• The document is a transcript of Centum Electronics Limited's Q2/H1-FY27 Earnings Conference Call held on Thursday, 5th November 2026 at 16:00 hours IST.
  • The event was hosted by DAM Capital Advisors Limited and featured management participants Mr. Nikhil Mallavarapu (Joint Managing Director) and Mr. Sundararajan Parthasarathy (Chief Financial Officer).
  • The purpose was to discuss the company's performance for the second quarter and first half of financial year 2027.
  • The meeting occurred after the earnings announcement, as it discusses actual Q2 and H1 financial results.

Financial Performance Highlights

Q2 FY27 Standalone Performance:

  • Revenue from operations: ₹312 crores (52% YoY growth)
  • EBITDA: ₹40 crores (63% YoY growth)
  • EBITDA margin: 12.69% (87 bps improvement YoY)
  • Profit before tax: ₹31 crores (75% YoY growth)
  • Profit after tax: ₹23 crores (77% YoY growth)
  • PAT margin: 7.31% (vs 6.28% in corresponding quarter last year)

H1 FY27 Standalone Performance:

  • Revenue from operations: ₹517 crores (32% YoY growth)
  • EBITDA: ₹63 crores (25% YoY growth)
  • EBITDA margin: 12.11%
  • Profit after tax: ₹36 crores (28% YoY growth)

Business Segment Updates

Build to Spec (BTS) Business:

  • Q2 revenue increased by 84% year-on-year
  • H1 revenue increased by 33% year-on-year
  • Order book: ₹959 crores (47% YoY growth)
  • Key wins: ₹30 crores export order for electronic warfare subsystem; ₹51 crores for tactical air navigation systems
  • Contributed over 200 subsystems and modules to successful GISAT-1A/EOS-05 space mission

Electronic Manufacturing Services (EMS) Business:

  • Q2 revenue grew 41% YoY and 42% sequentially
  • H1 revenue increased by 32% year-on-year
  • Order book grew by 30% year-on-year
  • Strong traction in semiconductor equipment segment
  • Three new marquee customer wins across defense, transportation, and industrial segments

Operational and Strategic Highlights

  • Order book stood at approximately ₹2,000 crores as of September 2026 (38% YoY growth)
  • Net working capital improved by 6 days to 136 days
  • Receivable days improved by 9 days to 106 days
  • Borrowings increased by ₹11.5 crores to ₹134 crores due to working capital requirements
  • Cash balances: ₹127 crores (includes ₹49 crores restricted cash)
  • QIP proceeds balance: ₹53 crores as of September 2026
  • Board approved increasing borrowing authorization from ₹500 crores to ₹1,000 crores to support order book growth
  • Supply chain constraints noted in memories, controllers, MLCCs, and PCBs
  • Received CII National Energy Management Award for 2026 (second consecutive year)

Guidance and Outlook

  • Medium-term objective: 25%-30% growth rate
  • BTS margin target: 20%-22%
  • Company-level EBITDA margin target: 12.5%-13%, aiming to reach 13% and eventually 14%-15% in 3-4 years
  • Semiconductor business visibility: $45-50 million range in next two years (up from initial $25-30 million estimate)
  • Each new customer engagement expected to be at least $10 million per year once ramped up in 2-3 years
  • Order book provides strong visibility for future execution

Additional Notes

  • The transcript was submitted to stock exchanges pursuant to Regulation 30 and 46 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
  • The document contains the full Q&A session with analysts from Subhkam Ventures, Bajaj Alternative Investment, Unique PMS, Niveshaay, and private investors
  • No attachments were mentioned in the disclosure
  • The company indicated during the call that they do not provide specific quarterly or yearly guidance, only medium-term objectives