Hello @aceinvestor_75 ,
ASM reported around ₹528.5 Cr consolidated revenue in FY26, while Q1 FY27 alone delivered ₹198.8 Cr, already about 37.6% of the entire previous year’s revenue.
For FY27 to grow by 60%, revenue needs to reach roughly ₹846 Cr. After Q1, ASM needs about ₹647 Cr over the remaining three quarters—an average of around ₹216 Cr per quarter, only about 8–9% above the Q1 run-rate.
The capacity constraint discussed during the AGM is also being addressed. Additionally, ASM has now approved a ₹526 Cr preferential equity raise at ₹4,875/share. The proposed investors are:
SBI Mutual Fund: ~₹401 Cr
SBI Emergent India Fund: ~₹50 Cr
Derive Trading and Resorts Pvt. Ltd.: ~₹50 Cr
Asha Mukul Agrawal: ~₹25 Cr
All four are non-promoter investors, with SBI Mutual Fund expected to hold around 5.25% post-issue.
With additional capacity coming online, new products ramping up and substantial fresh capital available, 60%+ FY27 growth looks achievable if the Q1 momentum sustains, although quarterly revenue can remain lumpy.
The key things to watch are capacity ramp-up, order execution, margins and deployment of the fresh ₹526 Cr capital.
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Hi @aceinvestor_75, thank you for the kind words!
And I agree, the company is gearing for something much bigger, and I can see a number of scenarios playing out:
- Them building their own bespoke solar and semiconductor industry equipment, filling a gap in India while the large global players focus on off-the-shelf solutions
- Them playing a critical role in adding intelligence (connectivity + insights) to factory floors across the country (courtesy of capabilities gained from Myelin Foundry and Asmaitha Wirelss)
- Them developing state-of-the-art crystal pulling equipment, which can make India’s electronics and renewable industries a lot more self-reliant
- Them serving as a fulfilment and servicing partner for global solar and semiconductor capital equipment OEMs
And more…
It’s hard for me to comment on whether they will need another fund raise down the road, but I am very pleased with how the management has been executing so far. It is no walk in the park to shift from ER&D (primarily service based) to design led manufacturing (which is very capex reliant).
It’s one thing to do design, finite element analysis, and some prototyping. It’s another thing to build, commission, and operate a precision manufacturing facility. So keeping this in mind, in addition to the step change in quarterly revenue (from ₹50-60 cr two years ago to ₹150-200 cr now), while also increasing the operating margins to the 20s, I am honestly pleasantly surprised.
Net PP&E doubled to ₹93 cr from FY25 to FY26, and everyone has seen the step change in revenue. Over the next two financial years, an annual ₹200 cr addition to PP&E would not surprise me. You can then use an asset turn number of your choice and determine what the resulting revenue will be.
For me, personally, ₹150-200 cr in quarterly revenue is the new normal. In two years from now, I am expecting this to comfortably reach ₹400 cr.
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Business having 300 cr networth raising 525 cr funds. Just dig deeper littlebit, look in to the apple phone making in India conneciton with the Fixture making division of ASM.
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