Sancode Technologies Limited is an Indian technology solutions provider and consultancy firm listed on the **BSE SME Platform** (listed **April 18, 2023**). Originally incorporated as **ZNL Startup Advisory Private Limited**, the company has evolved from a software consultancy into a diversified technology player. It is currently undergoing a high-stakes strategic pivot from **API-enabled software platforms** toward **Semiconductor manufacturing**, specifically focusing on the **Outsourced Semiconductor Assembly and Test (OSAT)** sector. --- ### **Strategic Pivot: The Semiconductor OSAT Initiative** The company is aggressively transitioning its core focus toward the semiconductor industry to capitalize on India’s growing electronics ecosystem. This initiative is being spearheaded through its wholly-owned subsidiary, **Sancode Semi Private Limited** (incorporated **September 2025**). * **Project Scope:** Establishment of a semiconductor chip testing and packaging facility in **District Khordha, Odisha**. * **Capital Expenditure (Capex):** The total project is estimated at **₹1,650 crore**. The immediate focus is on the **1st OSAT Line**, requiring an allocation of **₹435 crore**. * **Government Incentives:** The project has received **in-principle approval** from the High-Level Clearance Authority (HLCA) of the Government of Odisha. It is eligible for a **state capital subsidy of up to 50%** on eligible capital expenditure. * **Technical Partnership:** Sancode has entered into an **MOU with Silicon Connect SDN BHD (Malaysia)** to secure technical know-how, facility layout assistance, and process documentation. * **Future Funding & Policy:** The company intends to apply for the **India Semiconductor Mission (ISM) 2.0** upon its launch to secure further central government support. --- ### **Core Technology & Digital Transformation Services** While the semiconductor project represents the future growth engine, Sancode maintains a robust portfolio in digital transformation and automation, delivered through a specialized team of **solution architects, project managers, and business analysts**. * **Finance Automation:** Specializing in workflow logic and API-enabled platforms to streamline financial operations. * **Advanced Computing:** Development of **Artificial Intelligence (AI)**, **Machine Learning (ML)**, and **Data Analytics** models. * **Enterprise Modernization:** Cloud migration, system integration, and **Robotic Process Automation (RPA)**. * **Web3 & Metaverse:** Designing and distributing applications for decentralized ecosystems and virtual environments. * **Delivery Model:** The company utilizes an **in-house manufacturing capability** for software alongside a global **network of implementation partners** to deliver offshore development projects. --- ### **Corporate Structure & Subsidiary Portfolio** Sancode has restructured its holdings to consolidate its technology interests and exit non-core international ventures. | Entity | Relationship | Stake | Activity | | :--- | :--- | :--- | :--- | | **Sancode Semi Private Limited** | Subsidiary | **100%** | Primary SPV for the Semiconductor OSAT project. | | **Sanfin Technologies Pvt Ltd** | Subsidiary | **51%** | Fintech operations; transitioned from 50% JV on **April 1, 2024**. | | **ZNL Management LLP** | Subsidiary | **99.99%** | Management and consultancy services. | | **Zsolt Ventures LLC** | Foreign Sub | **100%** | Technology ventures (Board has authorized 100% divestment). | | **Dhruva Advisors USA, Inc** | Former Sub | **0%** | **61.90%** stake sold in **Jan 2025** for **USD 63,000**. | --- ### **Financial Performance & Capital Management** The company has demonstrated a sharp recovery in revenue, moving from a loss-making position in FY24 to profitability in FY25. **Consolidated Financial Summary:** * **Revenue Growth:** Revenue surged to **₹14.24 crore** in **FY 2024-25**, up from **₹4.84 crore** in **FY 2023-24** and **₹46.04 lakhs** in **FY 2022-23**. * **Profitability:** Reported a **PAT of ₹84.78 lakhs** in **FY 2024-25**, recovering from a **loss of ₹(175.18) lakhs** in the previous year. * **Liquidity:** The **Current Ratio** improved by **67.49%**, reaching **47.7** in **FY 2024-25**, indicating a very strong short-term liquidity position. * **Dividend:** The Board has **not recommended any dividend** for the past three fiscal years, opting to retain earnings for capital-intensive projects. **Capital Raising & Limits:** To support the **₹1,650 crore** semiconductor roadmap, the company has expanded its financial capacity: * **Preferential Issue:** Issued **23,25,582 warrants** at **₹172** each, totaling **₹40,00,00,104**. * **Investment Limits:** Increased investment/loan limits under Section 186 to **₹450 crore**. * **Borrowing Limits:** Approved borrowing/security limits up to **₹100 crore**. * **Subsidiary Infusion:** The Board approved a fund infusion of up to **₹200 crore** into **Sancode Semi Private Limited** by **FY27**. --- ### **Risk Profile & Mitigation** The transition from a service-based software model to a capital-intensive manufacturing model introduces significant risks. **1. Project Execution Risks:** * **Subsidy Dependency:** The OSAT project is highly dependent on the timely disbursement of **Government Capital Subsidies**. * **Funding Gaps:** Success relies on closing **investment commitments** from a **Joint Venture partner** within the Project SPV. * **Technical Hurdles:** The company is currently addressing queries from **technical and financial approving committees**; any failure to satisfy these could stall the Odisha facility. **2. Operational & Market Risks:** * **Technological Obsolescence:** Rapid changes in AI, Web3, and semiconductor nodes could render current investments obsolete. * **Cybersecurity:** Increasing threats to **enterprise IT** and **data protection** remain a core concern for the consultancy arm. * **Internal Controls:** As of **May 2025**, the company noted a lack of **formal written Standard Operating Procedures (SOPs)** or system manuals, though financial controls were deemed adequate. **3. External Risks:** * **Regulatory Shifts:** Changes in **Information Technology & Security Laws** or global **Tax Laws** could impact international software delivery. * **Macroeconomic Volatility:** Global political shifts may influence the supply chain for semiconductor machinery and tooling.