Q4 25/26

May 30, 2026

Summary

FY 2026 revenue and EBITDA grew, but Q4 deferrals, restructuring and tax effects weighed on reported PAT. FY 2027 visibility is supported by deferred orders and a sharper core portfolio, with execution, acceptance and acquisition timing key.

Ladies and gentlemen, good afternoon. Welcome to AXISCADES Technologies Limited Q4 and FY 2026 earnings webinar produced by ElevEase. I am Shankhini, Director of Investor Relations from Dickenson World, IR advisors to AXISCADES, and I will be moderating our call today. 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 AXISCADES investor presentation and press release from the links in the chat or from the company website or the NSE. Perfect. I will now hand the conference over to Mr. Mukund Santhanam, Chief Growth Officer and Head of IR, to begin with opening remarks. Take it away, Mukund. Thank you, Shankhini. Thanks, everyone, for joining us today. I hope all of you have had the opportunity to review our results, investor presentation, and the press release, which have been filed with exchanges. FY 2026 has been a very eventful and important year for AXISCADES. It has been a year in which we delivered full year growth, but more importantly, it is also been a year of strategic transition. We have taken decisive steps to sharpen the portfolio to strengthen our focus on our core areas of aerospace, defense, space, deep tech, electronics and AI, and to build the foundation for the next phase of growth under the Power 930 roadmap. At the same time, we recognize that you will have questions regarding our latest quarterly results and the bridge into FY 2027. The management team will address these areas directly today. Our object is to be transparent on the quarter, to be clear on the bridge into next year, and to be disciplined in explaining how we are approaching execution in FY 2027. On the call today, we have Dr. Sampath Ravinarayanan, Founder, Chairman and Managing Director of AXISCADES. We have Shashidhar SK, our Group CFO. We also have other members of the senior leadership team across our key business areas of aerospace, defense, and electronics, as well as some of our leaders across finance, operations, and strategy. The structure of the call will be as follows. I will now first hand over to Dr. Sarin for his opening remarks on the strategic direction of the company and the transformation underway. After that, Shashi, our Group CFO, will take us through the financial performance, the Q4 bridge, and key balance sheet income and cash flow points. After that, we will open the floor for questions. During the Q&A, I will moderate the answer flow. I will route questions to relevant members of the management team. As you can imagine, some of the areas that we work in, particularly defense programs, are extremely commercially and program sensitive. Therefore, certain customer-specific matters or live strategic initiatives, we will answer those questions at the appropriate level of disclosure. With that, I now invite Dr. Sarin to share his opening remarks. Dr. Sarin, over to you. Thank you, Mukund. Good evening. Thank you for joining us today. Let me begin with a direct and honest assessment. In FY 2026, we did everything we set out to do except two things which got deferred, not canceled, but deferred. First, a portion of our revenue shifted due to global supply chain disruptions. That revenue is not lost. The orders are intact. The products are getting ready. We will deliver them after our customers confirm their acceptance clause and conduct inspection. This is a matter of scheduling, not demand. Second, phase two of our divestment, which is central to our restructuring plan. It has delayed a bit. It will happen soon. The strategic rationale is unchanged. The process is active, and it remains a priority for H1 FY 2027. Everything else, every capacity investment, every design win, every new initiative, every customer relationship happened as planned. I want that to be absolutely clear before we go any further. FY 2026 has been the most consequential year in the 20-year history of AXISCADES, not because one of the quarter numbers, because of what we built. We did not have a bad year. We had a building year. There is a fundamental difference. We set out on Power 930, a clear non-negotiable target of INR 9,000 crores of revenue by FY 2030. Delivering that demands deliberate, significant, and disruptive shifts across the company. Every one of those shifts was initiated in FY 2026. Earlier this week, we signed the divestment of phase one of our engineering services business, heavy engineering, energy, and automotive. This is only the beginning. Further restructuring is underway and planned for H1 2027. We are not shrinking. We are sharpening. Every rupee of revenue we remove from engineering services gets reinvested into businesses with structurally higher margin, longer life cycles, and stronger strategic moats. Our Devanahalli campuses and our Missile Atmanirbhar Complex, MAC, in Hyderabad will become operational through FY 2027. We have initiated expansion beyond them. Together, they give us far larger and more capable manufacturing, testing, and MRO footprint. We are also in advanced stages of finalizing an aerospace manufacturing acquisition that will jumpstart high-value manufacturing activities in Q3 of FY 2027. To fill this capacity, FY 2026 was our strongest year yet for building relationship with global OEMs. We carry a powerful pipeline into FY 2027. We have initiated the creation of Xida Inc. Xida Inc. is American-led, Silicon Valley headquarters, deep tech and AI company. A subsidiary of AXISCADES, but designed from day one to think, operate, and scale like a U.S. technology company. American leadership, American speed, American ambition, and Indian and Vietnamese engineering depth as a competitive advantage. Xida is designed to be a hardware electronic-driven AI company operating inside the golden triangle of data centers, generative AI, and physical AI. This golden triangle, data center, generative AI, and physical AI is what whole world is investing into. It is American-led, autonomously run, and strengthened by two acquisitions we are evaluating. Our existing ESAI business. It is not a new company. All our existing ESAI business and the AI team will move into Xida, giving it an immediate revenue, customers, and credibility. We have established a space division. Our space situational awareness initiative with Aldoria is underway, and we are evaluating strategic partnerships for space-related, especially space bus and space payload manufacturing at our Devanahalli campus. We already started building infrastructure for the same. What emerges from these shifts are not incremental improvement. It is a transformation. A sharper in focus, higher in margin and value, global in reach, scalable in foundation. AXISCADES operating at the cutting edge of the domains that matter most to India and the world. Defense, aerospace, space, and deep tech. Company built not on ambition alone, but on the foundation we laid brick by brick in FY 2026. To every shareholder, customer, employee, partner, I want to reiterate this. We built the runway in FY 2026, FY 2027 is the takeoff. Before I complete my speech, I want to set one frame of reference that I believe is essential to understanding where AXISCADES stands today. FY 2026 and FY 2027 are not two separate chapters. They are two acts of the same story. Think of Baahubali. Part one ended with a question that only part two could answer. Think of Durangar. The first part built a position so intricate that only a sequel could reveal what it all meant. In both cases, judging the first part in isolation would miss the entire point. That's exactly where we are. FY 2026 and FY 2027 viewed together will provide the answers. I am here today to lay the full picture. There is a famous saying attributed to Benjamin Graham, the father of value investing. He said, "In the short run, the market is a voting machine. In the long run, it is a weighing machine." I would urge every investor in this room to weigh what we have built, not vote on one quarter. And like every great two-part story, the second act will make the first one worth it. I ask you to stay with the full story. The best of AXISCADES is not behind us. It is directly ahead. Thank you for all your support. Over to you, Shashi. Hi, Shashi. We can start with your opening remarks. Yes. Sorry, I was on mute. No worries. Keep going. Thank you, Dr. Sarin. Good evening, everyone. Dr. Sarin gave a very apt description of taking FY 2026 as well as FY 2027 together. Let me start on that note. Let me say that FY 2026 was a strong operating year and a demanding transition year. We had three quarters of very strong, exceptional performance. Of course, as what Dr. Sarin said, Q4 may be an outlier in terms of how we ended the year. Talking about the full year, the revenue grew 12.4%, EBITDA grew 24.6%, and EBITDA margin expanded 150 basis points to 15.3%. The reported PAT did not reflect that operating progress. I will explain the bridge in three parts. A material Q4 revenue recognition deferment, one-time transaction and exceptional items linked to the portfolio restructuring, and a tax base that is not comparable with FY 2025. I will explain why FY 2027 starts from a different operating base with a cleaner portfolio, stronger core domain mix, and tighter focus on cash working capital and execution. At the full year level, the operating results are unambiguous. The revenue was at INR 1,159 crores, a 12.4% growth year-on-year. EBITDA was at INR 178 crores, a 24.6% year-on-year growth with margins at 15.3%, which is 150 basis points more than last year. The profit before tax, before exceptional items, was INR 125 crores, which is 36.5% growth year-on-year. The profit before tax after exceptional items was at INR 114 crores, which was 29.8% growth year-on-year. The normalized PAT came at INR 83 crores, which is 27.6% year-on-year versus normalized FY 2025 PAT of INR 65 crores. And of course, the reported PAT at 72 crores was about 4.3% de-growth year-on-year, which we will explain in the following definitions. For Q4 specifically, reported revenue was 273 crores, EBITDA was 34 crores, pre-exceptional PBT was 14 crores, and PAT was at 0.4 crores. Before we move into questions, I want to directly bridge the difference between the underlying operating performance and the reported PAT outcome. At the operating level, revenue, full year EBITDA, EBIT, and pre-exceptional PBT all grew. However, reported PAT did not reflect that trajectory because three items affected the quarter and the year-end reported number. First, the Q4 revenue recognition shift of 142 crores, which also carried an EBITDA impact of more than 40 crores. Second, portfolio restructuring and exceptional impacts linked to the strategic divestment process. And thirdly, a non-comparable tax base versus FY 2025 tax. We had earlier warned with an EBITDA expectation of around 215 crores and PAT expectation of around 110 crores. The shortfall against that expectation is substantially explained by these bridge items. Importantly, the revenue recognition movement is a scheduling issue, the restructuring impact is linked to a deliberate portfolio action, and the tax comparison is affected by the FY 2025 base. That is why the reported PAT number should be read with this bridge rather than as a reflection of the underlying operating direction of the business. Now, as to factor one, which is Q4 revenue deferment, which had an impact of 142 crores in revenue at about 40 crores of EBITDA. The 142 crore of Q4 revenue could not be recognized before year-end. The issue was timing and execution, not demand erosion. The underlying contract values remain intact, and the customer relationships remain unaffected. The revenue has moved into FY 2027 visibility, with recognition expected across Q1, Q2, subject to delivery, inspection, customer acceptance, and applicable revenue recognition criteria. Now, the second matter with respect to the 45 crores. In this 142 crores, I'm just giving you a brief breakup of how this 142 crores is stacked up. The first revenue deferment was of 45 crores, which was a defense manufacturing program. Supply chain disruption to a critical input material affected production timelines on land systems order for the Ministry of Defence. The supplier constraint has since been resolved. The next item is of 84 crore revenue deferment, which is pertinent to our strategic electronics program. Our monopolistic hardware supplier redirected output to war-related priority programs, thereby impacting the production. The input materials have since been secured. The last one being the 12.6 crore aerospace and defense contract, the deferment arising directly from the Akkodis divestment transaction, a contract designated as strategic for retention, which was deferred during the transition. The broader learning from Q4 is clear. As AXISCADES moves from engineering-led delivery model to manufacturing-linked execution, we need stronger supply chain buffers, acceptance slot planning, and program management discipline. Those actions are being built into the FY 2027 execution cadence. In terms of factor two, which is an exceptional item which had an impact of 11.17 crores. On 26th May 2026, AXISCADES signed definitive agreements to divest the heavy engineering, energy, and automotive engineering service practice to Akkodis for USD 30.63 million in cash, pre-tax. The transaction is expected to close in Q2 FY 2027, subject to closing conditions. The strategic point is a portfolio sharpening. These activities are not core to the Power 930 architecture, and the transaction releases capital and management bandwidth for aerospace, defense, space, and deep tech AI-led priorities. This particular transaction entailed transaction restructuring cost of INR 9.8 crores, which was directly expensed into P&L. There was also a fair value adjustment on divested business of INR 7.98 crores, which was recognized under exceptional items, and this pertains to Echogen, which was sold at less than book value in various reasons. These are portfolio reset costs and should not be considered as recurring operational costs. They also explain part of FY 2026 PAT bridge and should be separated from the revenue trajectory. On closure of this particular transaction with Akkodis, which is expected in Q2 FY 2027, the divestment is expected to result in an extraordinary gain of approximately INR 175 crores, which will translate to a INR 41 per share EPS. In that context, the INR 17.78 crores recognized in FY 2026 should be viewed as a one-time cost in order to unlock a substantially larger value creation event. The last one being the tax charge not comparable year-on-year. The tax charge in FY 2026 is INR 42 crores against INR 12 crores in FY 2025. The previous year, FY 2025 net tax included a one-time reversal of INR 10.01 crores from a favorable income tax order. FY 2026 reflects a normalized tax position. The average tax rate appears to be higher at 36% for FY 2026, as the profits in some of our overseas entities carry a higher tax rate, and also the fact that the company was not able to recognize deferred tax assets in one of our loss-making entities in Germany. Now, coming to balance sheet and cash flow. Let me address the balance sheet and cash flow directly because receivables, current borrowings, and operating cash flow are trade investor questions. Three items require context. The first one being receivables, elevated at year-end but resolved since. The closing receivables were at INR 411 crores with a DSO of 130 days, which looks elevated. Since March, we have already collected INR 155 crores from these receivables, and as a reference point, the DSO is now 81 days. The year-end position was a timing issue, not a collection issue. The collection has since happened. The second one being the operating cash flow, a program timing issue, not a structural problem. The operating cash flow was negative, driven entirely by about INR 100 crores of land systems WIP classified under other assets. This is contracted with the Ministry of Defence and with 20 units ready for dispatch, 25 at assembly stage, and 85 in production. The pre-dispatch inspection by the MoD is currently in progress. The dispatch and invoicing are scheduled for Q1, Q2 FY 2027. The cash flow optics in FY 2026 reflect a program in its execution phase, not a deterioration in cash generation capacities. The EBITDA to cash conversion deficit in FY 2026 is almost entirely explained by the INR 142 crores of revenue deferment and the unbilled revenue build-up in current assets of around INR 100 odd crores. When these programs deliver and collect in H1 FY 2027, approximately INR 120-INR 140 crores of cash will be released into the system. The business has consistently generated strong operating cash in prior years, and this pattern will resume. Now coming to borrowings and CapEx, these are all purposeful and self-funded. The gross borrowings increased by INR 87 crores from INR 189 crores to INR 276 crores. This was a project-specific working capital raise for land systems. It retains as program invoices from FY 2022 to FY 2027. The 96 crores invested in DAL, DAC, MAC facilities were funded entirely by internal accruals. The total assets moved from 1,127 crores to 1,466 crores. The consolidated net worth stands at 734 crores. The Hyderabad facility, which is around 8.2 acres of land, where we have paid about 40 odd crores, which is the full value of the land, and the Yeola facility, which is 165,000 sq ft, which is a new lease with Aero Electronics, are reflected in non-current assets and the right of use assets respectively. Both are operational infrastructure investments and not speculative. Coming to the domain mix after the transaction has closed, there is a strategic shift which is very visible in the numbers. The core domain of aerospace, defense, and ESAI generated approximately 904 crores in FY 2026 revenue, representing around 78% of consolidated revenue. The domain level contribution is important because it shows the portfolio moving towards businesses that are strategically relevant and of higher value. Coming to each of these domains, the aerospace generated a revenue of 388 crores, which is a 21% growth year-on-year with a 17.3% EBITDA margin. Coming to defense, the revenues were at 379 crores, which is a 25% year-on-year growth and with EBITDA margin of 22.9%. The ESAI domain generated a revenue of 136 crores with a year-on-year growth of 9% and the EBITDA margin being 26.1%. The overall margin profile of the company is improving from a lower margin perspective to a higher margin perspective and the manufacturing-linked execution scale as what we're trying to adopt. Coming to FY 2027, which is very structurally different. FY 2027 is not simply a recovery story. It's a year in which the retained portfolio Q4 carry forward divestment proceeds and DAL, DAC, MAC infrastructure start converting against milestones. Three things change at the starting line. First, the deferred 142 crores is orderly carry forward, not a new pipeline. It enters FY 2027 as hard orders under execution scheduled for recognition in Q1 and Q2. It is not a forecast assumption. It is in the dispatch queue. The second aspect is the FY 2026 transaction exceptional impact do not repeat in the same form. The third one being the divested businesses exit in the P&L and release capital and management bandwidth. The portfolio is cleaner, the cost base is being reset, and the management bandwidth is being directed towards aerospace, defense, space, and defense AI platforms. As already mentioned, there will be an extraordinary gain of around 175 crores when our transaction closes by about July, August of this year. Coming to the revenue visibility. Revenue visibility is something where the consolidated FY 2027 revenue is trending towards 1,377 crores, representing a 52% growth on the retained business base of 903 crores in FY 2026. The 927 crores in orders currently under execution. The 142 crores deferred from Q4 FY 2026 sits within the 927 crore order under execution bucket. 285 crores in assured forecast visibility programs where defense have been won and assigned as orders. A qualified sole source or limited source supplier status. Conversion remains subject to customer procurement timelines and budget approval. The 165 crores of acquisition-linked visibility comprising the ESAI aerospace acquisition component disclosed in the investor presentation. Of course, this depends on the transaction closing, integration, and timing. In closing, I would want to say that the FY 2027 bridge is visible. Its integrity will now be established through execution, conversion of deferred revenue in Q1, Q2, cash collection, working capital unwind, disciplined CapEx deployment, and milestone-led progress of our Power 930. We will report that progress transparently through our normal quarterly results and regulated disclosures. I will now hand back the mic to the moderator to open the floor for questions. Thank you. Thanks, Shashi. We will now start with the questions. Just a reminder to all our participants, to ask a question, you will have to raise your hand to join the question queue. Quick reminder on how to raise your hand. 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 from the options. Your name will appear on the queue, and I can call on you. If you are on mobile or tablet, you can tap on the more button at the bottom right of your screen, then select raise hand from the menu. Great. We will start with our first question. Our first question will be from the line of Nikhil Chandak. I will also request all participants to keep their question limited to one question, and we will take some more follow-ups if we have more time towards the end of the call. Nikhil, you can go ahead and unmute yourself and ask your question, please. Yeah, thank you. I have only one question, which is I wanted some clarity on your FY 2030 vision of billion-dollar revenues. Now, if I look at the 2026 revenue, say roughly INR 900 crore to INR 9,000 crore is a 10x jump in the next four years. What would this 2030 revenue target now get scaled down to? Or you still think this is organically achievable in the next four years? I will take this question. This is Sarath here. Nikhil, thank you for this. As you know, predominantly we are design-based revenue. When we go to manufacturing, it is automatically a 10x, 20x. Design, if I convert all the design wins to manufacturing or instead of design, I take a manufacturing, it is very, very high value in 10 times. Predominantly what we are planning to do is every design, everything, what we are doing before getting to a manufacturing, as we are building an ecosystem that can manufacture these things. Automatically, we are not scaling it down. We are sticking to 9,000. Because it is all foundational year, you cannot see the scale right now because the buildings are yet to be completed. Order books are coming up. We are building the order books and we are working towards it. Every aspect, we are moving from design only to manufacturing. For example, ESAI used to take only design work from hyperscalers and large companies. Today, we are insisting for design cum manufacturing. We have enrolled with the large companies, the biggest consumer technology company in the world, as a design cum manufacturing MSA. From that, earlier it was design MSA, so we moved it. Basically, we are gearing up as a manufacturing partner or a solutions partner, systems partner. This automatically ensures a 10x scale-up on what we do exactly. That is my answer. We are not scaling it down. But as you said, can you see this right now? Because of the total, the way we are shifting the business from one to another, it looked like we are not reaching there, but we are there. The real momentum will start happening from this year, the order books and so on. We are very confident. We can see that we are absolutely this thing. We have a strong customer base, we have strong pipeline, and we are totally moving towards the manufacturing and solutions. And infrastructure are getting ready. By this year end, I will have DAC. DAL is already ready. DAC and MAC will be ready. Hopefully, we should start complete manufacturing immediately. Okay. Thank you. Thank you. Our next participant asking a question will be from the line of Rohan Mehta. Rohan, you can go ahead and unmute yourself and ask your questions, please. Hello, sir. Am I audible? Yes, please go ahead. Thank you. Adjusting for the revenue deferment and related EBITDA impact, your normalized EBITDA margins come to around 17%. That is also including the non-core. In quarter three, you had indicated that there is a potential of about 300 basis point margin improvement. Are you still implying that for FY 2027 we can move towards the 20% mark? When it also comes to your revenue visibility that you have mentioned for FY 2027, any further incremental orders are you expecting for FY 2027? How does your order book and pipeline is shaping post FY 2027? If you could quantify that, please. I will just take the margin question, and I will let Dr. Sarin and the other leaders answer the, I would say, the order book and the pipeline. You see, essentially, as what we stated, the non-core verticals which are margin dilutive. Our margin is already kind of, how to say this, digested to Akkodis. What remains are the core verticals where the average EBITDA is already at 20% plus. That is where you start the incremental EBITDA climb. That is something which we are wanting to do at least about 150 to 200 basis point improvement on a year-on-year basis. Sure. Answer the- Maybe I can- Pipeline and other issues. Basically, we are trying to sort of-- Let us divide this into three parts, as you know that we have run space. We are building a strong pipeline in defense, mostly on the very large programs. We are focusing on large programs. Of course, there is a DRDO programs and this 21 design wins what we mentioned that is coming up that could result in certain forecasts and so on. That is very good. That looks very good. What we are focusing on are very, very large programs like Swan drone programs and the CLRTs, and these are all very large programs, HALE and so on. We are focused on that, and I am pleased to say that we are shortlisted for most of these programs among three or four or five maximum in the country. We do have a very good chance of winning one or two of this, will straightaway catapult us to a larger league. That is one thing on defense. Under ESAI, as I have been telling, our strategy is because we could not scale up much as an Indian company, totally. We are trying to position ourselves as a U.S. company, buying a Vietnamese U.S. company also. I am not assured about it, but we are in the final stages of the talk. If it goes through, we will have every three locations, U.S., Vietnam, and India. Already we have the largest consumer electronics company who is trying to engage with us in a big way and one of the large hyperscalers. Then we have the wireless giant, Qualcomm, who is multiplying. See, we started, Qualcomm was last year about less than $800,000 or something like that. This year alone, just in the 2, 3 months, we got a $3.5 million order from Qualcomm. There is a huge shift to India for manufacturing and this thing. We are very hopeful. Qualcomm, again, has given a pipeline, a large pipeline, very large pipeline with a monthly run rate of $500,000 to $1 million. There is a very good momentum in every place in electronic side, but we need a nearshore operation which will have to be in Silicon Valley because we need some kind of a manufacturing ecosystem who are knowledgeable somewhere in Vietnam and India. We are trying to create this at this point of time. I hope that this will scale up tremendously on the ESAI front. As far as aerospace is concerned, we are going to fully get into manufacturing. My colleague later on will explain, we are getting into acquiring few companies. The acquisitions will be focused only on aerospace and ESAI, because defense, we are going to organically set things up. ESAI, yes, one more acquisition we are planning in. We have done an MBO for the aerospace manufacturing that also comes with a very good order book. Hopefully, we should be able to scale it up. These are our listing in the pipeline. I will not quantify that, but probably by Q1, once the Q1 results, once the restructuring process is in place, we will be able to give you a picture of how much pipeline, what is happening, what is the total numbers we can discuss. But I am saying with confidence that we have a very robust outlook for the coming years, including Power 930. Thank you. Thank you. Our next question will be from the line of Mayur Parkaria. Hi, Mayur. You can go ahead and unmute your line and ask your questions, please. Hello, am I audible? Yes, Mayur. Go ahead. Yes. So, good evening to Dr. Esaran and entire team at AXISCADES. Clearly we understand it is very easy to model numbers in Excel, and the reality is very different, and one quarter or here or there, continues to happen. We would still like to congratulate the fact that you were able to cross through the bridge of restructuring. It is a very big milestone and great achievement on that. So, whatever you guided over these quarters, last two, three quarters, the fact that it has got delivered itself is a very great news from a long-term perspective. I had two questions on this itself. One is, just on this restructuring and the sale of the engineering division, USD 30 odd million, and there is an optional payout at the end of 2027. Is that the right understanding? Is it that we will carry on the business till June of 2027? Because the optional payout and it is based on the financials achievement over the next one year. So, will the business get transferred to the buyer, or we will run it? Just an understanding on that. Yeah. Can I take that question Yeah. Let me answer this question. The way this deal is structured is that it is structured as a slump sale. The businesses of heavy engineering, automotive, and energy is going to be sold to the Akkodis entity in India. The way they say this. We will, of course, including the people, including the businesses, including the contracts of what is there in these three verticals. In terms of the divestment price of what we talked about of the USD 30.6 million, there is a, I would say, a guaranteed portion of USD 23.4 million, of which 75% will be paid immediately on closing and 25% will be paid after 1 year. Again, in FY 2027, based on the EBITDA target as what we have fixed for ourselves, there is going to be an earn-out of another USD 7.4 million. Essentially, the entire spectrum of contract, people and all of this will be transferred to the Akkodis entity. We will handhold the Akkodis entity in terms of, I would say, growing the business and the synergies for a period of 1 year, after which we will cash out, taking the balance portion of 25%, plus the earn-out as what I just now told. Okay, so we will continue to handhold that entity up till the. But the owner will be managed again. We will manage the Akkodis, but we will support. We will manage the Akkodis. Yeah. Okay. Got you. Thank you. Please go ahead. The last question actually on this Power 930 are long-term goal. While 20% kind of margins on the core segment is what you have been guiding and there is an indication already that we are very close to that. The PAT number also you have mentioned is close to INR 900 odd crores for FY 2030. Do you think that's underscoring the total Yeah. Is that Yes. This of course came. See, because it will be much more. See, we want to see these two parameters. Either one we can achieve faster. For INR 960, from our PAT percentage, we require only INR 7,200 crores revenue. Okay. Not INR 9,000 crores to achieve at a 25% plus percentage, or that is EBITDA of 25% PAT, more than. So it is not going to be much, but we are keeping both the targets of revenue and PAT as our goal. Because the year I took over, it was INR 960, so we always thought that this year's revenue is tomorrow's PAT. That's how the whole thing worked. But currently, you are right, the percentage looks low, but it is not going to the scale that we can do a INR 9,000 with a higher PAT, or we are going to do INR 960 with a lower revenue. That can be achieved even earlier than what it is, could have registered 2030. So we are confident about it. So it doesn't reflect the percentage. Okay. Thank you. Our next question will be from the line of Jatin Raghuwanshi. Hi, Jatin. You can go ahead and unmute your line and ask your question, please. Hi, Jatin, you can- Hello. Go ahead, Jatin. Good evening. My first question is, we are close to 1,000, 1,100 to 1,200 crore of CapEx, plus we have two acquisition in hand. If we see our cash flow, it is negative. Our short-term borrowing has also increased. If we take Accord proceeds, so it is around 300 odd crore, 20%-25% of our CapEx. So how this FY 2020 is funded beyond this Accord is cash. In past, we have talked about OEM partnership, but is there actually any sign? We have signed any contract with those OEM partners? We have also told in past, there will be no equity dilution. Is it still the case or we have changed? There are two parts to your question. Let me answer the first part. One is, as I said, this dilution is only phase one. So there is phase two coming. Yeah. Yeah. Phase 2 is coming very soon. We are confident that should be able to fund us totally, whatever we want to build, DAC, DAL, MAC, acquisitions, everything put together. Phase 2 is going to be a much bigger thing. We will be able to, without any dilution, any borrowing, we should be able to do that. We hope that happens. I don't want to fix a time, but we are well on track for that. There should not be any problem about our expansion plans, DAC, DAL, MAC, and further expansion, acquisition. In fact, we are planning to acquire four companies once this is through. There are two in ESAI and two in aerospace side. There should not be any problem, and so on. Second question is OEM relationships. It is going very strong. It is all going very good. But there is a change, the way government is this thing. From this year or almost like last 12 months year, offset is abolished. There is a government that's saying the offset is slowed down or stopped. Now all the new contracts since 2025 is towards Make in India, Atmanirbhar, and that kind of thing, and a new approach is taken. Accordingly, we are talking to OEM to change our proposals and so on. Everything is subject to Government of India approval. There also, we have a good traction. But OEM relationship, OEM contracts, OEM JVs will take, I think, roughly around Q3 for it to complete. We are talking again to two major OEMs. That will also get completed. There is no issue. We are on track. In fact, I was yesterday in France, especially to discuss some handshake about this. We are confident we are on track. There is no this thing. But I cannot, because it involves three parties. One is the major OEM, another is the Government of India, and then us. We need to sort of cross all these things. We are on track for that. If I can just confirm the other point that you mentioned about equity dilution. As we said before, we don't have any plans for equity dilution, and we also will not be taking on any incremental long-term debt. If at all, it's only working capital debt and short-term refinancing. Thank you. Our next question will be from the line of Suman Gupta. Hi, Suman. You can go ahead and unmute your line and ask your question, please. Hi, Suman. Please go ahead. Yeah, thank you. Sir, first of all, thank you for the clarification that you provided in the beginning of the call. My question is regarding to the new strategies that we are entering into, like the space hyperscalers. I just wanted to understand this in detail, what could be the end product, what could be the stamp of these products, and by when we can start generating revenue from this? Thank you. See, there are two aspects we are talking about. One is the space and the Xida. Xida is the ESAI. The old ESAI is now Xida. Xida is, as I said, it is the ESAI, and we had a small AI team, 32-member team, which was catering to internal this thing and so on. Put together right now, our ESAI did a revenue of about $15 million roughly. So we are putting everything into this new vehicle. Why? Because the action is happening in U.S. It is in the forefront of the whole technology change. Because by the time it comes to India, there are a lot of shifts. So we want to be a totally independent company. Same customers. What we are trying to do is already you know that we have four major customers. Two semiconductor customers, TI and Qualcomm. There are two major customers, one hyperscaler and one largest tech company in the world. So these four. Apart from that, we have Axon, Apple, so many other customers. So we have 10, five, four very big, six medium-sized companies. Right now, we are in the process of acquiring two more companies. One company has got four fantastic customers. One, the largest semiconductor equipment manufacturing company in the world. Again, one more extra hyperscaler we never had before. Two other companies, very big, and some few Japanese companies. This is company based out of Vietnam. As we speak, I'm here to sort of close on that. We don't know, but I hope everything goes well. We'll be signing. This company revenue is less, but the customers are very good. Today, customers have stopped enrolling new vendors. We are acquiring those customers by going by this and also some infrastructure. We are confident we are going to scale up. This will be involved in data centers, some kind of micro data centers, data centers, and test equipment. What we do for hyperscalers and the consumer giant is test chips for that. Not exactly test chips, we can say that. Because it is not a long-term defense test chips. For example, you make a phone. It has 30 degree station, 30 degree steps have to be required, and every year it has to change. It is a recurring order. Recurring process will be able to do that. We are engaged with that. We feel there is a 10x revenue possibility from here, and we are working towards it. It is all possibility. We are working towards it. What I can say is that by FY 2027, we will have three to four more big customers in the world and probably a path to scaling up our ISRO relationship. Regarding space, the sweet spot are two things currently. Actually, I can say that to my knowledge, it is about three. It is again another triangle of space, which is space bus, of course, then space payloads, and then SAR, which is synthetic aperture radar, which is almost part of this. We are trying to focus on this. Arun Arumugam has been hired last year. He is a space expert, doctorate in space, U.K. based, and he is the guy who is driving the space initiative for us with his contacts and with his reputation. We are talking to a few customers to get into collaboration and manufacturing of these things. As you know that India has got 50 or 60 active satellites, which Elon Musk is just sending out to sky in this more than 350 per year. Three times what India has. That means enormous amount of need is required for the space payloads. Every country needs it. We feel there is a huge demand. This is the right time to come. Again, we are thinking globally. Globally, not only for Indian market, we are thinking globally. Whatever we do in space, ISRO and all are very global. Very large scale, very global. We need a collaboration. We need knowledge. We are trying to partner with the best in the world. We will try to do that. Again, I will elaborate this once there is a traction because it is still speculative. We are trying to do our best. But I hope that I will talk to you by June, July. Any one of you, please do come and visit us anytime in the last week of June or first week of July. I will be able to elaborate in person what we are trying to do along with the type of collaboration we are doing, open house, visit the facility, et cetera. Meanwhile, I hope I will be able to get much more clarity in the next 30, 45 days on both space and ISRO. Thank you. Regarding manufacturing, aerospace manufacturing, of course, we are trying to do the acquisitions slowly. Take care. Hope it answers your question. Thank you. Our next question will be from the line of Disha. Hi, Disha. You can go ahead and unmute your mic and ask your question, please. Hello. Yes, please go ahead, Disha. Am I audible, sir? Yes, please go ahead. Yes. Thank you so much, sir, for this opportunity. Sir, my first question is on your overall growth. This year, I think you have given the guidance for INR 1,377 crores, so approximately INR 1,400 crores. For us to reach this INR 9,000 crore target by FY 2030, that would imply that you have to grow at a CAGR of about 90% from FY 2028 till FY 2030. This growth of 90%, will we start seeing from FY 2028 itself, or will it be in the later part? How should we look at that? My second question, sir, is on overall margin. In our core segment, today itself, we are sitting at 21%. You mentioned 150 to 200 basis points improvement. That would mean 23% sort of EBITDA for this year. This continuous improvement would mean 50% EBITDA till FY 2050. That would imply that our PAT could be much more higher than what you are guiding. How should one look at that, sir? Disha, thank you. Your question is in two, three parts. One is, of course, we are not going to say continuous improvement in EBITDA. At some point of time, it has to stop. As you know, this year we had 26% on ISRO, about 22%, 23% in defense, 22.6%, and 17.2% in aerospace. That is so. But if you look at it, if I improvise aerospace by getting the aerospace manufacturing, I am hoping to achieve somewhere around average of 23%. And possibly improve until it saturates. At some point of time, it will stop. I am not saying it will be continuously improving. It is going to stop, I think somewhere around 25%, 27% it may stop. Or we will be happy to do that. Second is PAT. You have answered this question. INR 9,000 crores and it is not a proportional PAT. We may reach INR 960 crore PAT much before INR 9,000 crore revenue. For achieving in this rate, we require only about INR 7,200 crores of revenue, which we feel very much achievable. We can achieve it even slightly earlier than 2030. The third portion is, yes, you are right, INR 1,377, but you should understand the composition of our revenue. Today we are only doing design and design-based services and small kind of production, prototyping production. We never do any serial production except for one component which we are trying to do. We never did a continuous production. Now we are trying to do a major productions. When you do that, when you start, it is simple logic, Disha. It is like an architect charges 3% of the fee of a building. A builder charges remaining 97%. If I am a good architect, I am moving as a builder. I get 97% of the value, not the 3%. I am just looking at moving from being an architect to a builder. This is what I am trying. Automatically this scales up my revenue and quality of the revenue, everything. I hope I will be able to transition that. What is important here is massive facilities are required, world-class certification, everything, and customers. Acquiring customers. That is what we are doing through acquisitions. Acquisitions help us buy time, actually 2 to 3 years of time. That helps us acquiring certificates, acquire customer contacts, acquire the ability to manufacture, manufacturing skills, fill the gaps. That is what we are trying to do. We are confident. We have that methodology. We have a super team to back us up. As you know, we have piled up a very good execution team. Hopefully, we should be able to achieve these things. As I said, I am very confident, and there is no in my mind. As we said, I will be able to give much more details because we are still amidst the restructuring process. Probably by July end, when I talk to you on Q1 results, I will be much clearer with more numbers and clarity. Even give you some kind of pipeline items and what we do with it. Thank you. Thank you. Our next question will be from the line of Gaurav Shukla. Hi, Gaurav. You can unmute your mic and go ahead and ask your question please. Am I audible, sir? Yes, you are. Sir, in last con call, we have discussed about ESOP of INR 5 crore in that year, and that time you have told that in next quarter we will tell about FY 2027. Any plan of ESOPs, sir? Am I audible, sir? Murali, are you okay, sir? Would you like the question repeat, sir? Can you repeat the question, sir? I just missed it out. Sorry. My line is. Sir, in last concall, you have told about 5 crore ESOP. Yes. And- Yeah. In that- ESOP for all the people. 38 lakh shares are kept, or 3.8 million shares are kept for ESOPs, and we have given a very limited ESOP right now. This 5 crores is very small. It is only for about 10% of the total ESOP, this thing. Because the ESOP will cost roughly around 54 crores for us. We are trying to bring this as part of this transaction income in the month of Because as Shashi mentioned, it is INR 175 crores are going to come as income to us, extraordinary income. We will try to sort of align this with ESOP. Hopefully, by September 30, by Q2, we should be able to pay for the ESOPs and do provision for ESOP, and start issuing to everybody. Okay? Also one more reason, sir, by this restructuring, we had now 2,800 people. Now it will be reduced to roughly around 1,200 people. 1,500 people will go in the restructuring. In the result of it, we will have limited people to take care of, and new people are also coming. We want to recalibrate the ESOP options and do that properly. By answering this, we'll have both money and the right type of configuration people, et cetera, by Q1, Q2, we should be able to award the entire 3.5 million ESOPs. Okay? Right, sir. Thank you. Thank you. Our next question will be from the line of Bala Subramanian. Hi, Bala. You can unmute your mic and go ahead and ask your question. Good evening, sir. Thank you so much for the opportunity. Sir, with that divestment money of INR 293 crore pre-tax, I am trying to understand what is our CapEx program and the capital allocations. Because if you could describe CapEx program, all three facilities after this divestment and capital allocation in terms of our own company and targeted acquisitions. I think we have planned two acquisitions initially. Yes, sir. I will just tell you, let us not talk only the case one. I will just recap what we have been trying to invest. It is massive. So DAC is about INR 1,200 crores. MAC, the Hyderabad facility, is about INR 300 crores. DAL, we have already spent INR 120 crores, roughly around INR 100 crores already spent and internal approvals, et cetera. And up to this point, it is fine. INR 100, INR 150 crores has already been spent. So we are talking about three facilities, organic, everything put together is about roughly around INR 1,600 crores. INR 1,550, INR 1,600 crores. Acquisitions, one ESA acquisition will cost very less, so roughly around INR 50 crores. And two aerospace acquisition will cost about roughly around INR 400 crores, INR 450. One more ESA acquisition will be INR 150. So we are looking at INR 600 crores of acquisitions, two ESAs and two aerospace. Put together, it will be somewhere between INR 2,100 to INR 2,250 crores totally. And as we said, phase one and phase two put together should be able to post tax, should be able to cater majority of this. Almost 80% of it. So whatever pending, it should be met with internal accruals or some kind of partnerships or JVs or something like that. But we do not see any need. It will be totally self-funded, totally taken care of, and should not be any problem. You can think this is the beginning. Whatever you saw, INR 293 crores and all, are a very modest beginning of our entire big restructuring plan. If you look at this context, I am not able to reveal it more than this because we are under obligations and NDA. As I said, we are on track. We will be able to fund the entire, these both CapEx and acquisitions and through our, this kind of means, sir. Thank you. Thank you. That concludes our Q&A session. As soon as this call finishes, all participants will be directed to a survey for your feedback. I request you all to please take a few moments to fill this in. This helps us a lot with making sure our disclosures are up to standard and meeting your expectations. We will now hand over to Mr. Mukund for closing remarks. Over to you, Mukund. Thanks, Shankhini. Thank you everyone for being on the call today, for asking the questions, and for engaging with us through the entire year. This has been a very important year of change, of strategic execution. We grew our revenue and EBITDA. We have strengthened the core domain mix, and we have taken decisive steps to sharpen our portfolio. Q4 was affected by material timing shifts, and we have quantified that impact very transparently, and I hope you got that full picture clearly in this call. Our focus for next year is disciplined execution, is around converting our backlog, improving cash and working capital discipline, and bringing capacity online. We will continue to build AXISCADES as a high-value aerospace, defense, space, and deep tech AI platform in line with the announcements and announcements yet to come over the year. We will, of course, keep you updated to consistent and compliant disclosures. We also will look to have an open day maybe at our new facilities for you to get a real feel of what we are putting together, and at the same time, probably conduct a management discussion. You can await probably further developments on this towards the end of this quarter or early next quarter. Thank you very much. Thanks. Adding to that, Mukund, I sincerely request every participant here to visit us. Seeing is believing. Please come over. We will allocate slots from last week of June, first week of July. We will create some kind of open house. We will coordinate through Dickenson and Shankhini. Please register if you want to visit. I will be personally available. My team will be available to explain to you, walk you through everything. We will be very glad to receive and give a much more. Our main aim is to ensure that you do not have any ambiguity on our path, our everything, what we are trying to do. Because we need to do, a lot of times by hearing as somebody, just looking at Excel sheets or looking at some PPTs may not give any justification. You have to see the groundwork, what we are trying to do. In person, we will be able to talk much more freely. Please do come. That is my open invitation to you. We will try to set up two week slot. Please do come. Okay. Thank you. Thank you, Dr. Saran, and to the entire AXISCADES team and to all our participants today. For all your follow-up questions, please do write to us at axiscades@dickensonworld.com. This email ID is on the last slide of our investor deck, and we will make sure all your questions are answered to your expectations. On that note, thank you for joining us today, and please have a good evening. You may now disconnect your lines. Thank you. Thank you, Shankhini. Thank you, everyone.