AXISCADES Foresees Robust Growth and Margin Expansion

Ashwin Thakker

— 2 min read

AXISCADES Technologies Limited unveiled a confident Q1 FY26 earnings call, reaffirming its strategic "Power 930" vision to reach $1 billion revenue by 2030. The company highlighted strong growth momentum, particularly in core segments, backed by robust order books and expanding margins, setting a clear trajectory for future success.

Key Facts on Outlook:

  • FY26 Revenue Growth Guidance: Approximately 25% overall year-on-year, with over 40% projected in core areas (Defense, Aerospace, ESAI).
  • Order Book Visibility: Rs. 1,260 crores for FY26 and Rs. 1,827 crores for FY27. Total forecast visibility plus order book stands at Rs. 3,087 crores.
  • Long-Term Revenue Goal: The "Power 930" initiative aims to achieve Rs. 9,000 crores ($1 Billion) in revenue by the year 2030.
  • FY26 EBITDA Margin Guidance: Expected 300 basis points improvement over the previous year, targeting approximately 19%+ overall (up from 14% in Q1 FY26).
  • Long-Term Margin Goal: Core verticals are projected to reach an EBITDA margin of around 19.5% by FY28, aiming for 20-21% in the core sector in subsequent years.
  • Strategic Investments: Approximately $200 million (Rs. 1,500 crores) is being invested in infrastructure before FY27 to support significant future growth.
  • H2 FY26 Acceleration: Revenue and profitability metrics are expected to accelerate in the second half of FY26 due to the back-ended execution of defense orders.

Charting a Course for Remarkable Revenue Expansion

AXISCADES Technologies is projecting a robust financial future, underscored by ambitious growth targets for its core operations. For the current financial year, FY26, the company anticipates an overall revenue growth of approximately 25%, with its core domains – defense, aerospace, and ESAI (Electronics, Semiconductors, and Artificial Intelligence) – set to exceed 40% year-on-year growth. This confidence is largely attributed to a strong and visible order book.

"We have an order book of Rs.1,260 crores for this financial year FY26 and Rs.1,827 crores for the next financial year, that is FY27, the forecast visibility plus order book totaling to Rs.3,087 crores."

The strategic “Power 930” initiative further emphasizes this long-term vision, aiming to achieve Rs. 9,000 crores, equivalent to $1 billion, in revenue by 2030. This growth is expected to be fueled by significant infrastructure investments of approximately $200 million (Rs. 1,500 crores) planned before FY27, which will support a substantial increase in business scale and technological capabilities. The company also anticipates new facilities contributing 30% and 50% to total revenues in FY27 and FY28, respectively, demonstrating a clear growth roadmap.

Boosting Profitability Through Core Focus

Beyond top-line expansion, AXISCADES is focused on enhancing its profitability. The first quarter of FY26 saw the consolidated profit after tax rise by 25% year-on-year, from Rs. 17 crores in Q1 FY25 to Rs. 21 crores. The reported EBITDA margin for Q1 FY26 stood at 14%, a notable improvement from the normalized 8.2% in Q1 FY25, indicating healthy momentum.

"The current year FY26 guidance is around... 300 bps improvement in EBITDA over the previous year, driven by our core verticals."

The company targets a 300 basis points improvement in EBITDA for the full FY26. This is primarily driven by the strong performance and higher margins within its core segments: ESAI boasting 22-23% margins, Defense over 19%, and Aerospace at 16%. The aim is to achieve an EBITDA margin of around 19.5% in core verticals by FY28, with an overall core sector target of 20-21% in the years to come. With significant defense orders back-ended for execution in the second half of FY26, both revenue and profitability are expected to accelerate, further strengthening the company's financial position.

AXISCADES' Q1 FY26 performance signals strong momentum, underpinned by a clear strategic roadmap for sustained growth and enhanced profitability. With substantial order visibility, targeted investments, and a sharp focus on high-margin core segments, the company is well-positioned to achieve its ambitious billion-dollar revenue goal by 2030, reinforcing its market leadership.

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