MosChip Technologies Limited announced its unaudited consolidated financial results for the quarter ended December 31, 2025, showing mixed performance with strong revenue growth offset by regulatory compliance costs. The technology company's board meeting held on January 31, 2026, approved the quarterly results and several corporate actions related to employee stock options.

Financial Performance Overview

The company demonstrated robust top-line growth during the quarter, with consolidated revenue increasing significantly year-over-year. However, profitability was impacted by one-time regulatory adjustments that affected the bottom line performance.

Impact of New Labour Codes

A significant factor affecting the quarter's profitability was the implementation of new Labour Code provisions notified by the Government of India in November 2025. These codes consolidated twenty-nine existing labour laws into a unified framework, introducing changes including uniform wage definitions and enhanced employee benefits.

The regulatory changes resulted in an exceptional item of ₹581.86 lakhs, representing increased gratuity liability from past service costs and enhanced leave liability. Without this one-time impact, the company's profit before exceptional items stood at ₹1,095.57 lakhs, demonstrating underlying operational strength.

Nine-Month Performance

For the nine months ended December 31, 2025, MosChip Technologies showed strong cumulative performance across key metrics:

Segment Performance

The company operates through two primary business segments that contributed to the overall revenue growth:

Silicon Engineering Solutions: Generated revenue of ₹12,102.60 lakhs in Q3FY26 compared to ₹9,931.58 lakhs in Q3FY25, representing strong growth in this core segment.

Product Engineering Solutions: Contributed ₹2,836.46 lakhs versus ₹2,684.22 lakhs in the previous year quarter, showing steady performance in this business vertical.

Corporate Actions

The board approved significant employee-related initiatives during the quarter:

• Equity Allotment: 1,95,909 equity shares were allotted to eligible employees upon exercise of vested stock options under various MosChip Stock Option Schemes
• New ESOP Grants: 9,03,130 Employee Stock Options were granted to eligible employees under existing schemes

These actions reflect the company's commitment to employee participation in organizational growth and long-term value creation.

Balance Sheet Strength

MosChip Technologies maintained a strong financial position with equity share capital of ₹3,855.37 lakhs and other equity of ₹34,397.12 lakhs as of December 31, 2025. The company's total assets stood at ₹60,039.25 lakhs, demonstrating substantial growth from ₹50,655.57 lakhs in the previous year.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors, with statutory auditors S.T. Mohite & Co. issuing an unmodified review report on both consolidated and standalone results.

MosChip Technologies Limited has successfully concluded its postal ballot process through remote e-voting, with all three special resolutions receiving overwhelming shareholder approval. The company announced the results on January 21, 2026, following the completion of the voting period and scrutinizer's report.

Postal Ballot Process Overview

The remote e-voting period commenced on December 22, 2025 at 9:00 a.m. (IST) and concluded on January 20, 2026 at 5:00 p.m. (IST). The postal ballot notice was issued on December 17, 2025, with the record date set as December 12, 2025. A total of 3,58,714 shareholders were eligible to participate in the voting process.

Independent Director Appointments

Shareholders approved the appointment of two new Independent Directors to the company's board. Mr. Sandeep Himmatlal Shah (DIN:11273722) was appointed as an Independent Director with 99.98% votes in favor. The resolution received support from 8,03,17,429 votes against 12,791 votes, representing 41.76% of total outstanding shares participating in the voting.

Dr. Yellamanchali Sreenivas Rao (DIN:11219939) was also appointed as an Independent Director with 99.99% approval. This resolution garnered 8,03,20,552 votes in favor and 9,367 votes against. Both directors will serve five-year terms effective from October 24, 2025.

Managing Director Remuneration Revision

The third special resolution regarding the revision of Managing Director & CEO Mr. Srinivasa Rao Kakumanu's remuneration terms was approved with 99.11% votes in favor. The resolution received 7,96,16,307 votes in support and 7,13,705 votes against.

The revised remuneration structure includes a fixed pay of ₹3,06,00,000 per annum and variable pay of ₹54,00,000 per annum. The new terms are effective from January 1, 2026 to March 31, 2027, covering a 15-month period.

Voting Participation Analysis

The postal ballot witnessed significant participation from different shareholder categories. Promoter and Promoter Group shareholders showed 95.53% participation with 7,55,31,739 votes cast out of 7,90,64,527 eligible shares. Public-Institutions demonstrated 12.21% participation, while Public-Non Institutions recorded 3.81% participation rates.

All resolutions were deemed passed on January 20, 2026, the last date of remote e-voting. The scrutinizer BSS & Associates submitted their comprehensive report confirming the validity of the voting process and results. The company has uploaded the detailed voting results on its website at www.moschip.com for transparency and regulatory compliance.