Centum Electronics Ltd

Centum Electronics Limited — Trading Window closed from 1st October, 2026 till the expiry of 48 hours after the declaration of Unaudited Financial Results of the Company for the Quarter ending 30th September, 2026

Meeting Details

• Dates: September 24–25, 2026; Time: not specified.
• Meeting type: In-person group investor interactions; Non-Deal Roadshow (NDR) in Singapore.
• Event name: Non-Deal Roadshow (NDR).
• Venue: Singapore.

Participants

• Chairman and Managing Director to participate.
• Joint Managing Director to participate.
• Chief Financial Officer to participate.
• Company Secretary & Chief Compliance Officer to participate.

Purpose

• Purpose: Investor interactions as part of NDR; presentation to be discussed.

Additional Notes

• Enclosed investor presentation will be discussed at the NDR.

Rating action and rationale

• 00 crore bank facilities upgraded to CARE BBB+; Stable / CARE A2; previous CARE BBB; Positive.
• 13 crore long-term facilities upgraded to CARE BBB+; Stable; previous CARE BBB; Positive.
• Analytical approach revised from consolidated to standalone after overseas subsidiary exits.
• Outlook: Stable; expected standalone growth and margin improvement.
• Material change: upgrade from CARE BBB; Positive to CARE BBB+; Stable for rated facilities.
• Order book expanded to ₹1,797 crore as of June 30, 2026; strong visibility.
• Strengths: experienced promoters and diversified, long-standing client relationships.
• Weaknesses: working capital intensity, forex risk, EMS competition; BTS growth partially mitigates.
• Liquidity: adequate with healthy cash accruals; cessation of overseas funding improves cushion.
• Sensitivities: revenue >₹1,500 crore with PBDIT margin >12.5%.
• Negative factors: TD/GCA > 4.25x or TOL/TNW > 2x; liquidity risk.

Meeting Details

• Date and time: September 9, 2026, 2:00 pm IST onwards.
• Event: Various Analysts and Institutional Investors Meeting with the Management.
• Mode: Virtual group meeting.
• Key participants: Company management.
• Purpose: Group investor interaction and updates with analysts/investors.
• Note: No UPSI is intended to be discussed.

Order details

• Awarding entity: Global OEM customer (international).
• Scope: Design, Development and Delivery of electronic systems.
• Total value: USD 3.22 million (approx ₹305 million).
• Awarding entity is international (export order).
• Execution period: over the next 7 months.
• Promoter/group/related party: Not Applicable.
• Material impact: No material impact disclosed.

Business & Growth

• EMS revenue share 72%; BTS 28% of revenue.
• Standalone order book stands at INR 18 Bn.
• HAL order: INR 660 Mn Phase 1 AESA radar; Phase 2 potential.
• BEL MoU to jointly develop EW, radar, secure comm systems.
• Three-satellite constellation order ~INR 3,500 Mn.

Financial Performance

• Standalone FY26 revenue INR 9,731 Mn; EBITDA 1,209 Mn; PAT -1,171 Mn.
• Standalone EBITDA margin 12.42% in FY26.
• Consolidated FY26 revenue INR 9,527 Mn; EBITDA 1,354 Mn.
• Consolidated PAT (Continuing Operations) INR -518 Mn.
• Exports contribute 53% of FY26 revenue.

Capital Structure & Liquidity

• Equity FY26: INR 3,251 Mn; non-controlling interests negative INR 181 Mn.
• Current borrowings FY26: INR 1,198 Mn; non-current borrowings 22.
• Cash & equivalents FY26: INR 379 Mn; total assets FY26: INR 13,027 Mn.

Governance & Leadership

• Chairman & MD: Apparao V Mallavarapu.
• Joint MD: Nikhil Mallavarapu.
• CFO: Sundararajan Parthasarathy.
• Independent Directors: Apurva Chandra, Tarun Sawhney.

Meeting Details

• Date: September 2, 2026.
• Event: Ashwamedh – Elara India Dialogue 2026.
• Type: One-to-One / Group.
• Location: Mumbai; Mode: Physical.

Participants

• Company management to participate (roles not specified).

Purpose

• Purpose: Investor/Analyst meeting for investor interaction.

Financial Performance

• Stand-alone revenue INR205 crores, up 11% YoY.
• Stand-alone EBITDA INR23 crores, margin 11.28%.
• Stand-alone PAT INR14 crores, margin 6.59%.
• Consolidated revenue INR204 crores, up 14% YoY.
• Consolidated EBITDA INR24 crores, margin 11.56%.
• Consolidated PAT INR106 crores, includes one-time deconsolidation gain.
• Continuing operations PAT INR11 crores.
• Stand-alone order book INR1,800 crores, up 31% YoY.
• Quarterly order inflow INR360 crores, up 70% YoY.
• BTS order inflow INR120 crores, up 150% YoY.
• Overseas subsidiaries deconsolidated effective 4 Jun 2026; wind-down ongoing.
• Advances outstanding INR210 crores; two-thirds from BTS.

Segment Update

• EMS revenue grew 20% YoY; EMS order book up 23% YoY.
• BTS order book growth ~40% YoY.
• BTS quarterly order inflow led by INR120 crores; 150% YoY growth.
• EMS ramp-up aided by semiconductor equipment customer; solid demand.

Balance Sheet and Cash Flow

• One-time deconsolidation gain improves reported consolidated PAT for the quarter.

Projects and Capex

• Land for new plant belongs to a group company; Centum invests nothing this year.
• Next year, shell ready; factory construction and MEP/HVAC to start thereafter.

Outlook and Guidance

• FY27 revenue growth guidance ~25%; visibility for FY28 as of now.
• Margins: last year ~12.5%; targeting above ~13%, stable or modestly higher next year.
• Export component expected to remain ~50%–55% of revenue, possibly higher.

Q&A Highlights

• BTS revenue growth likely to be healthy this year; quarterly variability remains.
• Semiconductor EMS revenue seen at USD 25–30 million in 1–2 years; 0 in FY25.
• EMS EBITDA margin guidance around 10%–11%; mix-dependent.
• Export BTS margins targeted around 20%+; not purely tender-based.
• SBS program expected to deliver strong order intake this year; related payload/ EW growth with repeat requirements.
• Direct engagements with armed forces progressing; discussions with PSUs/DRDO/ISRO ongoing.

ECMS approval and investment

• ECMS approval received on August 17, 2026 for Centum Electronics.
• Proposed investment of approximately Rs 106 crores over five years for Transducers and Filters.
• Aims to expand manufacturing capacity in the Transducers and Filters categories.

ESG rating update

• Crisil ESG Ratings assigned Centum a score of 60 (Adequate), up from 52.
• Rating was independently assigned; Centum did not engage Crisil ESG Ratings.
• Report prepared by Centum based on FY2026 disclosures and public information.
• Intimation made under SEBI Listing Regulations to exchanges.