Vinyas Innovativ — Q2 FY26 earnings call

Call held 10 Nov 2025

Management summary

Vinyas Innovative Technologies reported a strong first half for FY26 with revenue growing 43% YoY to ₹214.41 crores and a PAT increase of 33% to ₹9.35 crores. The company secured NADCAP AC7120 accreditation, a significant milestone for aerospace and defense programs, and completed a ₹150.04 crores capital raise. With an order book of ₹1,062 crores and a target of 30-35% annual growth, Vinyas is focused on capacity expansion and diversifying its program mix to improve long-term margins.

Highlights

  • Strong revenue growth of 43% YoY, reaching ₹214.41 crores for H1 FY26.

  • Healthy order book of ₹1,062 crores providing multi-year visibility (18-24 months).

  • Successful NADCAP AC7120 accreditation, enabling qualification for regulated commercial aerospace and export control defense programs.

  • Completion of ₹150.04 crores capital raise, strengthening the balance sheet and funding capacity expansion.

  • Guidance for sustained 30-35% YoY growth for the next 3-4 years.

Concerns

  • EBITDA margins are expected to remain between 9%-11% in the short term due to program mix.

  • Gross margin was slightly lower in H1 FY26 due to a lower gross margin mix.

Key financials

  1. Revenue ₹214.41 Cr +43%YoY
  2. EBITDA ₹23.9 Cr
  3. EBITDA Margin 11.2%
  4. PAT ₹9.35 Cr +33%YoY

What they filed

Q4 FY26: revenue up 67.8%, net profit up 120.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY23Q4 FY23Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue114 121 137 180 150 +32%247 +104%212 +55%302 +68%
EBITDA10 11 14 19 17 +70%24 +118%21 +50%40 +111%
Net profit3 4 6 10 7 +133%12 +200%9 +50%22 +120%
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.

Segment breakdown

  • Defense and Aerospace
    75% Revenue Share
  • Industrial Electronics
    15% Revenue Share
  • Medical and Others
    10% Revenue Share

Order book

high confidence

Total value

₹1,062 Cr

as of 2025-09-30 quantified

Inflow this quarter

₹411 Cr

Execution

executable over the next 18-24 months

Composition

  • Defense and Aerospace (segment)

Pipeline

other

Pipeline driven by existing defense business, system integration, vertical expansion, and technology transfers, with PCBA and system integration expected to grow.

Management is confident the order book is sufficient to fuel 30-35% growth for the next 5 years, with many programs having repeat requirements and Vinyas being the sole approved vendor in many cases.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed from capital raise
    • Working capital and capacity expansion ₹30 Cr
    • SMT lines, testing and quality inspection equipment
    out of the Rs. 150.04, about Rs. 61 crores has been the first tranche of money that has been received by the company in the month of September 2025. And this is going to be used towards the working capital, the capacity expansion primarily. These are the two main aspects and some administrative expenses.
  • Liquidity Cash ₹61 Cr First tranche of ₹61 crores received from ₹150.04 crores capital raise in September 2025. Working capital requirements expected to be sufficient for the next 3 years.
    out of the Rs. 150.04, about Rs. 61 crores has been the first tranche of money that has been received by the company in the month of September 2025.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · short term · Medium confidence 9%-11%
    currently our EBITDA margin, because of the mix, we have a varied mix of programs that we do. So, the EBITDA margins would remain between 9%-11%.

    — Sumukh Narendra

  • EBITDA Margin Uptake Profitability · in about 4 years · Medium confidence 3 basis points
    internal target for us to reach is at least an uptake of 3 basis points on the EBITDA margin size in about 4 years.

    — Sumukh Narendra

Revenue

  • Year-on-year growth Revenue · next couple of years · High confidence 30%-35%
    Based on the visibility we have, we expect to sustain 35% year-on-year growth and maintain strong momentum over the next couple of years.

    — Sumukh Narendra

Segment Mix

  • Defense and Aerospace Revenue Share Segment Mix · 5 years · Medium confidence about 60%
    Internal targets we have, 5 years, we want to reduce the defense and aerospace to about 60% and these 4 segments contributing to about 40% of our revenue.

    — Sumukh Narendra

  • Medical Devices Revenue Share Segment Mix · within 5 years · Medium confidence good 10%
    The medical device side, we have made significant progress where we see this segment, our targets are to reach a good 10% of our revenue from medical devices.

    — Sumukh Narendra

Working Capital

  • Receivable Days Working Capital · ongoing · Medium confidence under 4 months
    If you can manage to avoid the lumpiness of revenue, we should be able to reduce the receivable days under 4 months.

    — Amitava Majumdar

Capacity Utilization

  • Capacity Utilization Capacity Utilization · by the end of this year · Medium confidence 50% at least
    I think we should reach about 55%-60% capacity utilization, 50% at least by the end of this year and reach about 70%-75% utilization by end of next year.

    — Sumukh Narendra

  • Capacity Utilization Capacity Utilization · by end of next year · Medium confidence 70%-75%

    — Sumukh Narendra

Digitization

  • Manufacturing Facility Digitization Digitization · next 1 year · Medium confidence good 95% plus
    Today, we consider that the manufacturing facility is at around 80%-85% digital and we hope to get it to a good 95% plus digitization over the next 1 year.

    — Sumukh Narendra

What to watch in Q3 FY26

Progress on commercial aerospace first article inspection approvals

Next quarter / subsequent quarters
Current Initial phases, not yet disclosed
Target Completion of approvals, ability to comment on specific programs

Why it matters

Unlocks new revenue streams in commercial aerospace, a key diversification strategy for reducing defense segment lumpiness.

Currently, we will not be in a position to disclose that. We will have to complete the necessary, the first article inspection approvals and then, we will be in a better position to comment on these aspects.

Risks & concerns

  • Lumpiness of defense and aerospace programs

    medium

    Management is actively diversifying programs and verticals to mitigate revenue volatility, targeting a reduction of defense and aerospace contribution to 60% in 5 years.

    Analyst acknowledged

Q&A highlights

7 direct
Long-term EBITDA margin pathway and sustainability Direct
currently our EBITDA margin, because of the mix, we have a varied mix of programs that we do. So, the EBITDA margins would remain between 9%-11%.

Provides clarity on short-term margin expectations and long-term improvement targets (3bps uptake in 4 years) based on program mix and vertical diversification.

Asked by Sanket Gupta

Use of recently raised capital and capacity expansion timeline Direct
out of the Rs. 150.04, about Rs. 61 crores has been the first tranche of money that has been received by the company in the month of September 2025. And this is going to be used towards the working capital, the capacity expansion primarily.

Details the immediate use of funds from the capital raise for working capital and capacity expansion, with new capacity expected to be fully qualified in 18 months.

Asked by Agam Shah

Sustainability of single-vendor advantage in defense programs Direct
Vinyas has been a part of some of the programs where it has been through the complete gestation period of the program. That is why we are a single vendor to some of these programs.

Explains the company's competitive moat in certain defense programs due to long-term involvement, high entry barriers, and qualification processes.

Asked by Bijal Shah

Revenue potential from current capacity and future expansion Direct
the current capacity would take us to between Rs. 1,100-Rs. 1,200 crores in revenue and the current CAPEX round that we are doing will help us double that capacity that we have right now.

Quantifies the revenue potential of existing and planned capacity, indicating significant headroom for growth and the impact of current CAPEX.

Asked by Jalaj Manocha

Strategy to mitigate lumpiness in defense revenue Direct
we are trying to add more programs so that we diversify the number of programs that we are working on which will help us reduce the effects on the lumpiness. The second thing is we are going for vertical expansion that is the number of verticals that we are working on.

Outlines the company's strategy for revenue diversification across programs and new verticals (medical, commercial aerospace, railways) to reduce reliance on lumpy defense orders.

Asked by Jalaj Manocha

Export capabilities and impact of NADCAP certification Direct
NADCAP certification is a big accreditation for any electronics manufacturer on the capability to globally supply to any defense and aerospace company globally.

Clarifies the company's global supply capabilities and the strategic importance of NADCAP certification for accessing international defense and aerospace markets.

Asked by Mahendra Chajjed

Progress and timeline for commercial aerospace programs Partial
Currently, we will not be in a position to disclose that. We will have to complete the necessary, the first article inspection approvals and then, we will be in a better position to comment on these aspects.

Indicates that while the company is pursuing commercial aerospace, specific details are under wraps until first article inspection approvals are complete, suggesting a longer gestation period for this segment.

Asked by Umang Gada

Uniqueness and stringent norms of NADCAP certification Direct
This is a very unique accreditation program where globally we have hardly maybe a little over 30 companies which are NADCAP accredited and 2-3 companies on the electronic side which are NADCAP accredited in India.

Highlights the rarity and high entry barrier of NADCAP certification, positioning Vinyas as a select player in the global aerospace and defense manufacturing landscape.

Asked by Priyankar Sarkar

2 min read 6 chapters

Detailed narrative

Strong H1 FY26 Performance and Strategic Milestones

Vinyas Innovative Technologies reported a robust H1 FY26, with total revenue reaching ₹214.41 crores, marking a 43% year-on-year growth. Profit after tax increased by 33% to ₹9.35 crores. A key strategic achievement was the successful NADCAP AC7120 accreditation for electronics in printed board assemblies, a globally recognized benchmark for aerospace manufacturing quality, which enables the company to qualify for regulated commercial aerospace and export control defense programs.

Capital Raise and Capacity Expansion Initiatives

The company successfully completed a capital raise of ₹150.04 crores, with ₹61 crores received in September 2025. Approximately ₹30 crores from this raise are earmarked for CAPEX, primarily for working capital and capacity expansion, specifically adding SMT lines and testing equipment. This investment is expected to double the company's current capacity, with the new facilities becoming fully operational and available by April 2027, following an 18-month qualification period.

Healthy Order Book and Sustained Growth Outlook

As of September 30, 2025, Vinyas holds a healthy order book of ₹1,062 crores, providing multi-year revenue visibility, with execution expected over the next 18-24 months. The company recorded an order inflow of ₹411 crores for H1 FY26. Management reiterated its guidance for a sustained 30-35% year-on-year growth over the next 3-4 years, driven by its strong order book and expanding capabilities, particularly in defense and aerospace.

Diversification Strategy and Margin Management

To mitigate the lumpiness inherent in defense and aerospace programs (which currently contribute 70-75% of revenue), Vinyas is actively diversifying its program mix and expanding into new verticals. The company targets reducing defense and aerospace contribution to 60% of revenue within five years, while aiming for medical devices to reach a 'good 10%.' EBITDA margins are expected to remain between 9%-11% in the short term, with an internal target to achieve an uptake of 3 basis points in about four years by improving the product mix.

Customer Base, Supply Chain, and Export Capabilities

Vinyas serves a mixed customer base, including defense public sector undertakings, private defense companies in India, and foreign OEMs, with an equal mix across these segments. The company operates on a 'build to print' model, where customers provide specifications. Its supply chain is diverse, sourcing from Southeast Asia, US, Europe, and Israel, with a conscious effort to limit non-import of material from China for defense and aerospace. The NADCAP certification significantly enhances its capability to globally supply to any defense and aerospace company.

Operational Efficiency and Digitalization Initiatives

The company is focused on enhancing operational efficiency through digitalization of its manufacturing shop floor, which is currently 80-85% digital and targeted to reach over 95% within the next year. This focus on process discipline, quality systems, and traceability is crucial for its mission-critical programs and is reinforced by the NADCAP accreditation. Capacity utilization is targeted to reach 50% by end of FY26 and 70-75% by end of FY27, supported by ongoing capacity expansion.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Capital Goods earnings calls