AXISCADES: Driving Future Growth and Margin Gains

Ashwin Thakker

— 2 min read
  • FY26 Revenue Growth Guidance: Approximately 25% overall, with over 40% in core verticals (Defense, Aerospace, ESAI).
  • Order Book Visibility: Rs. 1,260 crores for FY26 and Rs. 1,827 crores for FY27, totaling Rs. 3,087 crores.
  • Long-term Revenue Target: To achieve $1 billion (Rs. 9,000 crores) by 2030 under the “Power 930” initiative.
  • FY26 EBITDA Margin Improvement: Expected 300 basis points improvement over the previous year.
  • Core Vertical EBITDA Margin Target: Targeting around 19.5% by FY28, with a long-term goal of 20-21%.
  • Strategic Investments: Planning substantial investment of approximately $200 million (Rs. 1,500 crores) in infrastructure by FY27.
  • Key Partnerships: Strengthening collaborations with global players like MBDA and Indra.
  • Revenue Acceleration: Anticipated in H2 FY26 due to back-ended defense order execution.

AXISCADES Technologies revealed a compelling future outlook in its Q1 FY26 earnings call. The company announced an ambitious target of over 40% year-on-year growth in core verticals for FY26, backed by a robust order book exceeding Rs.1,260 crores. This confidence extends to significant margin expansion and a clear strategic roadmap toward a billion-dollar valuation by 2030, driven by key partnerships and infrastructure development.

Ambitious Growth Trajectory

AXISCADES is poised for substantial expansion, targeting over 40% year-on-year growth in its core verticals for FY26. This outlook is underpinned by a strong order book, with Rs.1,260 crores secured for FY26 and Rs.1,827 crores for FY27, offering a combined visibility of Rs.3,087 crores. The company's long-term "Power 930" initiative aims to reach Rs.9,000 crores ($1 billion) in revenue by 2030, a goal management deems "very systematic" and achievable, indicating a projected 60% CAGR growth from FY26. This growth is anticipated to accelerate in H2 FY26.

Margin Expansion and Strategic Investments

The company also projects robust margin improvement. For FY26, a 300 basis points improvement in EBITDA is expected. Core verticals, including ESAI (22-23% margins) and Defense (19%+ margins), already show healthy EBITDA margins of 18.6% in Q1 FY26, with a target of approximately 19.5% by FY28, moving towards 20-21% in the core sector long term. To support this ambitious growth, AXISCADES plans to invest around $200 million (Rs.1,500 crores) in world-class infrastructure before FY27, ensuring readiness for a projected 70%+ growth jump in later years. Global partnerships are also strengthening their technological edge.

AXISCADES Technologies has outlined a compelling path forward, marked by aggressive growth targets, significant order book visibility, and clear margin expansion strategies. Strategic investments in infrastructure and key global partnerships underscore their commitment to achieving the billion-dollar revenue aspiration. The company's focus on core verticals like Defense, Aerospace, and ESAI positions it for sustained profitability and market leadership in the coming years.

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