Aimtron

Aimtron Electronics reported a robust FY25, achieving ₹158 crores in total revenue from operations, marking a significant 74% year-on-year growth. Profit Before Tax (PBT) stood at ₹32.12 crores, and Profit After Tax (PAT) was ₹25.73 crores, representing a 16% PAT margin and nearly doubling from the previous year. This strong performance was attributed to the full operationalization of a new SMT line in November and strategic market diversification, which played a vital role in catering to increased demand.

The company is actively diversifying its revenue streams, with box build solutions expected to increase their contribution from 27% to over 30-40% in the new financial year, a higher-margin segment. New sectors like Automotive (with a significant mass manufacturing order), Telecom (two large orders), and Network Security have been entered, complementing existing Aerospace & Defence and Drone industry engagements, with the latter targeting ₹10 million in business over two years. The new SMT line, operational since November, has significantly boosted production capacity.

Aimtron is leveraging India's position as a China+1 alternative, with an RFQ pipeline of $80-90 million (approximately ₹800-900 crores). The US subsidiary, Aimtron Electronics LLC, is facilitating direct engagement with foreign customers who prefer not to source directly from India or China, with three such contracts expected to generate $10-12 million over 2-3 years, primarily involving tooling initially. Management is actively working to mitigate tariff impacts for customers by offering integrated solutions, such as suggesting local metal procurement to offset 10% extra costs.

Management acknowledged significant reclassifications in financial reporting, such as moving employee costs to COGS, which impacted the comparability of gross and EBITDA margins. While FY25 gross margins were 27% (down from 34% in FY23 and 38% last year), and H2 EBITDA was 19%, management clarified these were due to product mix variations and accounting changes, not pricing pressure. They committed to providing a detailed press release to explain these adjustments for better investor understanding and are working towards quarterly reporting for main board listing.

Receivables increased to approximately 200 days as of March 31, 2025, a notable rise from ~40 days in FY24. This was primarily attributed to a surge in shipments during the last two months of Q4 FY25, driven by customers pushing orders before new tariff implementations. Management assured that collections for these shipments had already begun in April, indicating that the working capital situation is under control and not a long-term concern, with the company maintaining a zero-debt position.

Aimtron is targeting revenue of over ₹270-280 crores for FY26 and aims for a sustainable PAT margin of 16%, expecting to maintain a 50-70% CAGR. While they have an Omni approval for ₹25 crores in CapEx for the US subsidiary, it is not immediately required, and they are exploring M&A opportunities if market conditions are favorable. Management emphasized a cautious approach to fund-raising, preferring to demonstrate continued growth before considering equity dilution, with debt as a viable option for inorganic expansion.

The company highlighted the Indian government's supportive policies, including PLI schemes, which are expected to boost the EMS sector. Aimtron is actively evaluating opportunities under the ₹25 crore electronic component scheme for PCB sub-assembly, with updates expected soon. The NITI Aayog's projection of ₹500 billion revenue from the EMS sector by FY2030 underscores the significant long-term growth potential in India, which Aimtron aims to capitalize on.