Q1 26/27

Aug 14, 2026

Summary

Q1 revenue grew and the order book strengthened, while project phasing weighed on margins. Management reiterated ~25% growth guidance, citing stronger later-quarter execution and expanding BTS, EMS and semiconductor opportunities.

Ladies and gentlemen, good day and welcome to Centum Electronics Q1 FY 2027 earnings conference call to discuss Avendus Spark Institutional Equities. This conference call may contain forward-looking statements about the company, which are certain beliefs, opinions, and expectations of the company as on this date of call. These statements are based on current performance and involve risks and uncertainties that are described separately. As a reminder, participant line will be in the listen-only mode and there will be opportunity for you to ask question after the presentation concludes. If you need assistance with the conference call, please speak to the operator by pressing * then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Josir. Thank you. Hand over to you, Josir. Good morning, everyone, and a very warm welcome to you all. My name is Juzer Haveliwala from Valorem Advisors. We represent the investor relations of Centum Electronics. On behalf of the company and Valorem Advisors, I would like to thank you all for participating in the company's earnings conference call for the first quarter of the financial year 2027. Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management beliefs as well as assumptions made by information currently available. Audiences are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. I will now introduce you to the management participating with us in today's earnings call and hand it over to them for opening remarks. We have with us Mr. Nikhil Mallavarapu, current managing director, and Mr. Sundararajan Parthasarathy, the chief financial officer. Without any further delay, I request Mr. Nikhil to start with his opening remarks. Thank you, and over to you, sir. Thank you, Josir. Thank you and good afternoon, everyone. Welcome to our earnings conference call to discuss performance of the first quarter FY 2027. Let me extend a special thanks to our hosts at Avendus Spark for today's call. Let me start by taking you through the key business highlights for the quarter, after which our CFO, Mr. Sundararajan Parthasarathy, will take you through the financial performance in greater detail. We have started FY 2027 on a steady note with revenue growth in our standalone business and continued strengthening of our strategic positioning across high-reliability electronics. At the outset, I would like to highlight that the first quarter was somewhat muted compared with our expectations for the full year, both in terms of growth and margins. This is primarily a function of the quarterly variations in project execution and revenue phasing, particularly in our defense business. Based on the momentum we are seeing across our businesses, our order pipeline, and customer engagements, we are confident that the stronger execution expected in subsequent quarters will enable us to deliver against full-year growth objectives. As we mentioned consistently, we encourage investors to look at our performance and outlook on a full-year basis. During the quarter, standalone revenue grew 11% year-on-year to INR 205 crore, while we closed the quarter with a standalone order book of approximately INR 1,800 crore, representing a robust 31% year-on-year growth and providing strong visibility for future growth. One of the most significant developments during the quarter was the successful completion of the restructuring and exit from our overseas subsidiaries. As many of you would recall, we initiated this strategic exercise last year with the objective of sharpening our focus on our core India business and ensuring more disciplined capital allocation. During the quarter, a French court approved the acquisition of substantially all operating business and employees of Centum T&S Group S.A. and certain subsidiaries through the successful bidders, which were MBDA and SII. Following the transfer, these entities ceased operating activities and were deconsolidated from our financial statements effective 4th of June 2026. Subsequently, the French court converted the process into liquidation judiciaire and appointed a judicial liquidator on 2nd July 2026 to oversee the remaining wind-down activities. Importantly, with the operating businesses now transferred and restructuring process substantially completed, we do not expect any further liabilities in relation to these subsidiaries. This allows us to put this chapter behind us and move forward with a much sharper focus on our core India ESDM platform, with greater management attention and capital directed towards our standalone business. Sundar will take you through the accounting impact of these developments in greater detail. Let me now move to our operational performance and business highlights. Our business classification of BTS business continues to have a strong underlying demand environment. Revenue in the quarter was impacted by the project execution schedules, but our order book remained healthy and grew approximately 40% year-on-year. Looking ahead, we expect continued strong order intake through the year across several of our key programs, particularly in the areas of space radar, electronic warfare, and air navigation. This gives us confidence in the growth trajectory of the BTS business as we move through the year. Our electronic manufacturing services or EMS business also continue to perform well, with the revenue growing 20% year-on-year and order book expanding 23% year-on-year. We are ramping up well with our semiconductor equipment customer, and the demand remains solid and is in line with our expectations for the current year. Importantly, based on customer engagements and opportunities we are seeing, we believe there is visibility to surpass our current expectations over the next one to two years. More broadly, we continue to see increasing opportunities across industrial automation, electrification, and grid automation. During the quarter, we received a strategic partner award from a leading global industrial and energy conglomerate. We value this recognition as a strong endorsement of our engineering capabilities, execution track record, and long-standing customer relationship. This also reflects an important area of focus for Centum going forward. We are increasingly working with global customers who are implementing localization strategies in India while simultaneously responding to growing global demand for advanced electronics. We see an opportunity to leverage our engineering capabilities, manufacturing scale, and high reliability expertise to become a key partner to these customers as they localize and diversify their supply chains. As part of this strategy, we have initiated the NPI process for a number of electrification and grid automation products. These programs are expected to start contributing meaningfully to revenue growth over the next 2 years and provide another important growth avenue for our EMS business. Across our other focus areas, we are tightly integrating our engineering services and EMS teams to deliver differentiated design led manufacturing solutions, enabling customers to seamlessly transition from product design to high reliability manufacturing. This approach strengthens our value proposition, enhances customer engagement, and supports improved margin profiles. We have made encouraging progress in building this capability and are optimistic about securing our first DLM program wins in the coming quarters. Our objective remains to move further up the value chain by combining our design and engineering expertise with advanced manufacturing capabilities. In summary, with a robust order book, strong expected order intake, expanded customer engagements, and a healthy opportunity pipeline across both BTS and EMS, we believe Centum is well positioned to capitalize on these structural opportunities. With that, I would now like to hand over the call to our CFO, Mr. Sundarrajan Parthasarathy, who will take you through the financial performance for the quarter in greater detail. Thank you, Nikhil, and good afternoon, everyone. Let me now take you through the financial highlights for the first quarter of financial year 2027. At the standalone level, our revenue from operations for the quarter stood at INR 205 crore, registering a healthy growth of approximately 10% year-on-year. EBITDA for the quarter stood at INR 22 crore, which translates into an EBITDA margin of 11.38%. Profit before tax stood at INR 18 crore while profit after tax stood at INR 13 crore, with a margin of 6.99%. While margins during this quarter were impacted by relatively lower contribution from the BTS business, we expect the revenue mix to improve as execution on key BTS programs accelerate over the coming quarters. Before I move to the consolidated performance, let me briefly touch upon the accounting impact of the overseas restructuring. During the quarter, following the approval of the French court and the transfer of substantially all operating businesses and employees to the successful bidders, overseas entities were deconsolidated with effect from June. Consequently, the financial statements reflect a one-time profit on deconsolidation of INR 90 crore, while remaining entities are now under liquidation proceedings. These developments provide greater transparency into the performance of our continuing operations and sharpen our focus on the core India business. Coming to the consolidated financial performance, revenue from operations for the quarter stood at INR 204 crore, representing a growth of approximately 14% year-on-year. EBITDA stood at INR 24 crore with an EBITDA margin of 11.56%. Profit from continuing operations after tax stood at INR 11 crore. Including the one-time gain arising out of the deconsolidation of overseas subsidiaries, the consolidated profit after tax for the quarter stood at INR 106 crores. Our overall performance continues to reflect the resilience of our core India operations, well supported by healthy execution across both our BTS and EMS businesses, robust order inflows, and sustained demand across strategic sectors including defense, aerospace, industrial equipment, industrial automation, and energy. We also closed the quarter with a standalone order book of approximately INR 1,800 crores, up 31% year-on-year, and strong order inflow for the quarter stood at INR 360 crores approximately, and grew by approximately 70% year-on-year, which was mainly driven by BTS registering a robust 100% year-on-year growth at INR 120 crores. This provides a strong revenue visibility for the coming years. Overall, we remain confident in the strength of our business fundamentals. With a focused India ESDM platform, a healthy order book, expanded customer engagements and a strong opportunity pipeline across both BTS and EMS businesses, we believe the company is well-positioned to deliver sustainable long-term growth. With that, we can now open the floor for the Q&A session. Thank you. Thank you so much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Vijay with Securities. Please go ahead. Good afternoon, sir. Thank you for the opportunity. My first question is regarding the BTS segment. Given the higher project life cycle of over 2.5 years, our order book has almost doubled since FY 2024. Can we expect an accelerated revenue recognition going forward for the BTS segment? Thanks for the question, Vijay. The simple answer is yes. With the increased order intake that we've had, we expect to have clear, strong revenue growth in the BTS business this year, and the coming years also. Like I mentioned in the call, there is a high level of quarterly variation, but on a full year basis pretty healthy. I'm sorry, sir. But your voice is breaking. No, I was just explaining that we do absolutely expect that we will see a healthy growth of the revenue in BTS segment as a result of the increased order book. We have some quarterly variations because of the lumpy nature of this business and the contract. But on a full year basis, we expect to have a strong growth in revenue. All right. Sir, just one doubt regarding the advances. Around INR 210 crore of advances that you currently have, how much of it is coming from the BTS segment? I would say majority of that is coming from the BTS segment, mostly given the nature of the business. Okay. Thank you. Thanks, sir. Very helpful. About two-thirds is coming from the BTS. All right. Thank you very much, sir. I will get back on the rest soon. I will get back on call. Thank you very much. Thank you. Next question comes from the line of Prateek Shrivastava with Nivesh Wisdom. Please go ahead. Yeah. Again, congratulations, sir, on a great set of numbers and great progress in the BTS segment. My question is about semiconductor equipment. Sir, this has been referenced in the call also many times. I just want to understand what this semiconductor equipment is. Can you just give more details on this semiconductor equipment? Again, who are the customers? Have you signed any large global tier in that? I just want more details on this semiconductor equipment, sir. Thanks for the question, Prateek. Yes. First of all, this is part of our EMS business. It is essentially where we are manufacturing various types of box builds and PCBAs that go into the equipment used in manufacturing semiconductors. If you talk about the processes such as photolithography or etching and some of these critical processes that actually enable the manufacturing of semiconductors, they are supplied largely by a very few large global OEMs that supply these equipment to the foundries, essentially. In terms of where we are, we have a global OEM, one of these key global OEMs that we have added as a customer, and we have ramped up over the course of the last year. We continue to ramp up in terms of new part numbers and products that we are delivering. On previous calls and so on, I had mentioned that our revenue, from this segment, which was practically zero in FY 2025, was in excess of over INR 100 crore of revenue contribution in FY 2026. We expect this to get to in the range of INR 25 billion-INR 30 billion in the coming one to two years. This is where we are seeing a strong visibility, and it is in line with our expectations. Got it, sir. Since the EMS cannot be BTS, what are the margins in this business and what margins we are looking forward in future in this business, sir? Yeah. With the EMS business, considering the sectors that we are addressing, these will be in the range of about 10% AEBITDA. It can vary slightly, a little bit up and down, depending on the customers and segment a little bit, but I would say not a huge amount of variation, typically this being a cost-plus model. 10%, 11% is a clearly benchmark EBITDA margin. In future, can we use the learning from this and get more into a BTS type of model where the margin is usually higher in this segment? This is where I was addressing the point around the design-led manufacturing, where while we have a BTS, we run our BTS separately in the form of actually building products for defense and space and so on. However, we also had an engineering services team which was originally intended or created for this overseas subsidiary that we had. But with that being basically behind us now, we are refocusing this part of our business to work very closely with our EMS team and our EMS customers to offer more end-to-end solutions or design-led manufacturing solutions. As those progress, we expect to have a higher margin contribution from those businesses. Got it. Thank you. Thank you for answering my questions and all the very best. Thank you. Ladies and gentlemen, anyone who wishes to ask a question must press star and one on the question telephone. Our next question comes from the line of Darshan Gala with Gala Investment. Please go ahead. Hi, sir. Am I audible? Yes, you are. Hi. Sir, you were just explaining how the margins would be much higher in the semiconductor part of the business. When can we expect those revenue to start meaningfully contributing? I didn't talk about higher margins in semiconductor. I said the revenue growth, we have a good visibility on semiconductor, but this is fundamentally EMS business. Correct. The margin will stay at 11%. Correct. Sorry on that. But about the revenue, when can it start meaningfully contribute? Darshan, hi. Thank you, Mission. Sorry to interrupt you, management. Two voices mixing. Is this any better? Slightly better, but the server is still breaking. How about this? Is this okay? Yes, this is loud and clear. Thank you, sir. You may proceed. Okay. I was explaining to Darshan that the contribution of revenue from this business was zero in FY 2020 and it ramped up to INR 100 crore in the last year, more than INR 100 crore. We expect this to double or triple in the next two years. So you will see that coming in this year as well as it further ramp up in the next year. That's what we see. Thank you. I'll get back in touch. Thank you. The next question comes from the line of Karan Sanwal with Niveshaay. Please go ahead. Thank you for the opportunity. Sir, I wanted to understand something along what semiconductor, we have already rendered the semiconductor division in the last two quarters, maybe Q4 and Q3. Should this execution remain stable and the customer tests our product in the real condition? Would there be a linear growth or there can also be an exponential growth as we also qualify the simultaneous for the real customers? Let me make sure I have understood the question correctly, Karan. Your question was with regards to the semiconductor equipment, if these have been tested and validated in the real environment. Your second question was with regard to growth, whether you see that it is an exponential growth or linear growth. Is my understanding correct? Yes. Perfect. Yes, to your first question, absolutely, they are in production. This is, first of all, a very highly recurring business. You will have maybe certain variability that comes with longer CapEx cycles in the broader semiconductor manufacturing industry. At least for the next two years or three years, there is a fairly strong visibility in terms of the demand in the industry. As a qualified partner for these global OEMs, these products typically have very long product life cycles. We have a fairly good level of recurring revenue from this part of the business. Also, in the last year itself, for all the products that are already in production, we have gone through the full qualification process and requirements. That is behind us, and now it is in serial production. We continue to add also new part numbers from this customer. As and when we do that, they will go through their respective qualification processes and then go into production after that. I would say we are very well integrated and now in a fairly mature process in the supply chain. The second question about growth, I think, as we mentioned, this has already been a very steep and strong growth considering the fact that this was pretty much zero in terms of revenue in FY 2025, exceeding INR 100 crores in FY 2026. As Sundar was mentioning, we expect it to more than double going forward into the coming year and so on. Clearly, a steep growth over these couple of years. We expect, of course, that it will stabilize at a point in the next maybe one to two years, and then it should be fairly stable after that. It would still be a recurring business after 1, 2 years, right? Yes. Understood. For the products that we are manufacturing for these 300-day driven players, who are we competing with in India? Or are we competing with players in other geographies? Where is the competition placed in position for the products that we are already manufacturing or have been manufacturing in terms of the solution that we are doing? In terms of manufacturing, Sorry, Prem. Quality management. Again, your voice is breaking. Yeah. I was saying that with regards to competition, as far as PCBA and box build manufacturing for EMS type of business, we are the main supplier in India. We are their first major supplier in India. Our main competition is in Southeast Asia, basically Malaysia. There's nobody, I would say, in India that we would directly be competing as far as the EMS business is concerned. Having said that, they are adding other parts of the supply chain. There are other good companies that have been benefiting from the general shift that they're looking in terms of increasing their overall spend and sourcing from India. Understood. Also, are we in talks with some other semiconductor clients of a similar product or we can supply the similar product to their competition, basically, the customer competition? How is your understanding over there? First of all, in the EMS business, the design and the IP of the product belongs to the customer. We are not allowed to sell the same product to other players in the space. Having said that, we are in some preliminary-level discussions with other customers also who are looking at India as a supply base as part of their sourcing and supply chain strategy. But it is still at an early stage. We will update that as we progress. Understood. One last- Thank you. Param Sawhney sir, can I request you to come back for the follow-up, please? Thank you. Next question is from line of Aluv Shah from SRE PMS. Please go ahead. Hello, am I audible? Yes. Thank you. Yes. Sir, I had two questions. First is that can you throw some light at how India is evolving into the space industry, and what are the opportunities that ISRO can give us in next two to three or four years? My second question is, the space-based surveillance program that was initiated during Operation Sindoor, I think. So where it is now, what is the opportunity we will get, and can you throw some light on that also, sir? Thank you. Thank you. The space opportunity is quite an exciting one, I would say. We have been in the space now for over 25 years or close to 25 years. That moved along the value chain from doing niche components to modules, to subsystems, to now building complete payloads. Our objective is to go further also into satellite integration and so on as we move forward. In terms of the broader ecosystem, I think there's been a lot of positive development in the form of startups coming with very good and innovative solutions. You all must have recently seen the success of the Skyroot launch vehicle, I think, which is a major milestone for the country. There is clearly a lot of innovation. There's clearly, from a demand perspective also, a need coming in from various different end-use applications. As far as we are concerned, the major end applications that we are addressing today are largely for defense and military requirements. There are also certain contributions that go into scientific missions and some communication kind of equipment also. With regard to your question regarding the SBS program, this is moving well. We have started to book some good orders from this program, and we expect in this year that we will have a very strong order intake coming from this program, essentially. We are quite positive about that. Apart from that, we are also executing a major program for payloads, electronic warfare-based payloads. It is not specifically part of SBS program, but very closely aligned with it. We expect those also, once delivered, will have repeat requirements in the coming years as well. Thank you. Yes. Thank you. Next question comes from the line of Harish Subramanian with Unifi Capital. Hi. My question was on the order book over time. Does it really make us concerned? Do you see it sustaining 70/30 core ratio much in favor of BTS? That's the first question. Thanks, Harish, for the question. I think fundamentally, first of all, we are seeing strong growth happening in both businesses. We may see in one year, maybe in the very short term, one year or two years, we may have slightly a little bit higher contribution from the BTS. But I would not say it is hugely different. We may have instead of 70/30 split, it may marginally be favorable towards the BTS side, but again, not hugely drastically different from a split standpoint. Do you say that 25% plus or any? We will, Harish, we are confident of reaching that 25% level, and we'll maintain that. For now, we don't see any reason to change it significantly based on the order book trend and the project set on execution. Yeah. Okay. Just last question probably on You have mentioned Yeah. The last question on This is a part of what we deliver to our export customers. It is part of our, I would say, value-added engineering service offering that we give to our EMS customers. So it was roughly about, I think, fifty-five odd crore order that we received from this existing customer for this program. I would say the nature of this business is it is a test bench or a test system is not always a recurring type of revenue. They are based on application specific or they come up from time to time. So it is, I would say, volatile in terms of demand. You have certain years where you have high order intake and certain others which are lower. But this one is a particularly substantial one that we received. And we continue to offer this as a solution to differentiate ourselves with our major customers. It has a small revenue contribution. I would not say from a revenue standpoint, it is going to make a big impact in terms of the future prospects for the company. Sure. That is clear. Thank you so much. Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one. Next question comes from the line of Diya Jain with Sapphire Capital. Please go ahead. Hi, sir. Thank you for the opportunity. Can you provide any guidance for FY 2027 and FY 2028 in terms of revenue and margins? Also how the split of exports and domestic is going to be going forward? Yes. We still maintain the similar trend of about 25% on the revenue growth for this year and for next year also, that's the visibility that we see as of now. The margins, last year we reported about 12.5%. We are aiming to move it up above about 17%, and that could remain stable or slightly improve in the next year. Of course, it's too early to comment on the next year. We need to look at the order profile as we keep looking the orders through the year. In terms of our exports composition, I think it will still remain in the order of about 50%-55% or even maybe higher, given the progress that we see on the growth that we see in EMS. It could be in the same range also. Nothing much expected to change. Thanks for the guidance. Thank you. Next question comes from the line of Darshan Gala with Gala Investment. As a follow-up question, please go ahead. My questions have already been answered. Thank you. Thank you. Anyone who wishes to ask a question may press star and one. Next question comes from the line of Vineet Khanna, Individual Investor. Please go ahead. Hi. Am I audible? Yes, sir, you are. Yeah. Nikhil, question for you. In the previous calls, you have updated or shared details about some of the BTS initiatives you have done. In particular, one which you have done for Virupaksha. The second one being recent win you had for the helicopter platform for AESA Radar. Another initiative was with, I think, Garden Reach Shipbuilders & Engineers, where some upgrade was there for their electronic subsystems. Can you just provide a current update or input of where we stand with respect to these? Sure. Thanks for the question, Vineet. We are quite excited, making good progress on all of these programs. With both Virupaksha and the UH-M programs, these are development programs. We have completed, I would say, the first phase. On the UH-M at least, we have completed the first phase of the critical design reviews and so on. We are well underway in terms of the realization of the first prototypes for the program. Things are moving well, and we expect to have these first proposals in the next year successfully demonstrated to the customer and subsequently deliver the order. After which, we will be waiting for HAL to look at the series production quantities. In short, it is progressing well. Virupaksha also, we are in the design of the product. We expect also to have those development orders completed maybe Q4 or Q1 of the next, Q4 or Q1. With the TACAN system also, similar progress in terms of the delivery and the development. This is a technology partnership that we have established, so that it does not involve a significant amount. There is some localization design engineering work that is being done, which is actually an important part of the development effort here. But it is progressing well, and this again, in the beginning of next year, we expect to have the first deliveries done. Also we are very closely monitoring or waiting some further orders for this system in the coming one or two quarters. Okay, thanks. Just to follow up on, I think there was some discussion, previous calls about direct engagement with armed forces. So far our engagements are mostly with different PSUs or DRDO and ISRO. How are we tracking on direct engagement or are there opportunities which are emerging in that space? Yes. So those also are progressing well. When we talk about some of these system-level opportunities, although our direct customer may be a PSU, like HAL or GRSE and so on, these systems are very critical to the platform and capability. So there is already an enhanced level of engagement that we are having with the end users. But beyond that as well, we are also in various levels of discussion and answering RFIs and so on full system kind of opportunities, with the armed forces directly. Yeah. Thank you. So these are. We will say they are in progress, but we will update as and when they come to a higher level of maturity. Yeah. Thank you. Just the last one is on, from your side, you highlighted the four bullet points in the BTS section of the slide. Is there anything which you want to share in terms of if something new which is happening, which probably a slide is not capturing? You are doing some work which potentially is something or seeding something which has some potential. Just share some color on if something is not captured in the slide that you want to share, maybe verbally. No, I think there's a lot happening in this side of the business, that much more than we can capture, I would say, in four bullet points. But I would say, there's clearly a major ramp-up that we are doing in terms of engineering team and capability, across different skill sets, and also focused more on the objective of our system integration objectives. We are bringing in new talent and people that will enable us to get there. And also to ensure that we are executing and delivering these new programs and answering other new opportunities, to the right level of satisfaction of the customers. I would say at a high level, that's the main thing I would maybe add or add color to what's actually happening. Thank you so much. Thank you. Anyone who wishes to ask a question, press star and one. Next question comes from the line of P Apurv with Uniq CMS. Please go ahead. Hi, team. Thanks for the opportunity. Most of my questions have been answered. I just have one question in continuation with the last participant. In your AGM yesterday, you had alluded that we are trying to work with a global customer in the BTS space, and the opportunity is not far away. Can you just elaborate a little bit on that? How big of a business can global BTS be for us? This is a specific opportunity that we were talking about, with regards to BTS for an export customer, specifically around electronic warfare. This is, I would say, beginning for us. There are various levels of discussion happening with various different customers. It is a little bit early to quantify what it could be in several years. But I think there is clearly a need and a demand for this, and as we close some of these opportunities, they will have a meaningful contribution, both in terms of revenue and margin to the overall business. On a broader level, once businesses like this, such as global BTS, start contributing to our P&L, do you think that it will be at a higher margin than BTS that you do here, domestic BTS business? I would say, we are still targeting around that 20-plus percent kind of margin profile. But the main difference, which is the reason why we like export BTS business in some of these cases, is that they are not all tender-based. So it is not an L1 type of business where it is zero or one. So they typically have a relationship with the customer that you can come to a reasonable agreement on some of these things. So that is what we like about some of these export kinds of opportunities. Of course, once these systems that we have built, whether it is like the one that we are doing for the UH-M or some of the other products that we are currently developing, there will be major demand for those types of equipment and systems for overseas customers. We have not yet come to a stage where we are answering opportunities because we are still at the development stage. When those come, which are system-level opportunities for exports, yes, those can absolutely have a higher level of margin profile, even beyond. Okay. Thank you so much. Thank you. Our next question comes from the line of Aluv Shah with SRE PMS. Please go ahead. Yeah. Sir, just one last question. We had actually visited groundbreaking ceremony at Devanahalli Aerospace Park Bangalore. Can you let me know what is the status? Have you started construction of the facility? Secondly, what is the CapEx plan for this year and next year? Thank you. Sure. This one's design stage is complete, and we'll be starting the construction soon. However, the land belongs to another group company. We don't have to invest anything from Centum Electronics in this year. Next year, once the shell is ready, as we start building the factory and all the MEP, HVAC systems and so on, and clean room, dry room, ordering plant machinery and so on. But towards the end of next fiscal, the CapEx would start. On the whole, high level estimate is about, I can say, anywhere between INR 15 crore-INR 17 crore. But we'll know more as we do the budgeting for next fiscal. We'll update you. Okay. Thanks. Thank you. Our next question comes from the line of Kashish Ganguly with an individual investor. Please go ahead. Thank you, sir, for the opportunity. Just wanted to understand with regards to various OPCs available, where do we stand vis-à-vis the competition? We have competitors like in different areas where we are operating. Yeah. I would speak about specific companies. I would say broadly, we have two businesses which we have described, EMS and the domestic defense and space products or BTS business. We have different sets of competitors for each of these businesses. They are not the same. I would say, with regards to our positioning, I think there are certain areas, especially if you talk about the BTS side of the business, where we, in certain areas, especially things like space, where we are, I would say, quite ahead in terms of our capability and history in the domain. We are making very good and strong progress from a systems perspective on things like radar and EW, where there are some competitors that have been there, maybe a little bit ahead of us. But from a capability standpoint, I think we are quite, I would say, on par in these areas. On the EMS side of the business also, I think, we have certain segments and differentiators, especially when it comes to small customers. Some unique manufacturing requirements, supply chain complexity, these are all things that I think we understand quite well. We consistently see that when we work with these customers, that they have a strong preference to work with us. I think on certain areas that maybe are used to very high volume type of business, things like consumer electronics and so on, that's where probably, that's not our cup of tea. Our competitors have set up an ecosystem much more aligned for those type of segments. That's it, Shobhit. Yeah. The reason why this question was, companies like Astra or Data Patterns and a couple of other players, they start specializing and. Okay, ahead of. As I mentioned, there's two things. One is there are areas that we are ahead compared to them in space and so on. There are other areas where they have been in the business for, in these specific domains at least, for longer than us. But from a capability standpoint, as I mentioned, we are, I would say, quite close to being on par. Okay. These are the that we do on with various projects. As I mentioned, even on the UH-M program, when we had qualified for that, there was more than 10 bidders who were interested to participate, but only three shortlisted, and of which we were the one. I would say some of these are good case studies in terms of proof of case. Maybe a proof in point in terms of capability recognition. Sir, who were the other two? I cannot disclose that. Okay. Thank you. Ladies and gentlemen, that was the last question for the day. I now hand the conference over to the management for closing remarks. Thank you, and over to you, team. Thank you all for participating in this earnings conference call. I hope we were able to answer your questions satisfactorily and at the same time offer insights into our business. If you have any further questions or would like to know more about the company, please do reach out to our investor relation managers at Valorem Advisors. Thank you. Thank you, Joseph. Thank you so much, sir. Ladies and gentlemen, on behalf of Centum Electronics, that concludes today's conference. Thank you for joining us, and you may now disconnect your lines.