Detailed Narrative
Strategic Relocation and Operational Leverage
Saakshi Medtech is nearing completion and imminent commissioning of its new 41,000 sq ft integrated manufacturing facility. This strategic relocation is anticipated to unlock significant operational leverage, improve throughput, and eliminate over Rs. 2 crores in annual rental costs by consolidating operations from legacy premises. The second phase of expansion, targeting high-volume panels and the aviation sector, is also on track for completion by March 2026.
Exceptional Growth in Aerospace Sector
The aerospace sector demonstrated remarkable growth in H1 FY26, with revenue from a key existing customer increasing nearly seven-fold to over Rs. 1 crore, up from Rs. 0.14 crores in H1 FY25. This surge is attributed to enhanced quality processes and advanced traceability systems. The company is also actively engaging with two new Tier-1 aerospace customers, having successfully completed initial audits and bid processes, aiming to diversify its premium customer base.
Robust H1 FY26 Financial Performance
For H1 FY26, Saakshi Medtech reported a strong financial performance with revenue from operations increasing by 31% year-on-year to Rs. 58.31 crores. EBITDA improved significantly to 18.71%, reflecting effective cost control and operational optimization. The company achieved a net profit of Rs. 6.63 crores for the period, with ROE at 6.54% and ROCE at 7.45%, indicating improved financial efficiency.
Segmental Performance and Drivers
The integrated control system segment, primarily driven by a major automation OEM, experienced a 40% year-on-year revenue surge, contributing approximately 57-58% of the total revenue. The engineered metal assembly segment also showed strong performance, accounting for around 37% of total revenue, with an increase of Rs. 5 crores compared to H1 FY25, highlighting balanced growth across core verticals.
Capital Expenditure and Balance Sheet Dynamics
The company invested Rs. 15 crores in CAPEX during H1 FY26, with Rs. 9.4 crores in CWIP, primarily for infrastructure build-out. An additional Rs. 5 crores CAPEX is planned for the final leg of the new facility's completion, which will be funded by internal cash flows. While cash and cash equivalents declined from Rs. 3.26 crores to Rs. 1.59 crores due to CAPEX and working capital, the debt-to-equity ratio remains conservative at 0.17, with increased long-term borrowings supporting facility construction.
Outlook and Strategic Growth Avenues
Management expects H2 FY26 revenue to grow by approximately 15% over H1, aiming for a full-year FY26 revenue close to Rs. 140-150 crores. Looking ahead, the company targets crossing Rs. 200 crores in revenue within the next couple of years, driven by the radiator business (with expected 20% margins) and further expansion in the aerospace sector, which is projected to contribute around 20% of the revenue cycle. The company also aims for a 3x asset turn on its gross block of Rs. 150 crores.