AXISCADES Technologies Limited – Investor Presentation Summary

Key Operational Highlights

  • H1 FY27 retained revenue ₹378.9 Cr, +55% YoY growth
  • Q2 FY27 retained revenue ₹195.6 Cr, +30% YoY growth
  • Defence business H1 revenue ₹252.7 Cr, +46% YoY
  • XIDA business H1 revenue ₹97.9 Cr, +55% YoY
  • Aerospace Manufacturing delivered ₹23.1 Cr revenue in H1 FY27
  • 16 new defence orders worth ₹80.3 Cr won since Q1 results, with ~₹730 Cr production potential
  • Cloud Wave acquisition delivered ₹16.5 Cr revenue in Q2 at 42% gross margin and 20.3% EBITDA margin

Key drivers of operational performance: Strategic divestment completion, new customer acquisitions, defence order wins, and aerospace manufacturing expansion.

Segment-wise Performance

Defence Segment:

  • H1 FY27 revenue: ₹252.7 Cr (+46.1% YoY)
  • Q2 FY27 revenue: ₹127.7 Cr (+12.4% YoY)
  • Q2 FY27 EBITDA: ₹22.5 Cr (17.6% margin)
  • Revenue split: DRDO/PSU business ₹147.6 Cr, MoD/OEM programmes ₹105.2 Cr

XIDA Segment:

  • H1 FY27 revenue: ₹97.9 Cr (+55.4% YoY)
  • Q2 FY27 revenue: ₹48.4 Cr (+47.1% YoY)
  • H1 FY27 EBITDA: ₹27.0 Cr (27.6% margin)
  • Restructuring scheduled to complete in Q3 FY27

Aerospace Segment:

  • H1 FY27 revenue: ₹23.1 Cr (Cloud Wave ₹16.5 Cr + organic ₹6.6 Cr)
  • Cloud Wave Q2 revenue: ₹16.5 Cr at 42% gross margin and 20.3% EBITDA margin
  • Pro forma H1 revenue with full Cloud Wave: ₹81.9 Cr at ₹17.8 Cr EBITDA (21.7%)

Explanation of significant changes in segment performance: Defence growth driven by 16 new order wins, XIDA growth from new accounts and stable established book, Aerospace growth from Cloud Wave acquisition.

Financial Highlights

H1 FY27 Consolidated:

  • Revenue: ₹705.7 Cr (+30.0% YoY)
  • EBITDA (reported): ₹39.3 Cr (5.6% margin)
  • EBITDA (before ESOP): ₹51.3 Cr (7.3% margin)
  • PBT: ₹70.8 Cr (+10.1% YoY)
  • PAT: ₹32.5 Cr (after ₹38.2 Cr tax)

Q2 FY27 Consolidated:

  • Revenue: ₹359.1 Cr (+20.1% YoY, +3.6% QoQ)
  • EBITDA (reported): ₹11.4 Cr (3.2% margin)
  • EBITDA (before ESOP): ₹23.4 Cr (6.5% margin)
  • PAT: ₹47.3 Cr (includes ₹95.4 Cr from discontinued operations)

Margins: Retained business EBITDA margin before ESOP at 9.3% in Q2 FY27

Drivers of financial performance: Retained business growth, Phase 1 divestment gain, offset by one-time impairments and ESOP charges.

Key Risks: Working capital absorption (₹86.5 Cr in H1), corporate cost base ahead of revenue, material-intensive mix affecting margins.

Geographical Revenue Split

Not Specified

Balance Sheet Snapshot

As at 30 September 2026:

  • Total assets: ₹2,079.7 Cr (+42% from March 2026)
  • Property, plant and equipment: ₹174.1 Cr
  • Goodwill: ₹211.3 Cr
  • Other intangible assets: ₹130.9 Cr
  • Inventories: ₹112.3 Cr
  • Trade receivables: ₹348.1 Cr
  • Cash and cash equivalents: ₹50.0 Cr
  • Total equity: ₹762.0 Cr
  • Borrowings: ₹624.4 Cr (non-current ₹255.8 Cr + current ₹368.6 Cr)
  • Trade payables: ₹213.6 Cr

Financial Health Insights: Working capital absorbed ₹86.5 Cr in H1, net borrowing of ₹310.0 Cr funded Cloud Wave and capex.

Capex & Cash Flow Health

H1 FY27:

  • Operating cash flow: ₹(57.7) Cr (H1 FY26: ₹13.6 Cr)
  • Working capital absorption: ₹86.5 Cr
  • Investments: ₹129.8 Cr net of cash acquired in Cloud Wave acquisition
  • Capital Expenditure: Not Specified
  • Free Cash Flow: Not Specified

Investment Rationale: Funding defence, aerospace and space expansion through divestment proceeds without equity dilution.

Strategic & R&D Initiatives

Investments in Innovation: Center for Advanced Manufacturing (240,000 sq ft facility at Devanahalli expected by Q4 FY28), space partnerships with U-Space and Aldoria.

Expected impact on growth: Space revenue expected from Q2 FY28, aerospace consolidation at CAM facility.

Strategic Rationale: Focus on four pillars - Defence, XIDA, Aerospace and Space; pivot from services to manufacturing.

Industry Trends & Business Environment

Macro/Industry Trends: India's defence moment creating opportunities, growing demand in defence-electronics and aerospace manufacturing.

Impact on Company: Positioned at heart of defence growth with 16 new orders, broadening customer base in aerospace.

Management Commentary & Growth Outlook

Strategic Outlook: "Our business is simpler, our finances are stronger and our focus is clearer" - Dr. Sampath Ravi Narayanan

FY Guidance: FY27 revenue intended to equal or exceed FY26 revenue; Power 930 long-term aspiration of ₹9,000 Cr revenue and ₹960 Cr PAT by FY2030 (not guidance)

Market Share Targets: Not Specified

Risks and Opportunities: Corporate cost base reduction from Q3, ESOP charge halving to ~₹6 Cr per quarter, legal costs normalizing to ₹4-5 Cr per quarter.

ESG Updates

Not Specified

Digital Transformation

Not Specified