Date: August 13, 2026

Financial Performance Summary

AXISCADES reported consolidated results for Q1 FY27 (quarter ended 30 June 2026) showing significant revenue growth but profitability impacted by one-time items and divestment costs.

Revenue Performance

  • Total Revenue from Operations (including discontinued operations): ₹346.7 crore, up 42.2% YoY and 27.0% QoQ
  • Continuing Operations Revenue: ₹183.4 crore
  • Like-for-like Revenue (excluding Add Solutions): Approximately ₹181 crore, up ~100% from approximately ₹90 crore in Q1 FY26

Profitability Metrics

  • Reported EBITDA: ₹27.9 crore (8.1% margin) vs ₹34.1 crore (14.0%) in Q1 FY26
  • Reported Loss Before Tax: ₹11.9 crore
  • Reported Loss After Tax: ₹14.8 crore
  • Normalised EBITDA (excluding provisions): ₹41.0 crore, up 20.5% YoY with 12.4% margin
  • Normalised PBT (excluding provisions and exceptional costs): ₹23.1 crore

One-Time Adjustments

Reported profitability included:

  • ₹11.56 crore one-time receivable provisions (primarily aged defence transaction)
  • ₹3.50 crore hedge provision under discontinued operations
  • ₹21.81 crore divestment-related exceptional costs under discontinued operations

Segment Performance

Defence Division

  • Revenue: ₹125.0 crore, up ~111% YoY and 86.1% QoQ
  • Underlying EBITDA (excluding ₹8.7 crore provisions): ₹13.8 crore with 11.0% margin, up 25.1% YoY
  • Assured Forecast Visibility: ₹4,557 crore for FY27-FY30 (increased by ₹332 crore from new wins, reduced by ₹125 crore executed in Q1)
  • Recent Wins: Four in-quarter programmes and four sole-source wins post balance-sheet date including on-board computers for anti-tank missile, PCM encoder for missile programme, antenna beam control for Uttam radar, and Exciter Receiver Processor for marine helicopter

XiDA Division (Electronics and AI)

  • Revenue: ₹49.5 crore, up 62.9% YoY and 30.3% QoQ
  • EBITDA: ₹14.7 crore, up 114.5% YoY with 29.7% margin
  • New US Business Contribution: ₹15.2 crore revenue and ₹7.0 crore EBITDA at 46.2% margin
  • New Customers: World's largest semiconductor equipment company and one of world's largest AI/hyperscale technology companies

Aerospace Manufacturing

  • Revenue: ₹6.1 crore
  • EBITDA Loss: ₹5.4 crore (reflecting capability build costs)
  • Potential Acquisition: Non-binding offer for AS9100D-certified precision manufacturing company with indicative pro forma FY27 revenue of ₹180 crore and EBITDA of ₹39 crore (22% margin)

Space Division (Newly Established)

  • Facility Under Construction: Satellite manufacturing, assembly, integration and test facility at Devanahalli Atmanirbhar Complex
  • Technology-transfer collaborations in progress, with formal details planned for Bengaluru Space Expo and World Space Week Paris in September 2026
  • Planned Investment: ₹300 crore earmarked from divestment proceeds (₹120 crore for facilities/training, ₹180 crore for two planned joint ventures)

Divestment Programme Update

Transaction Details

  • Divested Businesses: Engineering Services and Aerospace Services to Akkodis Group
  • Announcement Dates: May and June 2026
  • Minimum Consideration: ₹1,685 crore
  • Total Consideration: Approximately ₹2,256 crore (~USD 237 million)
  • Shareholder Approval: Received on 27 July 2026

Completion Timeline

  • Phase 1: Target completion by 31 August 2026 with approximately ₹180 crore initial proceeds expected within five days
  • Phase 2: Target completion by 30 November 2026 completing approximately ₹2,256 crore divestment
  • Expected Gain on Disposal: Approximately ₹1,255 crore (subject to adjustments and final accounting)

Capacity Expansion and Infrastructure

Manufacturing Facilities Development

  • Property, Plant & Equipment + CWIP: Increased by ₹40.1 crore (29.5%) during Q1 FY27
  • Devanahalli AeroLand: Commissioned and supporting aerospace/defence supply-chain requirements
  • Devanahalli Atmanirbhar Complex Phase 1: Under construction, targeted operational during FY27 (hosts Space division facility)
  • Missile Atmanirbhar Complex, Hyderabad: Land acquisition completed, groundbreaking in July 2026, construction commencing
  • Center for Advanced Manufacturing: Proposed 240,000 sq. ft. quad-use facility on 20 acres at Devanahalli, land allocation in process

Add Solutions Exit Plan

Management is implementing action plan to exit Add Solutions business, targeting completion by Q4 FY27.

Deferred Revenue Update

Approximately ₹64 crore of the ₹142 crore FY26 deferred revenue (due to supply-chain/operational reasons) recognized in Q1 FY27. Remaining amount expected across Q2 and Q3 FY27 subject to supply-chain availability and operational execution.

Management Commentary

Dr. Sampath Ravinarayanan, Founder, Chairman & Managing Director:

  • Q1 FY27 marks transition to focused manufacturing, products and solutions company
  • Revenue per employee expected to rise from ₹42 lakh in FY26 to ₹1.2 crore in FY27 (threefold gain)
  • Strength visible in Defence (revenue doubled), XiDA (added two global tech giants), Aerospace Manufacturing being rebuilt, Space established as fourth platform
  • Capital and management bandwidth directed toward Aerospace Manufacturing, Defence Systems, XiDA and Space per Power 930 roadmap

Shashidhar SK, Group Chief Financial Officer:

  • Quarter combines strong revenue growth with accounting impact of portfolio transition
  • Immediate priorities: complete divestment, address Add Solutions drag, scale retained portfolio, deploy proceeds into growth without equity dilution

Capital Deployment Strategy

Proceeds from divestment intended to fund transition into Aerospace Manufacturing, Defence Systems, XiDA and Spacetech including strategic acquisitions and manufacturing infrastructure without equity dilution.