Axiscades Technologies Ltd

Financial Performance

• Q1 FY27 consolidated revenue: 346 crores; up 42% YoY, 27% sequential.
• Discontinued operations: 163 crores; continuing/retained: 183 crores.
• Continuing revenue grew 94% YoY to 183 crores.
• EBITDA (combined) 27.9 crores; PAT loss 14.8 crores.
• One-offs: receivable provisioning 13.1 crores; hedge provisioning 3.5 crores.
• Divestment-related transaction costs: 21.81 crores; below EBITDA line as exceptional item.
• Normalized EBITDA: 41 crores; margin ~11.8%.
• Normalized PAT: 20.2 crores.
• Defense continuing revenue: 125 crores; up 112% YoY.
• XiDA revenue: 49.5 crores; EBITDA 14.7 crores; margin ~30%.
• Aerospace manufacturing revenue: 6.1 crores; EBITDA negative; ramp-up linked to Power 930.
• Cash on balance sheet rose 78% to ₹81 crores.

Segment Update

• Defense continuing EBITDA was supported by underlying 11.2 crores; margin 9.7%.
• XiDA added two marquee global technology customers; platform domiciled in the US.
• Mistral revenue: 122 crores; EBITDA margin ~14.5%.
• Aerospace manufacturing capacity being built; front-loaded leadership ahead of acquisitions.
• Forecast visibility stands at 4,557 crores; multiple wins strengthening pipeline.

Balance Sheet and Cash Flow

• Akkodis transaction valued at US$237 million (~₹2256 crores).
• Phase 1 divestment cash targeted ~₹190 crores; Phase 2 ~₹525 crores.
• Total divestment proceeds expected around ₹920 crores; phase closings in Q2 and Q3.
• Extraordinary gain of ₹1,255 crores to be recorded on closing.

Projects and Capex

• Power 930 capacity build: DAL commissioned; Devanahalli complexes advancing.
• Devanahalli Atmanirbhar Complex: 20 acres; flagship aerospace/defense/space hub.
• Hyderabad Missile Atmanirbhar Complex: land acquired; groundbreaking in July.
• Center for Advanced Manufacturing: 240,000 sq ft on 20 acres; shared platform.

Outlook and Guidance

• FY27 continuing revenue target: ₹1,377 crores (annualized pro forma).
• FY27 continuing EBITDA target: ₹270 crores; PAT ~₹135 crores (roughly 50% of EBITDA).
• Acquisitions expected to contribute in coming quarters; two closes by Q2 and more by Q3/Q4.
• Divestments to fund Power 930 build; maintain guidance with no equity dilution.

Q&A Highlights

• Rationale for aerospace divestment: shift to manufacturing; proceeds fund Power 930 without equity dilution.
• PAT guidance for FY27 ~₹135 crores; acquisitions to lift top and bottom line.
• Aerospace and XiDA acquisitions targeted for completion by this quarter; additional deals in pipeline.
• Defense forecast visibility and pipeline: 4,557 crores forecast; pipeline ~₹24,000 crores.
• Space program: announcements expected at Bangalore Space Expo and Paris World Space Week.

Risks and Watchpoints

• Execution risk on divestments and timely closings across two phases.
• Integration and ramp-up risk from acquisitions; timing could impact near-term margins.
• Reliance on defense order visibility and capex funding through divestment proceeds.

Meeting Details

• Date: August 13, 2026; exact time not disclosed.
• Type and mode: group earnings webinar conducted virtually.
• Event/organiser: Earnings Webinar Q1 FY27 hosted by Axiscades Technologies Ltd.
• Key participant: Company Secretary & Compliance Officer.
• Purpose: discuss Q1 FY27 results with investors/analysts.
• Recording availability: audio recording hosted on company website.

Overview and key metrics

• Q1 FY27 consolidated revenue from operations incl. discontinued: Rs 346.7 crore, +42.2% YoY.
• Continuing operations revenue: Rs 183.4 crore; like-for-like ex Add Solutions: Rs 181 crore.
• Normalised EBITDA: Rs 41.0 crore; margin 11.8%.

Divestments and portfolio transition

• Engineering Services and Aerospace Services divested to Akkodis; minimum Rs 1,685 crore; total Rs 2,256 crore.
• Phase 1 closing by 31 Aug 2026; initial proceeds ~Rs 180 crore within five days.
• Phase 2 closing by 30 Nov 2026; divestment programme completes.

Growth platforms and operational progress

• Defence revenue Rs 125.0 crore; XiDA revenue Rs 49.5 crore; Space established as fourth growth platform.
• Aerospace Manufacturing revenue Rs 6.1 crore; Devanahalli AeroLand commissioned; Phase 1 Atmanirbhar complex under construction.
• AFV visibility for FY27-FY30 raised to Rs 4,557 crore.

Capital deployment and future roadmap

• Divestment proceeds to fund growth in Aerospace, Defence, XiDA and Space without equity dilution.
• Space program includes Rs 300 crore from divestment; Rs 120 crore for facilities/training, Rs 180 crore for two JVs.
• Deferred revenue update: ~Rs 64 crore recognised in Q1 FY27; remainder recognised in Q2-Q3 FY27.

Business overview

• Divestment of non-core services largely complete; Add Solutions exit underway.
• Defence, XiDA, Space, and Aerospace manufacturing are core growth engines.
• Space division launched; satellite facility under construction at DAC.
• Portfolio simplification supports higher-capex opportunities.

Operational highlights

• Record quarterly revenue Rs 346.6 Cr; up 42.2% YoY.
• Retained revenue Rs 183.4 Cr; up 94% like-for-like.
• Defence wins add Rs 332 Cr to AFV; AFV now Rs 4,557 Cr.
• XiDA gained two mega customers via business transfer.
• Aerospace manufacturing capacity expansion: CAM hub near Devanahalli.
• Aerospace acquisition: annualised FY27 revenue Rs 180 Cr; EBITDA Rs 39 Cr; 22% margin.
• Divestments signed: Engineering and Aerospace Services; closing by Nov 2026; Rs 1,685 Cr min.
• Plan to realise Add Solutions exit in FY27.

Financial performance

• Total revenue Rs 346.6 Cr; YoY +42.2%.
• Normalised EBITDA Rs 41.0 Cr; Margin 11.8%.
• Normalised PBT Rs 23.1 Cr; Normalised PAT Rs 20.2 Cr.
• One-off provisions; revenue mix underpinned by retained business.

Capital structure & liquidity

• Divestments enable growth capital with no equity dilution.
• Closing conditions on Akkodis divestment; net proceeds planned.
• Proforma FY27 guidance anchored to continuing operations.

Strategic priorities & outlook

• FY27 guidance restated: Revenue Rs 1,377 Cr; EBITDA Rs 270 Cr (proforma).
• Defence 75% YoY growth; XiDA >100% YoY; Space partnerships planned for Sep 2026.
• Aerospace/defence/XiDA/Spacetech acquisitions: three closings; multiple progressions.
• Phase 1 and 2 divestments; Add Solutions exit proceeds to be realised FY27.
• Centre for Advanced Manufacturing and CAM facility to support new platforms.

Risks & governance

• One-off provisions and deal costs affect near-term profitability.
• Execution risk around divestments and integration of acquisitions.
• Forward-looking guidance depends on closing milestones and market conditions.

Leadership & governance

• Chairman: Dr. S. Ravi Narayanan emphasizes sharper strategy and execution.

Board actions & results

• Board approved unaudited standalone and consolidated Q1 FY27 results for quarter ended June 30, 2026.
• Appointment of Internal Auditor: Protiviti India Member Private Limited for FY 2026-27.
• Audit Committee: Giridhar Aramane (Chairman), Tanmoy Chakrabarty (Member), Venkataraman Venkitachalam (Member).
• Nomination & Remuneration Committee reconstituted; Chairman: Tanmoy Chakrabarty.
• Members: Lt Gen Codanda Poovaiah Cariappa, Giridhar Aramane, Ashmita Sethi, Venkatnaraman Venkitachalam, Abhay Maheshwari.
• Stakeholder Relationship Committee reconstituted; Chairman: Lt Gen Codanda Poovaiah Cariappa.
• Members: Tanmoy Chakrabarty, Abhay Maheshwari.
• Risk Management Committee reconstituted; Chairperson: Ashmita Sethi.
• Members: Venkatnaraman Venkitachalam, Shashidhar SK (CFO).
• Board meeting duration: 2:00 PM to 3:15 PM.
• Results will be uploaded on BSE/NSE and company website.
• Annexure-I contains details pertaining to item-2.

Resignation of Independent Director

• Mariam Mathew resigns as Independent Director, effective Aug 11, 2026, due to increased family commitments.
• Resigning director previously chaired Risk Management Committee and was a Nomination & Remuneration Committee member.
• She confirms there are no other material reasons for her resignation.

Appointment of Additional Director

• Ashmita Sethi appointed as Additional Director, Non-Executive, Independent, from Aug 11, 2026.
• Term of 3 years from Aug 11, 2026, subject to shareholders' approval per SEBI LODR.
• Not debarred from holding office; Board approved via circular resolution.
• Profile: 25+ years in Aerospace & Defence; former President & Country Head, Pratt & Whitney India.
• Former MD, United Technologies India; Senior Director, Boeing; VP, Rolls-Royce.
• Not related to any existing Director.

Meeting Details

• Date/time: 13 August 2026, 5:30–6:30 pm IST.
• Type/mode: earnings webinar; virtual group call.
• Organiser: Dickenson World, AXISCADES' investor relations advisor.

Participants

• Participants: AXISCADES senior management to address the call.

Purpose

• Purpose: discuss Q1FY27 unaudited results and company updates.
• Includes opening remarks and interactive Q&A with participants.

Availability

• Presentation and press release available after the board meeting.
• Documents to be downloadable from NSE, BSE, and the company site.

Meeting Details

• Board meeting scheduled for 13 August 2026.

Key Agenda Items

• Consider and approve unaudited quarterly results for quarter ended June 30, 2026.
• Submission of unaudited results along with Limited Review Report to exchanges.

Other Notes

• Trading window closed from July 01, 2026 to August 15, 2026 inclusive.

Meeting Details

• Date: August 10, 2026; time not disclosed; virtual group meeting.
• Event/Organizer: Analysts/Institutional Investors Meeting organized by AXISCADES Technologies Limited.
• Type/Mode: Group meeting; virtual.

Participants

• Company participants: Management representatives engaging with investors.

Purpose

• Purpose: Analysts/institutional investor interaction.

Additional Notes

• Website schedule: availability of meeting details on the company site.