Centum Electronics (517544) Q2 25/26 earnings summary

Executive summary

• Standalone Q2 revenue rose 18.4% YoY to INR 2,055 Mn; EBITDA grew 35.9% and PAT 97.0%. H1 revenue rose 24.1% and EBITDA 68.2%.

• Consolidated Q2 revenue was INR 2,906.21 Mn, while EBITDA fell 11.8%; H1 PAT was INR 87.07 Mn versus a year-earlier loss.

• Domestic Defence and Space BTS supported growth; subsidiary losses and weak French ER&D demand weighed on consolidated margins.

Financial highlights

• Standalone Q2 revenue was INR 2,055 Mn, EBITDA INR 246 Mn and PAT INR 130 Mn; H1 revenue was INR 3,906 Mn, EBITDA INR 503 Mn and PAT INR 285 Mn.

• Consolidated Q2 revenue was INR 2,906.21 Mn; PAT was INR 42.31 Mn versus a INR 3.12 Mn loss in Q2 FY25.

• Consolidated H1 revenue was INR 5,640.14 Mn, EBITDA INR 407 Mn and PAT INR 87.07 Mn versus a INR 41.55 Mn loss in H1 FY25.

• Q2 total income was INR 3,013.24 Mn and profit before tax INR 88.45 Mn; H1 profit before tax was INR 190.61 Mn, including INR 17.65 Mn exceptional income.

Outlook and guidance

• FY26 standalone revenue growth target is 30%, with EBITDA margin guidance of 13%-15%; H2 execution and order ramp-up are expected to support growth.

• Domestic BTS bookings are expected to strengthen in Q3-Q4; the three-year booking target, including FY26, is above INR 2,000 crore.

• Subsidiary losses are expected to be smaller in H2 than H1, but subsidiaries are not expected to reach profitability.

• A Canada decision was expected within one or two months, with European strategic direction targeted by Q4; actions aim to limit subsidiary losses next FY.