AXISCADES Tech.

AXISCADES Technologies achieved a significant milestone in FY25, with consolidated revenue crossing ₹1,000 crores to reach ₹1,031 crores, marking a 7.9% YoY growth in Rupee terms and 5.7% in constant Dollar terms. The company's reported EBITDA grew 7% to ₹142 crores, while adjusted EBITDA, excluding ₹14 crores in non-recurring^📎 costs, surged 17% to ₹156 crores. PAT saw a substantial increase of 2.25x to ₹75.26 crores, leading to a diluted EPS of ₹17.22, doubling from the previous year. This performance underpins a major business transformation initiated in Q3 FY25, focusing on product-led growth and recalibrating non-core businesses.

Growth in FY25 was primarily led by the core domains of Aerospace, Defense, and ESAI, which collectively grew by 12% to ₹749 crores. Aerospace revenue increased by 13% to ₹322 crores, while Defense grew 16% to ₹303 crores, with Defense production revenues specifically rising 19% to ₹198 crores. These core verticals demonstrated healthy EBITDA margins averaging 19.1%, with Aerospace at 21.2%, ESAI at 23.9%, and Defense production at 22%. In contrast, non-core businesses (heavy engineering, automotive, energy) experienced a 3% de-growth, contributing ₹282 crores to revenue and diluting overall enterprise margins.

For FY26, AXISCADES has set ambitious targets, including a minimum 50% EBITDA growth (excluding ESOP costs) and a proportional increase in PAT. The company aims for at least 35% revenue growth at the company level, with specific segment targets of 35% for Aerospace (targeting $51 million from $38 million in FY25), 75% for Defense, and 60% for ESAI. The long-term vision, 'Power 930', targets $1 billion in revenue by 2030, driven by an inversion of the revenue mix to 80% product and 20% service by FY28, and achieving an average EBITDA margin of 24% in the next 2-3 years.

To support its growth ambitions, AXISCADES is investing significantly in new infrastructure. The Devanahalli Atmanirbhar Complex (DAC) in Bangalore, a 20-acre facility, will be developed in three phases. Phase-1, costing ₹250 crores, will handle radar, electronic warfare, and ESAI solutions, with Phase-1A (₹120 crores) expected to be completed by December 2025. Phase-2 will focus on missile MRO and manufacturing, potentially with a new facility in Hyderabad. Phase-3 will establish MRO, speed shop, and supply chain facilities for dual-use aerospace and defense customers. The company expects an asset turnover of 2x to 2.5x from these new CAPEX investments.

The company has completed an overhaul of its leadership team, bringing in industry veterans to boost client relationships and drive growth. A key strategic shift involves moving from traditional services to product and solution offerings, which is expected to be a primary driver for margin expansion. This product-led strategy is evident in ESAI, where the company is developing system-level products at a new development center in Fremont, California, and expanding its sales ecosystem in Europe. Defense is also focusing on new product development in radar, electronic warfare, missile systems, and unmanned warfare systems, with an order book of ₹1,800 crores.

AXISCADES has significantly improved its financial health, reducing finance costs from ₹56 crores to ₹32 crores through repayment of borrowings from QIP proceeds. Net debt stands at a low ₹15 crores (excluding lease liabilities), with gross debt at ₹189 crores and cash/liquid investments at ₹174 crores. Shareholders' equity increased to ₹656 crores from ₹592 crores in the previous year. The company clarified that ₹14 crores in non-recurring^📎 costs in Q3 and Q4 FY25 were primarily due to voluntary separation for senior leadership globally and one-time^📎 legal and consulting fees, which are not expected to recur in FY26.