Sancode Technologies Limited

Business overview Sancode Technologies Limited is a BSE SME-listed technology company focused on opportunities across technology and emerging business segments. The company is actively evolving its business into semiconductor manufacturing, Outsourced Semiconductor Assembly and Test (OSAT), technology solutions, and digital automation. Historically, it has provided technology and software-related services, including digital transformation, artificial intelligence, machine learning, robotic process automation, data analytics, and system integration. Its new semiconductor initiative primarily targets establishing an OSAT manufacturing business in Odisha, India.

Key facts (FY 2025-26)

• Consolidated Revenue from Operations was Rs. 1576.01 Lakhs, primarily from Technical & Management Consultancy Services (Rs. 150.56 Lakhs) and DSA Commission from Banks & Others (Rs. 1,425.45 Lakhs).
• The company is listed on the BSE SME platform.
• It operates through four subsidiaries, including Sancode Semi Private Limited, which is spearheading the new semiconductor OSAT venture.
• Promoters, as of March 31, 2026, include Khushboo Jain (29.07%), ZNL Startup Accelerator LLP (36.69%), Amit Jain (4.97%), and Mihir Deepak Vora (1.83%).
• The semiconductor business did not generate any operating revenue during FY2025-26.

Recent developments (from AR FY 2025-26)

• The company initiated steps to develop its semiconductor business through its subsidiary, Sancode Semi Private Limited, which received in-principle approval for an OSAT unit in Khordha district, Odisha.
• Authorized share capital was increased from Rs. 4.50 crore to Rs. 10 crore during the year.
• Sancode issued 11,11,111 convertible warrants on a preferential basis at Rs. 54 per warrant, and an additional 23,25,582 convertible warrants at Rs. 172 per warrant to promoters and non-promoters.
• The immediate strategy focuses on progressing the proposed semiconductor project through technical evaluation, infrastructure planning, and securing regulatory approvals and financing.
• Management views the continuing development of India's semiconductor ecosystem as a long-term opportunity for the company.

Key risks flagged by management

• High capital requirements are needed for establishing facilities, specialized equipment, utilities, technology, and supporting infrastructure for the semiconductor project.
• Dependence on successful project execution, statutory and regulatory approvals, funding arrangements, and infrastructure development.
• Stringent customer qualification, validation, and approval processes may lead to extended timelines before commercial production and meaningful revenue generation.
• Competition from established domestic and international OSAT and semiconductor players.

Pros

• Strategic diversification into the high-growth semiconductor sector, supported by government policy initiatives in India.
• Existing technology and software services provide a stable base for current operations.
• Proactive approach to building capabilities in emerging technology segments, indicating future-oriented growth.

Cons

• The new semiconductor initiative is in the early project development and planning stage, with no operating revenue from this segment in FY2025-26.
• Consolidated Profit After Tax significantly decreased to Rs. 48.10 Lakhs in FY2025-26 from Rs. 84.78 Lakhs in FY2024-25, partly due to the absence of a gain on the sale of a subsidiary.
• The success of the new semiconductor venture is subject to considerable execution risks, substantial capital requirements, and prevailing market conditions.