Key Quantitative Figures & Financial Performance (FY26)

Full Year FY26 (Consolidated):

  • Revenue: ₹1,159 Crores (12.4% YoY growth)
  • EBITDA: ₹178 Crores (24.6% YoY growth)
  • EBITDA Margin: 15.3% (150 bps expansion YoY)
  • Profit Before Tax (before exceptional items): ₹125 Crores (36.5% YoY growth)
  • Profit Before Tax (after exceptional items): ₹114 Crores (29.8% YoY growth)
  • Normalized PAT: ₹83 Crores (27.6% YoY growth)
  • Reported PAT: ₹72 Crores (4.3% YoY degrowth)
  • Tax Charge: ₹42 Crores (vs. ₹12 Crores in FY25)

Q4 FY26 (Consolidated):

  • Revenue: ₹273 Crores
  • EBITDA: ₹34 Crores
  • Pre-exceptional PBT: ₹14 Crores
  • PAT: ₹0.4 Crores

Detailed Breakdown of Q4 Revenue Deferment

A primary reason for the Q4 performance missing internal expectations was a revenue recognition deferment of ₹142 Crores, carrying an associated EBITDA impact of over ₹40 Crores. This was broken down into three components:

1. Defense Manufacturing Program (₹45 Cr): Deferment due to supply chain disruption for a critical input material for land systems ordered by the Ministry of Defence (MoD). The supplier constraint has been resolved.

2. Strategic Electronics Program (₹84 Cr): Deferment because a "monopolistic hardware supplier redirected output to war-related priority programs." Input materials have since been secured.

3. Aerospace & Defense Contract (₹12.6 Cr): Deferment arising directly from the Akkodis divestment transaction. The contract was designated for retention but was deferred during the transition.

This deferred revenue is stated to have moved into FY27 visibility, with recognition expected in Q1 and Q2 FY27, subject to delivery, inspection, and customer acceptance.

Strategic Divestment & Exceptional Items

On May 26, 2026, AXISCADES signed definitive agreements to divest its heavy engineering, energy, and automotive engineering service practice to Akkodis for USD $30.63 million (pre-tax) in cash.

  • The transaction is structured as a slump sale and is expected to close in Q2 FY27, subject to conditions.
  • The deal includes a guaranteed portion of $23.4M (75% paid on closing, 25% after one year) and an earnout of up to $7.4M based on FY27 EBITDA targets.
  • The company incurred ₹17.78 Crores in one-time costs related to this divestment in FY26:
  • Transaction restructuring cost: ₹9.8 Crores (expensed to P&L)
  • Fair value adjustment on divested business (Epcogen): ₹7.98 Crores (recognized under exceptional items)
  • Upon closure in Q2 FY27, the divestment is expected to result in an extraordinary gain of approximately ₹175 Crores (₹41 EPS).

The stated purpose of this divestment is portfolio sharpening, releasing capital and management bandwidth to focus on core areas of aerospace, defense, space, and deep tech AI.

Balance Sheet & Cash Flow Details

  • Receivables: Closing receivables were elevated at ₹411 Crores (DSO of 130 days) due to timing issues. Since March, ₹154.5 Crores has been collected, bringing the DSO down to 81 days.
  • Operating Cash Flow: Was negative in FY26, driven by ~₹100 Crores of Work-in-Progress (WIP) for land systems (classified under other assets). 20 units are ready for dispatch, 25 are at the assembly stage, and 85 are in production. Pre-dispatch inspection by MoD is in progress, with dispatch and invoicing scheduled for Q1-Q2 FY27.
  • Borrowings: Gross borrowings increased by ₹87 Crores (from ₹189 Cr to ₹276 Cr) for project-specific working capital for the land systems program. This is expected to be repaid as the program invoices from Q2 FY27.
  • Capex & Assets: Invested ₹96 Crores in new facilities (DAL, DAC, MAC) funded by internal accruals. Total assets increased from ₹1,127 Crores to ₹1,466 Crores. Consolidated net worth stands at ₹734 Crores.
  • Paid ₹40 Crores for an 8.2-acre land parcel in Hyderabad (MAC facility).
  • Executed a new lease for a 165,000 sq. ft. facility (Aeroland) with Aero Electronics.

Domain-wise Performance (FY26)

Post-divestment, the core domains now represent 78% of consolidated revenue (~₹904 Cr out of ₹1,159 Cr).

  • Aerospace: Revenue ₹388 Cr (21% YoY growth), EBITDA Margin 17.3%
  • Defense: Revenue ₹379 Cr (25% YoY growth), EBITDA Margin 22.9%
  • ESAI (Electronics, Software, AI): Revenue ₹136 Cr (9% YoY growth), EBITDA Margin 26.1%

Forward-Looking Guidance & Strategy (FY27 and Beyond)

FY27 Outlook:

  • FY27 is not starting from the FY26 revenue base of ₹1,159 Cr but from the retained business base of ₹903 Cr (after removing divested units).
  • Revenue visibility is trending towards ₹1,377 Crores for FY27, representing 52% growth on the retained base.
  • ₹927 Cr: Orders under execution (includes the ₹142 Cr deferred from Q4 FY26).
  • ₹285 Cr: Assured forecast visibility from design-won programs.
  • ₹165 Cr: Acquisition-linked visibility (contingent on deal closure).
  • Management expects a 150-200 bps improvement in EBITDA margins for the core business, targeting ~20%.

Power 930 Roadmap:

The company reaffirmed its long-term target of achieving ₹9,000 Crores in revenue by FY2030 (Power 930). The strategy to achieve this involves:

1. Strategic Shift: Transitioning from a design/engineering-led model to a manufacturing and solutions-led model, which is stated to offer a 10x scale opportunity.

2. Capacity Expansion: Operationalizing new manufacturing campuses in Devanahalli (DAL, DAC) and Hyderabad (MAC) throughout FY27.

3. Acquisitions: Actively evaluating multiple acquisitions to accelerate growth:

  • An aerospace manufacturing acquisition to jumpstart high-value activities in Q3 FY27.
  • Acquisitions in the ESAI/deep tech space (including a U.S./Vietnam-based company) to gain customers, nearshore presence, and scale.

4. New Initiatives:

  • Xida Inc.: A new U.S.-led, Silicon Valley-headquartered subsidiary focused on deep tech and AI (data centers, generative AI, physical AI). The existing ESAI business will be moved into this entity.
  • Space Division: Initiatives in space situational awareness (with Aldoria) and evaluating partnerships for space bus and payload manufacturing.

Capital Allocation & Funding

The total envisioned investment for organic capex (DAC, DAL, MAC) and acquisitions (2 in aerospace, 2 in ESAI) is estimated at ₹2,100 - ₹2,250 Crores. Management stated that this would be funded through:

  • Proceeds from the Phase 1 (Akkodis) and upcoming Phase 2 divestments.
  • Internal accruals.
  • The company explicitly stated it has no plans for equity dilution and will not take on incremental long-term debt (any debt would be for working capital or short-term bridges).

Other Key Points

  • ESOPs: A pool of 3.8 million shares is available. The company plans to utilize part of the anticipated ₹175 Cr extraordinary gain from the Akkodis deal to fund and issue ESOPs, targeting completion by Q2 FY27.
  • OEM Partnerships: Discussions with global OEMs are ongoing, though the process has been affected by the Indian government's shift away from offset policies towards an 'Atmanirbhar' (self-reliant) approach. Management expects these partnerships/JVs to materialize around Q3 FY27.
  • Open Invitation: Management extended an invitation to investors for an open house at their facilities in the last week of June/first week of July 2026 to provide more tangible clarity on their progress and strategy.