Q1 25/26

Aug 8, 2025

Summary

Q1 FY26 revenue rose 9% YoY and PAT 25%, with core revenue up 17% and core EBITDA margin at 18.6%. Management expects H2 acceleration and targets ~25% FY26 revenue growth, backed by order visibility and infrastructure expansion.

Ladies and gentlemen, good day and welcome to the AXISCADES Technologies Limited Q1 FY 2026 earnings conference call. 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 your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Sangeeta Tripathi. Thank you, and over to you, ma'am. Thank you, moderator. Good evening, everyone, and welcome to the Q1 FY 2026 results conference call of AXISCADES Technologies Limited. I am joined today by our leadership team to provide a brief overview of the business performance and the financial results. We have with us today Dr. Sampath Ravinarayanan, our Chairman, Mr. Alfonso Martinez, our Managing Director and CEO, Mr. K. P. Mohanakrishnan, our Deputy CEO and President, Aerospace, Mr. D. Murali Krishnan, our Chief Operating Officer, Mr. Shashidhar S. K, our Chief Financial Officer, Mr. Anurag Sharma, our President, ESAI, and CEO add-solution, Mr. Sharadhi Babu, our President of Defence. Before we begin, please note that this call may contain forward-looking statements based on company's current expectations, beliefs, and opinions. These statements involve risk and uncertainties, and the actual results may differ materially. Now, I hand over the call to our Chairman, sir, Dr. SRN. Over to you, sir. Thank you, Sangeeta. Thank you, everyone. It has now been nearly six months since I assumed the role of Chairman of your esteemed company, and during this period, we have embarked on a series of strategic initiatives. I will highlight three major initiatives we have taken up. One, we have set up a target of over 40% year-on-year growth and we are all set for that. We have an order book of INR 1,260 crores for this financial year, FY 2026, and INR 1,827 crores for the next financial year, that is FY 2027. The forecast visibility plus order book totaling to INR 3,087 crores. So we are in a comfortable position to achieve a 40% plus growth. Of course, everything has to be converted in delivery, but we are confident of that. There are no major dependencies at this stage for FY 2026 and 2027, so we are confident of that growth. Please note that this is on the core areas only, that is Defence, Aerospace and ESAI. So we will definitely register growth of more than 40% in these areas, especially in EBITDA, PAT, and as well as in the revenue. The next major initiative we have taken is Power 930, which is reaching INR 9,000 crores, that is $1 billion in the year 2030. So for that, we are building a robust pipeline, also matching infrastructure. So this all should be ready. Pipeline looks very, very good at this point of time. We have time to convert and a lot of things are infrastructure dependent. So we are building up the world-class infrastructure to be ready in time for us to grow. If this happens in 2028, 2029 and 2030, we will have a much greater growth for these three years. So we are kind of at this point of time, the visibility is very, very good and we hope to be on track on this. The third thing is, as you would have noticed, that we have signed some good global partnerships, two of them, which is MBDA for missile activities and then INDRA for radar-related activities. We are trying to sort out this. Not only gives us an annuity revenue and visibility, but also gives us a technological edge to become a frontrunner in missile and radar systems. We are also in the process of forging more such partnerships to stabilize our revenue and growth. These partnerships are across all the three domains, not only confined to different, but also to ESAI and aerospace. With this, I will hand over to our CFO, Mr. Shashidhar SK, to summarize our investor presentation and to the next steps. Thank you very much. Good evening, everyone, and thank you, Dr. SRN. A warm welcome to all of you for joining us today for the Q1 FY 2026 earnings call. I trust you have had the opportunity to review our earnings press release and the investor presentation, both of which are available on our website as well as on the BSE and NSE platforms. Despite Q1 being a traditionally lean quarter, we are pleased to report a healthy performance for Q1 FY 2026, marked by double-digit growth in our core businesses, steady progress in our transformation roadmap, and clear visibility of growth and profitability in the coming quarters. Now I'll walk you through some key financial metrics for Q1 FY 2026. Our consolidated revenue for the quarter is at INR 244 crores, up by about 9% year on year. The reported EBITDA for the quarter is INR 34 crores, up 9% year on year, compared to INR 31 crores in Q1 FY 2025, with an EBITDA margin at 14% in both these quarters. The EBITDA growth year on year is at 86% when we normalize previous year EBITDA to INR 18 crores by adjusting the one-time write-back of ESOP provision of INR 12.9 crores. As such, the normalized have also witnessed healthy momentum year on year, expanding from 8.2% in Q1 FY 2025 to 14% in Q1 FY 2026. Our consolidated profit after tax for the quarter is up 25% year on year from INR 17 crores in Q1 FY 2025 to INR 21 crores in Q1 FY 2026. With significant order book in defense backended for execution in H2, the revenue and profitability metrics will accelerate in H2 2026 with a ramp-up in defense revenues and attendant margin expansion. Our core domains in the Q1 grew by 17% year-on-year from INR 156 crores to INR 182 crores, driven by ESAI, which is electronic semiconductors and artificial intelligence, which grew by 34%, defense which grew by 23%, and aerospace which grew by 8% year-on-year. The core segment normalized EBITDA grew by 51% year-on-year from INR 21 crores to INR 34 crores. Consequently, the margins of the core business have also witnessed improvement from 13.5% to 18.6%. Our core verticals saw significant order intake during the quarter, as has been announced from time to time, and we expect that this momentum will build further in H2 FY 2026, supported by enhanced procurement from Indian Defense and global OEMs. Our non-core verticals, which is heavy engineering, automotive and energy, declined 9% year-on-year, largely due to continued macro pressures in the automotive sector and timing-related order shifts in energy. We are currently recalibrating this business and improving the mix and cost optimization efforts in non-core, which has resulted in marginal turnaround and profitability in Q1. We are engaged with a strategic advisor in these optimization and restructuring efforts, which is currently underway. In summary, all the core verticals in the aggregate continue to record healthy EBITDA margins at 18.6%, which is being diluted to 14% at an enterprise level on account of lower margins on the non-core business. Additionally, we are progressing well on infrastructure and facility development that supports our product-led nonlinear growth strategy over the next five years. As has been guided by our CEO in the investor presentation, our objective is to grow by 40% CAGR in revenue, as Dr. Sarath said, in core verticals only, leading up to an EBITDA margin of around 19.5% in three fiscal years up to FY 2028. This is fully backed by confirmed order book forecast and visibility. The current year FY 2026 guidance is around 25% growth in revenue, including core and non-core, and 300 basis points improvement in EBITDA over the previous year, driven by our core verticals. To conclude, a robust and growing order book in all the three core verticals or strategic collaborations and global partnerships are steadily laying the groundwork for our stated aspiration of reaching a billion-dollar revenue by 2030. Thank you for your continued trust and support. 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 their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Bala Subramaniam from Arihant Capital Markets Limited. Please proceed. So much for the opportunities. Sir, I just want to understand the defense and aerospace side. I think mostly we are targeting 75% kind of revenue. How we are exposed to budget cuts or delays in Indian defense procurement, Su-30 upgrades or LRDE projects. Could you please break down the INR 1,800 crores order book program-wise like Su-30 upgrades, counter drone, and you can share also delivery timelines. Thirdly, it is more interesting, AI-empowered engineering side and what kind of efficiency gains we can expect in terms of reduced design cycles, whether it is justified for premium pricing or market share gains. Thank you. I first can tell you on the order book, it is combined of all the three activities. Currently, we have order book and forecast visibility of about INR 540 crores in defense and about INR 210 crores in ESAI and INR 450 crores in aerospace, approximately. It should add up. So defense alone is about INR 540 crores. This also comprises of OEM activities as well as the three groups, DRDO, PSU, and which is of the programs you are talking about, MOD, which is including all the anti-drone and those kind of systems, and then the OEM engagements like MBDA, INDRA. So the combination of all the three comes. There is no dependency, there is no delay in the programs we are participating and we have a long-term visibility on all these things. We work across the platform. For example, we are across the platforms because, for example, our products like Direction Finder is there almost in every major platform. So we have no dependency for this year as well as next year. So that is. Next is using of AI. Probably we are working on various activities for the defense AI combination. We are also working with some foreign collaborations for establishing that, especially in our anti-drone and related activities and so on. Please note that the overall, it is not only defense. We are talking about all the three segments at this point of time. Is there anything I missed out, Mr. Bala Subramaniam? Sir, this AI product engineering strategies I heard. Is there any initiative we can We are working on that. I will be able to highlight more next quarter. We may sign something very interesting in the next 1 or 2 months, and we will be in a position to explain further by next quarter. Give us some time. Even Government of India is focused on certain activities related to that, so we are working on that at this stage. Okay, sir. Sir, on that Airbus provides a stability business. I just want to understand what are the tangible progress you have taken diversifying it into other OEMs and Tier 1s. Is there any tariff impacts base of other tier levels? U.S. has imposed various tariff rates to various countries, and how we are having advantage compared to other countries. First question, Mohan will answer. Before that, I will answer the last question, and then hand it over to Mohan. One is, the tariff impact, we do not have much because we have totally 27% U.S., our total revenue, 27% comes from U.S. Out of which, mainly it is major from ESAI. Currently, other revenues booked in U.S. itself, US Inc. We are also safeguarding other revenues. We are trying to book everything in U.S. so that there is no India dependency, India-U.S. dependency. That will be taken care of. Over to you, Mohan. Please explain to him what are the steps you are taking to kind of back up the Airbus and the other volumes and so on. What are the initiatives you are taking? Thanks, Saran. Good evening, Mr. Balasubramaniam. On your question on additional customers. I have joined this AXISCADES in the month of April, and immediately we started looking at expanding into new customers. We got a few wins. Companies like tier ones like Mubea. We have started the engagement with Boeing. All these things we would see the results coming in the Q3 and Q4. We have also done some wins with Indian tier ones as well. The idea is to see that we bring in more and more customers so that we have the revenues get distributed and we have risk mitigation as well on this. Okay, sir. My last question- I hope I have answered your question. Yes, sir. My last question is regarding attrition side, it rose to 19% in this quarter. As we are moving as a defense and aerospace, going forward, what are the steps we have taken for talent retention and what are the training upskilling programs we have taken, especially for critical defense and aerospace roles? Murali, can you answer this? Yes, sir. Attrition control is an important factor for us, and we are working on various employee experience and employee engagement initiatives to ensure that our employees are retained. On top of that, we are also taking significant upskilling programs for our core domains. This includes aerospace design activities, concession repair, and manufacturing engineering. We are also collaborating with various external parties and agencies to reskill and retrain our employees so that our core domains can be strengthened. Thank you, sir. Okay. Thank you. Before we proceed with the next question, ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants, please limit your questions to two per participant. The next question is from the line of Varun Kulkarni from InCred Asset Management. Please proceed. Hi. Good evening, sir. Thank you for the opportunity. Just a couple of questions. The first one would be, I see that we are going to commission new facilities which would contribute 30% and 50% of the total revenues in FY 2027 and FY 2028. So how are we planning to fund this CapEx? Would it be in the form of a joint venture, or are we going to dilute any equity or raise debt? And, if it is in the form of a joint venture, have we found any partner as of now? That would be question number one. Second question would be: Why is the first quarter generally lower? And, what is the timeline of the contracts? How is that decided, and what would the revenue flow look like once the order is awarded? And, what will be the payment cycle in defense? Yeah. Thank you. First question. The facilities are developed by a downstream company called AAIPL, Axiscades Aerospace Infrastructure Private Limited, which in turn is owned by ACAT, which is InPro. We are trying to raise money, or we are trying to get strategic partnership at AAIPL level. In fact, we have some oral commitment in two tranches. Probably the first, a small portion we will receive in the month of, probably in Q2 itself or beginning of Q3. By Q4, we will probably receive a major portion. These are all from strategic partners who would also participate in this. This is secured, and currently there is no plan of either borrowing money or diluting anything at the listed company level. That is number one. Number two, in the different side, the payment cycle is always hovering around 180 days. It is somewhere around starting from- 90 days 90 days to goes up to because portion of liquidity damages, everything is there, performance guarantees. Approximately, you can safely assume it will be a 120-day. Ninety 90, 120-day payment cycle. There is a visibility on all these programs we talked about in the next 2. These things, we have a program base confirmed everything, so there is no risk in those things. Of course, FY 2027 we need some additional working capital requirement to meet this. That we will have to organize at that point of time. Otherwise, we don't see any major issue in this growth as well as, and we are covered in almost all the things. 30%, yes, you are right. In 2027, our facility will be ready. One portion will be ready by Diwali itself. Around October 28th, we plan to move. Phase 1A of our DAC also will be ready by March. Hopefully, this should take care of 2027 requirements. 2028, of course, the rest of the facility has to be ready, and we have 18 months time. I hope everything will be ready by that time. Sure, sir. To answer your question as to why the Q1 is always traditionally a lean quarter, that's majorly because of the fact that the defense revenues, which constitute a significant portion of 30% plus, in fact, more so in this year, is kind of, I would say, aggregated towards Q3 and Q4. It starts from Q2 end onwards, and it extends up to Q3 and Q4. What you see predominantly in Q1 are the engineering services revenue, which is of aerospace, ESAI, and other verticals. Got it, sir. That's super helpful. One last question if I may. Sorry to interrupt, Mr. Varun Kulkarni. I would request you to please join back the queue as there are several participants waiting for their turn. Perfect. Thank you so much, sir. We take the next question from the line of Saurabh Wani from Sahasra Capital. Please proceed. Hello. Yes, sir. Hello. Yeah. Good evening. This is my question, I think, to Anurag. What led to the growth in ESAI? One thing. The second one, what are we doing with Apple? Or the win that we announced, what are we doing with Apple in that? Okay. Good evening, everyone. Yes, it's an excellent question that what has led to this kind of growth. We have embarked on new relationships and engagement with two hyperscalers, which is Amazon and Apple. As you know, the semiconductor market is moving towards chip manufacturing which is application-oriented, end-use oriented. That is where our opportunity arises, and that is where we are looking for design development and even with Apple. I hope this answers your question. To kind of answer your question as to what led to the growth in ESA revenues in Q1, essentially, our business with Texas Instruments as compared to last year has started growing significantly, which is kind of expressed in the revenue growth in ESA. Okay. Just one follow-up on the Apple side. Are you trying to build ASICs for them now? Apple and Amazon. No. Basically, I just do not want to dwell too much into this, but I can say this is Ravinarayan here. In the case of the first customer you are talking about, the phone company, we are not working directly on the apps or the ASICs. We are working on the support activities. We are trying to create certain boards for them to do the test and evaluation of their product. In case of the second company, which is delivery and that is a marketplace company, we are working on their product side, like Kindle and Alexa and those kind of things. Again, we are helping them create the product and test the products. We are setting up a world-class acoustic lab for them, the second company, as part of our infrastructure. That also may be ready by this October, November. We probably will, once if it is ready, with the God's grace, we will be in a position to take care of most of their product requirements. It is in a way, way time to come. In the first company, we are going to work with their local partner in India, who is their manufacturing partner, closely, very closely, and provide all the support activities and boards for them, the manufacturing partner. This partner is not the traditional couple of two guys whom you know. There is a third one which is coming up. This partner we are going to work along with in the phone company. This is two board. What led to our growth is our dependency on Qualcomm and Texas Instruments we broke, and we are working throughout the AI chip manufacturers, and we are establishing a very strong relationship with two of them, especially the upcoming AI chip companies. These things are looking up good. Also, we are looking at major applications in ADAS and SDV areas. We had last week some major wins. Last couple of weeks have been extremely good, and we won some of the, especially in the areas of ADAS, SDV, and transportation-related activities in the ESAI. This looks good at this point of time. Outlook is not only this year, next year looks good. We are again working with one more hyperscaler, Straton. Probably we will be able to highlight it the next year, next call. Okay. Okay. Thank you. Thank you, sir. Thank you. The next question is from the line of Deepak Bodar from Sapphire Capital. Please proceed. Yeah. Thank you very much for this opportunity. First up, wanted to understand on your core business. We are looking at 40% CAGR over next three years. What sort of margins aspiration we can have over next three years? I think first quarter we were at about 18.6% EBITDA margin. How should one look at as your scale picks up? Currently, the ESAI margins are very good. Currently the ESAI margins are at 23%. Are you able to hear now? Yeah. I'm trying to understand as a core business as a whole. Yes, sir. I'm just coming back to this. Yeah. Currently, the ESAI margins are at about 22%, 23%. Followed by defense margin, which is at 19+%, followed by aerospace margin, which is at 16%. But aerospace margin this time is quite less. Q2 also may maintain because of a lot of holidays and so on. Basically, we are looking at an average. There is a lot of improvement in these three areas. We may end up anywhere between 19.2% to 19.7% or some 19.8% this year. Years to come, it will be between 20% to 21% in the core sectors. That is- 20% to 21% in next three years. 21%. It will be averaging between 20. This year it will be around 19+ something. Next year onwards, it will be between 20% and 21%. 20%, 21% next year. Got it. That is very clear. In terms of our outlook that we have shared on our Power 930 plan. Yes. If this year we grow at about 25%, we will reach around INR 1,300 crores kind of a top line at a console level. To reach INR 9,000 crores in next four years, we will require at least 60% CAGR growth rate. Correct. Are we too optimistic on that, or is it something that is doable for us? No. Not at all. We are not throwing any numbers or not dreaming or anything. Because we are very systematic about it. We are very serious about it. This year and next year, we are working without any infrastructure or without any major change. Please understand that we are almost investing about $200 million, about INR 1,500 crores in infrastructure before the beginning of 2027. That should lead us to a tremendous jump growth of nearly about, I will say, 80%, 90% or more than 70%, which will compensate for Let us put it this way. First two years, about 40%, 45% growth on core areas. Non-core, we hope we would have got an answer for non-core by next year. Definitely by beginning of next year. So the average growth will be about 45% next year. There will be a steeper growth because of the fueled by the infrastructure and facilities and new customer acquisitions. We have pretty much planned it out, and there is no hypothetical issue in this, and we are fairly confident about it. Okay. Fair enough. Just one last thing. On the ESOP cost, what was the ESOP cost in this quarter? It was INR 12.9 crores, right? No, it was around INR 3 crores. Because at the moment, there is only the Chairman who is bestowed with the grant. The rest of the plan is in the works, and it will start showing up from Q2 onwards. FY 2026 entire year, we are targeting 50-60 crores of ESOP cost? Maybe slightly lower than that is what at the moment we are looking at. 40-50 crores in that range. Yeah, that is right. Okay. When we say 300 basis point improvement in margins, we exclude this ESOP cost, right? We actually have factored this ESOP cost in this. It is a net improvement in terms of EBITDA margins. After factoring in ESOP cost, we are expecting 300 basis point improvement in margins? Correct. Okay. Because currently, I think last year we were at 14%. First quarter also, we were at similar 14% EBITDA margin. As I said, the real impact and the real, I would say, the turboing of the revenue and margins will start happening from Q3. Okay. Understood. End of Q2 and Q3 onwards. That is pretty clear. Okay. That would be it from my side. All the very best to you. Thank you so much. Thank you. Before we proceed with the next question, a reminder to the participants, please limit your question to two per participant. The next question is from the line of Harshad, an individual investor. Please proceed. Yeah. Hello. Hi, this is Harshad Kapade. I am calling from Elara Securities. Thanks for giving me an opportunity. Just have two questions. One thing, there is a recent defence acquisition approval which came for 67,000 crores. Would you be able to share which of the areas AXISCADES is involved in those particular eight to nine platforms which have been disclosed? Secondly, I have a question related to Pramod. I will just first get the first question answered. Sunil, can you answer this question? Yesterday, Yeah the DAC approval, is there any activities in which we are involved? Yeah. We are involved with the mountain radar. Okay. Okay. In that, the digital beam forming and the signal processing systems will be from us. Okay. What about BrahMos missile? I think there was also a big order for BrahMos missiles of close to 11,000 crores, and we are supplying wiring harness. Are we part of that or we are not part of it? Sunil, I didn't get your question. Can you repeat? Can you just repeat the question, please? Yeah. In the 67,000 crore order, they also mentioned BrahMos missile was also part of that procurement deal. Are we not supplying wiring harness for the BrahMos missile or for that particular project we are not participating? Okay. Murali, can you answer this? The BrahMos wiring harness is an ongoing order for us, and we will be qualifying into production soon. The later part of deliveries, we will definitely be a part of it. Apart from wiring harness, we are also working on critical electronic systems for BrahMos. Okay. But still, we are not right now part of it, but we will be part of it probably in FY 2027 and 2028. Is that what- No, no. Let me just give a clarity. BrahMos has got 71 wire harnesses. We are already selected in the major one, so within six months, when we complete this, we should be part of it and going forward. Even in beginning of FY 2027 onwards. So by the time this project matures or starts, we will be ready for that. And remaining also, I think we have a shot at that, which is not yet the finalist. We will have a major this thing in that, and also onboard computers and strategic electronic units. Also we are in the process of major development with reference to that, which I cannot disclose at this stage, probably, but we will inform you in Q2. So we have a sizable share in these things. Okay. Fair enough, sir. Wishing you all the best, sir. Thanks for answering. Thank you. Thank you. We take the next question from the line of Vijay Sarthi from Shubham Ventures. Please proceed. Thanks for this opportunity, sir. You laid out your plan for the next five years. I just want to understand that most of this growth comes with a lot of being a core system supplier integrator and not just being a component player. I understand that you also do some subsystem activity. How do you think we will progress from the next three years to the next five years? Say, for instance, Project Kusha, we are doing digital beam forming unit. But when it comes to further moving up the scale in terms of revenue, do we really see ourselves moving up the platform level, or how is it likely to be? Some insights on that will help. See, basically, we don't want to single out a particular project. Yes. Basically, one hand, we have our own modules, which is going into subsystems, which goes into every major product, like direction finder, direct RF, as you said, accelerator receiver, digital beam forming units. These are all our standard product offerings, goes irrespective of who builds. Secondly, we take care of. If you look at BrahMos and Kusha, for example. we are already setting up competencies in major platforms such as rocket motors, seekers, and then the electronics, onboard computers and electronics. These three, except warhead. Okay. We are concentrating on everything. This is on the missile side. Similarly, the radar side. We are attempting for full radars in many cases. Also, we are looking at foreign OEMs for radar maintenance, radar support, integration, et cetera. Our facility, once it happens, will be among the largest for radar. Okay. Yes. With INDRA, with collaboration, we are also making products, which to start with, we are trying to do the TACAN antenna. Probably at some point of time, this is going to be for exports and for total system also. We are not merely the system integrator. We make our own subsystems, we integrate, and we develop it from the ground. We have a plan for all these things at this point of time. In a layman, would you qualify yourself to be a tier 1 player in the next 3-4 years? Is that understanding right? Yeah. Of course. When we say we are looking at, for example, the tier 1 means, let us say in the case of, I'm hypothetically saying Kusha, it will have about four tier 1s. One who takes care of the electronics and radar, one who takes care of complete missile integration, one who takes care of the ground systems, and one for the other propulsion and other things. Basically, we should be in a position to attempt all these things, any one of this or something like that, maybe once the facility is ready. Yes, we should be ready by that time in every case. That's what is our focus. Am I clear or- Thank you. Please. The next question is from the line of Rujita from Wealth. Please proceed. Hello, sir. A very good evening. Sir, my question was maybe on the order book side. Sorry if I'm repeating it again. If you could just give me the bifurcation of how much is the defense order book and the other components of the order book. Sunil. Basically, defense we have already mentioned. It is INR 540 crores approximately. In the INR 540 crores comprises of DRDO PSU orders and OEM orders, and a small portion in the counter drone systems. Of course, the tank transporter trailer order, which we received. Put together, tank transporter trailer order itself is INR 200 crores. Depending upon how much we can deliver, we are hoping to deliver about 20 systems a month, hopefully. If we are able to deliver the 20 systems a month, we have calculated like that. Then there is a counter drone order. Defense comprises of these four, five major activities. Everything is confirmed, and we need to sort of look at this. This is around, with counter drone, that is the only thing. It could be INR 540, it could be INR 600. Depends on how much we can deliver. The rest will be passed on to the next financial year. Yeah. This INR 540 crores is just for this year, right? Deliverable. Yeah, this year. This year deliverable. I am asking as of today, what is our closing order book? Total closing order book. As of today only. This is all as of today. What did you say, Vagi? For last quarter, we had said that our defense order book is around INR 1,000 crore, right? Yeah. Just trying to understand that. Yeah. This will be approximately, for this year and next year, we are looking at somewhere around close to about INR 1,500 crores defense order book. This year and next year. Which you have already booked, like these orders have already come. Already booked and secured. Okay. Okay. They are supposed to be delivered in the next two years. One thing I wanted to tell you, this also has offset order in the form of OEM contracts, and this is also based on the MOUs and agreements we have signed, or partnerships we have signed. This also includes that. Services, these are all recurring agreements. They are recurring happenings. The quantities and all, I am just giving an average value, basically a pessimistic value on this. Okay. Sir, this quarter, our aerospace revenue has grown by just 6%, right? Our full year guidance is quite on the steeper side. What gives us the confidence that we will be able to deliver this kind of growth for the full year? Mohan, can you answer this? Yes, sir. See, we have an order book of about 450 crores, and as was stated by our Chairman, the first and the second quarter are usually lean, contributing to about 35% of our overall sale. The remaining sale happens during the last two quarters, and this has been the tradition as well. Hence, we are confident of meeting our numbers. And just one last question on the financial. I would request you to please join back the queue as there are several participants waiting for their turn. Yes. Thank you so much. Thank you so much, ma'am. Thank you. We take the next question from the line of Mahek Talati from Agility Advisers. Please proceed. Yeah. Hello, am I audible? Yeah. Please. Yeah. Thank you so much for the opportunity, and congratulations on the recent set of numbers. Just wanted to understand, there have been news about HAL providing letter of intent to the Israeli company for radar for Tejas Mk1A from the 31st airplane as well. How do you think will this impact us in the future as this is one of the major opportunity? Apart from the radar component, what is company providing for Tejas, and what is the estimated value that company derives from one aircraft? I will answer the first question, and I will ask my colleague, Sunil, to answer the next one. First question is, the Israeli company you mentioned, Elta, and you mentioned the Tejas, this thing. We are aware of that. Yeah. In queue to next investor call, I will be able to give you a much better and good news regarding that. Okay. I do not want to talk anything about this at this stage, but next quarter, very soon we will give some kind of a very positive news on that. With that, I will give you the details of what we add value to Tejas. I will give to Sunil, who is our Delivery Head of Defense. Yeah. Sunil here. For each LCA, we will be having around INR 12 crores to INR 13 crores per aircraft, as of now. We are also looking at a few more systems in the LCA Mark 1A, which could add a couple of more crores. Can you explain the important How many new components are we planning here? We are looking at a couple of things in this. We are already in the EW and the ERP of the radar. The mission computer and the smart multifunction display. These adds up to around ₹12 crores. Then we are looking at a few more components in the LCA. Okay, understood. Next was for promoter has been consistently selling shares for some time. When we have such a great opportunity for growing, what is the reason behind the selling? If you could please highlight that. Yeah. Let me answer the first thing because, see, strategically, this has been a sensitive issue. For us, we are looking at promoter being a PEP, politically exposed person. As a Chairman of the company, I am requesting the major promoter to reduce the stakes, because when we are talking about forging relationship with foreign OEMs, they are sensitive to this fact. So we are trying to bring them below 50% over a period of time. I have assured the foreign OEMs that they will be around 49% in the next few months or at least within a time frame. So that is the reason we are consciously trying to bring them down. So that is the whole thing. Because today it is important for us to build these relationships and we do not want this to be one of the deterrents. So this has been a management and board decision, and this is on our request, they are trying to sort of hive off. So that is- Okay, so we could see further selling coming up as well for next couple of quarters more. Yeah. Ultimately, they should be brought down. There are only two ways. Either they sell at secondaries or we go for some fundraising on the primary, which we don't want at this stage, at this price. Anyway, we don't feel there is any liquidity event in the company over next one year at least on the top level. So the only option is right now to have the secondary sale. That is the only option left out. And this has to be brought below 50. Okay. And sir, last question was relating to the- Sorry to interrupt, Mr. Manik. Yeah, okay. I would request you to go back to the queue. Thank you so much, sir. We take the next question from the line of Rohan Mehta from Freecom Family Office. Please proceed. Hello, sir. Thank you so much for the opportunity. Given the strong growth guidance across defense, aerospace and ESAI, I am interested to know, when do you think precisely the execution is going to pick up in the core segment? Do you expect Q2 to be on the similar lines as of Q1 as well, or do you expect certain improvements? Secondly, if orders are already in hand and no new facility is needed to meet the FY 2026 targets, why is execution largely being pushed to H2? If you could just spend some time explaining that. Is it only specifically defense or what is exactly going on? Let me answer this question. Number one is Q2, we are expecting a fairly good improvement, though Q2 is a bad quarter for aerospace because as you know, Airbus is from Europe. Europe is closed for about a month's time, and we lose about. Basically it is totally a services, this thing. So we almost lose about one third in the process, but still we are trying to make up. So Q2 is being kind of, because most of the foreign companies are on holidays and so on, there is always a sluggishness in Q2. That is the reason that overall Q1 and Q2 does not. Q1 is just the starting of the year, and there is a sluggishness. Q2 because of the holiday season. But despite that, we are planning to put forth a strong result in the Q2 compared to Q1. Definitely that will be there. I do not want to give any guidelines, but there will be a major improvement in Q2, definitely. Next question. Yes, there is no dependency on facility per se, but there is a dependency on manpower and there are also customer readiness. Basically, if you look at it, see, the defense, once the product is ready, customer has to come accept it. They have to do some trials. The cycle is more better in the Q3 and Q4, defense. It is not in our hands. Even if we get the product ready the customer should come, inspect, approve, take, then allow us to ship. So that is what is happening in the products and systems. So that is causing little bit of delay. Even I get the product ready today, it will probably take about three months for us to get the final approval. This is where everything is getting pushed to a little, this thing. Also manpower. Manpower, because of the aggressive growth we are having, some of the activities we need to have a right people in place. There is a lack of, I would say, one of the things we are seeing is that our efficiency and productivity in certain cases or certain types of orders are lower. We are trying to build this up. Overall, order book, there are executive issues and delivery issues because of these things. Q3, Q4, because we are in the line for customer approvals and so on. In the case of defense is the main case. In the case of foreign OEMs, this is because of, again, there are inavailability during this month, July and August. Okay. Thank you. Okay. My last question is, could you provide me what is your average interest rate on your outstanding debt as of today? Shashi? Yeah. The weighted average is about 9.5% in terms of our working capital debt, which is around INR 48 crores, and then we have a long-term debt of around INR 101 crores with an alternate investment fund. You can look at it. Of course, we also use GTSC facility and all of that. We can say that the average finance cost is around 8%, 8.5%. Sorry, could you repeat it? It is around? Eight and a half percent. Eight point five. Got it. Thank you. Thank you. We take the next question from the line of Akshay from Exponent Tribe. Please proceed. Thank you for the opportunity, sir. I have a few questions, and I will run them through. Firstly, for the aerospace business. It has been touched upon a couple of times, but just to be sure, what are the specific areas which will ramp up for us to get to 450 odd crore revenue that we have guided for FY 2026? Airbus is a business that is, at least in the past, been a steady growth business but not a nonlinear one. Can you touch upon which areas will add to that nonlinearity? That is first. Second was on, you have spoken about tooling in the analyst day and in the presentation as well on the aerospace side. Can you help us understand what kind of tooling are we going to be doing in the aerospace side? Is it something similar to what Unimech does, and when do we start doing that work? That is on aerospace. On defense. On the MBDA side, have we already sent a sample test bench to them? Is it approved or qualified, and when do we start seeing commercial supplies? Then on the INDRA side, sir, TACAN antenna is what we are going to be making, right? Again, where are we on the development? When do we start selling? It would be good to know. These are the four questions I have. I will give the third and fourth question, Mr. Sharadhi Babu will answer. First and second question, Mohan will answer. Let me start with Sharadhi Babu. Let us hear Sharadhi Babu talk. Sir, regarding the defense growth, we are already a partner to MBDA. We are the center of excellence for test benches, and recently we have enhanced our relationship. We have an ongoing test bench program already with MBDA. Right now, this year, we have enhanced the overall volume of test benches from MBDA. That is already in progress, and it is going on. Regarding the INDRA, first is, we will have a very short cycle of a prototype. After that, we are going for production. You will see the production orders either second half of this year or probably by next year, we will have the production going on. Sure. Mohan can cover the aero answers. Yeah, sure. On your first question on aerospace business. For this year, we are having an order book of 450 crores, which I mentioned some time back. Yeah. Most of these orders are from our existing customers, predominantly from Airbus, Bombardier and other things. This year we are not talking about nonlinear growth. This year is from our existing set of customers, which we will execute from the current set of, what do you call, offerings that we are doing. That is number one. Number two is on tooling, which you had asked. Our plan for tooling is basically for the flying parts and the non-flying parts. The flying parts in the sense that all components and assemblies, toolings, that is what we are looking at. Non-flying parts is all GSE, GHE, is all the kind of tools that we are looking at. For toolings, we have started some work, as we mentioned some time back in one of our investor presentations. We are slowly going, and the results are likely to come somewhere in Q3, Q4, and in the next financial year for us. We have won small orders from some of the Indian Tier 1s, which probably would help us win more orders, the international customers, as we set up our own facilities. I hope I have answered your question. Sure. Sir, if I may ask one more question. We have spoken about ESWT in our presentation. What is the value of the homing receiver in ESWT, and how many ESWTs are going to be procured? As part of ESWT, we have the homing receiver, which will come to around INR 1.5 crores per torpedo. Torpedo? Yeah. We are looking at around 20 per year. I mean, a total of around 100 numbers in the next five years. 100 in the next five years. When will you start? We have already started the first of production, and we will be delivering the first unit probably by November, December of this year. Sure. That's very helpful. Thank you so much. Thank you. We take the next question from the line of Rupesh Satya from Shriram Managers PMS. Please proceed. Good sir, good sir. Sorry to interrupt, Mr. Rupesh. We are not able to hear you. Could you please fix that? Hello, Mr. Rupesh, you are not audible. I am audible now? Hello? Sir, your voice is breaking. Hello. Is it better now? Hello. Much better. Yes. Okay. Thank you, sir. Sir, I was saying congratulations for the fantastic set of numbers. I have two questions, one on the OEM business and one on the Project Kusha business. Project Kusha business, sir, how many digital beam forming units are there in this long range battle management radar? Because you have given the total production quantity of 75, and my understanding is five squadrons at least, I think, are in the works in the beginning. So that 75 number looks a little bit of a steep climb. If you can just give that number. Then, I think in the past, we have said that we will do INR 5 crore per Project Kusha missile, ISF, onboard computer, rocket motor casing. If you can just tell whether the prototypes are approved or prototypes are under testing. Have we got the order? Are we single-source supplier for this, for INR 5 crore component supply? This is on the Project Kusha. Then on the OEM business, sir, this generic test benches that we are making for MBDA, has the prototype been made? Has the sample been sent to MBDA? When will it be qualified? When can we see first supply? Then the similar question for the TACAN antenna from INDRA. These are my one question on OEM and one question on Project Kusha. Rupesh, the second question has already been answered. I think you are not listening. Both are same. The test benches, the previous person has asked. Mr. Sharadhi Babu has already answered. Let me give some highlight on Project Kusha, and Sunil also will answer further. Project Kusha is totally 47. The assessment of necessity is for 474 batteries. That means 474 systems into 4 numbers, like 1976 or something like that. That is number of missiles. Radar take that is totally about 474 numbers, radar part. That is for the numbers wise. That is the basis. Rest of the things and where we are eyeing is, of course, all the major combat. I cannot dwell too much into what we are going because it really. I will ask Sunil to explain about this one particular product. Other than that, we are very confident of having a major value in Project Kusha. Currently, because it is going a little behind schedule, we will discuss that further in the next meeting. Currently, Sunil, can you answer other than numbers here? Hi, Rupesh. We have around the DBF, which is going to. We have received the order now, and we will be delivering it by around March this financial year. Once the trials are completed, then the production will start for this. Right now we have an order book of 5 numbers initially. Okay. But 75 will be done in 2, 3 years? It will take 4 to 5 years. It will take 4 to 5 years. Okay. Yeah. Maybe one more I will allow, if I will ask. On this maritime patrol radar, sir- Sorry, we are running out of time, Rupesh. I got just one. Sorry. I just got one. Hello? Yeah, go ahead. Yeah. My question is on this maritime patrol radar. My understanding is Dornier 228 upgrade, I think DRDO has missed the bus. I think it is not present in any of the other LUH. I think it is present in one ALH Mark III in Indian Navy and Coast Guard. Where are we on this maritime patrol radar, and when can we see the order? Which platform will it be? If some clarity you can give on that. On maritime patrol radar, I don't think we have given a projection, right? So we are not involved in that program? No. Okay. Thank you for answering my question. Thank you. Yeah. Thank you. We take the next question from the line of Varun Kulkarni from InCred AMC. Please proceed. Yes, sir. Most of my questions have been answered. Just one small touch up, if I may. What will we be exactly manufacturing in the aerospace segment going forward? Or would we be focused on being a technology provider since we are classified as a tier 2 and 3 tier in the value chain? Just a very basic question, but would like some clarification on this. Thank you. Go on. Yes. For this question, what we are trying to do is we are trying to leverage our engineering expertise and then take it up to the next level for manufacturing. For example, in tooling, we are already a tool design expert. We have been doing tool design for many years. We are graduating into tool manufacturing. That will give us an end-to-end solution to our customer, number one. Number two, we are also addressing another specific problem. Today, because of ramp-ups and other things, many of them are unable to deliver to the final assembly line. We have an opportunity with the spares companies, where they are not getting products from the same supply chain. We want to address that requirement, wherein we will make specific components to those. They can call it as a speed shop, or it can be called as a spares requirement, addressing the spares requirements. There are other opportunities that we are working, which are very early stage, like passenger-to-freight conversion opportunities and various other things which probably we will address it in probably Q3 or something when the opportunity gets more mature. This is what we have planned. The last one is on the MRO, component repair and testing. All these opportunities, when you look at it, the machineries and the capability that is required are one and the same. As a result, we will be able to manage our assets very efficiently and be able to give a very competitive solution to our customers. I hope I have answered your question. Yes, sure. That is it from my side. Thank you. Thank you. Thank you. Ladies and gentlemen, due to time constraints, we take that as the last question, and would now like to hand the closing remarks to the management. Over to you. Thank you. Thank you, everyone, and thank you to all our esteemed leaders and participants for your time and interest in our company. We appreciate this engaging session and insightful questions. I hope we were able to answer all your questions. Should you have any further questions or need any additional clarification, please feel free to connect with us. Thank you, and have a good day. Thank you. On behalf of AXISCADES Technologies Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.