Aditya Birla Sun Life Mutual Fund — Q2 FY26 earnings call

Call held 17 Dec 2025

Management summary

Techera's Q2 FY26 investor call focused on significant strategic developments and future growth opportunities rather than past financial performance. The company announced discussions for manufacturing full aircraft tooling sets for an Indian private jet, direct engagement with the Indian Air Force for equipment supply, and an impending order for critical gun components. While no financial numbers were provided, management expressed confidence in future growth and operational capabilities, addressing concerns about personal share dilution and capital readiness for upcoming large orders.

Highlights

  • Strategic shift towards designing and manufacturing entire tooling sets for full aircraft, starting with an Indian private jet manufacturer.

  • Direct engagement with the Indian Air Force for supplying ground support equipment, indicating a significant new revenue stream and improved margins by eliminating middlemen.

  • Anticipated finalization of a large-quantity order for gun function reliability components, with L&T as the end customer.

  • Management expressed confidence in the company's capability and capacity to fulfill upcoming large orders, including those for FY27.

Concerns

  • No specific financial metrics (revenue, profit, margins) were disclosed for the current or past quarter, making financial performance assessment difficult.

  • Capex plans are still under discussion and not yet finalized, despite anticipated large orders requiring significant equipment.

  • Management's share dilution for personal obligations, while stated as complete, raised questions from analysts regarding financial stability and future funding.

What they filed

Q4 FY26: revenue down 0.9%, net profit down 66.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue14 24 18 32 24 +69%24 −1%
EBITDA-1 7 0 8 5 +907%4 −51%
Net profit-2 5 -1 4 1 +163%2 −66%
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.

Order book

medium confidence

Execution

entire two years we will keep supporting them by keep the tool alive and in the working condition so that the they keep manufacturing the aircraft and flying.

Composition

  • Entire tooling set for full aircraft (private jet) (product)
  • Indian Air Force (ground support equipment) (client type)
  • Components for gun function reliability (L&T end customer) (product)

Pipeline

deal pipeline tcv

MOU for private jet tooling soon; IAF order details in February; L&T related order finalization in days/week.

Management highlighted significant upcoming opportunities in defense and aerospace, including full aircraft tooling, direct IAF supply, and a large L&T-related order, all expected to translate into revenue in upcoming financial years.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex Capex disclosed
    Nimesh Desai: Sir I think I don't want to directly answer this question right now. Things are scheduled right now. We need to understand and then we will put our understanding about the equipment which we will be supplying to the couple of industries which is big I'm telling you I know it is going to be a 100 of equipments so we have to segregate I think but definitely will be coming soon on this. Whatever we will be doing, capability and capacity has to be thought of before coming on any capex plans.
  • Liquidity Liquidity disclosed Management stated they are sufficiently capitalized to fulfill orders within the company, implying adequate internal liquidity.
    Nimesh Desai: Sir we are working on it right now. that's what I said key quantum what I'm talking about order and all this is we are sufficient to cater this within the company only

Guidance & targets

Order Inflow

  • MOU signing for private jet tooling Order Inflow · soon · High confidence MOU to be signed soon
    We will be signing the MOU with them soon that we will be manufacturing the entire tooling set for the full aircraft.

    — Nimesh Desai

  • Finalization of L&T related order Order Inflow · couple of days/week · High confidence Order to be finalized
    I think order will be finalized maybe in a couple of days maybe in a week.

    — Nimesh Desai

  • IAF order details Order Inflow · February · High confidence Clear understanding of IAF order
    I think we'll take another call in the February and then I will be clear about what is going to be taken close

    — Nimesh Desai

  • Order placement for ground support equipment Order Inflow · April or June · High confidence Order placed
    So the technological development will take place in this by till March I think and then the order will be placed maybe in the April or June.

    — Nimesh Desai

Revenue

  • Revenue translation from new orders Revenue · upcoming financial years · Medium confidence Benefits translated into revenue
    So all the benefits in terms of revenue will be translated into the upcoming financial years.

    — Meet Desai

Product Development

  • Technological development for ground support equipment Product Development · till March · High confidence Development complete
    So the technological development will take place in this by till March I think and then the order will be placed maybe in the April or June.

    — Nimesh Desai

Capacity

  • Fixture manufacturing capability Capacity · at a time · High confidence 20 fixtures
    We have a capability to we can make 20 fixtures at a time which is very very critical and this kind of machinery.

    — Nimesh Desai

What to watch in Q3 FY26

MOU signing for private jet tooling

next quarter (April/May 2026)
Current Discussions ongoing, MOU to be signed soon
Target MOU signed and announced

Why it matters

This MOU represents a significant strategic shift to full aircraft tooling and a new growth driver.

Nimesh Desai: We will be signing the MOU with them soon that we will be manufacturing the entire tooling set for the full aircraft. ... Nimesh Desai: for the next quarter with the same company as well maybe in the April or May.

Risks & concerns

  • Lack of specific financial performance disclosure

    medium

    The call focused on future opportunities, with no explicit revenue, profit, or margin figures provided for the reported quarter, making it difficult to assess current financial health.

    Analyst not addressed

  • Secrecy and slow pace of Indian defense projects

    medium

    Management noted that the Indian defense industry process is slow and requires discretion, which could impact the timeline of order finalization and public disclosure.

    Management acknowledged

  • Competition from new entrants and auto ancillaries in aerospace

    medium

    Analysts raised concerns about VC-funded startups and auto ancillaries entering the aerospace sector, potentially increasing competition for talent and market share.

    Analyst acknowledged

  • Unfinalized capex plans despite large upcoming orders

    medium

    Management has not yet finalized specific capex plans, which could pose a risk if capacity is not scaled up in time to meet the demands of the 'huge' upcoming orders.

    Analyst acknowledged

Q&A highlights

5 direct
Translation of order wins into revenue and quantification Partial
all of those discussions let me answer that are in the preliminary stage of design and development. So all the benefits in terms of revenue will be translated into the upcoming financial years.

Analysts sought quantification of new opportunities, but management indicated they are in early stages, pushing revenue impact to future financial years.

Asked by Ashish Soni

Quantum and recurring nature of Indian Air Force orders Partial
I think it will be a huge I can say only this thing because I don't know exactly the what what will be the equipment some of them they already explained me about it it's a something trolley and critical things are there but let me go first see the things I think we'll take another call in the February and then I will be clear about what is going to be taken close. ... it will be the regular requirement directly what we are supplying

Management confirmed the IAF opportunity is 'huge' and 'regular requirement' but could not quantify specific orders yet, pending further meetings in February.

Asked by Ashish Soni

Size and recurring nature of the business jet opportunity Direct
it's it yeah this is very big quantity I don't want to explain the number of quantity I know the quantity how much it will be 50% content we have already been discussed with them finalization I think any moment we'll get the order so we have to prove the first equipment and then order we will get it for the entire fleet

Management indicated a 'very big quantity' with '50% content' for the business jet, expecting orders for the 'entire fleet' after initial equipment approval, highlighting a significant recurring opportunity.

Asked by Ashish Soni

Capitalization for fulfilling large orders in FY27 Direct
Sir we are working on it right now. that's what I said key quantum what I'm talking about order and all this is we are sufficient to cater this within the company only

Analysts questioned the company's financial readiness for large future orders, to which management affirmed sufficient internal capacity and ongoing work to manage capital.

Asked by Ashish Soni

Opportunities in pilot training aircraft and full tooling equipment Direct
Sir, initially as you as you mentioned is right that it is a training aircraft like The earlier company who has made this equipment made this aircraft I know the quality of that aircraft I know how they built I know what kind of tools they use to build that that will make the entire setup change. It is it will not going to be the only for the training aircraft. We had a we had a long discussion with the owner of the company that in in he he explained about his view his thought process about how then I told him what needs to be done to bring the interior kind of things which is very high level. So he can sell it the this kind of aircraft for the business kind of people like Falcon2000 aircraft from maybe small size but it is possible.

Management clarified the initial training aircraft project has potential to evolve into business aircraft, expanding the market opportunity for their tooling solutions.

Asked by Darshit Shah

Share dilution for personal obligations and future funding Direct
till today it's done immediately but but but nothing is planned. ... My genuine request to my all the investors. Almost. Yes. Almost. Almost. You can say nothing much left now.

Management addressed concerns about recent share dilution, stating it was for personal debt repayment and is now complete, aiming to reassure investors about financial stability and focus.

Asked by Darshit Shah

Competition from VC-funded startups in aerospace manufacturing Direct
So we we we are working with them. Jeh Aerospace the is one of the best customer for us and he's a very good guy. know personally that person. So we are working very closely with Jeh Aerospace for some of their projects. Even we got a order one of the guys in our plant right now. ... now we have entire fleet we are designing and manufacturing of the entire tooling set for the full aircraft

Management acknowledged competition but highlighted their existing collaboration with a prominent startup (Jeh Aerospace) and their own expanding capabilities to design and manufacture full tooling sets, indicating a strong competitive position.

Asked by Abhishek Bansal

Capex plans for upcoming large orders Partial
Sir I think I don't want to directly answer this question right now. Things are scheduled right now. We need to understand and then we will put our understanding about the equipment which we will be supplying to the couple of industries which is big I'm telling you I know it is going to be a 100 of equipments so we have to segregate I think but definitely will be coming soon on this. Whatever we will be doing, capability and capacity has to be thought of before coming on any capex plans.

Management deferred specific capex details, indicating plans are still being formulated based on the scale of anticipated equipment needs, leaving investors without concrete investment plans.

Asked by Varun

2 min read 6 chapters

Detailed narrative

Strategic Shift to Full Aircraft Tooling and Private Jet Market Entry

Techera announced a significant strategic move into designing and manufacturing entire tooling sets for full aircraft. This includes an impending Memorandum of Understanding (MOU) with a first Indian private jet manufacturing company. The initial project involves a training aircraft, with plans for conversion into a business aircraft, expanding the market opportunity. Techera commits to supporting this project for the entire two years until the aircraft are flying, ensuring continuous tooling maintenance and operational support.

Direct Engagement with Indian Air Force for Equipment Supply

The company has established direct engagement with the Indian Air Force (IAF) through a central purchasing unit, eliminating middlemen. This direct supply model is expected to be a 'big junk' of business, with initial discussions indicating a 'huge' opportunity for ground support equipment and critical items. Further details regarding specific equipment and quantum are expected after a follow-up meeting in February 2026, with orders potentially placed by April or June 2026.

Impending Order for Gun Function Reliability Components

Techera is in advanced discussions for an order related to gun function reliability components, with L&T identified as the end customer. The order, expected to be finalized within days or a week, involves manufacturing an initial 110 components, followed by the entire supply. Management emphasized the 'huge quantity' requirement due to the nature of the application, highlighting a significant new revenue stream.

Competition, Capability, and Market Outlook

Management addressed concerns about competition from VC-funded startups like Jeh Aerospace, noting that Techera already works closely with some of these entities. They highlighted their unique capability to design and manufacture entire tooling sets for full aircraft and their capacity to produce 20 critical fixtures at a time. Techera believes the market for defense and aerospace is 'very big' and continuously expanding, with new programs adding significant value regularly.

Management's Personal Share Dilution and Financial Stability

Nimesh Desai clarified that recent share dilution was solely to clear personal debts accumulated over many years, emphasizing that this process is now complete with 'nothing much left.' He reassured investors that his focus remains 100% on the company, which he considers his 'baby,' and that the company is sufficiently capitalized to handle upcoming large orders for FY27.

Unfinalized Capex Plans and Subsidiary Structure

While anticipating significant orders requiring '100s of equipment,' Techera's capex plans are not yet finalized, with management stating they are still understanding equipment needs and will announce plans 'soon.' Regarding subsidiaries like Nashik (51% owned), management indicated no immediate plans to increase stakes, preferring entities to operate independently based on consultant advice, focusing on technical capability and growth.

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