ASM Technologies now builds machines and parts for chip, solar and electronics makers

On 16 October, ASM Technologies sold 10,78,974 new shares at ₹4,875 each and raised ₹526 crore. SBI Mutual Fund's schemes took ₹401 crore, the SBI Emergent India Fund ₹50 crore, Derive Trading and Resorts, a company linked to Radhakishan Damani, ₹50 crore, and Mukul Agrawal's family ₹25 crore in Asha Mukul Agrawal's name. Agrawal already owned about 10% of the company at the end of June. What they put money into is a Bengaluru engineering firm that was losing money as recently as FY24.

Thirty years of engineering, then a factory business

ASM was founded in 1992 by its managing director Rabindra Srikantan and spent most of its life as an engineering services company: it designed and tested products for other companies, for makers of vehicles, machine tools and high-tech equipment. That business still exists, and in FY26 it brought in about ₹244 crore.

The change came when ASM started building what it designed. It calls this design-led manufacturing: it designs complex equipment and sub-assemblies with a customer and then makes them in its own factories. Management says the work is mainly for semiconductor equipment, consumer and industrial electronics and solar equipment, and describes India as a preferred place for these makers to design and build. ASM does not name its customers.

In FY26, manufacturing brought in about ₹285 crore, up from about ₹78 crore a year earlier, and became the larger half of the company: about 54% of revenue, up from about a quarter. Most of it is made and sold in India: about 80% of FY26 revenue came from Indian customers.

Manufacturing turned the numbers around

Revenue was ₹191.6 crore in FY22 and ₹220.4 crore in FY23. FY24 was the low point: revenue slipped to ₹201.6 crore and ASM lost ₹7.2 crore. In FY25 revenue rose to ₹288.8 crore. Two years later, revenue had more than doubled to ₹528.5 crore and profit reached ₹60.8 crore.

Operating profit tells the same story without the loss: ₹21 crore in FY22 and FY23, ₹6 crore in FY24, then ₹47.3 crore in FY25 and ₹101.1 crore in FY26.

Profit grew faster than revenue. Employee costs, the biggest expense of a services firm, rose 40% in FY26 while revenue rose 83%, and the operating profit margin went from 3.0% in FY24 to 19.1% in FY26.

The growth carried into the new year. April–June 2026 revenue was ₹198.8 crore, 62% higher than a year earlier, and profit rose 72% to ₹26.8 crore, the best quarter ASM has reported. The operating margin was about 23%.

More factories, and bigger ones to come

If manufacturing is what grew, more of it needs more factory space. In November 2025 the managing director said ASM had "visibility of at least 18 months" of work and that its plants were then running at 80–85% of capacity. Management gives no revenue guidance, but it has been adding space quickly: two new facilities in Bengaluru and one in Vietnam in FY26, taking the total to seven (three in Bengaluru, three in Chennai and one in Vietnam).

The bigger additions are still to come. ASM has signed memoranda of understanding with the two state governments to invest ₹510 crore in Karnataka and ₹250 crore in Tamil Nadu, has secured about 10 acres in Karnataka for a new plant, and in March 2026 received government approval under the Electronics Component Manufacturing Scheme for a ₹565 crore project to make high-precision equipment used in electronics manufacturing. That approval comes with an incentive of 25%, about ₹141 crore, from the government.

Paying for the build-out

Building to order needs cash before customers pay. As manufacturing grew, the stock of materials and part-built equipment rose from ₹18.8 crore to ₹69.6 crore in FY26. Even so, the business brought in ₹68 crore of cash from operations, after using ₹23.5 crore the year before, when money owed by customers had more than doubled.

ASM has raised equity before. In 2023–24 it sold shares and warrants to investors at ₹470.50 each, and most of the warrants were turned into shares during FY26. October's issue at ₹4,875 is the largest yet. The company says the money can go to new capacity, acquisitions, repaying debt and working capital, with no more than a quarter for general purposes. The company had ₹112.6 crore of borrowings in March 2026.

ASM is also adding skills through deals. In early 2026 it took a 20% stake in Myelin Foundry, an industrial AI company, and 51% of Asmaitha Wireless Technologies, which works on embedded systems and wireless technology.

Who owns it after the issue

The share sale made new investors a larger part of the register. Domestic institutions went from under 1% at September-end to about 6.9% after the issue, mostly SBI Mutual Fund. The promoters did not sell: their percentage fell because new shares were created, and they still hold a majority.

The risks

Revenue is concentrated in a few customers. Two customers brought in 39.4% of consolidated revenue in FY26, and in FY25 one customer alone brought in 42.4%. ASM does not name them.

With its April–June numbers, ASM said it would keep cutting costs at its units in Singapore and Japan and keep funding them, and that it was still fixing errors and process gaps in its accounting software. It also carries two small unlisted investments at their cost, ₹0.8 crore and ₹5.5 crore, while it obtains valuation reports for them. And in FY26, BSE fined ASM ₹25.4 lakh for applying late to list the shares from its warrant conversion.

In one year ASM opened three plants, took 51% of one company and a 20% stake in another, and it now has a ₹565 crore project and two state investments to build at the same time.

What the shares are valued at

ASM closed at ₹6,051.15 on BSE on 2 November, about 24% above the ₹4,875 the new investors paid and almost three times its 52-week low of ₹2,099.90. Counting the new shares, which raised the share count by about 7%, that values the company at about ₹9,500 crore, or about 132 times its profit over the four quarters to June. The shares trade on BSE only.

What to keep track of

1. 1
   July–September results

   Whether revenue keeps growing from the ₹198.8 crore of April–June and the operating margin holds near 23%

2. 2
   New capacity

   Progress on the Karnataka plant and the ₹565 crore electronics equipment project, which decide how much more ASM can build

3. 3
   Customer spread

   Whether the share of revenue from the top two customers, 39.4% in FY26, starts to fall as new customers come in

4. 4
   Cash from operations

   Whether cash keeps pace with profit as materials and part-built equipment pile up ahead of deliveries

5. 5
   Overseas units

   Whether the Singapore and Japan units stop needing support, and the accounting system problems are fixed