Q2 25/26

Nov 13, 2025

Summary

Q2 EBITDA rose 41.5% YoY and PAT rose 89%; management reaffirmed 45% FY26 core growth and EBITDA growth targets. Facility investment, partnerships and defense demand underpin the longer-term Power930 plan, while ESAI and relocation may temper near-term execution.

Ladies and gentlemen, good day and welcome to the Q2 and H1 FY26 earnings conference call of AXISCADES Technologies Limited, hosted by MUFG Intime. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then Zero on touchtone phone. I now hand the conference over to Mr. Sumit Khetan from MUFG Intime. Thank you, and over to you. Good afternoon, everyone. I welcome you all to the earnings conference call to discuss Quarter 2 and H1 FY26 results of AXISCADES Technologies Limited. To discuss the results we have from the management, Dr. Sampath Ravinarayanan, founder, chairman and managing director, Mr. Shashidhar SK, Chief Financial Officer, along with the senior management team of AXISCADES Technologies. They will take you through the results and the business performance, after which we will proceed for Q&A session. Before we proceed with the call, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risks and uncertainties. For more details, kindly refer to the investor presentation and other filings that can be found on the company's website. With this, I now hand over the call to our Chairman, Dr. SRN, sir. Thank you, and over to you, sir. Thank you. Dear shareholders, welcome to the earnings call of Q2 H1 FY26. It has been three quarters since I had the privilege of resuming my role as Chairman of your esteemed company. As you are all aware of, during this period, I have launched our Power930 initiative, setting an ambitious revenue target of INR 9,000 crore by 2030. To achieve this vision, we have taken up the following initiatives. We are aiming for a robust year-on-year growth of 40% in our core business areas for FY26 and FY27, with further acceleration of over 70% growth projected for FY28, FY29 and FY30 once our infrastructure is fully in place. I am glad to inform you that we are on track to achieve about 45% growth in our core domains this financial year, FY26, and same 45% growth in our overall EBITDA. We have forecast visibility to achieve similar numbers for FY 2027. Also, we are building a pipeline and silo to replenish the pipeline that can help us to achieve 70% growth for FY28, 29 and 30. We are focusing on non-linear growth moving from services to solutions. For this year, FY26, we have set a goal of improving per capita EBITDA by 30% and we are glad to inform that we are on track in H1 to achieve this. As informed to you in every earnings call the last two occasions, we are investing in various world-class infrastructure and facilities. First, our Devanahalli Aeroland facility of about 165,000 sq ft for Electronics, Semiconductor and Artificial Intelligence, and test systems is now ready and a portion of this is already operational. Work has started in ambitious 3 million square foot Devanahalli Atmanirbhar Complex, which once completed will be among India's best private sector for radar, unmanned warfare, and offset fulfillment facilities. To grow at this pace, we set ourselves and tap into the growing demand for proven cutting-edge solutions. We need to forge strategic alliances with global majors and technology leaders. We have signed with various foreign OEMs and technology leaders over the last two quarters. You are well informed about this. We are proactively reviewing our business portfolio and strategizing on areas that show stagnation, negative growth or limited intrinsic value. To ensure that we remain focused and agile, we have engaged a strategic advisor and are making consistent progress in sharpening our business priorities, the results of which will be known by the end of this quarter or Q4. We assure you that we are firmly on track to deliver long-term sustainable accelerated growth that gives all of you the best value on your investment. I wish to express my sincere gratitude for your ongoing trust and support as we undertake this transformative journey together. I am confident that together we will build a future defined by enduring growth, operational excellence and lasting success. Thank you. Thank you, Dr. SRN. This is Shashidhar SK here. I am the Group Chief Financial Officer of AXISCADES Technologies Limited, and I thank you for joining us today for the Q2 and H1 FY 2026 earnings call and appreciate your continued trust and engagement as we share our progress and outlook. We are pleased to report that AXISCADES has delivered another quarter of robust growth and operational excellence. For Q2 FY 2026, our consolidated revenue is at INR 299 crores, marking a 13% year-on-year increase and a strong 22.7% sequential growth. EBITDA for the quarter is at an all-time high of INR 47 crores, up 41.5% year-on-year with EBITDA margins expanding to 15.7%. Profit after tax stood at INR 23 crores, reflecting an 89% year-on-year increase. For the first half of FY 2026, revenue grew to INR 543 crores of 11.2% year-on-year. EBITDA for H1 was at INR 81 crores, a 25.7% increase, with margins improving to 14.9%. PAT for H1 is at INR 44 crores, up 51.6% over last year. These results underscore the strength of our core domains, which is aerospace, defense, and ESAI, which contributed to 75% of H1 revenues and delivered EBITDA margins of 19%. The company continues to recalibrate its other verticals to make them margin accretive. The non-annualized diluted EPS for H1 FY 2026 stood at 10.21, a 53% increase over previous year. Our transformation journey continues in right earnest. The Power930 initiative led by our Chairman is guiding our ambition to reach a billion-dollar revenue by 2030. We are targeting, as what Dr. SRN explained, over 40% annual growth in our core businesses for FY 2026 and FY 2027, with further acceleration as new facilities become operational. Our shift from a service-centric to solutions and products-driven model is already visible in our improved revenue mix and margin expansion. The significant investments which Dr. SRN explained will be funded through internal accruals, strategic investments by our partners, and some amount of bridge funding by the bank. With a consolidated net worth of INR 700 crore and a net debt of around INR 50 crore, the company is in a comfortable position to sustain debt-funded expansion. Our operational discipline and portfolio optimization are driving sustainable profitability. Defense revenues grew by 37% year-on-year in Q2 and 31% in H1. Aerospace revenues grew by 16% in Q2 and 12% in H1. ESAI continues to scale with new engagements in the semiconductor and AI tool solutions. We have secured major wins in DRDO, DPSU, and global OEM projects, and our order book provides strong visibility for the second half of the year. Looking ahead, we remain confident in achieving our FY 2026 guidance, both in terms of revenue and profitability, supported by a robust order book, strategic alliances, and continued focus on operational excellence. Our leadership team is committed to delivering long-term value for all stakeholders as we advance towards our Power930 vision. Thank you, and we now open the floor for questions. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to mute themselves while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Bala Subramaniam from Aryan Capital. Please go ahead. Good afternoon, sir. Thank you so much for the opportunity. Congratulations for a good set of numbers. My first question, these are signing lot of MOUs, what kind of opportunities and when we can expect materialistic order inflows from those MOUs? What kind of order visibility is linked to global partnerships like MBDA, Indra, and EEA? These are my first questions. Babu, can you take it? Yeah. Yes. Yes. I am Sharadhi Babu, Head of Defense here. We have signed up with revenue. MBDA, we already have a decade-old relationship. We are expanding our relationship in missiles. We are on both ground systems, and also we are proposing to manufacture the missiles in India. And we also have a relationship with Indra, which is already materialized, and we are a center of excellence for production of certain systems, including the antennas. And also in future, we will be taking up radars and active protection systems. And we also expanded our counter-drone product portfolio with a relationship with a French company for hard kill options. All these, including also the drone, we are introducing specialized drones in the Indian market. All these relationships are going to really pave a very strong revenue growth in the coming year. Okay, sir. Sir, my second question for this, our new facilities in Aeroland and DAC, how much funding is coming from strategic partners for these new facilities? Sir, do you want to take that? Yeah. So essentially, we are still in discussion with our strategic partners. By strategic partners, we mean the major OEM customers we are talking to. And that is still in the works, and at this juncture, we are unable to commit a particular number on this particular initiative. Okay, sir. Sir, I think we are qualifying into critical subsystems for BrahMos and Kusha. What is the estimated total addressable market over the next five to seven years for the components you are supplying? Example, TPS, exciters, exciter receiver, onboard computer, seekers. What kind of anticipated peak annual revenue contributions expected from these projects from FY 2027 onwards? This, let me answer. Basically, you know the numbers. For example, BrahMos will be 150 systems a year. Kusha is going to be nearly 1997, 96, 476 into four. We are looking at capturing at least 10%-15% in MRL by providing various subsystems for the next five years. We cannot get into details at this stage, but that is our target and goal. We are pretty much on track, sir. Thank you. My next question, the defense payment cycle, nearly 130 days, given expected ramp-up in the revenue, additional working capital may be needed from FY 2027 onwards. What is the maximum required incremental working capital for FY 2026 and FY 2027, and what is the strategy to fund this requirement without increasing interest cost? I think our finance cost is nearly 8%-9.5% kind of range. To get some clarity on that. Yes. When the, I would say, our defense revenues increase, there will be a requirement for incremental working capital. But the fact of the matter is that, we should be able to fund it. Our working capital utilization is not to the extent of, I would say, what has been sanctioned. We should be able to fund the additional working capital from our internal accruals and cash generation. Thank you. Sir, my last question, on the non-core segment side, I think it is not doing good. What is the time-bound plan, maybe next 2 or 3 quarters, for either divestments or restructuring of these assets? What is the expected one-time financial impact versus the ongoing margin accretions from this exit closure? Dr. SRN explained, we are trying to recalibrate these verticals. It is already showing good progress in terms of the positive margins which are accruing to these 3 verticals. At the moment, what is your next question, sir? Sir, like whether we are planning for divestments or restructuring of these assets. That plan is on the table, but it is still, I would say, we are still some way away in terms of, I would say, divulging the details. Sorry to interrupt you, Mr. Bala Subramaniam. May we request you to please- Yeah. Thank you. Thank you, sir. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants, please limit your questions to two per participant. If you have a follow-up question, you may rejoin the queue. The next question is from the line of Deepak Poddar from Sapphire Capital. Please go ahead. Yeah. Am I audible, sir? Yes, sir, you are. Please go ahead. Okay. Sir, just first up on ESOP cost. Any ESOP cost that we have incurred in this quarter? Yes, we have incurred an ESOP cost in this quarter. It is not a very significant amount. It is a small amount of around INR 2.5 crore or so. INR 2.5 crore. And entire year, what sort of ESOP cost we are looking at for this year and next year? You see, we are planning for some additional grants into the course of the financial year. We expect that it would not be more than INR 15 crore-INR 20 crore for the year. For this year, INR 15 crore-INR 20 crore? Yes. Okay, understood. On this, the big expansion that we are planning. What is the total CapEx that we are incurring in there? The expansion is in various phases, and what is planned for the current financial year is the phase one, would be about INR 150 crore-INR 180 crore. Over the next three years for the DAC plan, the aerospace and defense cluster, the plan is to invest close to about INR 1,100 crore-INR 1,200 crore. INR 1,100 to Yes. Next three years. This phase one, this INR 150-INR 180 crore will be incurred in FY 2026 itself? It will be a carry over to FY 2027 also. The total planned CapEx for the current financial year is around INR 150 odd crore. Okay, understood. Sir, how should one look at your debt profile? Our gross debt currently is around INR 163 odd crores. The net debt is just INR 750 odd crores. We are looking at some kind of a bridge finance pending the strategic investments which I talked about. That would be, this financial year would not be more than INR 50 odd crores. No. By FY 2026 end, you would have additional INR 50 crores, that is it? That is it, yeah. That is what we have been- What about the next year, by FY 2027, where do you see your debt level? That's where we are looking at. As I said, one plan is to divest some of our non-yielding, non-profitable assets, which will generate sufficient cash. Plus, of course, the internal accruals and the cash generation from the operation. Of course, the strategic investments we are talking about. That we kind of get clarity by, I would say, by the end of the current financial year. Okay. Is there any bifurcation? I mean, whatever, let's say, working capital plus your this CapEx, so INR 1,100 crores plus your working capital. So maximum how much debt beyond which you'll not go? Some sense on that would be very helpful. We don't want to go for debt unless, if at all we go, it'll be a bridge basis. We have means to fund this. At this stage, I'm not able to share. Definitely, one is what Shashi, our CFO mentioned, that certain non-strategic assets with no intrinsic value by divesting them. That is one definite possibility, and it's a near option. The other one is bringing funds from the strategic investors. We have a good interest in that from various foreign OEMs and other people who have an interest in similar things. We have, but what we want to do is currently create that, because we are very new concept, brand new concept in India and in the defense aerospace world. So we are trying to create a model, a scalable model with this INR 150 crores. The phase one will create a scalable model so that people can see and believe. Then we want to take that investment. Probably we'll do it in the Q1 of next year. Until then, we'll spend. We want to minimize any debts or keep it as low as possible. Even if we do, it will be a bridge fund, not more than that. Sorry to interrupt you, Mr. Pudham. We will request you to please rejoin the queue. We have participants waiting. Yeah. Thank you. The next question is from the line of Kaushik Mohan from Ashika Group. Please go ahead. Congrats, sir, for the good set of numbers. Sir, I just wanted to understand on the taxes part, on the bookkeeping side and also on the funding side. If we are going for the disinvestment of the non-performing core assets, what kind of value that will be unlocked over there and how the investments will look into the current businesses that we have? You see, Kaushik, this is still on the drawing table. At this juncture, we don't want to talk about specific numbers in terms of how much cash we are going to generate out of this. We want to park it for the time being. Okay. And, sir, on the taxation part? You see, your question is why the tax rate is higher, is what you're trying to ask? Yes. Tax rate is higher. Why is the tax rate higher? Essentially because of the fact that one of our entities, which as you know, add-solution GmbH is recording a loss, as a result of which this tax kind of gets drawn down, and it gives a feeling that the tax rate is higher. But the average tax rate which you can expect over the entire year should be not more than 1.56%. Got it. Sir, currently we have a revenue of, in the H1 it is INR 543 crores, and in the run rate it looks like INR 500 to INR 1,100 crores. Can we expect these numbers to be on the clear path, like INR 1,100 to INR 1,200 on the top line? Yeah. As Dr. Efara explained in his introductory remarks, we are looking at a 40% plus kind of a growth in our core verticals, which will take you to the number as what he just now mentioned. Perfect. I will get back in the queue. Thanks for that. Thank you. The next question is from the line of Pankaj Parab from Molecule Ventures. Please go ahead. Hi, sir. Congratulations on the excellent set of numbers. My first question is on our ESAI segment. For this quarter, the numbers look pretty slowed down in ESAI segment. Just would like to know how good is the trajectory for the next two quarters and how would we align to our 40% growth kind of target. My second question is on our hyperscalers, that we have two partners hyperscalers, and how is the business going with them, and what is the revenue potential for the H2 and next financial year from hyperscalers? That's it. I'll answer the first question. Yes, there is a slowdown on ESAI because now we are firmly moving into manufacturing based. We are setting up the EMS facility. The way we have to grow is only because until now we are doing only the design and giving to third parties to manufacture. We are not involved in manufacturing. Now we are in the process of taking the whole box build. Our Aeroland facility will cater to that. It'll take little more time after installing. The facility is almost ready. The equipment will come in a month's time. After that, these two hyperscalers will come. We are setting one world-class acoustic lab for one hyperscaler and a world-class flex board facility for another one. Both will be ready by almost like it will take up to March, not only to get ready, to get certified. They have introduced their existing partners for that, and we have to pay them. The process is going on, so there is a little bit of slow. I don't expect any improvement in the Q3 and Q4 on ESAI. They see the similar growth, but it will be made up for other segments because we want to be firmly on track. As far as your projection is concerned, hyperscaler one will have an exponential growth next year. This year we are doing $2 million with them. Next year it will be around maybe $6 million or $7 million next year, hopefully, if the facility is ready. The other hyperscaler, we are doing about nearly half a million to $1 million. That will double, perhaps, because that will go slightly slower than that. But overall it looks to be good next year. But currently we'll have growth but not in the same pace as defense and aerospace. Okay. Understood, sir. My next question is on the CapEx side. As you just mentioned, there is INR 150 crores planned for the phase one. I guess that is for the Bangalore facility. Phase two will be entirely INR 1,000-INR 1,100 crores for the another facility. Combining, what will be the revenue potential looking for the company, I mean, to the full capacity utilization? Just one clarity that we are trying to equity side fundraising for those CapEx or not? Sir, I will just give a break up. We have three facilities coming up, though on Tuesday I am not talking about Hyderabad basically because it is not in the Q2, up to Q2 because it was sanctioned day before yesterday. We are also building a Missile Atmanirbhar Complex in Hyderabad, very prestigious missile facility. That will also be fairly taken up, that will incur some additional funds. Overall, it will take about three years. It is phase one. After that, there is a phase two and there is a phase three. It will be done in three phases. First phase will be about INR 150 crores, and second phase will be about INR 450, and the remaining will be done in the third phase. Overall fund, let us assume it is about INR 1,500 crores spread over three years, including Hyderabad. We have not mentioned it because it has happened in the Q3. Overall, to answer, we are planning to grow at 45% this year and the next year, which will take us to a revenue of something like somewhere. From there, all the growth should be supported only by the facilities. That means if we have to reach about a billion dollar, INR 9,000 crores, that delta revenue, whatever the additional revenue, should only come from this, which you can do your math. If from current level we have to reach current level +45%, and then whatever growth, 70 should come only from that. That is the estimate, and we should pay that in those years. Understood, sir. Any equity fundraising plan as of now? Nothing at the moment. As I said, the strategic investments which we are talking about, once it gets clear, we need to decide on the entities into which the capital will come, which most probably will be the SPV which holds the land as far as Bengaluru is concerned. In my listed entity, there is no plan for any equity dilution. Sorry to interrupt. May I request next. Thank you. The next question is from the line of Jatin Jadhav from Sahasrar Capital Private Limited. Please go ahead. Yes, this is Jeevan Patwa from Sahasrar Capital. Congratulations, sir, for a great set of numbers. Only one question. The timeline of this missile complex in Hyderabad and this Devanahalli Atmanirbhar complex. Are we on track for the timelines? Yes. Namaskar, Jeevan Patwa. Thank you. This Devanahalli Atmanirbhar complex, we did the groundbreaking ceremony. We are supposed to complete the first phase by September of next year. We are on track. That first phase will consist of radar manufacturing, assembly, and support system, and also antenna manufacturing. This will mostly likely cater to the Indian defense as well as companies like Indra. That is our focus, and we already have orders for that, and as well as facility will be fully ready, we are hoping. The next phase will be complete aerospace paint shop and aerospace-related facilities for system management. It will be starting on November 26. That should be ready by somewhere around next year, December. That will also be mostly on track. For missile facility in Hyderabad, it is going to be backed by very good orders, we hope. Good. We are already discussing, and that is the reason we have went ahead in Hyderabad. It will have a strategic partnership, definitely. Good. We start the work and probably complete. We are starting it immediately. Probably complete by March. That will be our first priority. It will get completed by March 2027. That's the plan. Okay. Perfect. Sir, thanks a lot. Okay, thanks. Thank you. The next question is from the line of Vijay Sarthy from Subhkam Ventures. Please go ahead. Thank you for the opportunity, sir. Congratulations to you and your team for a wonderful quarter. I just had one question. There was a recent announcement about the MOU with Cilas to do counter-unmanned aerial systems. Typically, that will get mounted to UAS, but has some amount of integration to your existing product. Qualitatively or quantitatively, could you help us understand what is the opportunity size and how this technology fares well against the existing technology that today we have, sir? Thank you. Thank you, Mr. Sarthy. Cilas is some of the very innovative hard-kill laser kill, which is by far the most superior product, which is tested in Ukraine war and NATO and other things. We were privileged to receive the technology and support and part of the whole thing, and we are designing the whole system to be integrated with Indian Armed Forces for handling the hard kill. There is no proper hard kill option available at this stage. We are doing jamming and soft kills so far. Hard kill using laser and energy weapons has never been not in a big way in India. This will be very much needed. There is lot of interest, lot of requirements, lot of excitement about this. Okay. From education purpose, sir, there are other companies are also involved in hard kills today. They've also been showcasing interesting. How different is Cilas going to be in terms of- I think we should separately discuss the technology and the- Okay, sure. The other question is, on the defense, we had a very good performance also apart from other segments, at 22% already. Now we are yet to get the new capacity coming on board and really have the leverage. Do we expect defense business margins to say- Can you hear us? 55% in the next three years? Can you hear us? Yes, sir, I can hear you. Can you hear us? Hello. The hard kill options, the other companies, there are various hard kill options, but there are very few companies working on the laser-based hard kill option, and we are in the forefront of leading with technology and also integrating this system. So ours is already a proven system with RF sensing and RF hard kill options. So adding this along with some more active sensors and also with the hard kill option, it is going to be quite a formidable product. And we are sure, compared to the competition, we are the. In terms of range and energy produced, which is much superior range, and the range and the whole energy produced, then the range. These are the major criteria, payloads. Okay. This is far, far superior, probably the best product in the business. No match. Okay. But even government knows this very well. Okay. I don't want to go into this in detail. I will be very happy to explain in person to you when you, if you Sure, sir. can meet us in person. Okay. Sure, sir. Okay, sir. One more question, sir. On the defense segment, we had 22% margins today, and we are yet to really get the new facility and really rev up our operations. Given that, do we expect the current 22% to scale up to 25%, 26% odd percent in the next 3 years? Or probably when we reach the INR 9,000 crore mark. Is it right to look at it that way with respect to defense margin? Thank you. Can you just explain again? I lost you. Can you just tell me? No. Our defense margin in this quarter is 22%, and it is only a start for us. Yeah. No, it will remain the same. I don't think that margins of defense can improve. I don't believe anywhere, because defense is getting very competitive. There is a lot of competition. Most of them go on bids, and there is no way, I think, with Indian defense we can increase the margin. Only way we can do this is the OEM. OEM engagement can increase our margin. As you know that we are working with three-prong approach, and OEM, there is a margin possibility. But I will not commit to anything more than 22%. 22% is pretty high as far as I'm concerned in defense. In my 40 years, that's my experience. It's pretty high, and I'll be lucky to maintain that for next. Sure four years. Sure, sir. Thanks a lot. All the best, sir. Thank you. Thank you. The next question is from the line of Nirvana Laha from Badrinath Holdings. Please go ahead. Hi. Thanks for the opportunity, sir. Sir, a few questions about your existing program. First, on the emergency procurement, sir, is there any visibility of the quantity and POs of drones, counter-drones or BrahMos missiles or anything you can comment on? Yes, on the emergency procurement, we were the first organization to receive the orders on the man-portable counter drone systems. We already actually received the order, and then we are actually working on demo delivery of that. There are also more trials going on, so we expect to receive further orders. It also includes both man-portable and the handled versions of our counter drone system. We have got the orders. Okay. Sir, any comment on possible numbers that you are expecting here? No, numbers I am not able to disclose. But there are many trials going on, so we are very confident of having more success. Okay. Our idea is to be one of the three players, top three players in this, because the market seems to be very good. There are also many, many players now come up. So we want to be among the top three consistently, especially on man-portable, vehicle-mounted, and then handled. In this segment, we want to have a leadership. Technically, we are very, very strong. In the market segment, our idea is to capture about 20% to 21% of this market. That is what I can say at this stage. Okay. Okay, sir. Great to know that. Sir, next question is on BrahMos seeker. Sir, where are we in the process of winning the orders, and when can we expect orders here? Where are we on that? Sir, just to give a little bit technical outlook to you, BrahMos had a seeker from Russian Alaba. The government is looking for indigenous seeker, and the seeker is based on gimbal, slightly old technology, which can be easily identified by enemy. Okay. So already three companies are supplying that. The government is meanwhile trying to look at new type, AESA-based radar. So they asked another three companies to develop that, which we and one more company are developing it. We hope that we will have a successful trial before March. If we qualify by March, we will start getting orders, and from SF, as early as this year. So that will be very good, and we are confident of qualifying. Okay. Got it. So what kind of numbers would Seeker be in for BrahMos? I do not want to comment on that. You know, there are BrahMos currently 100 numbers, and they are ramping up to 160. And Seeker is fast. You know what the value. So it is almost like cost of 30% of the missile, 30%-40%. At least 30% of cost of missile. So it is good number. So we are looking at it, and we do not know. We will share the three way, two way or whatever. Okay, great. Sure. The last question from my side, anything on the MBDA test benches? When can we see the supply and if we will see any supply from H2 itself? MBDA test bench. The MBDA test benches is an ongoing program, so we have expanded, as I mentioned. We are now delivering more number of test benches. As you know, we want to achieve to about 10 benches per year, which is well on the way. Right now, we have already started off with the program, and it is continuously expanding. Here it's an ongoing method. We probably will be supplying to the global requirement. Also we are part of the global supply chain, so we'll be handling all the global requirements from here. Sure, sir. Right now, how many are we doing? You're saying we scale up to 10, and right now- By March we complete three. By this financial year, we'll be completing three benches, and every year, anywhere from five to 10 will be delivered. Okay. All right. Last question, if I may. Any updates on the development and commercialization of TACAN antenna? Anything you can share on that? We will give a good news in about 2 weeks time. Okay. Development is completed, approved by the customer. We are expecting the production order. We will probably be able to, if things go well, by God's grace, we should be able to tell you by another 2 to 3 weeks, maximum 1 month. Okay. Great, sir. Great. Thank you so much. All the best, sir. Thank you. The next question is from the line of Manul Fakharia from Wealth Managers India Private Limited. Please go ahead. Good evening, sir. I wish you all the best and the entire team at AXISCADES for a phenomenal execution. Sir, I had a couple of questions. One is, in the initial answers, you mentioned about the divestment of the non-core. We understand that it takes time, and it's a segment, it's a business part. Do you think we would be firmly in place by the end of this financial year? It should be done and dusted. Is that a fair outlook to have as far as the timeline is concerned? Yes, sir. It's a very fair assessment. It's very much on track. We can assume that. We are also expecting that to conclude by this financial year in March. Okay. Secondly, from revenue perspective, we had a fair allocation to the U.S. Any kind of opportunity or challenges in terms of what is going on, do we face currently or is expected? How do we see this situation? No, sir, we are not people dependent in U.S. We have 120 people or 140 people in U.S. Approximately 120 people are in non-core. We do not think that is a threat. Out of it, only 34 are in H1. That is not affecting any issue. They are already in H1 visas other than American citizens and these things. Remaining are with Hyper5. Hyper5, the leaders, the hyperscalers want every operation to be shifted to India. They are themselves diluting the interest in U.S. and bringing every work to India. We are very safe, sir. Right. With all our anchor customers, be it Texas Instruments, Qualcomm, and the two hyperscalers and other, most of them are India PD now. It is fine. Right. Sir, finally, pardon me, this question is not very right. It is my lack of understanding, but just to try and understand a little bit more. Sir, globally, every country and even the large developed markets, developed economies are trying to increase their spending on defense, especially from the European side. Across the globe now, there is an increased requirement for defense. From a defense perspective, we are dealing in three strategies. We understand. There is a partnership model, there are DRDOs and the things like that. From a global supply, while our partners will be benefited and they will supply. From our perspective, are there anything in pipeline or is that understanding right? Is there opportunity very large enough which we think will come in that Power930 plan or that will be outside of it, or how are we pursuing? Is that something or will we remain from a partnership model? If you can add some clarity on that. Sorry, it is my lack of understanding on that side. No, sir. For example, take most of the places we are talking is where the OEM, along with OEM, their first requirement is to meet the Indian needs. Second is to do some kind of export. It is beyond India. Certain crucial technologies come from them, but this unmanned thing is a great leveler. There is a lot of chance for exports. People are asking for exports because we are all new. We are all on the same page as far as unmanned warfare is concerned. There are a lot of chances of exports, and we are also looking with very serious view to expand. We are discussing, so it is going to work either way. But primary focus, more than 60% will come from Indian-based programs from targeting to the offsets and so on. Second level in that OEM engagement is old products sending it across for a cost arbitration. The third one is our own exports, our own product hitting exports, especially in the unmanned area. I feel by the last another 2-3 years from now, we will be a net exporter. That is what I think. Sorry to interrupt, Mr. Kayur. We request you to please raise. Thank you. The next question is from the line of Harshit from Elara Securities. Please go ahead. Yeah. Hi. Thanks for the opportunity and congratulations for those set of numbers. Just wanted to check on the defense side, sir, what are the key areas that NewVis are concentrating on, let us say, by next 3 years, which will be your top three revenue categories within the defense segment, sir? Harshit, I've informed again and again. We are working on three major areas. Number one is missiles. We are trying to do end-to-end from starting from our focus there on one side, rocket motor and rocket motor filling with completely pyro, and that is really propulsion and so on. That is very important for us. Second thing is the seeker. This forms about 60% of the value of the missile, and also the onboard electronics and those kind of things. That is, missile launcher and launch pad systems. Then final assembly. This is going to be our major focus, and I believe about 40% of revenues of future of our defense will come in that. This is the segment which is much required. Missile being consumable, we feel there is a great deal of demand, and also there is a great deal of demand for exports. This is the area we are working. This requires a strong electronics presence, including seekers, IR seekers, RF seekers, and onboard computers and so on, and then strong mechanical engineering. We are working on it, and our Hyderabad facility is geared up for that, and we are also forging partnerships in this. This is number one. Number two is radars and antenna, which we already have a very strong, but we have never done a full-scale large radars and maintenance. That is what we are focusing on. There is a huge requirement for radar integration, maintenance, support, and so on. Incidentally, we are not looking more at India, but we are looking at foreign volumes. Because radar is fitted in every major thing like RAF, fighter aircraft, et cetera. We are looking at long-term support from the volumes and work with them. Our Gemini facility will cater to that. Hyderabad facility will cater to the number one item, which is missile. Number two will be catered by our other facility. This also I'm looking at around 30%-35% of our revenue comes from this. Then the other third is unmanned. In the unmanned, we have counter-drone system, and also we are looking at three areas in unmanned. That is counter-drone system, then laser kill and loitering ammunition. These are the three things. That is the counter-UAV and so on. We are working on that. There is a lot of synergy between this and the first two things, because when we do loitering ammunition, it's similar to making a missile. There is a lot of synergy we can learn from radars and this about jamming and everything is interlinked. We looked at the other things. The third one is drone systems, which is very small. It's going to be our testing equipment, marks, and whatever we are talking about, like our tank trailers, and we are probably looking at large systems. These are the three segments and the three and a half segments we are going to work with. 30%-40%, 30%-40% the second one, then remaining in the third one, 10% in the drone system. That's hope to answer to you. Yeah. Thanks for giving a long-ish answer and in details. But within all the three segments, most of the relations are through partnership, or we are also doing indigenization in all the three categories through our R&D. If you can also share some details on that. Sir, missile has both. For India, we have to do indigenous. They don't accept the foreign content or foreign systems. So we will be doing indigenous development. For Indian own missile like Prithvi, BrahMos, we have to do it within India. Whereas foreign businesses, there are many designs available, so we have to take technology from abroad and do that. So it's both. Similarly for radar. Then third, it's purely indigenous in this thing, but we will be indigenous not up to the last system, because we'll be taking best-of-breed solutions around the world and mostly integrate them, write software, et cetera, in the unmanned system. Some of them we'll be making. The drone systems are purely indigenous. So if you look at it, 50%-60% will be based on R&D and the indigenous development. 40% will be with foreign technology built to print those kind of things. Understood, sir. Thanks for the detailed answer again. Just lastly, sir, you had also shared at your mini analyst meet, there was a pipeline of close to INR 12,000 crore of order. One was confirmed order, and the other was something that you expect to probably get into more confirmation order. There are six months passed since we last met. How much of the INR 12,000 crore order which you were expected to get into confirmed order has been converted according to you? I hope, sir, I was able to explain my question. I got it. It is a part of our Power930 program. We are always constantly working on three levels. One is on the confirmed order, one is on the pipeline, and another is on a pilot. Currently, our goal is to convert about 50% of pipeline into confirmed and keep replenishing the pipeline. We are always doing that. Currently, what all I can say is we are very comfortable up to FY 2027, achieve the numbers for FY 2027 and the mentioned growth rate. We are absolutely comfortable, and we have strong visibility for 2028, 2029, and 2030. We have a strong base. I do not want to commit to any numbers at this stage, but I can be rest assured we are on track with the numbers as per management team. We are working towards that, with building all these partnerships and all only for that. We are converting. We have a fair amount of success rate with that, and we are working on that. We are on track, sir. Okay. Thank you. Sorry to interrupt you, Mr. Harshad. Yeah. May I request you please rejoin the queue. Thank you. The next question is from the line of Rohan Mehta from Secom Family Office. Please go ahead. Hello, sir. Thank you so much for the opportunity. Am I audible? Yes, you are. Please go ahead. Perfect. In the last quarter, the management had indicated that generally the defense execution, that typically picks up from the end of Q2 onwards. The bulk of the execution expected in Q3 and Q4. But we have noted that Q2 itself has seen a good pickup in execution. Does that mean Q3 and Q4 would be much better as earlier expected, and why would that be the case, sir? Sir, one is we don't want to put ourselves pressure on Q4, and we have excellent productivity this quarter, we can say. That is one reason. Also, one of the reasons which we are in the process of shifting to the new facility. So there will be a lot of disturbance, and we feel that Q4 may or be affected due to this disturbance. Because of that, we try to force extra time to do work on Q2 and also on Q3. Q3 will also be, I believe, as good as Q2. Q4 will not be bad at all, but Q4 will be a filler quarter rather than the accelerated quarter. We would like to be more relaxed on Q4 so that we want to fulfill our commitment of 45% growth. The delta will be done by Q4. What I would assure is we'll have a 45% growth on the core segment, and overall, EBITDA will be 45% growth will be there. Both will be achieved. But we think we want to accelerate more on the slightly more. We are pushing ourselves to foresee the disturbances because it may probably at Q3, 2 to 3 weeks will be lost when moving from our facilities in the city to our Aeroland and so on. That's what is happening now. Okay, great, sir. Got it. Thank you for the clarification. Last question. Sorry to interrupt you, Mr. Rohan. May we request you to please rejoin the queue. Thank you. The next question is from the line of Pujan Shah from Molecule Ventures. Please go ahead. Hello? Hello? Mr. Pujan Shah, please go ahead with your question. Your line is unmuted. Yes. Sir, thanks for the opportunity, sir. The first question pertains to the QRSAM segment. Right now it is getting bit delayed, and one of our key manufacturer is been saying that they are confident on receiving orders in March 2026. Just wanted to understand your part of view that how much contribution we have been expecting from QRSAM segment in FY 2027. And does we have counted as a revenue from QRSAM in FY 2026, or we have already been expecting to get all our revenue materials contribution from QRSAM in FY 2027? Sumit, can you answer if you are with me? Mani, actually. Yes. Yeah. Go ahead, sir. QRSAM, we are expecting around seven systems in the next two months. But this will not contribute to FY 2026, it will be for FY 2027. And the production orders expected by March. Okay. Okay, sir. Got it. Yes. No impact on FY 2026. Okay. Yes. Okay. But any quantum, or you can quantify in terms of number, what would be contribution from this program in FY 2027? Sir, it is very limited, sir, in our product scheme of things. It will be very small Q for QRSAM. So even if it is delayed, we have a backup plan. So we have a sufficient buffer for FY 2027 to meet our revenue and EBITDA goal, sir. Okay. Forty- Sorry to interrupt, Mr. Shah. May we request you to please rejoin the queue, sir. Okay. Thank you. Thank you. The next question is from the line of Jeevan Patwa from Sahasrar Capital Private Limited. Please go ahead. Hello? Yes, sir. Please go ahead with your question, sir. Hi. This is Jatin Jadhav. Thank you for the opportunity again. A great set of numbers. My question was regarding the collaboration we did with the company, the Cilas laser product. What kind of output can we expect on the target, let's say joules in centimeter cube to its maximum range, if you can share, for the product we are designing with them for the Indian Army? Sir, we can't get into that. We don't have the current data clearly, but I will be very, very happy to receive you in our office any moment. Please come. We'll give a presentation. Definitely. And definitely, we would like to. I'm very happy you asked an intense question too. But we will go through that and what we are building, et cetera, we will explain to you, and there's a range way. I will definitely be happy to receive you and go through a complete. Thank you so much, sir, for the invite. Yes. Sir, second question was essentially a follow-up to this one only. There is a company in U.S. who is basically focused on high-powered directed energy weapons, and they have developed a system, Hephaestus is the system's name. My question was, why are not we or India focusing on that? Is it a technology which is not yet battle-tested or, as a professional, do not you see any merit in that technology because we shifted to a laser-based, what do you call, technology for hard kill option? No, it is a high-energy-based system. Still, the technology is not fully ready, and it is bulky. The range achieved versus the power that they are using, the range is less, whereas the power being used is very high. These are not matching with the end user requirement. That is the reason why laser is very important. We are mounting this AJ, and we are mounting it on a small Jeep kind of vehicle, 4x4 vehicle. We need to be very optimal about the size, and real estate available is less. Weight-carrying capacity is less, and terrain is very bad. It is optimized for Indian condition. For India, I think the most suitable option is laser, and that too the fiber kind of solution is the best. Okay. Got it. Sorry to interrupt. May we request that you please rejoin the queue? Thank you. The next question is from the line of Tatia from Long Equity Partners. Please go ahead. Yeah. Hello, sir. Congratulations on fantastic results. I have so many questions. Let's see how many I can do. First question, sir, is on Mistral. Once this EMS facility comes online, let's say by March 2026, can we expect, let's say, $8 million-$10 million of revenue in FY 2027? Then the second part to the Mistral question is, how is the drone controller business with the U.S. drone leader going? Can that business also become a $5 million in one, two years? The answer is yes. Definitely, there is a possibility once their numbers are fairly what we are also expecting. First question, yes. Once the facility is ready, we can expect that kind of numbers. The second question, there is little bit of slowness in the or not the way the business is going on the drone controllers. It's rather slower. We may not expect that kind of numbers. But one thing we are trying to do is integrating with software, et cetera, and make the value more. We hope that will happen. Otherwise, overall, it's very good. Prospects are very good. The answer to your first question is yes, second question is no. Okay. The second question, sir, is, Sasin, Aerospace segment margins compressed, I think, from Q1 to Q2. Also, I think these are historically low margin numbers. I think margin has always been 17%, 18%, 20%. Any particular reason you point out? This is like a one-off, and margins will revert to 17%, 18%? Q2 is usually a period where the activity slows down, mainly because of the summer break in Europe. That's the reason why it has impacted the EBITDA margins, and this will come back in Q3 and onwards. Okay. We are looking at an average 18.5% in Aerospace. That will continue to be there. Maybe overall, year-on-year, it will average about 18.5% plus. It won't go down, but it will be maintained. Okay. If I can squeeze in my last one, sir, when can we see the order for LLTR assuming? It looks like negotiations with Bharat Electronics, it is taking quite a while. Sasin, you want to answer LLTR? LLTR, we are awaiting the negotiations with BEL, actually. Any timeline, Sasin? We are expecting it in a couple of months' time. By then we should have the order. Okay. I have a lot more. Maybe I will reach out offline. Yeah, sure. Thank you. Thank you. Ladies and gentlemen, due to time constraints, that was the last question for today. I now hand the conference over to the management for closing comments. Thank you everyone for the great participation. We look forward to continue to interact with you. Please do reach out for any queries which you may have, either email or connecting with us. Thank you for your continued support. Thank you. On behalf of AXISCADES Technologies India Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.