Synopsis: Blue Cloud Softech Solutions partnered with US-based Byte Eclipse in a $15 million deal to develop Edge AI chips for the oil and gas industry, enhancing efficiency.
Known for providing advanced technology and software development services, the company has taken a major step into the hardware space by partnering with a US-based firm to design and develop Edge AI chips for the oil and gas industry, a move that sent its stock soaring after the announcement.
Blue Cloud Softech Solutions Limited’s stock, with a market capitalisation of Rs. 1,250 crores, rose to Rs. 28.66, hitting the intraday upper circuit, up 20 percent from its previous closing price of Rs. 23.89. However, the stock over the past year has given a negative return of 60 percent.
Chip Deal
Blue Cloud Softech Solutions Limited has signed a $15 million agreement with Byte Eclipse, a US-based IoT company, to develop special Edge AI chips for the oil and gas sector. These chips will help process data on-site in real time, improving important tasks like predictive maintenance. The project aims to make operations more efficient and secure, even in tough conditions.
The first phase, worth $15 million, should be finished in 18 months, with plans to expand the solution globally in future phases.
Industry Outlook
Reports from TRAI, Statista, and others show that the global Edge AI market is growing very fast. In India, the Industrial AIoT market is expected to cross $1 billion by 2027, boosted by the use of AI and IoT in key sectors like oil and gas. This partnership helps BCSSL make use of this growth and become a leading provider of industrial AIoT solutions.
Q1 Financial Highlight
The company reported revenue of Rs 206 crore in Q1FY26, down 11% year-on-year from Rs 231 crore in Q1FY25, but up 12% quarter-on-quarter from Rs 184 crore in Q4FY25. The sequential growth reflects improved demand and seasonal recovery despite a yearly decline.
Net profit stood at Rs 14 crore in Q1FY26, registering a 40% increase YoY from Rs 10 crore and a 8% rise QoQ from Rs 13 crore. The strong profit recovery on a sequential basis indicates better cost efficiency and margin improvement during the quarter.
Written By Fazal Ul Vahab C H
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