Financial Performance (Q2 FY27)

  • Net Revenue: ₹1,332 Mn, a decrease of 56.7% YoY (from ₹3,075 Mn in Q2FY26) but an increase of 14.8% QoQ (from ₹1,160 Mn in Q1FY27).
  • Gross Profit: ₹920 Mn, a decrease of 22.3% YoY.
  • Gross Margin: 69.0%, a significant expansion of 3,052 basis points YoY (from 38.5% in Q2FY26).
  • EBITDA: ₹314 Mn, a decrease of 54.1% YoY.
  • EBITDA Margin: 23.6%, a marginal expansion of 132 basis points YoY.
  • Net Profit: ₹220 Mn, a decrease of 55.3% YoY.
  • Net Profit Margin (NPM): 16.5%, an expansion of 49 basis points YoY.
  • Earnings Per Share (EPS): ₹3.9 (reported).

Financial Performance (H1 FY27)

  • Net Revenue: ₹2,493 Mn, a decrease of 38.7% YoY (from ₹4,068 Mn in H1FY26).
  • Gross Profit: ₹1,835 Mn, a decrease of 7.2% YoY.
  • Gross Margin: 73.6% for H1FY27.
  • EBITDA: ₹628 Mn, a decrease of 37.5% YoY.
  • EBITDA Margin: 25.2% for H1FY27.
  • Net Profit: ₹440 Mn, a decrease of 41.1% YoY.
  • Return on Equity (ROE): 14.0% for H1FY27.
  • Return on Capital Employed (ROCE): 17.9% for H1FY27.

Order Book & Inflows

  • Order Inflow (Q2FY27): ₹929 Crore.
  • Order Inflow (H1FY27): ₹1,046 Crore, nearly three times the level in H1FY26.
  • Total Order Book: ₹2,698 Crore (as of the presentation date), including orders received and negotiated.
  • International Order Book: ₹32 Cr (as of September 30, 2026).
  • FY27 Order Inflow Expectation: An additional ₹2,000 Cr, excluding the already received/negotiated orders.

Major Orders Received in Q2FY27

Key production and development orders were received from major customers:

  • BEL: Two radar production orders worth ₹3,328 Mn and ₹2,530 Mn.
  • MoD: Avionics development (₹827 Mn) and multiple EW development orders (₹702 Mn, ₹702 Mn, ₹210 Mn).
  • NTRO: EW development order worth ₹241 Mn.
  • HAL: Service order worth ₹191 Mn.
  • Brahmos: AMC service order worth ₹151 Mn.
  • DoS: ATE production order worth ₹77 Mn.

Strategic Acquisition

  • Target: ST Advanced Composites Pvt. Ltd. (STAC).
  • Stake Acquired: 100%.
  • Consideration: ₹10 Crore.
  • Approval: Board approved in Q1FY27.
  • Strategic Rationale: To strengthen in-house advanced composite manufacturing capabilities, enabling better control over quality, timelines, and vertical integration for radar and defence electronics programs.
  • Expected Impact: Potential for improved EBITDA margins, better working capital management, and enhanced ability to bid for larger, complete-system contracts.

Capital Expenditure & Financial Position

  • Past Capex: ~₹190 Cr invested over the last 5 years.
  • Future Capex: Planning an additional ₹150 Cr over the next two years.
  • Cash Position: Cash, Bank & Investments stood at ₹4,053 Mn as of September 30, 2026.
  • Debt Status: The company maintains a net debt-free status.

Management Commentary & Outlook

  • Chairman & Managing Director's Comment: Mr. Srinivasagopalan Rangarajan stated that H1FY27 was encouraging for order inflows. He noted Q2FY27 was a normalized quarter following an exceptionally strong Q2FY26 and expects H2FY27 to be stronger due to healthy order pipeline and execution momentum.
  • Revenue Guidance: The company remains committed to a revenue growth rate of 20-25% for FY27.
  • Margin Guidance: Targeting EBITDA margins around 35-40% for FY27.
  • Strategic Focus: Moving up the value chain by building full systems, leveraging existing competencies, expanding into new geographies (exports to Europe and UK), and continuing product development.

Corporate Overview

  • The company is a fully integrated defence and aerospace electronics solution provider with 3 decades of expertise.
  • Domain expertise spans Radars, Electronic Warfare, Communication systems, Avionics, and Satellite systems.
  • Key customers include MOD, DRDO, DPSUs, and private sectors, including international clients.

#Tags: #DataPatterns #Q2Results #DefenceSector #OrderInflow #SEBIDisclosure #RegulatoryCompliance #FinancialUpdate #Neutral