Aditya Birla Sun Life Mutual Fund

TechEra reported a robust financial year 2025, achieving approximately 28% growth in revenue compared to the previous year. Management expressed confidence in maintaining and improving this growth trajectory for FY26, anticipating a strong and positive outlook. The company's historical data shows a consistent percentage trend increase, which they aim to push further by 10-15% above the minimum range.

The company has significantly upgraded its infrastructure and added world-class machines, effectively doubling its machining capacity. A new 6-meter long, 5-axis CMM machine, unique for a company of TechEra's size in India, is expected to be fully operational by August 1, 2025, following installation in June. This expansion, including a newly leased fabrication unit, is aimed at better serving customers and meeting aerospace and defense standards. An advance of ₹14 crores was made for the purchase of this plant and machinery, with an additional ₹5 crore long-term loan taken due to the increased cost of the larger machine.

TechEra has established a dedicated design center to complement its manufacturing capabilities, focusing on engineering and design for aerospace, defense, and mechanical industries. This center is equipped with necessary software and hardware to handle internal and external design requirements, including re-engineering older design data. Additionally, TechEra made a strategic investment in Kalbhorz Electric, an associate company with a 26% stake, specializing in motors for the aerospace and defense electrical domain, aiming to build in-house competencies.

The company actively participated in the Defense Expo in February 2025, marking its third but largest-scale participation. This resulted in a significant response from potential customers and investors. The Raksha Mantri, Shri Rajnath Singh, acknowledged TechEra's contributions to the aerospace and defense sector. TechEra plans to increase its global footprint by participating in international expos like the Paris Air Expo in June, aiming to attract tier-1 OEMs to 'Make in India' with TechEra as their manufacturing partner. Domestic revenue constituted 93-95% of FY25 revenue, with exports contributing 5-7%.

While revenue grew, the EBITDA margin for FY25 saw a decline to 17.37% from 24.5% in FY24, which management attributed to the project-based nature of their business and varying product mixes. They anticipate FY26 EBITDA margins to be in the 22-25% range. An analyst raised a discrepancy in FY24 PAT figures (₹2.82 crores vs. ₹4.82 crores in RHP), which management stated was previously clarified. The company also incurred an excess expenditure of ₹2.7 crores for general corporate purposes, including plant upgrades, IT, and compliance infrastructure.

TechEra is focused on expanding its global presence, improving in-house efficiency through lean manufacturing, and adopting new technologies like IoT and AI. Management highlighted India's growing aerospace and defense sector as a significant opportunity. They aim to be a world-class manufacturing unit, emphasizing reliability and speed. The company is confident that its increased capabilities and strategic initiatives will position it well for future projects, including those related to the government's long-term plans for aircraft manufacturing and MRO services in India.