profit to ₹2.45 crore in Q1 FY27 .
Revenue from operations fell 14.29 per cent YoY to ₹116.21 crore , and dropped 24.15 per cent sequentially.
EBITDA margin narrowed to 10.15 per cent from 12.67 per cent a year ago.
The company attributed the decline to milestone-based revenue recognition in its Turnkey ASIC business, with certain projects reaching the tape-out stage during the quarter.
The stock settled at ₹232 on the BSE on 25 July 2025 , within a 52-week range of ₹147.05–₹288 .
MosChip Technologies, a Hyderabad-headquartered semiconductor and product engineering solutions provider, reported a steep 77.56 per cent year-on-year fall in consolidated net profit to ₹2.45 crore for the first quarter of FY27 (April–June 2025), as revenue contraction and margin pressure combined to weigh heavily on its bottom line. The company had posted a net profit of ₹10.92 crore in the same quarter a year earlier.
Revenue and Margin Contraction
Revenue from operations declined 14.29 per cent year-on-year to ₹116.21 crore in Q1 FY27, compared with ₹135.59 crore in the corresponding quarter of the previous financial year. On a sequential basis, the deterioration was sharper — revenue fell 24.15 per cent from the preceding quarter, while net profit dropped nearly 70 per cent quarter-on-quarter.
EBITDA came in at ₹11.79 crore, down from ₹17.18 crore a year ago, with the EBITDA margin narrowing to 10.15 per cent from 12.67 per cent. Profit before tax (PBT) stood at ₹3.66 crore, a decline of 68.11 per cent year-on-year and 45.45 per cent sequentially.
What the Company Said
MosChip attributed the performance to the nature of its Turnkey ASIC business, where revenue recognition is tied to project milestones and stages of completion rather than a steady billing cycle. The company noted that certain Turnkey engagements advanced to the tape-out stage during the quarter, directly affecting when revenue could be recognised under applicable accounting standards.
This milestone-driven model means quarterly results can diverge sharply from underlying business momentum — a structural feature of ASIC design services that analysts and investors are expected to account for when evaluating the company's trajectory.
Company Profile and Scale
Founded and listed in India, MosChip operates as a full-stack semiconductor and product engineering solutions firm, employing more than 1,900 engineers and domain experts across India and the United States. Its service portfolio spans chip design, embedded systems, and product engineering — segments that are increasingly strategic as India pushes to build a domestic semiconductor ecosystem.
Stock Performance
Shares of MosChip Technologies settled 0.66 per cent lower at ₹232 on the Bombay Stock Exchange (BSE) on Friday, 25 July 2025, according to exchange data. The stock has touched a 52-week high of ₹288 and a 52-week low of ₹147.05, reflecting considerable volatility over the past year.
With India's semiconductor ambitions gaining policy momentum, MosChip's ability to convert its ASIC pipeline into consistent quarterly revenue will be closely watched in the quarters ahead.
Point of View
But not all of it. Tape-out timing can legitimately shift revenue between quarters, yet the sequential revenue decline of over 24% and EBITDA margin compression to 10% suggest more than accounting periodicity at work. For a company positioned to benefit from India's semiconductor push, the gap between strategic narrative and quarterly delivery is widening. Investors backing the India chip story through MosChip will need clearer guidance on when the ASIC pipeline converts into recognised revenue — and whether margin recovery is structural or cyclical.
NationPress
25 Jul 2026
Frequently Asked Questions
What were MosChip Technologies' Q1 FY27 results?
MosChip Technologies reported a consolidated net profit of ₹2.45 crore in Q1 FY27, a fall of 77.56 per cent year-on-year from ₹10.92 crore. Revenue from operations declined 14.29 per cent to ₹116.21 crore during the same period.
Why did MosChip's profit fall so sharply in Q1 FY27?
The company attributed the decline to the nature of its Turnkey ASIC business, where revenue is recognised based on project milestones and completion stages. Certain engagements moved to the tape-out stage during the quarter, deferring revenue recognition and compressing margins.
How did MosChip's EBITDA perform in Q1 FY27?
EBITDA came in at ₹11.79 crore in Q1 FY27, down from ₹17.18 crore in the same quarter last year. The EBITDA margin narrowed to 10.15 per cent from 12.67 per cent year-on-year.
How did MosChip's stock react to the Q1 results?
Shares of MosChip Technologies settled 0.66 per cent lower at ₹232 on the BSE on 25 July 2025. The stock has traded in a 52-week range of ₹147.05 to ₹288, according to exchange data.
What is MosChip Technologies and what does it do?
MosChip Technologies is a Hyderabad-headquartered semiconductor and product engineering solutions company with over 1,900 engineers across India and the United States. It offers services spanning chip design, Turnkey ASIC solutions, embedded systems, and product engineering.
