Key Financial Figures - Consolidated

Income Statement Highlights (₹ lakhs):

Quarter Ended September 30, 2026:

  • Total Income: ₹19,926.38
  • Revenue from Operations: ₹19,559.58
  • Other Income: ₹368.80
  • Total Expenses: ₹21,326.39
  • Loss before exceptional items and tax from continuing operations: ₹1,386.54
  • Exceptional Items (continuing operations): ₹3,839.00 (impairment loss)
  • Loss before tax from continuing operations: ₹5,225.54
  • Loss for period from continuing operations: ₹4,812.43
  • Profit from discontinued operations: ₹9,542.70
  • Net Profit for period: ₹4,730.27

Half Year Ended September 30, 2026:

  • Total Income: ₹38,611.96
  • Revenue from Operations: ₹37,894.68
  • Other Income: ₹817.30
  • Total Expenses: ₹40,555.01
  • Loss before exceptional items and tax from continuing operations: ₹2,031.36
  • Exceptional Items (continuing operations): ₹3,839.00
  • Loss before tax from continuing operations: ₹5,870.36
  • Loss for period from continuing operations: ₹6,617.92
  • Profit from discontinued operations: ₹8,772.23
  • Net Profit for half year: ₹3,254.31

Balance Sheet Highlights (₹ lakhs) as at September 30, 2026:

  • Total Assets: ₹2,07,970.28 (vs ₹1,46,621.12 as at March 31, 2026)
  • Non-current Assets: ₹82,508.77
  • Current Assets: ₹1,25,461.51 (includes Assets held for sale: ₹20,600.92)
  • Total Equity: ₹76,203.78
  • Non-current Liabilities: ₹38,225.78
  • Current Liabilities: ₹93,540.72 (includes Liabilities associated with assets held for sale: ₹4,619.38)

EPS Data (₹ per share of ₹5 each):

Continuing Operations - Q2 FY27:

  • Basic EPS: (₹11.33)
  • Diluted EPS: (₹11.33)

Discontinued Operations - Q2 FY27:

  • Basic EPS: ₹22.42
  • Diluted EPS: ₹22.18

Overall - Q2 FY27:

  • Basic EPS: ₹11.08
  • Diluted EPS: ₹10.97

Significant Events and Transactions

1. Discontinued Operations and Business Disposal

Pursuant to Board approvals on May 26, 2026 and June 12, 2026, and shareholder approval on July 27, 2026, the Company entered into Master Framework Agreements with Akkodis Group for disposal of identified businesses:

  • Aerospace business: Proposed transfer for aggregate fixed consideration of USD 152.35 million (including USD 74.65 million in equity instruments) with additional contingent consideration
  • Heavy Engineering, Automotive and Energy business: Proposed slump sale for fixed consideration of USD 23.23 million (including deferred consideration of USD 5.81 million) with additional contingent consideration

During Q2 FY27, the Company completed transfer of control of the Heavy Engineering, Automotive and Energy business on September 30, 2026. This resulted in:

  • Derecognition of assets and liabilities pertaining to the business
  • Exceptional gain of ₹14,083.74 lakhs recognized in Profit & Loss
  • Reclassification of cumulative exchange differences on translation of foreign operations amounting to ₹2,093.90 lakhs to Profit & Loss

2. Acquisition of Cloud Wave Technologies

During Q2 FY27, the Company acquired 90% shareholding in Cloud Wave Technologies Private Limited and its subsidiaries for fixed purchase consideration of ₹20,564.50 lakhs. Key terms:

  • ₹7,402.00 lakhs payable upon completion of regulatory filings/regularization by December 31, 2026 (extendable to March 31, 2027)
  • Option to purchase remaining 10% shareholding based on earnings for year ending March 31, 2029
  • Contingent purchase consideration payable of ₹2,267.61 lakhs recognized for 10% shareholding
  • Cloud Wave contributed revenue of ₹1,708.58 lakhs and net profit of ₹72.25 lakhs for period from September 10, 2026 to September 30, 2026

3. Exceptional Items

Continuing Operations - Q2 FY27:

  • Impairment loss of ₹3,839.00 lakhs due to liquidation of Add Solution GmbH (wholly owned step-down subsidiary) effective September 25, 2026

Discontinued Operations - Q2 FY27:

  • Transaction-related advisory and professional fees of ₹1,102.21 lakhs
  • Gain on transfer of business of ₹14,083.74 lakhs

4. Subsidiary Liquidation

Add Solution GmbH, a wholly owned step-down subsidiary, filed for liquidation on September 30, 2026 (effective September 25, 2026), resulting in impairment loss of ₹3,839.00 lakhs primarily relating to goodwill and intangible assets.

5. Investment in Associate

During Q2 FY27 and FY26, the Group invested ₹99.76 lakhs and ₹575.46 lakhs respectively in equity shares of its associate, Aero Electronics Private Limited, without change in shareholding percentage.

Segment Reporting

The Group operates in two business segments:

1. Technology Services and Solutions (includes businesses classified as disposal groups held for sale and discontinued operations)

2. Defence

Segment Revenue - Q2 FY27 (₹ lakhs):

  • Technology Services & Solutions (Continuing): ₹6,100.50
  • Technology Services & Solutions (Discontinued): ₹18,351.09
  • Defence: ₹13,459.08
  • Total: ₹36,910.67

Cash Flow Highlights - Half Year Ended September 30, 2026 (₹ lakhs)

  • Net cash used in operating activities: ₹5,774.37
  • Net cash used in investing activities: ₹19,188.51
  • Net cash from financing activities: ₹28,152.43
  • Net increase in cash and cash equivalents: ₹3,189.55
  • Cash and cash equivalents at end of period: ₹5,002.17

Entities Included in Consolidation

The consolidated results include 21 entities including the parent company and subsidiaries such as AXISCADES Inc., Cades Studec Technologies, Xponential Defence, Enertec Controls, Mistral Solutions, Epcogen Private Limited, and the newly acquired Cloud Wave group companies.

#AXISCADES #Q2Results #SEBIDisclosure #BusinessRestructuring #M&A #FinancialResults