Blue Cloud Softech Solutions (BCSSL) saw its shares rise 3% in Wednesday’s intraday trade, December 24, reaching ₹25.20 apiece following the company’s expansion into automotive semiconductor development.
The company today announced that it has entered into a Memorandum of Understanding (MoU) with ConnectM Technology Solutions Pvt Ltd, a specialist in automotive electronics and hardware systems, for the joint development of a semiconductor-based EdgeAI System-on-Chip (SoC) focused on next-generation automotive cybersecurity applications.
The semiconductor solution is being purpose-built for deployment in Telematics Control Units (TCUs), Vehicle Control Units (VCUs), and other critical electronic modules used in electric, connected, and software-defined vehicles.
BCSSL said it will lead the architecture, design, and development of an advanced EdgeAI SoC platform, integrating real-time threat detection, intrusion prevention, and continuous security management capabilities.
Partnership set to drive $50 million in business over five years
The EdgeAI SoC will be exclusively customized for ConnectM’s onboard automotive hardware platforms, while BCSSL will retain ownership of the core intellectual property related to the semiconductor design and cybersecurity technologies.
“The MoU outlines a revenue-sharing model with an equal 50:50 split of net revenues generated from joint commercialization, after applicable costs and taxes. Subject to the execution of definitive agreements, the partnership is expected to generate a projected business volume of approximately USD 50 million over a five-year period from 2026 to 2030,” the company said in its regulatory filing today.
Commenting on the signing of the MoU, Sri Tejesh Kumar Kodali, Group Chairman, stated, “This semiconductor development partnership marks a significant milestone for Blue Cloud Softech Solutions as we expand our capabilities into EdgeAI System-on-Chip platforms for automotive cybersecurity. By collaborating with ConnectM, we are combining advanced cybersecurity intelligence with automotive-grade hardware to build secure, future-ready solutions that meet the demands of next-generation mobility.”
Blue Cloud Softech Solutions share price trend
The shares have been falling steadily since August 2024, losing significant value, which largely impacted the wealth of retail shareholders, who collectively held a 42.5% stake in the company at the end of the September quarter.
From its all-time high of ₹130.50 apiece in July 2024, the shares have dropped 84%, closing 10 of the following 16 months in the red, with March 2025 recording the largest monthly drop of 38%. In November, the stock also crashed 29%. However, the stock recovered some ground, rising 21% so far in December
For the quarter ending in September, the company reported a net profit of ₹15 crore, compared to ₹11 crore in Q2FY25, while its revenue from operations during the reporting quarter stood at ₹253 crore, up from ₹235 crore in the September 2024 quarter.
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