AXISCADES Technologies (532395) Q2 26/27 earnings summary

Executive summary

• H1 FY27 revenue was ₹705.7 Cr, up 30% YoY; retained revenue rose 55% to ₹378.9 Cr, reaching 54% of revenue.

• Phase 1 of the $237 million divestment closed on 30 September 2026; the retained portfolio focuses on Defence, XIDA, Aerospace and Space.

• Q2 continuing operations recorded a ₹4,812.43 lakh loss after tax, while profit including discontinued operations was ₹4,730.27 lakh.

• The three business units were profitable in H1; consolidated results included parent costs, one-time charges and the Q2 ESOP charge.

• Statutory auditors’ limited reviews found no indication of material misstatement in standalone or consolidated results.

Financial highlights

• Q2 revenue was ₹359.1 Cr, up 20.1% YoY and 3.6% QoQ; retained revenue was ₹195.6 Cr, up 30% YoY and 7% QoQ.

• Q2 reported EBITDA was ₹11.4 Cr at a 3.2% margin; before the ₹12 Cr ESOP charge, EBITDA was ₹23.4 Cr at a 6.5% margin.

• Q2 continuing-operations loss before tax was ₹5,225.54 lakh, including a ₹3,839 lakh impairment; discontinued operations contributed ₹9,542.70 lakh of profit after tax.

• H1 reported EBITDA was ₹39.3 Cr at a 5.6% margin; before ESOP, EBITDA was ₹51.3 Cr at a 7.3% margin. H1 PBT was ₹70.8 Cr, up 10.1% YoY.

• H1 continuing-operations loss after tax was ₹5,517.92 lakh; total profit including discontinued operations was ₹3,254.31 lakh.

Outlook and guidance

• Phase 2 divestment proceeds are expected in February 2027, revised from end-November; customer novations and NewCo incorporation are in process.

• Power 930 remains on course: internal aspiration of ₹9,000 Cr revenue and ₹960 Cr PAT by FY2030, not guidance; FY27 revenue is intended to equal or exceed FY26.

• XIDA restructuring is scheduled to complete in Q3 FY27; Space revenue is expected to begin in FY28 and build from Q2 FY28.

• The Devanahalli manufacturing campus is expected to be ready by Q4 FY28; this is a forward-looking statement, not guidance.

• Proposed aerospace engineering-services disposal includes USD 152.35 million fixed consideration, including USD 74.65 million in equity instruments, plus contingent earn-out consideration.