Sancode Technologies Limited , a technology company listed on the BSE SME platform, has announced its unaudited financial results for the half-year ended September 30, 2025, revealing a mixed performance across its standalone and consolidated operations.

Financial Performance

The company reported a standalone net profit of Rs 16.44 lakhs for the half-year. However, on a consolidated basis, Sancode Technologies faced a net loss of Rs 11.22 lakhs. This contrast in performance highlights the varied outcomes across the company's different business segments and subsidiaries.

Key Financial Highlights (Consolidated):

All figures in Rs lakhs, except EPS

Despite the consolidated loss, the company showed improvement compared to the same period last year, narrowing its losses significantly.

Expansion into Semiconductor Industry

In a significant move, Sancode Technologies has announced its plans to venture into the semiconductor industry. The company is progressing with plans to establish a facility for semiconductor chip testing and packaging (OSAT - Outsourced Semiconductor Assembly and Test).

Key Developments:

1. Subsidiary Formation: Sancode Technologies has incorporated a wholly-owned subsidiary, Sancode Semi Pvt Ltd, to execute the semiconductor project.

2. Government Approvals: The company has applied to the Government of Odisha under its Semiconductor and IT Manufacturing Promotion Policy. It plans to apply under the India Semiconductor Mission (ISM) 2.0 upon its launch.

3. Joint Venture and Collaborations: Sancode has signed an MOU with Silicon Connect SDN BHD, which operates an Advanced Packaging Institute and Research Center in Malaysia. The collaboration aims to provide technical know-how, assistance in facility setup, and support for quality control and testing procedures.

4. Funding: The company plans to utilize the majority of its recent preferential issue proceeds of Rs 5.99 crores for initial feasibility studies, market analysis, and technology due diligence for the semiconductor project.

Future Outlook

Mihir Deepak Vora, Managing Director of Sancode Technologies, stated, "While our consolidated results show a loss, we've significantly reduced it compared to the previous year. Our venture into the semiconductor industry represents a strategic move to diversify and tap into a high-growth sector. We're committed to transparent communication with our shareholders as we progress with this ambitious project."

The company remains cautious about potential delays or non-approvals in the semiconductor project. In case of such eventualities, it plans to redirect funds towards expansion in other new-age technologies like Artificial Intelligence, Machine Learning, Data Science, and Cloud Computing.

Sancode Technologies' move into the semiconductor industry comes at a time when there's a global push for diversifying chip manufacturing and testing capabilities. The success of this venture could potentially open new revenue streams for the company in the future.

As the company navigates through these expansion plans and works on improving its financial performance, investors and industry observers will be keenly watching its progress in the coming quarters.

Sancode Technologies Limited has announced a strategic move into the semiconductor industry by incorporating a new subsidiary, Sancode Semi Private Limited. The company disclosed this development in a regulatory filing under SEBI regulations.

Key Details of the New Subsidiary

• Name: Sancode Semi Private Limited
• Shareholding: Sancode Technologies holds 99.99% of the subsidiary's shares
• Authorized Capital: Rs. 10.00 lakh, divided into 1 lakh equity shares of Rs. 10.00 face value each
• Paid-up Share Capital: Rs. 1.00 lakh, comprising 10,000 equity shares
• Sancode Technologies' Investment: 9,999 equity shares for a total consideration of Rs. 99,990.00 in cash

Business Focus

The newly incorporated subsidiary will operate in the semiconductor industry, with a broad scope of activities including:

• Manufacturing, designing, and developing semiconductors
• Assembling, importing, and exporting integrated circuits and microchips
• Trading in electronic components
• Conducting research and development to enhance product quality and functionality

Strategic Implications

Mihir Deepak Vora, Managing Director of Sancode Technologies Limited, stated that this incorporation represents a strategic investment for the company. The move is aimed at:

1. Venturing into new avenues within the technology sector
2. Deploying business growth strategies in the semiconductor and microchip industry

Regulatory Compliance

The incorporation of Sancode Semi Private Limited has been carried out in compliance with the Companies Act, 2013. Sancode Technologies has made the necessary disclosures as required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Market Impact

This strategic expansion into the semiconductor industry could potentially position Sancode Technologies to capitalize on the growing demand for electronic components and microchips. As a newly incorporated entity, the financial impact of Sancode Semi Private Limited on the parent company's performance remains to be seen in the coming quarters.

Investors and industry observers will likely watch closely how this new venture unfolds and contributes to Sancode Technologies' overall growth strategy in the technology sector.