Anlon Tech — Q4 FY25 earnings call

Call held 17 May 2025

Management summary

Anlon Technology Solutions Limited reported strong financial performance for FY25, with significant revenue and profit growth driven by accelerated H2 performance and the successful delivery of equipment from its new manufacturing segment. The company expanded into AI/Digital Solutions and secured a robust order book of ₹80 crores. Despite strong growth, working capital management remains a focus, with increased receivables and a lower cash balance at year-end.

Highlights

  • Revenue from operations increased 43.4% YoY to ₹50.23 crores for FY25, driven by increased volumes and market traction.

  • H2 FY25 revenues accelerated significantly, rising nearly 79% compared to the same period last year.

  • EBITDA grew 47.3% to ₹10.25 crores, with margins slightly improving to 20.4%, demonstrating disciplined execution despite rising input costs.

  • PAT for FY25 reached ₹6.49 crores, a 43.7% growth over FY24, and EPS improved from ₹8.06 to ₹10.38.

  • Successfully completed testing and acceptance of complex airport infrastructure equipment, with 7 machines manufactured in India and 4 vehicles cleared by Airports Authority of India.

Concerns

  • Net cash used in operating activities was ₹16.73 crores due to higher working capital requirements, including increased inventories and receivables.

  • Cash and cash equivalents closed at ₹0.295 crores, a significant decrease from ₹1.35 crores in FY24.

  • Initial manufacturing efforts for complex machines faced lower margins due to sourcing struggles and setup costs, though management aims for improvement.

Key financials

2 periods

Headline

  • Revenue from Operations
    ₹50.23 Cr
    YoY +43.4%
  • EBITDA
    ₹10.25 Cr
    YoY +47.3%
  • EBITDA Margin
    20.4%
  • EBIT
    ₹9.67 Cr
    YoY +43%
  • Profit Before Tax
    ₹8.73 Cr
    YoY +42%
  • PAT
    ₹6.49 Cr
    YoY +43.7%
  • EPS
    ₹10.38
  • Interest Cost
    ₹0.946 Cr
  • Depreciation
    ₹0.578 Cr

H2

  • Revenue Growth
    —
    YoY +79%

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 ₹10.34 Cr
    • Capital expenditure in manufacturing and assembly facilities ₹10.34 Cr
    Investing activities saw a net outflow of Rs.10.34 crores, primarily due to capital expenditure in our manufacturing and assembly facilities.
  • Liquidity Cash ₹0.295 Cr Cash and cash equivalents closed at ₹0.295 crores, down from ₹1.35 crores in FY24. The company generated ₹26.01 crores net cash from financing activities, supported by QIP and bank facilities.
    On the financing side, we generated Rs.26.01 crores net cash supported by proceeds from the successful QIP and facility with the banks. This healthy inflow helped us to strengthen our liquidity position. As a result, we closed the year with 29.5 lakhs in cash and cash equivalents, down from Rs.1.35 crores in FY24 but with a significantly stronger asset and growth base moving forward.

Guidance & targets

Order Book

  • Make in India Vehicles Order Book · coming years · Medium confidence 50 vehicles
    And also our customers have greatly encouraged us with another set of let's say 50 numbers of Make in India vehicles to follow through which constitutes about 60% of the coming years orders.

    — MR. UNNIKRISHNAN NAIR P M

Market Growth

  • New Airports Market Growth · coming years · Medium confidence 30-40 airports
    Government would like to build, I don't know, like our PowerPoint says 240 airports. That's an unimaginable number from the base where we are at the moment. We are at about, I don't know, 70 to 80 live airports. So that is a huge expectation, but I would say we will realize at least most conservative estimation of another 30 to 40 airports. So this is the projected growth in coming at least couple of years in civil aviation...

    — MR. UNNIKRISHNAN NAIR P M

  • High-Rise Building Rescue Machines Market Growth · Medium confidence 1/10th of 722 municipal corporations
    We have something like 722 municipal corporations in India. Various categories, Tier-1, Tier-2, Tier-3 depending upon population and geographical area. And I would say at least one-tenth of them should go for high rise building rescue machine...

    — MR. UNNIKRISHNAN NAIR P M

Indigenization

  • Quality, Design, Cost Optimization Indigenization · next step · High confidence Further sharpen quality, optimize design, reduce cost
    No, the next objective is whatever over 60% that we develop, we want to further sharpen the quality, we want to further optimize design, and we want to further reduce the cost of this as a next step. So we will go to a level, even the Germans would want to source from us for those components.

    — MR. UNNIKRISHNAN NAIR P M

What to watch in Q1 FY26

Working Capital Improvement

next few months
Current ₹16.73 crores net cash used in operating activities; ₹18 crores receivables; ₹0.295 crores cash & equivalents
Target Liquidation of receivables and inventory, improved cash position, potential limit extensions

Why it matters

Effective working capital management is crucial for funding ongoing growth and operations, especially with increasing manufacturing revenue.

So basically Rahil, if you see the balance sheet, the billing what we've done in H2, some of the things which falls in the March month so which is due for the receivable at that time. So you see there is Rs.18 crores value of the receivables which is there in the balance sheet. And apart from that there is an amount which we have put in for the inventory which is in the form of the final stage. So all these going to be liquidated in a few months' time.

Risks & concerns

  • Working Capital Stress

    medium

    Net cash used in operating activities was ₹16.73 crores, and cash and cash equivalents dropped to ₹0.295 crores due to higher working capital requirements, including ₹18 crores in receivables and increased inventory.

    Analyst acknowledged

  • Initial Lower Manufacturing Margins

    low

    Initial manufacturing efforts for complex machines resulted in lower margins due to sourcing struggles and setup costs, but management expects improvement through indigenization.

    Analyst acknowledged

Q&A highlights

4 direct
AMC and Spare Parts Demand Direct
The service requirements and spare parts requirements, we can classify into three -- Service, Consumables and Spare Parts. This vehicle being a very special vehicle that uses extremely high pressure for the circuits, it's normal practice that none of the customers would want to service this vehicle and most of the airports would ask us to even operate the machine. This requirement will kick start right from the first day of the induction into operation... it's all together calculated at about 7% to 8% of the value of the vehicle.

Clarifies the immediate and recurring revenue potential from after-sales services for their specialized equipment.

Asked by Rahil Dasani

Sales and Marketing Team Expansion Direct
The utility vehicles itself will become an independent sales team, it was at the moment. And utility vehicles and building systems, we are also getting some enquiries for baggage handling systems. So we are thinking about dividing the team and recruiting some more people in sales and marketing.

Indicates strategic investment in sales infrastructure to capitalize on growth opportunities in new and existing segments.

Asked by Rahil Dasani

Competition and Technology Sharing Partial
See, when you are a universal supplier and when the government agencies ask these suppliers, I want only Rosenbauer. I cannot take a stand that I will not give pump to others you see... And we are the only manufacturer in the world in this area that can do it in another factory, which is Bangalore at the moment. They are very frantic now.

Addresses concerns about technology leakage and competition, highlighting their unique manufacturing capabilities for complex machines as a competitive advantage.

Asked by Rahil Dasani

Reasons for H2 Sales Jump Direct
No, I pointed out what happened in the recent past. The first two, three reasons I told have been contributing over the years for the revenue of the growth. So this means that when new vehicles are coming, people are buying more and more of our associates equipment... And the market is registering let's say aviation is one of the growing fields and many, many Tier-2 and Tier-3 cities are also coming for high rise building rescue and machines and all.

Explains the drivers behind the significant revenue acceleration in the second half, linking it to market trends and increasing demand for safety equipment.

Asked by Parikshit Kabra

Indigenization Levels and Critical Components Direct
No, the next objective is whatever over 60% that we develop, we want to further sharpen the quality, we want to further optimize design, and we want to further reduce the cost of this as a next step. So we will go to a level, even the Germans would want to source from us for those components.

Outlines the strategic direction for indigenization, focusing on quality and cost reduction to potentially become a supplier to their German partners.

Asked by Mulesh Savla

Margins on Complex Machines Partial
So the margins actually which is reported is for that particular machines. There are two types of equipments... So as we just started initial struggle was to source some of the things which results into less margins. But eventually if you see that as sir said that most of the things wherever we can indigenize with the help of our production team and with the help of our CTO, we are eventually targeting to improve the margins.

Clarifies that initial manufacturing margins were impacted by setup challenges but are expected to improve with ongoing indigenization and process optimization.

Asked by Aakash Javeri

Working Capital Management with Manufacturing Growth Partial
So basically Rahil, if you see the balance sheet, the billing what we've done in H2, some of the things which falls in the March month so which is due for the receivable at that time. So you see there is Rs.18 crores value of the receivables which is there in the balance sheet. And apart from that there is an amount which we have put in for the inventory which is in the form of the final stage. So all these going to be liquidated in a few months' time.

Addresses concerns about the company's cash position and working capital, explaining that high receivables and inventory are temporary and will be liquidated.

Asked by Rahil Dasani

2 min read 6 chapters

Detailed narrative

Strong Financial Performance in FY25

Anlon Technology Solutions Limited reported robust financial results for FY25, with revenue from operations increasing by 43.4% to ₹50.23 crores. This growth was significantly driven by a nearly 79% YoY increase in H2 revenues. Profitability also saw substantial improvement, with EBITDA growing 47.3% to ₹10.25 crores, and PAT rising 43.7% to ₹6.49 crores, leading to an EPS of ₹10.38 for the year.

Milestone in Manufacturing and Indigenization

The company achieved a major milestone by delivering equipment worth nearly ₹11 crores from its manufacturing and assembly segment in H2 FY25. Anlon successfully tested a complex airport infrastructure machine in a new Indian airport, with 7 machines manufactured in India using German technology and over 60% indigenized components. Four vehicles have also received factory acceptance test clearance from the Airports Authority of India.

Expansion into AI and Digital Solutions

Anlon is venturing into new segments, including Artificial Intelligence and Digital Solutions. A proof-of-concept for an augmented reality-based 3D wave finding solution is underway for a major Indian airport. Additionally, the company is preparing a virtual reality training program for the Mumbai Fire Brigade, showcasing its commitment to leveraging advanced technology for safety solutions.

Robust Order Book and Future Growth Drivers

The company reported a strong order book of ₹80 crores, excluding traditional AMC and spare parts business. This includes ₹48 crores in new orders received in the last four months. Management noted customer encouragement for 50 more 'Make in India' vehicles, representing about 60% of coming years' orders. Key growth areas identified include civil aviation (targeting 30-40 new airports), petrochemicals, and civil defense (high-rise building rescue machines for municipal corporations).

Working Capital Management and Liquidity

Despite strong revenue growth, the company experienced a net cash outflow of ₹16.73 crores from operating activities, primarily due to higher working capital requirements, including ₹18 crores in receivables and increased inventory. Cash and cash equivalents stood at ₹0.295 crores at year-end, down from ₹1.35 crores in FY24. Management expects receivables and inventory to be liquidated in a few months and may explore limit extensions for future orders.

Strategic Focus on Indigenization and Margin Improvement

Anlon's strategy involves further sharpening the quality, optimizing the design, and reducing the cost of its over 60% indigenized components, with an aspiration for German partners to source from them. While initial manufacturing margins were impacted by sourcing challenges and setup costs, the company is targeting margin improvement through continued indigenization and operational efficiencies.

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