Nature of the Disclosure

Transcript of the Q4 & FY26 Earnings Webinar for AXISCADES Technologies Limited, hosted on May 30, 2026, and submitted to the stock exchanges on June 04, 2026, in compliance with SEBI Listing Regulations.

Key Quantitative Figures

Full Year FY26 Financials:

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

Q4 FY26 Financials:

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

Revenue Deferral Breakdown (₹142 crore total):

  • ₹45 crore: Defense manufacturing program delayed due to supply chain disruption (since resolved)
  • ₹84 crore: Strategic electronics program delayed due to monopolistic hardware supplier redirecting output (materials since secured)
  • ₹12.6 crore: Aerospace/defense contract deferred due to divestment transaction transition

Divestment Details:

  • Sold heavy engineering, energy, and automotive practice to Akkodis for $30.63 million (pre-tax cash consideration)
  • Exceptional costs of ₹11.17 crore recognized in FY26 (₹9.8 crore restructuring costs + ₹7.98 crore fair value adjustment on Epcogen)
  • Expected extraordinary gain upon closure: ~₹175 crore (~₹41 EPS impact)
  • Transaction expected to close in Q2 FY27
  • Guaranteed portion: $23.4 million; Earnout: $7.4 million based on FY27 targets

Balance Sheet & Cash Flow:

  • Closing receivables: ₹411 crore (DSO 130 days)
  • Post-March collections: ₹154.5 crore (DSO reduced to 81 days)
  • Negative operating cash flow driven by ₹100 crore WIP for land systems (20 units ready for dispatch, 25 in assembly, 85 in production)
  • Gross borrowings: ₹276 crore (increased by ₹87 crore for project-specific working capital)

Domain Performance FY26:

  • Aerospace: ₹388 crore revenue (21% growth), 17.3% EBITDA margin
  • Defense: ₹379 crore revenue (25% growth), 22.9% EBITDA margin
  • ESAI (now Xida): ₹136 crore revenue (9% growth), 26.1% EBITDA margin
  • Core domains represented 78% of consolidated revenue (₹904 crore)

FY27 Outlook:

  • Revenue target: ₹1,377 crore (52% growth on retained business base)
  • Breakdown: ₹927 crore orders under execution (includes ₹142 crore deferred), ₹285 crore assured forecast visibility, ₹165 crore acquisition-linked visibility
  • Margin improvement target: 150-200 bps YoY

Strategic Updates & Operational Highlights

Portfolio Restructuring: Company is sharpening focus on core domains (aerospace, defense, space, deep tech, electronics, AI) through divestment of non-core businesses. Phase 1 divestment completed; Phase 2 planned for H1 FY27.

New Initiatives:

  • Xida Inc.: New US-led, Silicon Valley-headquartered deep tech and AI subsidiary incorporating existing ESAI business. Evaluating two acquisitions.
  • Space Division: Space Situational Awareness initiative with Aldoria underway. Evaluating partnerships for space bus and payload manufacturing at Devanahalli campus.

Capacity Expansion:

  • Devanahalli campuses and Missile Atmanirbhar Complex (MAC) in Hyderabad becoming operational through FY27
  • Total investment plan: ₹2,100-2,250 crore (DAC: ₹1,200 crore, MAC: ₹300 crore, DAL: ₹120 crore, acquisitions: ~₹600 crore)
  • Self-funded through restructuring proceeds; no equity dilution or incremental long-term debt planned
  • Aerospace manufacturing acquisition in advanced stages to jumpstart manufacturing in Q3 FY27

ESOP Plan: 3.8 million shares reserved for ESOPs; planned to be awarded by Q2 FY27 aligned with restructuring completion (headcount reduction to ~1,200 people).

Management Participants

  • Dr. Sampath Ravinarayanan (Founder, Chairman & Managing Director)
  • Mr. Shashidhar S.K. (Group CFO)
  • Mr. Mukund Santhanam (Chief Growth Officer & Head of IR)
  • Ms. Shankhini Saha (Moderator, Director of Investor Relations from Dickinson IR)