ADISOFT Q4 FY26 earnings call

Adisoft Technologies reported robust financial performance for H2 FY26, with total income reaching INR 119.7 crores, a 46.58% year-on-year growth. EBITDA surged by 76.69% to INR 24.56 crores, leading to a 350 basis points expansion in EBITDA margin to 20.52%. Net profit also saw a significant increase of 79.47% to INR 17.48 crores. For the full fiscal year FY26, total income grew 26.66% to INR 169.33 crores, with EBITDA and net profit increasing by 42.35% and 42.86% respectively, to INR 32.84 crores and INR 22.8 crores.

The company is actively expanding its capacity with a new manufacturing facility in Bhosari, Pune. The 70,000 square feet factory on a 30,000 square feet plot is expected to have its basement, ground, and first floors ready for manufacturing operations by September-October 2026. The remaining floors, intended for design and software teams, are targeted for completion by March 2027, enabling full integration of operations. This investment is crucial to address current space constraints and support future growth.

Adisoft aims for at least 25% topline growth in FY27, with potential to exceed 30% once the new facility is fully operational. The company projects a peak revenue potential of INR 650-700 crores from the new facility, achievable within five years. While automotive currently contributes approximately 80% of revenue, Adisoft is actively diversifying into pharmaceuticals, white goods manufacturing, and e-commerce, targeting a reduction in automotive's share to 60-65%.

Adisoft highlights its unique selling proposition in the smart factory domain, integrating IT and ERP systems with shop floor machines. This niche focus, combined with a history of successful deployments and competitive pricing, allows them to face less competition. Their solutions are applicable across various shop floor areas (press, weld, assembly, paint shops), offering broader applicability compared to peers who often focus on specific shop types.

As of April 1, 2026, the company had an order book of approximately INR 40 crores. The overall pipeline, including received orders, stands at INR 85 crores, with about 40% of their target currently under bidding. The typical project execution cycle is relatively short, around four months, providing a revenue visibility of three to four months ahead. Management noted that repeat orders and a stronger H2 contributed significantly to the improved performance and margins.

The company currently carries a modest debt of INR 10-15 crores and aims to become debt-free within the next two years. PAT margins are expected to be sustainable at 13.5-14%. However, working capital days are approximately 120 days, which is a metric to monitor. The strong financial performance and successful listing on NSE Emerge provide a robust platform for future growth and market expansion.

While automotive remains the primary revenue driver, Adisoft is making concerted efforts to expand its presence in other sectors. The company is focusing on pharmaceuticals, white goods (TV, fridge, AC manufacturing lines), and e-commerce, leveraging its expertise in data capture and quality control. This diversification strategy is intended to mitigate concentration risks and tap into broader market opportunities.