Quarter summary

• Company is undergoing a strategic recalibration, sharpening its focus on Aerospace, Defense, and Electronic, Semiconductor & AI (ESAI) as core, high-growth domains.
• A significant strengthening of the leadership team has occurred, including the appointment of a new CEO with global experience, dedicated Presidents for core domains, and three external advisors.

Rationale

• Core business segments (Aerospace, Defense, ESAI) demonstrated exceptional growth, with revenue up 33.1% YoY to INR207 crores and EBITDA soaring 68% YoY to INR44 crores in Q3 FY25.
• Significant margin expansion in core activities: Core segment EBITDA margin increased 450 bps YoY to 21.3%; Defense EBITDA margin surged to 18% (from 8% YoY), and Aerospace reached 24% (from 20% YoY).

Quarter summary

• Initiated a major business transformation from Q3 FY25 to drive non-linear product-led growth and pivot towards higher-margin product and solutions offerings in core verticals.
• A new management team comprising industry veterans has been put in place to lead core verticals, enhance client relationships, and execute the company's ambitious growth strategy.

Rationale

• Strong Financial Performance: Full-year FY25 consolidated revenue crossed Rs. 1,000 crores with 7.9% YoY growth, PAT grew 2.25x to Rs. 75.26 crores, and diluted EPS doubled to Rs. 17.22, demonstrating exceptional bottom-line expansion.
• Significant Margin Expansion Potential & Focus: Adjusted FY25 EBITDA margin reached 15%, with core verticals (Aerospace, Defense, ESAI) already delivering healthy EBITDA margins of 19.1% (Aerospace 21.2%, ESAI 23.9%, Defense production 22%). The company aims for a 24% average EBITDA in the next 2-3 years.

Quarter summary

• The company initiated major strategic initiatives including aggressive growth targets, exemplified by the 'Power 930' plan to reach $1 billion in revenue by 2030.
• Significant investments are underway in infrastructure and facility development to support a product-led, non-linear growth strategy over the next five years.

Rationale

• The company reported an exceptional order book and visibility totaling Rs. 3,087 crores for FY26 (Rs. 1,260 crores) and FY27 (Rs. 1,827 crores), providing a strong foundation for future revenue growth.
• Core domains (ESAI, Defense, Aerospace) demonstrated robust performance with 17% YoY revenue growth (to Rs. 182 crores) and significant normalized EBITDA margin expansion from 13.5% to 18.6%, indicating strong underlying profitability and operational leverage.

Quarter summary

• Initiated aggressive Power930 growth strategy targeting Rs.9,000 crores by 2030, driven by non-linear growth from services to solutions.
• Began large-scale infrastructure development with three major facilities for defense, aerospace, semiconductors, AI, and missile systems to support future growth.

Rationale

• Strong Financial Performance: Q2 FY26 consolidated revenue grew 13% YoY to Rs.299 crores, with EBITDA up 41.5% YoY to Rs.47 crores, and PAT surging 89% YoY to Rs.23 crores, demonstrating robust operational leverage and profitability.
• Expanding Margins: Q2 FY26 EBITDA margins expanded to 15.7%, and core domains (aerospace, defense, ESAI) delivered healthy 19% EBITDA margins for H1, reflecting a successful strategic shift towards solutions and product-driven model.