Anlon Tech — Q2 FY26 earnings call

Call held 15 Nov 2025

Management summary

Anlon Technology Solutions Limited reported a robust H1 FY26, with revenue from operations surging to INR 41.38 crores, a 117% increase year-over-year, largely driven by its manufacturing and assembly segment. The company demonstrated strong operational efficiency, converting a prior period cash outflow into a net inflow of INR 5.89 crores. Strategic initiatives like remanufacturing complex equipment and expanding international services are gaining traction, positioning Anlon for continued growth, despite initial projects having lower blended margins.

Highlights

  • Revenue from operations for H1 FY26 stood at INR 41.38 crores, reflecting a 117.27% growth compared to INR 19.05 crores in H1 FY25.

  • The company achieved nearly 82.38% of its full year FY25 revenue of INR 50.23 crores in H1 FY26.

  • Cash flow from operations improved significantly to a net inflow of INR 5.89 crores in H1 FY26, from a net outflow of INR 9.2 crores in H1 FY25.

  • Raw material consumption lowered at INR 1.87 crores due to better inventory utilization, contributing to improved gross margins.

  • Successfully entered into remanufacturing of complex equipment like crash fire tenders, which carries slightly higher margins and has led to OEMs approaching Anlon as a manufacturing hub.

Concerns

  • Initial manufacturing and assembly projects were taken at lower margins (blended 14%) to gain market entry, though future improvement to 15-25% is expected.

  • Potential need to raise additional funds (debt) for future capex and working capital if orders exceed current projections beyond H1 FY27.

Key financials

  1. Revenue from Operations ₹41.38 Cr +117.3%YoY
  2. Service Income ₹13.22 Cr
  3. Cash Flow from Operations ₹5.89 Cr
  4. EBITDA Margin 18%
  5. Manufacturing & Assembly Blended Margin 14%

What they filed

Q4 FY26: revenue up 282.4%, net profit up 300.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY23Q4 FY23Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue13 20 18 17 19 +46%31 +55%41 +128%65 +282%
EBITDA4 4 3 3 4 +0%6 +50%7 +133%13 +333%
Net profit2 2 2 2 3 +50%4 +100%5 +150%8 +300%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex Capex disclosed
    • Construction of office building ₹0.015 Cr
    • Manufacturing of motor vehicles (sweeping machines for demo/hire) ₹3.7 Cr
    We have incurred an amount of INR1.49 lakhs during the period towards the construction of the office building which is under construction as on 30th September 2025. In addition, the company incurred INR3.7 crores towards manufacturing of the motor vehicles which are nothing but the sweeping machines that will be used for demo purpose as well as for giving it to the customers on hire basis.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY27 · High confidence 30% to 35%
    So, this is what we are planning to do for the future. So, we are considering this as a target market for the coming month. And with the market outlook in these three segments that are growing, I would say we must be able to achieve something like 30% to 35% growth in FY '27.

    — Unnikrishnan Nair PM

  • FY26 Revenue Revenue · this year · High confidence INR 80 crores
    Okay. So, now we may end up this year, let's say, with INR80 crores and next year another 30%.

    — Unnikrishnan Nair PM

  • FY27 Revenue Revenue · next year · High confidence INR 104 crores or INR 110 crores
    So, that would take around INR104 crores or INR110 crores of revenue.

    — Unnikrishnan Nair PM

Order Book

  • Order Book Execution Order Book · before 31st March '26 · High confidence INR 35 crores to INR 40 crores
    Approximately, we can expect to bill it, maybe close to INR35 crores to INR40 crores.

    — Emmyunual Setti

  • Order Pipeline Value Order Book · currently · High confidence more than INR 70 crores
    So, we are about, I think, currently more than INR70 crores worth we are now pitching in for the new orders.

    — Emmyunual Setti

Vehicles

  • Vehicles to be supplied Vehicles · up to FY27 · High confidence approximately 22 vehicles
    So, we have another, I think approximately 22 vehicles to be supplied. So, it will fall over the next up to the FY27.

    — Emmyunual Setti

Service Income

  • AMC Revenue Increase Service Income · every year · High confidence 10% to 15%
    Yes, 12% to 15% -- 10% to 15% you can take in the range because it is related to the... So 10 to 15 we can take it as increase.

    — Emmyunual Setti

Profitability

  • EBITDA Margin Profitability · future · Medium confidence 15% to 25%

    From 14% today

    it will be in the range of 15% to 20%, 25% margins in the future.

    — Emmyunual Setti

What to watch in Q3 FY26

Order book execution for FY26

Next quarter (Q3 FY26) and Q4 FY26
Current INR 115 crores total order book, INR 35-40 crores expected by March '26.
Target Progress on billing INR 35-40 crores.

Why it matters

Key indicator of revenue realization from current orders and short-term growth.

Approximately, we can expect to bill it, maybe close to INR35 crores to INR40 crores.

Risks & concerns

  • Funding for accelerated future growth

    medium

    Management may need to consider external funding (debt) if future orders exceed current projections beyond H1 FY27.

    Management acknowledged

  • Initial lower margins for market entry projects

    low

    Some initial manufacturing and assembly projects were taken at a blended margin of 14% to gain market entry, but management expects future margins to improve to 15-25%.

    Management acknowledged

Q&A highlights

7 direct
Order book execution and pipeline Direct
Approximately, we can expect to bill it, maybe close to INR35 crores to INR40 crores. So, we are about, I think, currently more than INR70 crores worth we are now pitching in for the new orders.

Provides clear near-term revenue visibility from the existing order book and indicates future growth potential from the pipeline.

Asked by Manoj Shetty

Expansion into CFT remanufacturing Direct
The GMR Group approached us and made us change our decision. So, we were kind of nerds into making a crash fire tender remanufacturing. So, we took up the challenge, we completed the remanufacturing, which was inspected by our partner in Austria.

Highlights a strategic shift and expansion of capabilities into complex, higher-margin remanufacturing, driven by market demand and successful execution, potentially opening new revenue streams.

Asked by Manoj Shetty

OEM agreements and royalty structure Direct
So, some of the projects, we are paying zero royalty. We have not entered into a design-bound and time-bound agreement. This will give me a flexibility and also a demand saying, okay, if I do not support him, he has many other choices.

Clarifies favorable terms with OEMs, indicating low cost of technology transfer and long-term, flexible partnerships, which can enhance profitability and reduce dependency.

Asked by Manoj Shetty

Localization percentage in manufacturing Direct
Anywhere from, let's say, 35% to 85%, depending upon the product.

Demonstrates progress in the 'Make in India' initiative, which can lead to cost efficiencies, higher margins, and reduced import dependency.

Asked by Manoj Shetty

EBITDA margin improvement trajectory Direct
we maintained that EBITDA margin. So, in the future it will be the case and we are expected to improve the EBITDA margins as well. Because the mix of the segments or mix of the products, which will be now changing period after period, so that it will give us an advantage to improve the EBITDA margins.

Addresses investor expectations on profitability scaling with growth and efficiency gains, confirming management's focus on margin expansion through product mix.

Asked by Darshan Chandra

AMC revenue growth and new contracts Direct
The service income, I mean, rather than I saying the AMC, we also do the one-time services. So, let me put it in this way. The service income in this off yearly is about 22% closely which contributed to the total revenue. So 10 to 15 we can take it as increase. This year marks a new beginning that an airport has handed over the entire airside equipment maintenance management on unlock.

Provides insight into the growth of recurring revenue streams and highlights a significant new contract win (Noida International Airport) that expands the scope of services.

Asked by Manoj Shetty

Funding and manpower for future growth Partial
At the moment, considering the current situation, we are actually pitching for the debt. So, we are expected to manage at least until next H1 FY '27. So, currently, we are not. Maybe if there are any future orders, we may have to think about based on the advisory consultation. Noida needs 47 people to manage the entire airside maintenance.

Addresses potential funding needs for accelerated growth and clarifies the strategy for scaling human resources, which is critical for service delivery.

Asked by Manoj Shetty

R&D and innovation in site module cleaning machines Direct
they developed the site module. And unfortunately for us, the entire history before we took over this product, they had sold only two side module machines. So, the knowledge about the side module machine has been very, very limited, even in Germany. And we had the challenge of making seven of them, sorry, six of them in India. So, this is why we are saying we have been one of the most successful and probably the first to make a site module machine that is foldable.

Showcases the company's R&D capabilities and ability to innovate for specific market needs, leading to a competitive advantage and unique product offerings.

Asked by Siva Prakash

2 min read 6 chapters

Detailed narrative

H1 FY26 Performance Overview

Anlon Technology Solutions Limited reported a strong H1 FY26, with revenue from operations reaching INR 41.38 crores, marking a significant 117.27% year-over-year growth compared to INR 19.05 crores in H1 FY25. This performance represents nearly 82.38% of the full year FY25 revenue of INR 50.23 crores. The growth was primarily fueled by the manufacturing and assembly segment, which saw key deliveries including new runway rubber removal machines and multifunctional foam mist vehicles.

Operational Efficiency and Margins

The company demonstrated improved operational efficiency, evidenced by a shift from a net outflow of INR 9.2 crores in H1 FY25 to a net inflow of INR 5.89 crores in cash flow from operations in H1 FY26. Raw material consumption was lowered to INR 1.87 crores due to better inventory utilization, contributing to improved gross margins. While initial manufacturing and assembly projects were undertaken at a blended margin of 14% for market entry, management anticipates future margins to improve to a range of 15-25%.

Strategic Expansion and Capabilities

Anlon has strategically expanded its capabilities into the remanufacturing of complex, long-lasting equipment, including a large crash fire tender for Goa Airport. This successful venture has led to OEMs approaching Anlon to serve as a remanufacturing hub in India. Furthermore, the company has established an international service department, extending its reach to countries like Nepal, Bhutan, and Israel, indicating a broader geographic and service portfolio expansion.

Future Outlook and Growth Drivers

Management has set ambitious targets, aiming for 30-35% revenue growth in FY27, with an FY26 revenue target of INR 80 crores and an FY27 target of INR 104-110 crores. Key growth drivers include the privatization of 11-12 additional airports, continued strong demand from the industrial segment (e.g., petroleum industry), and increasing municipal requirements for high-rise rescue machines and Swachh Bharat Abhiyan-related products. The company plans to convert its current facility into an R&D and competence center while seeking new space for customized manufacturing.

Order Book and Pipeline Visibility

The current order book stands at INR 115 crores, with INR 35-40 crores projected to be billed by March 2026, and the remaining INR 95 crores by FY27. Anlon is actively pitching for new orders exceeding INR 70 crores, ensuring a healthy pipeline for future revenue generation. Service income, which contributed INR 13.22 crores in H1 FY26, is expected to grow by 10-15% annually, supported by escalation clauses and the addition of new vehicles to the service portfolio.

Manpower and OEM Partnerships

Manpower deployment is directly linked to contract requirements, such as the 47 personnel needed for the Noida International Airport maintenance contract. The company is also investing in talent development, with 12 new recruits undergoing training for production-related roles. Anlon maintains strong, flexible partnerships with its OEMs, often securing zero royalty payments for Make in India initiatives, which facilitates significant localization (35-85% depending on the product) and access to global supply chains.

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