Aditya Birla Sun Life Mutual Fund — Q2 FY26 earnings call

Call held 10 Dec 2025

Management summary

Trident Techlabs reported strong half-yearly results for H1 FY26, with revenue growing 201% to ₹63 crores and PAT increasing 229% to ₹11.37 crores. The company highlighted its technology-driven approach across power systems, engineering solutions, cybersecurity, and semiconductor design. An order book of ₹54.14 crores provides near-term visibility, and management is actively pursuing an acquisition in the semiconductor space while expanding internationally.

Highlights

  • Half-yearly revenue grew 201% YoY to ₹63 crores, indicating strong operational performance.

  • Half-yearly PAT increased by 229% YoY to ₹11.37 crores, demonstrating significant profitability improvement.

  • EBITDA showed robust growth of 167% YoY.

  • Order in hand stands at ₹54.14 crores, providing future revenue visibility.

  • Debt days reduced to 155 days, reflecting improved financial management.

Concerns

  • Analyst raised concerns about trust deficit from minority shareholders due to past inconsistencies, which management addressed by emphasizing their business model.

  • Analyst questioned high receivables (₹50 crores) relative to 12-month revenue (₹120 crores), which management attributed to year-end billing cycles.

Key financials

  1. Half-yearly Revenue ₹63 Cr +201%YoY
  2. Half-yearly PAT ₹11.37 Cr +229%YoY
  3. EBITDA Growth 167%
  4. Debt Days 155 days

What they filed

Q4 FY26: revenue down 47.5%, net profit down 142.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue8 64 21 56 64 +658%34 −47%
EBITDA-2 17 6 13 17 +1208%-4 −122%
Net profit-3 12 3 8 11 +468%-5 −143%
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

high confidence

Total value

₹54.14 Cr

as of 2025-12-10 quantified

Composition

Mix 3 client types
  • Defense and Government 44%
  • Power Sector 53.3%
  • Others 2.7%

Share of order book by client type

Pipeline

other

Total visibility including half-yearly revenue and order in hand

The company's order book is strong and diversified across defense, government, and power sectors, with a total visibility of 120-124 crores including half-yearly revenue.

Source: Prepared remarks

Capital allocation

medium confidence
  • M&A Semiconductor Design Services Company Acquisition · Pending regulatory

    To enhance capabilities, bring in a good size of team, and acquire existing customers in the semiconductor design services market.

    Expected to bring in team and customers, with 8-9 years of market presence and experienced management.

    we are in a very active discussion with that company in terms of the acquisition, and we are in the process of due diligence right now. ... that company brings, a good, size of team to us, and few customers, because they are already there working in the market for the last 8-9 years.
  • Liquidity Liquidity disclosed Management stated there is no lack of funds for running the company and they manage very well.
    No No, First of all, there is no lack of fund in the company. ... But for running the company, I think we can manage very well.

Guidance & targets

Power Business

  • Diversification across states Power Business · next year · Medium confidence Enough diversification to normalize lumpy nature
    within the next year, we will have enough diversification coming from different states in the power business, so that the lumpy nature will eventually normalize.

    — Sukesh Naithani

  • New state conversions Power Business · next half · High confidence 2 more states
    Iss saal hame2 aur state convert karne ka mauka milega. That you will see into the next half.

    — Sukesh Naithani

Semiconductor Business

  • Revenue generation Semiconductor Business · by this year end · Medium confidence Good revenue
    Yes, by this year end, By this year end, you will see some, you will see a good, good revenue from that company.

    — Sukesh Naithani

What to watch in Q3 FY26

Power Business Diversification

next year
Current Ongoing efforts to diversify across states
Target Normalization of lumpy revenue nature

Why it matters

Diversification is key to reducing revenue volatility and ensuring more predictable growth in the power business.

within the next year, we will have enough diversification coming from different states in the power business, so that the lumpy nature will eventually normalize.

Risks & concerns

  • Trust deficit from minority shareholders

    medium

    Analyst highlighted past inconsistencies and asked for a roadmap to regain trust. Management emphasized their business model and customer relationships.

    Analyst acknowledged

  • Regulatory hurdles and multiple signatures for large government orders

    medium

    Analyst noted potential slowdowns due to complex approval processes for large government tenders. Management stated they have learned to navigate these procedures.

    Analyst acknowledged

  • High receivables relative to revenue

    medium

    Analyst pointed out high receivables (₹50 crores) compared to 12-month revenue (₹120 crores). Management explained this is due to year-end billing cycles, with payments typically received in the subsequent months.

    Analyst acknowledged

Q&A highlights

5 direct, 1 evasive
Trust Deficit & Roadmap to Regain Investor Confidence Partial
Uncertainty ka, issue ye hota hain ki jo abhitak market mein hain, wo order book pe log chalte hain. Hamara order book se directly relation nahi hamare business ka. Hame Jese hi order mil jata hain, ham use bohot jaldi execute kar dete hain.

Analyst challenged management on past inconsistencies and asked for a clear plan to regain trust, highlighting investor focus on order book. Management emphasized their technology-driven, quick-execution model over a traditional order book.

Asked by Ameya Pimpalgaonkar

Revenue Breakup by Vertical (Cybersecurity, Semiconductor, Engineering) Evasive
That kind of breakup, will... as such, is still not the statutory requirement, right? But, if... just like the Semicon, Semicon is a different company. So even if tomorrow we decide that one part... one particular division is growing big, their entire economics and, psychology is going to be different, then we can have the different, kind of, vertical for that. But so far, it is mixed, that's why, because few technologies are overlapping each other. So that's why we are not segmenting the revenue right now.

Analyst sought greater transparency on segment-wise performance, a key metric for IT investors. Management declined, citing non-statutory requirement, mixed operations, and overlapping technologies.

Asked by Mithun Maity

Government Order Slowdown & Regulatory Hurdles Direct
Nahi, mene apko jese abhi kaha ki jab ham log keval 4-5 cr ke order pe kaam karte hainn. Toh signature ki powers niche level peho jati hainn. But jab ham kisi bade tender pe kaam karte hain jiska tenure, jiska tune 40-50 cr se upper hoga, to usme signature authorities alag alag hoti hain. Aapko approval jo hain 2-3 level pe lena padta hain, 5-6 level pe lena padta hain. So, that is the part of, their procedure, and that we have to do it, right?

Analyst probed potential risks to government order execution. Management clarified the procedural complexities of large tenders and their adaptation to these processes.

Asked by Mithun Maity

High Receivables (₹50 crores vs ₹120 crores revenue) Direct
yah, balance sheet mai generally kya hota hain ydi aapke pass kuch order ese aaye jo ki pichle financial mein budget hue hain toh use 31 march ko katna padta hain toh 31 march ko jb katenge tab balance sheet mai dikhega aapko lekin voh April or may mai aapko nhi dikhega. April May tak uski payment aa jati hain

Analyst questioned a significant receivables balance, which could indicate working capital issues. Management provided a plausible explanation related to year-end billing cycles and subsequent payment realization.

Asked by Navid Virani

International Expansion Strategy (Semiconductor) Direct
Maybe if I can add to it, so we will have an opportunity to get the, international business in the semicon, division, for sure, because the existing company that we are looking at to acquire, they already have some US-based customers, and they do have offshore development centres in India for those customers.

Analyst inquired about international growth, a key driver for IT companies. Management outlined a clear strategy for the semiconductor division, leveraging an acquisition target's existing US customer base.

Asked by Ganesh Kumar Sankaran

Order Visibility for Next Two Quarters Partial
Already now, we have, total as on date, we have 63 plus 54, which comes out to 120-124 crore. Right. That is already there And I've given you the guidelines that this is the, if you compare the last year, the balance sheet, half yearly, and the full year, the same way you can compare this year. So, you can take your calculation that how the visibility is going to be.

Analyst sought specific forward-looking order book numbers. Management provided a combined figure of current revenue and order in hand, suggesting investors extrapolate from past performance.

Asked by Swapnil Bardiya

Semiconductor Acquisition Update Direct
Semicon, just the new division hain, uska Acquisitions pe bhi bohot shortly I will come back to you and inform you the market, what is the company, what is the value, what is the strength of that company.

Analyst sought an update on a significant strategic move. Management confirmed active discussions and due diligence for an acquisition that would bring team and customers, indicating progress on a key growth initiative.

Asked by Gaurav Khinvsara

CYME Software Market Position & Strength Direct
Mr. Jain, CYME software is not a strength. ... CYME software se jo library bani hai wo strength hai. That is the exclusive right which we have. And it is not only in India. We are giving the services for CYME to Philippines, to Cambodia, Vietnam, Thailand, all other countries. ... So, strength is not sign. Strength is the entire... Entire product.

Analyst challenged the company's competitive position regarding a specific software. Management clarified their unique value proposition lies in their proprietary libraries and comprehensive product offerings, not just the base software, and highlighted international reach.

Asked by Rajesh Jain

3 min read 8 chapters

Detailed narrative

H1 FY26 Financial Performance Highlights

Trident Techlabs delivered robust financial performance for the half year ended September 30, 2025. The company reported a half-yearly revenue of ₹63 crores, marking a significant 201% year-over-year growth. Profit After Tax (PAT) also saw substantial growth, increasing by 229% year-over-year to ₹11.37 crores. EBITDA growth stood at 167% year-over-year, and the company successfully reduced its debt days to 155 days, indicating improved financial efficiency.

Strategic Focus on Technology-Driven Business

The company's core focus is on 'business through technology,' emphasizing that technology is crucial for long-term success. Trident Techlabs specializes in custom-built electronics, power engineering, design verification tools, cyber security, and fully customized chip and hardware solutions. Their operations span across electronics, electrical power utility, research institutes, and defense establishments, ensuring a broad geographical and client presence both in India and internationally.

Power System Solutions & Market Leadership

Trident Techlabs is a leader in power system solutions, specializing in engineering consultancy for electrical power utilities. They offer comprehensive software and allied services for predictive analysis, transmission, distribution, distributed energy resources integration, and substation design. The company claims over 95% market share in technology solutions for power distribution and is expanding its reach to EPC companies, heavy industries, hospitals, and airports. They aim to diversify their power business across more states to normalize revenue lumpiness and expect to convert two more states in the next half.

Engineering Solutions for Mission-Critical Applications

As a knowledge and technology hub, Trident Techlabs provides high-reliability engineering solutions for mission-critical work, particularly for DRDOs, naval, aerospace, and research institutes. They assist clients in shortening design and development cycles, offering expertise in core electronics, mechanical systems, semiconductor design, analytics, and reliability. Their capabilities span chip-level design, complex PCB design, power electronics systems, structural analysis, and system modeling, enabling end-to-end product realization.

Cybersecurity Offerings & Strategic Partnerships

The company is actively strengthening clients' defenses against cyber-attacks and ensuring compliance with industry standards. Their cybersecurity services include centralized asset and consumer information management, patch management, and security operations center setup. A strategic partnership with Intercept Labs focuses on providing made-in-India solutions, aligning with the 'Make in India' policy. The cybersecurity market in India is projected to grow at over 17% CAGR, reaching $22+ billion by 2032.

Semiconductor Business & Acquisition Strategy

Trident Techlabs' semiconductor division, TechLabs Semiconductor, handles end-to-end ASIC design, FPGA ESSIC SOC design for space and defense, DO-254 compliance, verification/validation, AI-related services, and system/PCB design. The company is in active discussions and due diligence for acquiring a semiconductor design services company, which is expected to bring an experienced team and existing US-based customers. Management anticipates generating 'good revenue' from this division by year-end.

Order Book and Future Outlook

The company's current order in hand stands at ₹54.14 crores, with ₹23.81 crores from defense and government, ₹28.87 crores from the power sector, and ₹1.46 crores from others. Including the half-yearly revenue of ₹63 crores, the total visibility is estimated between ₹120-124 crores. Management expressed confidence in their ability to execute orders quickly due to their technology-driven approach and strong client relationships, expecting continued growth based on market potential and their capabilities.

Investor Relations and Transparency

Management acknowledged investor concerns regarding trust deficit and the need for greater transparency, particularly on revenue breakdowns by vertical and the order book's role. They reiterated their commitment to delivering strong performance and maintaining investor confidence, emphasizing their unique business model that prioritizes quick execution over a traditional, static order book. They also clarified their competitive advantage in CYME software through proprietary libraries and comprehensive product offerings.

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