Q1 26/27

Aug 13, 2026

Summary

Record Q1 revenue accompanied a reported loss as divestment and transition costs overlapped. Guidance remains INR 1,377 crore FY27 revenue and INR 270 crore EBITDA, with proceeds earmarked for manufacturing and acquisitions.

Evening, everybody. Welcome to AXISCADES Technologies Limited Q1 FY 2027 earnings webinar produced by ElevEase. I am Shankhini. I am the Director of Investor Relations at Dickenson, and I will be moderating our call today. Joining us from the AXISCADES management team is the senior management group. I will hand over to Mukund later to introduce the members who will be on the call today. To all our participants, please note that this conference is being recorded and that some statements in this call may be forward-looking based on current expectations and subject to risks that could cause results to differ materially. You can download the AXISCADES investor deck and press release from the company website or the NSE. I will now hand over to Mukund. He is the Chief Strategy and Growth Officer and Head of IR from the AXISCADES management team. I will hand over to him for opening remarks. Over to you, Mukund. Thank you, Shankhini. Good evening, everyone. Welcome to the AXISCADES Q1 FY 2027 earnings call. Thank you for joining us today. I hope all of you have had the opportunity to review our results in Chapter five of the AR. I am the Chief Growth and Strategy Officer for AXISCADES and also head Investor Relations. On the call today, we have Shashidhar S.K., our Group CFO. I also have members of the senior management team across the key business areas, aerospace, defense, electronics, finance operations, and strategy. On behalf of the Chairman and Managing Director, I will begin the call. I will then hand over to Shashi, who will take us through the financial performance and the key numbers related to this quarter. I will then call from the business heads to present their respective businesses, and we will close our formal presentation with our guidance for FY 2028. We will then open the floor for questions. S.K., power. On behalf of the Chairman, I will now read out his speech. Our Chairman had requested the management team at the last investor call to take on the role of presenting the IR. So let me just read the speech of the Chairman. Dear shareholders, thank you for your continued trust. Since I have assumed the role since February 2025, our focus has been constant. Sharpen the strategic direction, strengthen the execution, and rebuild the company position for sustainable, high-quality growth. Six months in, we are firmly on course. Six quarters in, we are firmly on course. A sharper, more focused portfolio. The divestment of our non-core and services business is largely complete. Only acquisition remains and is executive. Since completion Looks like we have lost the line. Just give us a moment. We will just get the management group back online. Someone is calling me. Jason? Yeah. How are you? Hi, everybody. We're just dealing with a technical problem. Just give us a couple minutes. We'll just get it sorted. Please stay on the line. Thank you. Hey, Ma'am. Audio. Can you hear me now? Can you hear me now? Hi, Mukund. We can hear you loud and clear. Thanks to all our participants for your patience. Mukund, you can go ahead and I think maybe restart with the opening remarks. That would be great. Thanks. Hi, Mukund. Are you on mute? Can you go ahead? Hi, everyone. Yes, go ahead, Mukund. Hi, everyone. Just testing. Is it echoing? Yes. Antony, in the interest of time, should I talk about the financials? By that time, probably this technical issue have been addressed. I'm going to say yes to Shashi. Shashi, you can go ahead. We'll get this sorted. Sorry for that, and good evening again to everyone for joining the AXISCADES Q1 FY 2027 earnings call. Dr. Irfan and Mukund, of course, will take you through the strategy and the position with respect to the various verticals, especially with respect to the retained business. My task is to take you through the numbers, what is reported, what sits inside it, and what tells you about the business we are building. So this quarter, we have delivered the highest revenue in the company's history, and we also reported a net loss. This is nothing but the arithmetic of doing two things inside the same quarter, divesting one business and building another, while the costs overlap. This is the first quarter of that transition, and it is the quarter in which the cost of transition is most visible and the benefit of it is least visible. The consolidated revenues for the quarter was INR 346 crores, up 42% year-on-year and 27% sequentially, the highest in the company's history. Of the INR 140 crores of revenue that shifted out of FY 2026 on supply chain and operational grounds, approximately 40% got converted in Q1, and the balance is planned across Q2 and Q3. The Q1 FY 2027 results and the financial statements of what you see is a direct reflection of the treatment of divestment transaction under accounting standard Ind AS 105, where the engineering services business being divested to Akkodis is now shown as discontinued operations, splitting the quarter into INR 163 crores of discontinued operations and INR 183 crores of retained or continuing business. Its comparative periods of Q4 FY 2026, Q1 FY 2026, and the full year FY 2026 are carved out on a like-for-like basis. So just to talk about the retained business of the continuing operations, the one you are now invested in, the business grew and the revenues grew by 94% year-on-year to INR 183 crores from INR 94 crores in Q1 of FY 2026. Now coming to the profitability. As an inevitable consequence of the divestment transaction, the company is required to unwind certain balance sheet positions as per Ind AS 105 and has incurred costs which resultant impact on profitability. The reported EBITDA for the combined business of discontinued and continuing operations was INR 27.9 crores, and the reported PAT loss is at INR 14.8 crores against INR 20.9 crores of PAT reported in Q1 of FY 2026. The reported loss is nothing but an accounting consequence of the value created in divestment transaction. Every rupee of that gap is identifiable. Firstly, we took a 13.1 crore one-off provision inside the EBITDA line, which essentially is about INR 9.62 crores of receivable provisioning, largely on an aged defense transaction that we have chosen to provide for conservatively while we continue to pursue recovery with the Ministry of Defence. Plus, we also had to take a INR 3.5 crore hedge provision resulting from the unwinding position as a result of the divestment, and that does not transfer to the divested business. Most importantly, we took a INR 21.81 crore transaction cost in the Q1 pertaining to the divestment, which is taken below the EBITDA as an exceptional item, which is roughly half of the estimated INR 45 crores, about 2% of the total transaction value of the divestment. This will be accrued, and this will record the actual divestment transaction will now record an extraordinary gain of approximately INR 1,255 crores on the completion of the divestment transaction in Q2, Q3. Essentially, this is a timing issue. Normalized for these items, which is roughly around INR 13.4 odd crores, essentially about INR 21.81 crores of the transaction cost, which is sitting as an exceptional item below the EBITDA line and about INR 13 crores of the provisioning which we took as a result of the transaction and a conservative provision as what we took on the reviewables. Normalized for these items, EBITDA was at INR 41 crores at about 11.8% margin, up from 20.5% year-on-year. Normalized PBT was INR 23.1 crores, and normalized PAT was INR 20.2 crores. This is the business we actually ran, and it earned money while paying for its own transformation. Now let me talk about the retained business, and let me be equally direct about what is not yet in and where it needs to be. The retained business for defense, aerospace manufacturing, and XIDA posted INR 8.7 crores of EBITDA, which is INR 18.3 crores when you normalize it for the reviewable charge, which sits in the continuing business. The continuing business does not yet cover the INR 8.9 crores of finance costs and INR 8.8 crores of depreciation which it carries. The divestment has been done on a cash-free and debt-free basis, so the earning business leaves, which is, of course, the aerospace engineering services, the automotive, the energy vertical, and the heavy engineering, where the group's borrowings, the corporate cost, and the cost of building the replacement still stays in the continuing business. AXISCADES, the legal entity, brings it out very clearly. INR 6.1 crores of revenue, which is the manufacturing aerospace revenue which we recorded in Q1, against INR 12.9 crores of operating cost and a INR 6.4 crores of finance cost. This is, in fact, about 72% of the overall retained finance cost. As a result of which, the numbers look the way it is looking and closing the divestment on schedule, retiring the debt, and deploying the proceeds into capacity is therefore our single most important near-term priority. The discipline is already visible. The employee cost fell from 53% of revenue to 44% of revenue, even as we hired for the manufacturing pivot and Mistral delivered INR 122 crores of revenue at about 14.5% EBITDA margin while absorbing its own provisions. The one clear drag is add-solution GmbH, our non-core European unit, which recorded a INR 4.8 crore EBITDA loss and a INR 6.7 crore PAT loss, which sits in the continuing business, effectively constituting most of the continuous business loss of INR 7.04 crores for this quarter. It is loss-making, it is non-core, and it will be exited. An action plan is already underway with closure targeted by Q4 of FY 2027. Cash on the balance sheet, meanwhile, rose 78% to INR 81 crores ahead of the first tranche of divestment money and our property, plant, and equipment rose by INR 40 crores in one quarter as capacity is built on the ground for the Power 930 ramp-up. The Akkodis transaction is valued at US$237 million or approximately INR 2,256 crores, which the shareholders have blessed on July 27 and is in the process of closing in two phases. Phase one is targeted by August 31, which is this month, with about INR 190 crores of post-tax cash coming in, and Phase two by November 30, bringing a further INR 525 crores in cash. It funds the Power 930 vision and our planned acquisitions without any equity dilution. During the quarter, the defence business in the continuing business category delivered a record INR 125 crores in revenue, up 112%, with an underlying EBITDA of INR 13 crores, which is up 15% year-on-year. Eight design wins and order wins since April took the assured forecast visibility to INR 4,500 crores plus to be executed in the coming quarters and years. XIDA was the strongest stream, INR 49.5 crores, up 63% year-on-year in terms of revenue at a 33% EBITDA margin, and it added two marquee global technology customers as customer logos. Aerospace manufacturing capabilities are being built bit by bit, both in terms of talent and aerospace capabilities and certifications through planned acquisitions. To return to where I began, this quarter's reported loss is the cost of running two companies inside one set of accounts. Every element of it is identified, quantified, and either is behind us or scheduled to close within the next quarter. The business we are building onto Power 930 earned a normalized EBITDA of INR 18.3 crores, despite carrying the strategic cost which I talked about in terms of the manufacturing pivot which is taking place, which are still to turn into revenue on a platform that grew 95% year-on-year with about INR 4,500 crores plus of assured defence visibility and INR 1,255 crores of gain on its divestment still to be recorded in the profit and loss statement. In closing, I will say the results declared are expensive for a quarter, but will compound for the next 40 quarters. Thank you. Mukund, of course, I have dealt with all of this. I would now hand over to Mukund to take this forward. Thank you very much, Shashi, and thanks for stepping in. Apologies to everyone on the call. Can you hear me? Huh? Can you hear me? Just checking if everyone can hear us clearly. Apologies that we seem to have had a technical issue at our end. However, thank you, Shashi, for stepping in and for covering the aspect that I want you to cover. Let me now move on forward from here. I will cover the continuing operations, which as you know, is the business that will define the future of AXISCADES. This business has performed very strongly this quarter. We have had a continuing revenue of INR 180.7 crore. This includes our defence business, and this includes our ESAI business, and this includes our aerospace business. It excludes the businesses that are being divested away, both engineering services as well as aerospace services. It also excludes add-solution GmbH, the business that Shashi has already referred to, where we will be finding a solution in terms of divesting that by the end of this financial year. Defense. Before I hand over to each of the Defense, ESAI, XIDA, and the aerospace business heads, let me just give you a broad overview of how the business has performed in this quarter. Defense, over 111% year-on-year growth. Clearly, this is over two-thirds of our continuing revenue as of this quarter. Our reported EBITDA was weaker at INR 2.6 crore, and this was because of certain one-time costs that we had to absorb of about INR 9.6 crore this quarter. The underlying EBITDA is at INR 11.2 crore at 9.7% margin. Further on Defense, in terms of our wins, in terms of what else we have looking forward, I'll hand over to Defense business soon. The ESAI business. The ESAI business, as you know, has been now rebranded as XIDA. What we have done is headquartered this out of the U.S. because that is where our customers are, that is where the technology is, that's where the capital is, and that's where the resources are. Clearly, this business has performed wonderfully with the new domiciling of the business. Revenues were at INR 49.5 crore, with EBITDA at INR 14.7 crore of EBITDA, giving an EBITDA percentage of almost 30%. Where did this come from? This came from a business transfer that we acquired the business of another partner, and that contributed a stupendously high 46% EBITDA margin, clearly giving us a 30% EBITDA margin combined with the legacy business that we do in the XIDA business. Aerospace, which is our upcoming manufacturing business. Post exiting the servicing business, manufacturing now becomes the future of the aerospace business. Even before we have actually added capacity, we already have a team in place. We have invested well ahead in terms of leadership and in terms of having the right people, and that has already shown in terms of a INR 6 crore revenue for this quarter. EBITDA being negative, which reflects the investments that were made into this business going forward. To close, before I hand over to the Defense business, clearly two streams chugging on at full steam and very profitable. One funded out, while the other one, the aerospace business, yet to show over the next few quarters. Over to you, Babu. Thank you. Thank you, Mukund. This is Sharadhi Babu. I'm Head of Defense. I will handle the presentation for both Defense and XIDA today. As Mukund mentioned, the Defense this quarter has recorded a very strong growth quarter-on-quarter and year-on-year. I would like to update the audience that we had several wins, and we have added quite significant pipeline to our forecast visibility. Here, number one, on the technology side, our Defense, we have moved on both our strategic initiatives, which includes our presence in directed energy weapons and missile systems. We have been technically selected and approved for the transfer of technology for 30 kilowatt laser-directed energy weapon. We have received orders of the missile systems, which includes the subsystems, the electronic subsystems, and also select high-end mechanical subsystems. Here, we are developing the mobile firing platform and also a mobile mast system for the long-range missile system. Now we have received the development order cum production order for the onboard electronics for the anti-tank missile and also on the BrahMos missile. We have also received orders for the ERP for the helicopters and also the antenna beam control systems for the Uttam radar. With all these wins, we have added the forecast visibility about INR 332 crore. Overall, our assured forecast visibility stands at INR 4,557 crore. Any further questions, I would be glad to answer at the end of the session. I will also cover the XIDA business, which Mukund has given the financials. Here, I am very glad to inform the audience that we have added two of the world's largest technology companies as customers. This business transfer, which Mukund mentioned. Based on our legacy ESAI business, we are now supplying the most modern and innovative semiconductor equipment for the largest of the customers. One of them is a semiconductor equipment manufacturer, and the other one is the world's largest AI and hyperscale technology company. Already this is visible in the current quarter, and it is poised for a strong growth quarter-on-quarter. This platform is held through the wholly owned U.S. company, which is giving us the complete customer proximity and also the engineering talent and the India is the mirror architecture for supplying of the equipment. This arrangement also gives us a strong visibility on a new customer portfolio, which we will be serving over the next few quarters, and which is based out of the U.S. Again, here on the XIDA, I will be glad to answer any further questions. Now I will hand over the mantle to Mohan, who will brief you on the aerospace business. Thank you all. Good evening, everyone. This is Mohan. Let me turn to aerospace. Our manufacturing story is now becoming real. We have signed a non-binding offer for an AS9100 certified precision manufacturing company. Our due diligence is in the advanced stages of completion and is expected to complete in Q2. This transaction when completed on an annualized basis, the FY 2027 revenue will be about INR 180 crore with an EBITDA of INR 39 crore and with a 22% margin. This single transaction jumps our aerospace manufacturing capability and becomes the metallic manufacturing backbone for our defence and electronic businesses. We are not building this in isolation. We are building a world-class infrastructure around it. The Center for Advanced Manufacturing, 240,000 sq ft on 20 acres at Devanahalli, designed as a quad use facility for aerospace, defence, space, and electronics. One campus and four growth engines. You would have noticed aerospace manufacturing revenue clocking at INR 6.1 crore in Q1. We have built a team in advance to make it happen. We have put a 30-member aerospace leadership team in place ahead of the acquisition and ahead of the revenue, because aerospace qualification runs in years, not quarters. We are front-loading the team so that when the acquisition closes, we execute from day one instead of spending a year building capability we could have built today. Put together this acquisition, we are currently evaluating a second transaction, and together with an organic growth, we are targeting an annualized run rate worth of INR 375 crore in revenue and INR 84 crore in EBITDA by Q4 FY 2027. With this, we would have replaced the lost EBITDA due to the divested business. The platform we are building here is the one that takes towards a INR 1,000 crore by FY 2029. Our approach is invest ahead of the curve and leverage the opportunity. We shall share further excitements in the next quarter call. Thank you. I will pass on to Mukund. Yeah. Thank you, everyone. Thanks, Mohan. An update on where we stand on our infrastructure. As you are very well aware, we have the DAL, Devanahalli Aero Land Complex, which has been commissioned and on schedule. We have moved our existing supply chain and logistics capability set up. We also have set up testing labs. We have set up SMT lines, and this facility is fully functional. Many of you have visited this facility at various points over the last year and have seen how it has developed over the last 18 months or so. We also have the Devanahalli Armament Complex, which is a 20-acre plot just a stone's throw away from DAL and very close to the Bengaluru International Airport. This is going to be a flagship aerospace and defence and space manufacturing hub. We have also started building the satellite manufacturing, assembly, integration, and testing facility for the space business. The third complex that you have been hearing about is the Missile Armament Complex. This is in Hyderabad. The land has been acquired. This quarter, we had actually done the groundbreaking in early July of this year. Construction has begun on this complex. This complex will support missile subsystems as well as strategic electronics. The location of Hyderabad is deliberate. This sits very well within the missile ecosystem that is being developed in that city. The new facility that we are setting up, which Mohan had referred to in the aerospace coverage, is the Center for Advanced Manufacturing, again in Devanahalli. The land allocation is well in progress. It is a 240,000 sq ft and 20 acres of land, and this is just a few kilometers away from DAC and DAL. This will house manufacturing capabilities, not just for the aerospace business, but for all the other three businesses, having a common platform servicing four businesses. Let me now move on to the guidance. As you know, ever since the new management has been in place, we have made several commitments to the markets. We have committed and we have delivered against each of the commitments. Most important of the commitments was the fact that we would grow into a manufacturing and a product and solutions company while divesting our services portfolio. We do all this without any equity dilution or any material long-term debt. The divestments are well underway. As you are aware, we have divested the engineering services business in the month of May and the aerospace services business in the month of June. Both of these are progressing well towards closing. We expect to close the engineering services divestment in this quarter itself, with the money coming in a week later. We will expect to close the aerospace services business in the next quarter, with again, the proceeds coming in shortly after that. Both of these would give us almost INR 920 crore of proceeds. Proceeds that we will be using for our manufacturing acquisition build-out. More importantly, what happens to the revenue that we have divested away? We clearly have committed to replacing these revenues both organically as well as inorganically. Organic revenue growth will happen through the kind of growth that you have seen already on our defence and our IT businesses. Inorganic growth would happen through acquisitions, one of which Mohan has already referred to, several more that are in the pipeline and are likely to close this quarter. We are committing back to our guidance that we had made originally at the beginning of this financial year, which is of INR 1,377 crore revenue in FY 2027 on a continuing operations on an annualized pro forma basis. The EBITDA that we have divested earlier, as Mohan has clearly referred, is being brought back at a price that is at a fraction of what we sold it for. The acquisition in the aerospace, as well as the organic growth, as well as further acquisitions in the XIDA business will help us bring back this EBITDA by FY 2027 on a normalized pro forma basis. So both on revenue, EBITDA, as well as earnings per share, we are well on track towards achieving our Power 930 goals. We have committed to several specific activities that we will be doing over the next three quarters. One of them that I already referred to is closing the divestment across the next two quarters. The other is, as you are aware, we had deferred certain revenues due to supply chain logistics. We are well on track to recovering that. This quarter, out of INR 142 crore deferral, we had recovered over INR 60 crore, and we will be recovering the rest over the next two quarters. Acquisitions, again, well on track. We are committed to delivering on the aerospace acquisition by this quarter and the XIDA acquisition by this quarter, with closing between this quarter and early next quarter. We have several more in the pipeline, and we expect the third and the fourth to close within the next two quarters. add-solution GmbH, which you know is a business that has been a drag on our businesses across the last five, six quarters. We are working towards a sale which should realize over the course of FY 2027. On the space business, which is a fledgling business, as I have already mentioned, we have already set up and are working on the manufacturing and the integration, and the testing facilities as part of our new DAC complex. We will also be entering into strategic partnerships, and will announce these partnerships during the course of this quarter, both at the Bengaluru Space Expo as well as the World Space Business Week in Paris. Finally, scaling up of our businesses. We expect our defence businesses on the back of extremely strong 4,500 plus assured forecast visibility to grow at over 75% year-over-year over the next several years. We also expect our XIDA business to grow by over 100% this year on the back of both organic growth as well as the acquisitions and business partnerships we have in place. This is a commitment that we are making to our shareholders, and we believe that each of these commitments is something that we will be able to deliver to in the timelines indicated. Thank you very much. That brings a close to my presentation. I will now hand over back to Shankhini, who will then open up the floor for Q&A. Thanks, Mukund. Just a reminder to all our participants, if you want to ask questions, you will have to raise your hand to join the question queue. Just a quick reminder on how to do that on this platform. If you are on desktop or laptop, look for the reactions button at the bottom of your Zoom window. Click on it, then select raise hand. Your name should appear in the queue, and I will call on you in order. If you are on mobile or tablet, tap on the more dot-dot-dot button at the bottom right of your screen, then select raise hand from the menu. Perfect. We will go ahead with the Q&A session. We will take the first question from Deepak Poddar. Hi, Deepak. You can go ahead and ask your questions. Yeah. Hello, are you here? Yes, Deepak, go ahead. Thank you very much for this opportunity. First, I wanted to understand, what is the thought process behind this aerospace acquisition divestment? I mean, it's kind of giving you 70-80 crores kind of EBITDA on an annual basis. If I understand that you have aspiration for aerospace manufacturing, right? But can't we have done it both together? What would be the thought process behind that? Thanks, Deepak. I'll probably answer the question. Also ask Mohan to pitch in as and when required. Clearly for us, in the four core areas that we focus on is aerospace, defence, the XIDA business, which is electronic semiconductors AI, and the space business. But we also have clearly indicated that part of our Power 930 program, we would move from being a services-focused company to being a product and solutions company. It is this part that we have set out on. As part of this Power 930 goal, we had indicated, obviously, a sale of the engineering services business, but we also felt it was the right time to be actually moving away from aerospace services into aerospace manufacturing. We had indicated the reasons why we had done that at the previous call that we had in the previous quarter. Let me again clarify on those aspects. One, we do see many of our services OEMs looking for consolidation in this market. The option for us is really to grow further by acquiring other businesses in the same services area, or by selling to a global leader who will be able to take this business and grow it further. Why did we choose the latter? Because we found the price that which we could offer the latter, as well as the deployment of the proceeds from that into our core Power 930 vision would enable us to do that without any incremental equity dilution. Mohan, would you like to add anything more on this? Absolutely. The value that we are able to generate by this is what is the differentiator, number one. Number two, the manufacturing aspect, which you also asked, is more of a sticky business. We are getting into long-term contracts, a highly predictable business, and that is actually leveraging some of the activities that we are doing in defence, space, and electronics. It means that we are able to consolidate and leverage all of our business verticals and provide a total end-to-end solution to our customers. I hope we have answered your question. Yes, you have answered. Couldn't we have done it both simultaneously? Would that be an option? Being a hypothetical question, yes. But when we look at the strategy, the idea was to grow more into a product-based business. Hence the decision is purely based on that. Okay. Understood. Regarding the provisions that you mentioned about, I mean, 22 crores, where are these accounted? 10 crores provision for receivables, 3.5 crores for hedge and 22 crores for deal cost. Where has been this accounted in the balance sheet? Shashi, can I hand it over to you? Yeah. If you look at the financial statements as what has been filed, the 21 crores of the transaction-related cost is sitting in discontinued operations as an exceptional item. It does not come out specifically on the face of it. If you go to the notes to accounts, you will be able to find that. With respect to the provisions, which I am talking about, which is about 6.5 crores for a provision with respect to an order which we executed for the Ministry of Defence and another 3.14 for a Defence PSU. Then the unwinding of the hedge provision of 3.5 crores is actually sitting in the continuing business, which is a part of the other expenses which you see here in the continuing operations. Thanks, Shashi. Thanks, Deepak, for your questions. You can keep your hand raised to join the question queue. We will take the next question from the line of Koushik Mohan. Hi, Koushik, you can go ahead and ask your questions. Hi, sir. This is Koushik. I just wanted to understand what will be your number as come to the PAT level, because I can understand on the EBITDA level upside, but can you give a clarity on the PAT level? You are talking about the normalized PAT? Yes, normalized PAT. With 13 apart from in offline, this year closing is what we are talking about. I just wanted to understand what will be our PAT. You are talking about the quarter 1- The guidance for the Guidance. The guidance for the FY 2027. Yeah. Can I take it? Yes. Yeah, please. As I have indicated, we will be replacing the EBITDA through both organic growth and inorganic acquisitions. We have indicated an EBITDA of INR 270 crore. We expect PAT to be broadly around 50% of that number. It could be higher because we will have proceeds from the divestment that will be available to us, that will help us pay down some of our debt and reduce our interest cost. We are talking about INR 135 crore as our PAT. Am I right? Broadly around those regions, yes. Okay. We have a lot of acquisitions and a lot of disinvestment of the business are going on, right? This number will not be impacted. I can think that Q2, Q3, Q4 will be ramping up and these numbers will be coming as yet, right? Is what my understanding right? That is correct. Perfect. We expect the acquisitions to kick in over the next few quarters. which will actually contribute to the top line and the bottom line. Perfect. My second question, I just wanted to understand what is the update on the acquisition side. I can understand in Q3 we will be having one settlement of the money and Q1 this quarter, we will be having one settlement of the money. With that, we are going for an acquisition. What will be our acquisition status? Here in the presentation, it is not mentioned very clearly for me. Okay. It is- Can you give the date? Like by this is the time that we are in the line. Yeah. It is covered in multiple slides. One, of course, I will cover from an aerospace perspective. With aerospace, we are talking in Q2, and which is coming out very clearly in my slide. We will be completing it. An LOI is already issued, and we are at the advanced DD phase. Right. Our expectation is that we will complete the activity before the end of Q2. We also have one more which we are evaluating, and if everything goes as per our plan, that also we should be completing it by Q4. These are the two opportunities that we are pursuing in aerospace. Maybe I can just cover on the XIDA side. On the XIDA, as you know, we are already underway with the business transfer agreement. The business as an acquisition will happen to us by this quarter. Again, they are committing to doing that by this quarter. We will have two acquisitions in place generating revenues and generating bottom line by the end of this quarter. We do have a few other acquisitions which we cannot disclose at this stage because they are still in the non-binding stage. As we get to a binding agreement and board approvals, we will come back to the market and announce those acquisitions. Okay. Just for a clarity basis. Sorry, I can just also clarify that Q3 and Q4, as we have clearly committed in our guidance, we will have one of those coming into in Q3 and one coming into Q4. Perfect. I just want another clarity. How would the next year is looking like? Because a lot of things are happening this year. I can understand this is a transforming stage of the year for the entire life of what we are talking about FY 2030, top line for the guidance. How is the next year looking like? Do we have this kind of replica effects in next year also, or this is the year that everything will be settled properly? When you say everything will be settled properly, you are talking about the costs that are there. Acquisition cost as well as employees and everything. Whatever we have, everything here. A majority of our acquisitions will be in place by the end of this financial year, and they will start generating revenues and EBITDA for us. We will continue scouting the market for acquisitions. Why are we looking for acquisitions? Because we do see very interesting opportunities where we can quickly scale up in terms of capabilities, in terms of customer access, and in terms of getting in a specific order book or a specific certification that an existing target already has. So we will be in the market for it, but these acquisitions will be much smaller in scale compared to what we are doing this year. Thanks, Mukund. We move on to the next question. We will take the next question from the line of Praful Rai. Hi, Praful. You can go ahead and ask your questions. Yeah. I have two questions. One is on the defense order, which is of 4,500 odd crores. Wanted to get a sense of what is the timeline for execution of this order. Can you give a broad timeframe that this is the N number of years in which you are going to do that? That is question one. Second question is, what is the defense order pitch pipeline we have, if we have a target of the order intake for the year as a whole? These are the two questions I have. Thanks. I think, first one, to answer your question, we are covering this entire forecast visibility before FY 2030, which is approximately about three years. There could be some spillover in the fourth year. To address the second question, I think Mukund already gave the FY 2027 guidance, so we have that well in place. You see, because the Just to clarify, it is a 35% revenue increase year on year in FY 2027 in defense. Okay. 75% year-on-year, but this is a finite timeframe order, so you will have a very strong growth for next year also. Absolutely. My second question was on the pipeline of defence. Can you throw some light in terms of what is the kind of pipeline we are building because we are adding capacities to just get a sense of what kind of size of business we are expecting in addition to what we already have? The pipeline is quite huge. As you know, we are covering the pipeline across the unmanned systems, the missiles, and also the radar and EW are our core area. Almost the visibility that we have is exceeding about INR 24,000 crore. But that is a huge pipeline, which actually converges into the forecast visibility which we have stated. Last question. This Power 930, the target which we have, we have been stating that for a while. Given the restructuring of the business we are doing, are we still maintaining that objective, or there is a change? I will let Mukund answer that. Our Power 930 objective had several components to it. One was in terms of a focus on certain sectors, which we are well on track on. Other was in terms of moving us from being a services to a manufacturing company, which we are well on track on. You can see that happening right now. The third, of course, was the revenue targets as well as the PAT targets. We did at the time of formulating Power 930, said, "Today's revenue will be tomorrow's PAT." That was a FY 2024 revenue of INR 950 crore, which we believe would be the PAT target by FY 2030 of INR 950 crore. We believe all these acquisitions, these divestments, the capital that's come in, and the growth that we have in the organic business will help us achieve those targets. Our Power 930 targets remain still absolutely firm. If time permits, can I ask one more question? Yes, go ahead. Yeah. On this Power 930 we are talking of, this is all contingent on the acquisition which we are doing now. Is there any reason for us to believe that some of these acquisitions, because acquisition is a binary event, right? It can happen or it may not happen, that some of these acquisition may drop out? You have a perfectly valid question there. In terms of our aerospace acquisition, we are clearly at a very advanced stage, which is why we have indicated that will actually be closed by this quarter itself. In terms of our Vega acquisition, the business transfer acquisition, again, at a very advanced stage. We already are working with a partner and we will be again closing that within this quarter. In terms of the other acquisitions, we have few acquisitions across the various segments we work in. We are at non-binding offers, moving into due diligence, yet to move into a binding offer. So your point out there about their falling off is there, but the fact remains that we have a pipeline of these acquisitions. These acquisitions in effect help us achieve a common objective, which is an objective of getting a capability or getting access to a customer in a particular geography. Thanks, Mukund. We will move on to the next participant. Our next participant asking question is Mahek Talati. Hi, Mahek. You can go ahead and ask your question. Hi, sir. Good evening. Sir, my first question is with respect to Project Kusha. What is the update over there? I think I have covered. We are going deeper into Kusha project. We have the orders for developing electrical systems. It includes the mobile mast, and also it includes the electronics. We are already there in the digital beamforming units of the radar. Also, we are getting into, there are many more RFPs are in progress. We will be quite deeper into Kusha. Also, Paul, I will take this occasion that we are also quite deep into BrahMos. The LUH maritime order that you have mentioned on the screen as well, we were expecting that to deliver upwards of INR 150 crores-INR 170 crores for this year. Where are we on that? Yes. This has the visibility of approximately INR 150 crores to INR 170 crores. Is the one which we are addressing. Yes, we are well on track on that. Is it backed by confirmed orders or is it a visibility? No. This is backed by confirmed order. For Kusha, we were supposed to qualify in this quarter. Where are we on that? How many are competing? What is the competitive landscape over here? Competition landscape, obviously I will not be able to discuss here. We are on four different modules for Kusha, and it is growing. For MBDA, what is the focus on test bench that we will be supplying this year? What is the revenue that we can expect from that? Also for the launch and maintenance part. Sure. The test benches, as you mentioned already, last year itself, we received one good start for our entire center of excellence for the test benches. We are growing across. We were working on the MICA and Meteor platforms. Now we are going across the CAMM and Aster platforms. This year also, every year, we are working on delivering about five test benches year-on for next three years. That is fully intact. Addressing the larger thing, MBDA, as we mentioned, our relationship is going quite deep, and we will be addressing certain Make in India efforts going forward. Probably very soon, you will hear those announcements. Okay. What about launch and maintenance over there? Launch and maintenance is in different phases. That is carrying on. Actually, there is a new set of activities that we have initiated, which is resulting as part of a large order being placed on the Rafale. We will be much more deeper into multiple activities with MBDA. Thanks. Thanks for your questions. We will move on to the next participant. Our next participant asking a question is from the line of Piyush Sarawagi. Hi, Piyush, you can go ahead and ask your questions. Yeah. Hi. I know you touched upon this a few minutes ago on the MBDA's draw expansion. We had very large plans on expanding the MBDA partnership. What is the specific update on it, and when do we start seeing first set of orders and work? I think we covered partially in the previous question. MBDA, as I said, test bench, we are growing, and our three-year plan is intact, and the delivery is going on. We are also now spreading across the new Make in India initiatives as part of the Rafale program. It is across local assembly of missiles, and we will be also undertaking certain production of large electronics. Much of the details cannot be stated here. But we are very well on track, and you will certainly see us in the announcements. Certainly. Secondly, Doctor, as Hiren spoke about the seekers of BrahMos, I think couple of calls ago, or last call. What is the update on that? So, we are in the advanced stage of realizing a prototype seeker for BrahMos-NG, and we have received the acknowledgment and endorsement from the customer on that. We are also part of the EoI on that topic. We have NC and CNC process and EoI process. We are doing two things in the seeker. One, we are developing the seeker using the current specs in the AESA technology. We are also incorporating our proprietary direct RF technology onto the seeker. So two types of seekers we are developing, which will be the next generation after the gimbal seekers are being phased out. So in addition to BrahMos, we are also developing the seeker for one more missile. So seeker will continue to be the technology that AXISCADES would deploy for various missiles in the future. When do we start seeing business from XIDA? Next financial year onwards. Okay. Sure. Thank you. Thanks, Piyush, for your questions. We will take the next line of questions from Mayur Parkeria. Hi, Mayur. You can go ahead and ask your questions. Thank you for taking my questions, and wishes to all the entire team of AXISCADES. Am I audible? Yes, you are. Yes, Mayur, go ahead. Clearly many things going on in the company. As financial analysts, it is very easy for us to just look at numbers. But hats off to the entire team for pulling off all the required and the key long-term milestones in terms of divestment, in terms of monetary aspects, in terms of services to manufacturing, and many other milestones which are there. It is a great effort, and we can understand that. So congratulations to the entire team on that side. I just had one question. We had plans for strategic partnership at the subsidiary level for our entire CapEx program. In the light that now we have huge funds available after divestment of the aerospace services also, is that still on cards? Is it on the priority? Will it come little later? Just around that, if you can give some understanding around the strategic partnership side. Thank you. Thank you. Shashi, would you like to take that or do you want me to take it? Please take that. Yeah, sure. You are right that we do have significant resources arising from the divestment, but we do have plans for these resources. But remember, our strategic investment in the joint ventures through our OEM partners was not just about capital. It was about a commitment. It was us also providing a commitment to our JV partners that we will have a dedicated services, a kind of dedicated access, dedicated IP, for what we do for them out here. So we still continue having conversations with these OEM partners. Many of them are very interested, as you are very aware, precision manufacturing as well as precision electronics. India as being a global supply chain provider. Many of our global OEMs are now looking at India as being a source for supplying for their global supply chains, and they would like to have a stake in that. These conversations still are very much ongoing. They are ongoing with our existing OEM clients. They are ongoing with some of our newer OEM clients that we are talking to right now. We are very open to that. Is there any timeline which we would like to call out right now, or it is slightly early? I think it is quite early right now, not because we are not ready for it. It is more a factor of some of these do take time. The way we work through it is some of the OEM partners start working with us. They become our customers, we become their partners, and then we graduate to becoming a more strategic partner through a JV. Okay. You will hear more in this space from us. Okay. Can I just squeeze in one more question? Sure, Mayur. Go ahead. Yeah. Thank you. Sir, on the space side, while we have been mentioning space as a focus vertical, will you be comfortable sharing any details right now, or do you think as things stand now, apart from the fact of acquisition, which we have mentioned, or the partnership, anything else would you be okay sharing? Because this can be little competitive and strategic in nature. So anything on the space, can you give us some understanding how to look at that? As I clearly mentioned, we do have quite a few things on the anvil. We will be announcing some of these in two big events that is happening not very far away, just a month down the line. One is the Bengaluru Space Expo, for those of you who know that, and the other one is in Paris World Space Business Week in Paris. Both of that, watch out for the announcements that we will make. These will be strategic partnerships, strategic relationships with some of the global space players that will provide us with technology, provide us with order, and provide us with the right kind of leg up that we need to make us successful in the business. So please do wait for that. Thank you. Thank you, sir. Wish you all the best. Thanks for your questions, Mayur. We will take the next participant from the line of Bala Subramaniam E. Hi, Bala. You can go ahead and ask your questions. Good evening, sir. Thank you so much for the opportunity. Sir, my first question is on the defense side. I think this INR 140 crore earlier the revenue was deferred to Q2 and Q3. What are the key operational and customer-specific milestones must be met to ensure this timely recovery? Further, it is related to land systems program. I think it was earlier Colin mentioned about 20 units were ready and 85 in productions. Is that related to that one? I am just trying to understand the deferrals and delays in terms of deliveries. I think the deferred delivery we have already committed that it will be completed in two quarters. You see that in the Q1 we have already recovered most of it, and Q2 we will complete it. It is not related to those 20 systems, but I think those things are already covered, and it is the remaining spillover, which will be covering. We are covering in two quarters. Okay, sir. Sir, I think you have provided that divestment timeline in phase one, it is around Q2 around INR 192 crore. In phase two, it is around INR 718 crore net proceeds. I think right now maybe you are in the right position to give year-wise CapEx guidance. I think earlier it is broadly mentioned INR 1,600 crore for facilities and INR 600 crore for acquisition cost. If you could share the year-wise guidance in terms of CapEx deployment. This INR 1,250 crore extraordinary gain expected from that phase one. If you could specify that calculation numbers, when it is going to realize. I think this phase one and phase three, divestment, it is going to happen Q2 and Q3. Maybe what kind of related cost we are going to realize in Q2 and Q3? Shashi, can I hand over to you? Yeah, I will just talk about the extraordinary gain. Maybe you can talk about the CapEx in terms of the yearly split. Essentially, the extraordinary gain is nothing but the differential value between the divestment proceeds and the fair value of these businesses sitting in the balance sheet. The differential, which is extraordinary gain, is INR 1,250 crores, and that is going to be recorded on the actual closing of the transaction when we get the first dollar with respect to the divestment program. Like for example, in August, the first phase of the Zepho is going to get done, for which we will receive the proceeds, and in second quarter itself, we are going to recognize about INR 200 plus crores of extraordinary gain. The bigger piece is in the November closing, which we are trying to push back to about September onwards. Between September, between Q2 and Q3, early Q3, you will see that this INR 1,255 crores of extraordinary gain is going to come into the P&L. On that CapEx side, sir? Let me just take that. Our CapEx plans, as he said, we will be timing the CapEx to a great extent to the inflows that will be coming in. We have these two inflows due in Q2 and Q3, and then we have the next set of inflows happening in FY 2028. Finally, the last set of, again, a larger inflow coming in FY 2029. Broadly, our CapEx plan will match the inflows that come in with whatever bridging amounts that are there being covered through short-term bridge financing. That is broadly the plan. The reason we do not have a specific year-on-year or quarter-on-quarter CapEx plan is because, as you are aware, two things. One, the timing of our acquisitions is a function of various aspects, including the timing of when the readiness of the partner to actually sell the business out to us. We know that can take its own time. Secondly, in terms of the CapEx, the CapEx that we are building is in response to specific requirements of many of our partners. We will time it so that we can build it at the time when it is actually required from our partners. Our CapEx is, as you know, is going to be broadly around DAC, which is already in construction is ongoing right now. MAC, which construction is also going to start quite soon. Of course, a new CAM which will be set up and will also have a share of CapEx. Please remember also some of the inflows that will be coming in are also earmarked for the acquisition that we have in place. We have already spoken about the acquisitions, two in this quarter and then a few more in the pipeline to close by the end of the year. Is the right way to understand 30% of CapEx through the short-term bridge through debt? Shashi, can I hand it over to you? Yeah. Basically, we are raising a facility pending these divestment proceeds coming in because as what Mukund was saying, the MAC construction is going to start very, very soon. The DAC construction is already going on as per our plan. The objective is to have this bridge facility by the time the divestment proceeds come in. That would be in the region of actual drawdown would not be more than INR 100, 250 crores. Okay, sir. Okay. Got it. Thank you. Yeah. Thanks for your question, Bala. We have time for one more question. To all those who are in our queue, please do write to us and we'll make sure your questions are answered. We'll go with the line of Jatin Chaddha. Hi, Jatin. You can go ahead and ask your question. Hello, am I audible? Yes, Jatin, go ahead. Thank you for the opportunity. Actually, I had two questions. First one is, congratulations on getting the order on antenna beam controller. Regarding that, I wanted to understand, I was curious to know how the entire value chain works. Do we also manufacture the Butler matrix required for that? Do we own the entire architecture of it right from the circuit diagram, or how does that work exactly? When we get an order for an antenna beam controller, how do we execute it? Could you explain it from a value chain perspective? Yes, we do cover the complete design of the antenna beam controller. That is where our value addition and one is the design qualification and also the production which is already going on. As far as the exact architecture is concerned, it goes into a bit of technical. Certainly, we take care of the entire module and the digital part of it is quite complex. So, probably architecture and those discussions are out of scope for this call. Oh, okay. Got it, sir. Maybe probably in a more private setting, I would get more answers. No, sure. Absolutely. Sir, on the second part, I wanted to understand, sir, regarding directed energy weapons. I am just getting a feel of the entire market and possibly the future requirements. I was speaking to a couple of people who are into this space or basically researching what their issue is like as in we grow the output, the energy requirements becomes very challenging. So this will become a point solution or will it become a mobile solution? As far as I remember, the Cilas product, which has the opportunity or has the capability of becoming a mobile solution also. So how are we positioning this for ourselves or as a product for the company? See, there are two things that we are looking at. It is a very good question. Right now, the current power requirement and other things are all driving the solution is being driven for a mobile solution where we need the complete power plant also accompanying the entire system. Okay? But overall, there are certain strategic aspects where we are actually optimizing the power output versus the intended range and the power actually consumed really required. And certainly, a portable solution, which is also on the cards, and we have certain modules specifically internally being designed and developed to ensure that we have these things coming up in future. So we will be covering both the beginning, it will be a mobile-based solution, and going forward, it will be a portable solution. You don't see the power hurdle as a major obstacle, or is it solvable, with time it will get solved? What is your sense on that? The solutions already are in the complete optimization path is actually in front of us. We are already well on the way towards that. It will be handled appropriately. There are different versions, different power requirements of places. Yeah. We are talking about 30 kilowatt. They are all not one single source carrying 30 kilowatt, producing 30 kilowatt. They are modular also. The size will vary depending on the power requirement and the combination. Thank you, and thanks to Jatin for your questions. To all our participants in the queue, please do write to us, and we will make sure we get all your questions answered to your satisfaction. I will now hand over back to Mukund for closing remarks. Over to you, Mukund. Thank you, Shankhini. Thanks everyone for all the questions and for engaging with us through a quarter of transition. My sincere apologies for the technical glitch that we had on our side and the time that we lost on that. I do hope that we have managed to cover adequate ground post that. As you all know, Q1 FY 2027 is the first of the few quarters of transition, where the company has already built the teams, the capability, and the infrastructure to be the company that we want to be at the end of this financial year. Our focus for the rest of the year will continue to be disciplined execution. We will progress with our acquisition pipelines, we will bring new capacity online, and we will deliver on our customer commitments. Our aim is to build AXISCADES as a higher value aerospace, defence, electronics AI, and space business. We will continue keeping you updated through consistent and compliant disclosures in the future. Thank you again very much. Thanks, Shankhini and your team, too. Thank you. Thanks, Mukund, and thanks to the entire management team from AXISCADES and to all our participants here for spending the evening with us. Please do feel free to write to our IR team to get back to you on any other further questions you may have. Thank you all for being with us this evening. We can now disconnect our lines. Thank you and have a good evening. Cheers. Thank you.