Ladies and gentlemen, on behalf of Kaptify Consulting Investor Relations team, I welcome you all to the H2 and FY 2026 Post-Earnings Conference Call of Aimtron Electronics Limited. Today on the call from the management we have with us Mr. Mukesh Vasani, Chairman and promoter, Mr. Sneh Shah, Whole-time Director, and Ms. Nikita Shah, Chief Financial Officer. As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risks and uncertainties. Also, a reminder that this call is being recorded. I would now request the management to briefly run us through the investor presentation and the business and performance highlights for the period ended March 2026, the growth plan and vision for the coming year, post which we will open the floor for Q&A. Over to the management team.
Good afternoon, everyone, and thank you, Vijay. On behalf of Aimtron Electronics Limited and our board of directors, I warmly welcome all our investors, analysts, shareholders, advisors, and stakeholders on today's call. Please welcome. We sincerely appreciate your continued trust, support, and interest in Aimtron's journey. Last two years almost, actually, we are only a few days away, a few weeks away from finishing the second years. Last two years Aimtron journey, your confidence encourages us to keep building Aimtron with a long-term vision, strong governance, and disciplined execution. At Aimtron, we are moving forward with our Aimtron 2.0 vision, with strengthening our core electronics manufacturing capabilities, expanding our global presence. You see that we have already acquired a company in Decatur, Illinois. And building a deeper customer relationship like a stickiness of the customer and creating a more professional, scalable, and future-ready organization.
We remain focused, as we promised previously also, on sustainable growth, operational excellence, innovation, and long-term value creation for all stakeholders. Again, thank you so much for taking the time today. As you know, we are only one year away from main board entry, and we are very prepared. I guess all the checkbox already checked off, except we have a three years timeline. With your support, once we finish three years, we will move forward on that. We started the preparation. I think today your interest is more on question, answers, and results. I will hand over to Sneh and Nikita to just give a little overview about Aimtron end result, and then we will go for question and answer. Again, thank you so much. We appreciate.
Thanks, Mukesh, for the brief. Certainly, I think it has been a great story, past three years, to what trajectory we have changed. Considering that as Aimtron, initially we used to be more on PCB assembly, more of an EMS, which we redirected towards ESDM, OEM-led manufacturing, design-led manufacturing kind of an activity. And that is now getting surfaced in last couple of quarters result as well. As Aimtron, basically, we are termed as an ESDM, Electronics System Design and Manufacturing. We are in manufacturing facilities in two geographic place. One is in U.S., which we recently acquired one company that is renamed as Aimtron International Controls, and we do have our presence in Bangalore as well. Sectors, we will go more into depth on which are the sectors we are already there.
This year we added more, like one was agrotech, one aerospace and defense, where we got qualification under certification of AS9100. Hello.
Yes, Sneh. Please continue.
Okay. This year, we entered trusted telecom partner and railways also last week we started encountering the orders, and our DSO approvals will takes place in next couple of quarters. Agreed again. These are the global certifications that we have in place. For instance, 13485 makes us visible globally for med tech products, along with CDSCO, which are now mandatory for Made in India equipments. We do several things under med tech. 16949 approved for specific to automotive. N umber three, as we stated, we recently got approval last year. Trusted telecom partner, that also got approved. We are already approved under that last year. RDSO is something that is under progress and probably this year by first half or probably by third quarter, we're expecting a closure on that part. Next.
Probably this is more on how the Aimtron Electronics India is an holding company. We created one subsidiary called Aimtron Mechatronics. That's a Greenfield project we acquired a space here in Vadodara itself, where down the line we are expecting to have injection molding, sheet metal, and all that in-house. Then we created a wholly-owned subsidiary, Aimtron Electronics LLC, that is in Texas. That is basically a wholly-owned subsidiary of Aimtron India itself. Then Aimtron International Controls is like AEL, probably falls under AEL LLC. AIC falls under AEL LLC, Texas. Next. PLI, we applied for ECMS under SFOP segment, Small Fiber Optics. Just to give a more brief, like Small Form-factor Pluggable that comes from 1 G to 50 G.
Probably India demand is getting aggregated, and it is expected to go up to 40 G capacity range, and that is what we are also advancing in that direction. We are working on TOT as of now, Transfer of Technology with one of the international player that is in progress as of now, and once we get that TOT signed and probably down the line, we will be eyeing on how do we have more rollover on that part. That will be under Aimtron Electronics. This is more often solutions that we provide, Product Engineering Solutions. PES, we call, so that includes hardware, software, firmware, mechanical.
If you see last August the year, proud to say that our PCBs were, in 26 January, to what parade it was been displayed, drones were displayed for The complete China plus one kind of a story, because it was more of a defense level. Then we entered railway, where we are providing SIL 4 level integrated systems, that is anti-collision, advanced collision system, along with a couple of signaling orders that we have started getting in. Data centers, story probably into the market has started now. We have been working on this since almost a year, where we got one order of $12 million, where we are designing from scratch, starting from 1 KV, 2 KV, 3 KV with battery, without battery, and company where we are, as of now, going with 3 variants, 6 SKUs as of it, and probably down the line, we are expecting to go more.
Then AI dashboard camera. It is, as of now, getting used in GSRTC, local bus, Gujarat State Road Transport Corporation. Down the line, that is expected to get rolled over in PAN India. Again, not immediately, but down the line, that is what. So this is all are getting manufactured at Aimtron itself, Vadodara factory. Next, please. Next. Maybe Nikita can take this.
Hello, everyone. A warm welcome for the financial discussion regarding the 31st March 2026. For H2 FY 2026, Aimtron Electronics reported consolidated revenue from operations of INR 1,786 million, and EBITDA was INR 369 million, and profit after tax was INR 257 million. H2 FY 2026 revenue grew at a 45.7% over H1 FY 2026. Over a full year basis, FY 2026 consolidated revenue from the operations grew at 89.2% year-on-year. That is INR 3,012 million, compared with the INR 1,592 million of FY 2025. Profit after tax increased at 79.4% to INR 460 million, compared with the INR 256 million in financial year 2025. EBITDA margin stood at 22.6% in FY 2026. PAT margin stood at 15.3% in FY 2026. This is after the consolidation of the subsidiaries and for the current financial year.
Next slide, please. I think, Sneh, you want to take the order book? Thank you, Nikita.
Currently, if we combine all group of companies, probably we stand at somewhere around INR 600 crore kind of an open order book. That includes Aimtron India as well as AIC in total. Geography-wise, probably it's more of an India, it's more of an international clientele, with around 20% to 25% as an export. When it comes specific to AIC, it's all domestic that is specific to U.S. market. Thank you. Next.
I think we can move to Q&A.
Start the question answer. Vinay, you have any more slide, or we can start the question answer?
Yeah, I think we'll move to Q&A.
Yeah, because that's the main
Yeah.
Thank you, Vinay. Thank you, Nikita and Sneh, sharing. We have some voice little bit breaking. Hopefully our investor will see that. Maybe you can see on the website and look at the full presentation and see whatever
Sir, open direct.
Yeah.
Open image. Sir.
Yeah. We'll take the first question from Ashutosh Shukla. Ashutosh, you can go ahead and ask your question.
Hello.
Am I audible?
Yeah.
Yes, sir.
Hello. Sir, can you tell me the impact of PCB price increase and DRAM shortage impact in the business?
EMS business. Currently, we have already some of the locking price, we do not have that much impact directly at this point b ecause we are not the end user. What we do, we communicate with our customer and make sure they are prepared.
We transfer that cost to our customer. At this point, in France book, yes, we have some semiconductor shortage, but we do not have any pricing impact at this point on our EBITDA or on our PAT.
Hello. Okay, one more question.
Sure.
With L&T recently entering in electronic manufacturing services and ESDM space and commissioning its PCB assembly and manufacture facility in Coimbatore, how do you see this development impacting your competitive positioning, pricing environment, and overall growth prospect?
I think, we already shared some of the information there. This is a huge pie, a trillion-dollar pie, a pizza. It's not even L&T can eat everything. There is always a way if you have a niche market, if you have a specialty business, you have a hybrid electronic, you have some special things, then there is no way they can beat us. I think there is enough business, and if you look at our open order book and a pipeline right now is almost INR 70 million to INR 80 million just for the pipeline we have. I don't think so it's going to hurt us. Also, when bigger company comes, they have a bigger overhead, and it's very hard to move Titanic versus a speed boat. Our entrance goal is to be a speed boat versus Titanic. Thank you.
Thank you, sir. We'll take the next question from the line of Amit J. Amit, you can unmute and go ahead, please. We'll take the next question from the line of Supriya Sujay.
Hello, am I audible, sir?
Yes, Supriya. Go ahead, please.
Hi, sir. Congratulations on good set of results. Every quarter we come and you surprise us with the results. I have few questions, sir. First is on the top-line basis. For this year, sir, what is the internal target which we are targeting for this year?
Sneh Shah.
Probably we'll keep our strategy in line with 40% to 50% CAGR growth. Next couple of years with this as a base year, I would say next couple of years, we are eyeing on INR 1,000 crore kind of a journey. That is what our ultimate goal is. We can keep in check with 40% to 50% CAGR kind of growth. That will try to continue to deliver.
Okay, sir. Sir, second question is on the EBITDA margin side. Sir, recently we acquired the ICS one. Due to that, we are seeing some impact on the EBITDA margin from consolidated levels around 22.5%?
Probably, we already have stated, that company, AIC now, Aimtron International Controls. If you see when we bought in that phase of time, it was kind of early double-digit EBITDA itself.
Yeah.
At this hardly two months, we already have started activities on that part. Ultimate goal is next to and gradually, probably now this financial it will get consolidated full year. We'll see the scope of improvement on what it was there before and what it is now. Because we do have expertise on that ESDM market. Best part is we are seeing the synergies and already transition phase has started and completed. We know now where exactly to tap and where exactly we can make the bottom line out. That is where we have started working on that part. Probably down the line, you will see the results. Probably couple of years down the line, we are even eyeing on how do we take it up to the Aimtron kind of a margin. Aimtron level margin for EBITDA as well as PAT.
Okay. Sir, on consolidated levels, we can assume 22% is the conservative, like the most least EBITDA margins we can see going forward, right?
Couple of years down the line, not immediately.
Oh.
This year it was early double digit, kind of 11, somewhere around 11% EBITDA.
Sir, on consolidated levels, you're saying?
Standalone. Specific to AIC.
Okay. Sir, I'm talking about on consolidated levels.
Consolidation, we will be intact to what PAT margins and EBITDA we are into. That PAT 15%, like couple of percentage, one or two percentage here and there. EBITDA 20%-22% kind of a range will be intact on the consolidation more.
Okay, sir. Sir, third is on the top line as well, aiming for INR 1,000 crore. I think for the next two years, we don't require any kind of a CapEx, but after that, we are planning. Is there anything which you want to disclose right now?
I think you can see that our Mechatronics facility is coming out and there is some capacity will be there also. Right now we don't need to spend any more unless we have like, say, INR 5 crore, INR 10 crore here and there. Minor tools upgrade or maybe small machines upgrade. We have not seen another huge expansion cost in the existing setup. Mechatronics will have another setup. It took two assembly lines to start with and four assembly lines over there. If you look at this, we don't need that much because we already have nine assembly lines right now. In nine assembly lines, we can easily go up to INR 800-900 crore. I think at this point, we don't need any other CapEx at this point. Thank you so much. We can take next.
Sure. Thank you, sir. I would request all participants to limit two questions in the initial first round and then come back in the queue. We'll take the next participant, Roshan Shah. Roshan, you can go ahead, please.
Yeah. Am I audible?
Yes.
Sir, could you please clarify that how much percent of IPs are developed in-house and how much of that is sourced externally or externally acquired? How is company able to manage its design function with relatively low employee benefit costs, especially given that design-led businesses typically incur higher talent costs?
Okay. We do have a design team in-house, where we have hardware, software, firmware, mechanical, everything. We have somewhere around team of 45 to 50. Then we do have design partners, including that, we have a team of around 150 team members. IP typically remains with customer. We don't own the IP. We try to build from scratch and take the manufacturing licensing kind of an activity. We do support them from scratch, from concept to design to prototype to production, and that too for a complete box build system integration. With that said, we have our customers' requirements to get to the market easily. We have our 80 platforms ready. That means those are the IPs we have a number of IPs on the IoT, other areas, controls or storage, power storage.
Those areas, we already have a basic design configurations ready, and whenever customer comes in three to four months, say, "Here's the product," you can take it. If they pay, then they own it. If they don't pay, then we take the royalty or contract for five, seven years.
Okay. Sir, management is guiding around 40% to 50%. Sorry.
Yeah, please continue.
Yeah. Management was guiding roughly around 40% or 50% revenue growth. In FY 2027, if we consider the numbers of consolidated ICS business, there seems almost no growth in ex-ICS business. Can you please throw some light on that?
Sure. Specific to ICS, we have clearly stated, growth definitely is there. Growth here focus is more on EBITDA and PAT level. Revenue, definitely it is not going to be same as India like 40% to 50%. Growth over there would be in double digits, specific to revenue. Here the main focus is on how do we take it up for double digit kind of a PAT and double digit kind of an EBITDA.
Sure, sir. We take the next question from Akash Srivastav. Akash, you can go ahead, please.
Congratulations on delivering very strong results. Sir, actually, I have received answer to all my questions, I don't have anything further to ask at the moment.
Sure. Thank you, Akash. We'll take the next question from Pratik Bagaria. Pratik, you can go ahead, please.
Yeah. Hi, am I audible?
Yes.
First of all, congratulations for a great set of numbers. I have few questions. First, can you take me through the revenue split between India versus abroad and also if you could split between different sectors like railways, defense, and so on?
Sure. Amish, if you can just open up the presentation. I do not have the numbers handy, but if you can just open up the presentation slide.
Yeah.
If you see probably this year as well, approximately around 70% kind of an activity was more towards domestic customers with international clientele. Focus was more on a box build, we have stated before as well. If you see major industrial, telecom and power and auto robotics were the top five contributing sectors in terms of industry. If you see geography, like India and U.S. were the top two. Almost split of PCBA to box build was 70/30 kind of a ratio. ODM model, because its design cost is generally less as compared to the overall project size. ODM model, that is end-to-end solution, gets splitted to less than 5%.
The new addition of clients happened basically in which sector in the last six months?
It has been a combination of all. Just an example, new sector, if I say, then aerospace and defense, we highlight somewhere around 2% overall. Railway, we started entering into that around with oil and gas. Oil and gas, probably now we are looking at something on higher side because last year if I see, just give me a number. We did almost 424 prototypes.
Considering that number, like oil and gas, we are seeing a good traction. Considering what geopolitical situations are, it seems to be on a better side to on that part as well. Overall, if you see our telecom sector, power sector and robotics is something that we added in the second half of the year.
Do we foresee the same tailwinds in the similar sectors in the next one or two years? Do you see railways or defense coming up as bigger players?
Railways and defense, definitely we are eyeing on it. As it is more, I would say, conversion cycles are too high. It's not that these two sectors are going to dominate it. We are going to be part of the sectors, where again, we will be focusing on more of a niche market segment kind of activity to what typically we do b ecause as we stated this 26th January for it, to what roles were displayed, we supplied the PCBAs. I would like to continue with same kind of projects, same kind of momentum. Other sectors, apart from these two, to what we have stated, probably we will try to dominate for this year as well, this current financial year as well.
Okay, fair enough. Thank you. My second question would be, what would be the top three, four risks that you see in the coming two years in terms of execution?
Majorly as of now, if you see our inventory levels, has moderately increased and due to three reasons. One was more of, to what global situations are going around, chips are getting on a shortage and prices are getting increased. That supply chain side is the only factor we see can be a challenge. Rest all, I don't think so apart from that. That is where we started taking the annual orders, with monthly and quarterly split deliveries based on customer requirements. To what all inventory we carry, probably it's more of an customer projects-oriented only, where we have minimal or we don't have any impacts from our side, at least.
I think if we have a very niche market, people have to use it or take it. Is that correct? Even during corona time, Aimtron did not have any problem. I think if we continue focusing on the niche market, the complex box builds, we will not have that much problem because there is always need and there is always requirement for those kind of products. We always ready to go one step beyond, and that's why we prepared for that. Also, very strong infrastructure we have. Something happen, let's say in a geopolitical situation and all these buildings, all these properties, even U.S. facility, Aimtron International Controls, we have four acre land and we have about 58,000 sq ft building also. We have land and building every single place. We don't have to worry about any kind of turmoil.
As I said, mainly supply chain. We are communicating with the customers and make sure. I think that's what the main we see the mitigation for risk.
Thank you.
Do we have any further questions? We will take the next question from Tahir. Tahir, you can go ahead, please.
Hi, sir. Thank you for the opportunity and congratulations on the good set of numbers, sir. First question from my side will be, sir, can you please provide info on the operational SMT lines we had for the entire FY 2026, and the plans which we had to expand our SMT lines, Greenfield expansion. Like how we have planned to add one more line in FY 2027. What are the updates on that part?
Currently we have Fuji platform, in Bangalore. The new Greenfield project that we are coming up with also will be through same Fuji platform itself that is in Jakkur Lake. As of now, land acquisition is completed and constructions are ongoing. That facility construction is done. Probably it will be Q3 and Q4, probably it will be Q4 this financial year. Suppose that at that phase of time, we will be having that setup up and running. Initially, we will be having mechanical setup up and running, and then as phase II, we will be having this electronics or PCB or assembly lines commissioning done.
Okay. We are planning to get it operational by Q3 FY 2027 for the mechanical part. Assembly line will be after that in phase II. What is the timeline for that part?
A quarter more on addition of Q4.
Okay. We are planning to add one SMT line by end of FY 2027.
FY 2027 or Q1 next financial year. Latest by that time.
Okay. Second question was on the margins front. Our gross margins has decreased from around 31% in H1 FY 2026 to 28% in H2 due to the increase in COGS. Was there any raw material price impact during this period?
Probably I would request or suggest that if you can compare year-on-year. If you see always first half to second half, there is always going to be a change. I would prefer to go on the year-to-year basis. If you see year-on-year, probably we are in line, and first half to second half, we have scaled up. Initially there are a couple of orders from ODM models which from ODM got shifted to manufacturing, and a couple of geopolitical reasons where shipment costs were on the higher side, supply chain constraints were there. Considering all those aspects, there are going to be minor fluctuations here and there. If you see the complete year, then probably we are going to be in line with what we have been projecting.
If we remember, we discussed on the last call and previous couple of times, that Aimtron generally is still compared to INR 1,000 crore is still INR 300 crore is like, sometimes it's going to be all the ratios will not meet. I hope I'm communicating. Sometimes one customer, one sector, one area, it's going to be up and down a bit. Hopefully if you have maybe year after you can ask that question, we have a better answer for you. That way you will see a real result year-on-year and quarter-on-quarter. Once we enter the main board, you will see a better by that time or at least our revenue will be more than INR 500 crore. I think that's what I'm just adding to this message.
We'll take the next participant, Mr. Akshay Kalia. Akshay, you can go ahead, please.
Hi, sir. Thanks for taking my question and congratulations on the great set of numbers. My first question is regarding the cash flow. We have generated INR 40 crore negative cash flow this financial year. By when can we expect to generate positive cash flow, and what percent of EBITDA can we convert over the next two to three years? Also there is one line item of INR 70 crore loans and advances given to other parties. Can you please elaborate on that part?
Sure. We'll take second question first. Nikita, if you can take that up because that's more of an internal just an example like acquisition done for AIC and projects done for construction of Aimtron Mechatronics. We can give more brief on that part. Nikita, if you can just add that.
Yes. Regarding the consolidation figures, I can say that, loans and advances, that is showing at 58.3. Sorry. Are you referring to the consolidated value or a standalone value?
No, I am referring to the consolidated cash flow at one line item is INR 16.8 crore of the loans and advances. I am referring to that only.
Just a second.
We are muted, Mukesh.
We can take the other question in the meanwhile.
Sure. Not an issue. We can also connect offline.
Akshay, INR 16.8 crore is given to Aimtron Electronics LLC in Texas, Aimtron Electronics LLC in Texas, to acquisition. That is the part of the payment we did from our acquisition from Aimtron International Controls. That is the money you see over there, cash flow. Take the next question. By the time Nikita come back.
Yes, sir. Okay, understood. My second part on that question was to, when can we generate the positive cash flow and by what percentage of EBITDA we can generate over the next two to three years?
Probably if you see, we are in a aggressive growth trajectory, that is where this impacts have been there. If you see once we reach to the stable phase of INR 1,000 crore, so we may continue with this kind of a momentum because of aggressive growth that we are eyeing into 40%, 50% and above. Because even if you see past two years, it has been 60% to 70% and even above when it comes to the growth trajectory. Initially, to accommodate that growth, we may need to accommodate on that part, but once we reach a INR 1,000 crore kind of a journey post that we'll be able to see the stabilization on that part.
Sure. Thank you. We'll take the next question from Deepak Hooda. Deepak, you can go ahead, please.
No, I don't.
Yes. You'll have to speak up a bit louder.
Okay. Great. Just a few things from my side. Now, ICS, what's our current revenue and this INR 280 crore-INR 300 crores target that we have is over next three years, right? I believe that INR 1,000 crore we are targeting. Out of the INR 1,000 crores, INR 300 crores we are expecting to come from ICS?
Yes. On peak we can take it up to INR 25 million to INR 30 million. That is what we are eyeing on from specific to AIC, Aimtron International Controls. This year we'll be somewhere around INR 17 million approximately. That is what we are eyeing into.
The INR 17 million, FY 2027?
Yeah.
INR 17 million effectively means around INR 170 crore, something like that, right?
Approximately.
Ideally, when we say 45%, 50% growth, from INR 300, even if I take 50% growth, we are reaching from INR 300 to INR 450 crore, right? That is an increase of INR 150 crore. INR 170 crore is coming from this new facility only, right? Yeah, continuing.
Sure. Definitely, you are good in maths, no doubt with that. I would say on INR 300, we are still coming up with 40% to 50%, because there would be organic growth as well as a part of India. If we see on the consolidation mode, like inorganic as well as organic, probably would be in that range.
This 40%, 50% is conservative, right? Because if you see organic growth as well plus the acquisition, ideally your growth profile would be much higher, right? I mean, historically, I found you guys to be very conservative. Would that be a right assumption, this 40%, 50% is a conservative number?
Deepakji, I think we all know the geopolitical situation, et cetera. I think we are very conservative, we are very transparent in numbers and commitment. If I say, "Okay, I'm going to do 70, 80 compared to last year," and we cannot do it, then I don't want to make that mistake. We'd like to go with conservative. That's the growth we are eyeing on, 40% to 50%, because we are seeing the open order book, we are seeing the pipeline. If we can get more, it's good for everybody. Correct? That's what We are looking for more. We are looking triple, but it may not be possible. Tomorrow, what happen in the White House, tomorrow what happen in the world, we don't know. At this point, with the current open order book, we are eyeing on 40% to 50% growth.
We do expect organic growth as well, right? That's what you mentioned. Sorry.
Thank you. Yeah.
Yeah. I was asking, you do expect organic growth as well, right?
Yes, definitely.
Okay. My second question is on your RFQs. You mentioned around INR 900 crore to INR 950 crore of RFQs you have, right? What sort of conversion we are expecting, and by when? We have around INR 240 crore of money locked in inventory and receivables. How should one look at that? I mean, it's a substantial amount.
Hey, that's first question for you.
We'll take second question first. Specifically to inventory, as now we are more focused on ODM model. One of the prime reason where you see that inventory numbers are increasing, it's not to that spike, but there's a moderate increase. For us, if you see our ODM business has grown to almost 2x as compared to the last year. ODM business naturally requires high inventory as we need to manage components of assemblies and product readiness at our end, compared to pure EMS players. If you see secondly, the strong growth visibility and customers order pipeline for FY 2027, that's also one of the important reason that considering the current geopolitical issues, because we have to stock up certain critical components proactively to avoid getting stuck in supply chain uncertainties. Considering that, inventory is moderately high. That's one part.
Receivables, If you see, this is more of a 31st March results. Out of which almost 30%, 40% has already been received because some are 60 days, some are 75 days kind of a story. We all started receiving that payment. I'm not worried because that conversion cycle keeps on rotating around.
Thank you. We'll take the next question from Surendra Reddy. Surendra, you can go ahead, please.
Hi, sir. Congratulations on a good set of numbers. My first question is, you mentioned in the last call, we have received a order in the defense from the Miniratna. Are we expecting more kind of orders on that segment, and may know the margins on that front?
Certainly, yes. A couple of Navratna PSUs, we already started working with them. Low or mid-level kind of quantities, and where prototypings and pilot phases are already done. Now we are trying to see on how can we scale their projects. We are working with different divisions of it, and margins probably will be at Aimtron level, when it comes to aerospace and defense. Somewhat, I would say bit on higher side as well. When it comes to consolidation, we generally eye on 15% kind of a PAT margins that we typically look into.
Okay. Yeah, okay, sir. The second question is there any acquisitions going or is there any under developments, under final stage kind of thing, just like ICS or something?
I think it's too early to say. The reason is current geopolitical situation is kind of vulnerable. We look at it couple more, but right now we put on hold right now. ICS is called AIC now. AIC is already up and running, and we start making money on that and all start selling. It's a good thing there. We are settled down now for that one. We put new ERP system, we put new index system, we put all this, whatever requirement. Coming back to your questions, yes, we are looking couple of places. One of the design lab companies we are looking in North America and in European market. We have to wait and watch kind of situation right now.
Thank you. We'll take the next question from Sumit Chopra. Sumit, you can go ahead, please.
Yeah. Hi. Am I audible?
Yes.
Yeah. Hi, sir. I just need one clarification to the question of previous participant. Any specific percentage you would like to guide or comment upon from the organic growth point of view. Because those numbers are not reconciling, because he was also quoting 40%, 50% growth with the any organic growth from Aimtron Electronics. I got you that you are guiding this percentage number from a conservative point of view. Any color you would like to throw from Aimtron without AIC, if you want to comment upon?
See, this is the EMS business you look at every single company. There's a tons of orders and tons of materials at work in the pipeline from everywhere, for everybody. Considering that, we are seeing organically also around 40% to 50% growth plus additional AIC. We give you a range from INR 450-INR 550 at the end of the year. You never know what's going to happen in this geopolitical situation. Again, you could have a INR 550, your math will be right, correct? If you go, let's see, if I say our next year will be around INR 500 crore-INR 600 crore, everybody will be happy. Let's see, tomorrow something happen in Iran or Iraq or somewhere, we will be screwed up again. How are we going to do mathematics?
Our end goal is to get INR 1,000 crore journey. If we're going to do either with 40% to 50% growth or inorganic. That's our end goal and thus we are prepared for that. We cannot give you exact numbers or a very close number because we do not know the situation. That is the reason. Yes, the mathematics doesn't fit in my mind also. Right now, my goal is just see, if I give you INR 550-INR 600 for end of next year, I think you'll be happy, and your math will fit in that. Something happen, you will be unhappy and I'll be unhappy. That is the reason. Thank you.
Also, I think, we need to clarify in the presentation what we've given is CAGR, which is a three to five-year trend that we're talking about, and not just one-year growth number.
Yeah. CAGR is correct.
Sumit, do you have any further questions?
Hello.
Yes, Sumit, you can go ahead, please.
Yeah. Sir, my second question is regarding the mix of box build and PCBA. As we can see in H2, this mix has improved from the H1, the same is not visible in our EBITDA margin. Any specific reason for that?
It's more of a combination of that mode itself, because that is getting more of a value addition change. For instance, initially with our existing customers, we were just doing PCBA. That's an example I'm giving. Where from there, we shifted back to complete box build or complete system integration. For instance, initially the PCBA value would be INR 1,000, which has now increased that turnaround to INR 2,000 or INR 1,500. Bottom line still remains the same to what we used to before, or it has rather been on the positive side where even it has helped us for top line as well. It is a combination of top line as well as bottom line.
Sure. We'll take the next question from Anuj Arya. Anuj, you can go ahead, please.
Yeah, hi. Congratulations on the great set of numbers. Just following up on the previous participant's question. Ideally, we've spoken that box build has a higher set of margins compared to PCBA. Sneh, what you just said doesn't make sense. If you're earning the same percentage of margins by expanding the order value, that just doesn't fit in the logical framework from what was commented earlier.
If you see along with that, there has been a change in order trajectory as well. Initially, if you see, it used to be INR 5 crore, INR 10 crore kind of connectivity for a single order. Which trajectory is now changed to INR 25 crore to INR 40 crore to INR 50 crore kind of a single orders. That is also part of it, where it's a combination of all factors, not only just for PCBA to box build. Because if you see ODM models, then ODM model probably would have a higher margin as compared to box build as well. If you see what we try to do is we try to combine all the factors and try to see on how do we maintain the profitability level and EBITDA of 20% and above.
Understood. For the coming year, that FY 2027, we expect the same split, that is, 70% of box build and approximately 30% of PCBA o r do you expect the percentage of box build and ODM to rise up to nearly 80%?
It is going to be more or less the same, Anuj Arya, where box build is going to be around 65% to 70%, and PCBA is going to be in that 30% kind of range itself.
Got it.
Anuj Arya-
Yes.
I'm looking to Sneh here. Every company has to start with a PCBA, correct? You cannot have 100% box build directly. What Aimtron is looking for, where is the complex PCBA, where is the very high mix, high dollar, those we target. In our dictionary, we don't separate too much as a box build versus PCBA versus design. We look at first when our team is prepared, hey, it's still in our range, 13%-15% or 20%-24% EBITDA range. If not fit, then it doesn't matter for us, is a box build or is a PCBA only, or it's a defense or it's an IoT or it's a telecom. We are little different in EMS trend right now. We would like to be a role model to set up a new trend versus separating everything. Find a medical customer.
They are doing X-ray imaging. Find a medical customer. They are doing defibrillator. Find a drone who is working as a surveillance. Find those kind of customer or a Mercedes-Benz car or a Tesla. Find those customer, they have either your PCB board or Caterpillar. They don't care whether it is a PCB board or just a metal part. Still is the same margin. That is something we are prying on and that is something our DNA. I think, again, I'm not just discouraging you, but those are the thoughts we had. A lot of question we had in previous. Your machine, how many per hour? How many you pick and place? How many parts you place? Doesn't matter now. What is your EBITDA and bottom line? I think that's where we focused and that is our DNA and that's our goal also. Thank you.
Thank you. We'll take the next question from Sachin Gulati. Sachin, you can go ahead, please.
Am I audible?
Yes.
Yeah. Thank you for the opportunity, congratulations for good set of numbers. Before asking question, I have one or two suggestions. One is, if we can share this PPT little bit in advance, so it is just here so that we can come prepared and go through in advance. Second, till we migrate to main board, can we consider some quarterly business updates?
Very good question. First question will be, me and Vinay will work together and see next time. Our goal was to set a trend to give early results. My goal is to give every first last Monday of every year or every quarter, I would like to give the results. That is the reason we have to rush a bit here and there. We are setting the trend, we will go from there, Next time we'll make sure we'll give you that again advance. That is our goal, and we'll do it for sure. Next question here is quarterly.
Yes. Please go ahead.
Quarterly, we are ready for the quarterly. I think this new auditor system will try to do a quarterly. At least we would like to give you our quarterly update for sure. We have only three quarter left. Then we have to go quarterly anyway. We are preparing our team to start quarterly. Let's see how it goes. Our goal is to give you quarterly, but maybe. Anyway, we have to learn that anyway. I think we are ready for that. We'll let you know, and we'll announce quarterly as the time comes.
Second is, our PCB was used in drone showcase in Republic Day Parade. What is further progress update as far as this drone segment is concerned?
That question is for Shah.
Basically, we are regularly doing monthly shipments specific to drone for domestic as well as international market. Down the line, we are even eyeing on how do we enter to box build space, like, just an example, camera box build assembly and some more of that kind, payload and all that. That exploration is already going on. As of now, PCBA, we are already supplying them on regular basis. Wire harness, we have recently started encountering on that part too. Down the line, we are exploring on how can we do payload systems, camera module assemblies and all. Apart from that, we are also exploring if we can do a complete box build system integration as well.
Thank you. We'll take the next question from Roshan Shah. Roshan, you can go ahead.
Sir, can you please explain the difficulty level of designing a PCB board? How difficult it is to design a PCB board? The difficulty level is very easy that everyone can do, or there are any levels to difficulties that we do some very high difficult task which is reflected in our margins compared to other peers?
You're fixing it or I'll take?
Hello. Certainly, it can be defined to different levels of difficulties, different stage of it. Just an example, like video game, every layer or every stage you clear, the difficulty increases. We are into that niche market kind of an activity where, just an example, where someone is making just a PCB of fan or tube light, that's too easy to do that things there. But to make this 1KV, 2KV, 3KV UPS, you need an expertise cost specific to power electronics, high voltage kind of an activity, where instrument cost itself is around INR 30 lakh to INR 35 lakh to test that equipment. And for battery load testing and all specific to UPS, I'm saying as of now, just in power electronics subject. If you see, it took us four to six months just to develop one category of product. That too, because we have an expertise.
Else it takes years and years of time, and still people are not able to get the products ready.
Vinay, in the effort of time, can we take a shorter question and shorter answer? Maybe one question from everybody. Only one question.
Let's finish this first, Shah.
Sir, can I ask one last question?
Maybe you guys covered here. For last time also, Roshan already asked two questions before also, Roshan. If you don't mind. Let have other people please take it easy and take it, yeah.
Sure. We'll take the next question from Darshit Shah. We'll just request all participants to restrict to only one question. Thank you, Shah.
Only one question from participant, please.
Yeah. Darshit, you can go ahead.
Yeah. Hi. Sorry, I couldn't go through the presentation properly. Can you let me know how much was the consolidation that happened from the acquisition in the current financials?
$1.6 million. It was specific for two months.
Months as in?
Specific to AIC, I'm talking about.
Correct.
We'll take the next question from Somil Jain. Somil, you can go ahead, please.
Hi, Mukesh. Hi, Sneh.
Hi.
Congrats on FY 2026. One question on the order book and revenues. Telecom as a segment, which is, if I remember correctly, not a large contributor to revenues last year. By last year, I mean FY 2025. In FY 2026, it has been a significant contributor and also as a part of the order book, it's a significant part of that. Similarly, power and data center segment is again a significant part of the order book. Can you talk about products here? There's a ramp-up within these products. Are these led by a single order, single customer, single product? With the potential scale that we can get with these products.
Sure. If you see specific to power segment and data centers. Power electronics, there are a couple of customers in that. Of which one of the biggest contributor is S&P 500 company, Fortune 500 company, Ohio-based company, which are a leading player in data centers. As of now, we are working with them on 1 kV to 3 kV, six variants of it, where we do have a visibility of going up to 20 kV, kind of an opportunity just from that one customer, Fortune 500 customer I'm talking about. Which can be this year revenue size as well. Can be that big opportunity. Again, not immediately, but down the line once we are going ahead in this journey. Specific to telecom, we are doing Wi-Fi 6, Wi-Fi 7 kind of equipment.
Apart from that, SFP and all that, fiber optics or optical transceivers and all that are also going to be part of it down the line. It is going to be a combination of all factors and multiple orders. It's not only one customer contributing to all the complete sector.
Thank you. We'll take the next question from Rohan. Rohan, you can unmute and ask the question. Rohan, go ahead, please.
Am I audible?
Yeah.
My question was with respect to subject you just mentioned. On the data center end, I think we received some INR 100 crore order. Just wanted to have some more light on that. What is the sort of product and what is the opportunity? What is the revenue that we foresee in the coming future?
As I stated, we are making UPS for that. There are six variants, three subcategories: 1 kV, 2 kV, 3 kV, with battery, without battery, that are going to be used in data centers, EPC, and commissioning as a backup. As of now, it's a Fortune 500 company and certainly if you see, can be as big as last year's revenue as well. Again, it is not going to be immediate and one-shot. It is going to be a long-term association.
Thank you. We'll first give a chance to participants who've not had a chance to ask any question. We'll take the next question from Aryan Bhatia. Aryan, you can go ahead, please. Aryan, you are mute. Please go ahead. I think there's a problem in his line. We'll take the next question from Jigar Jani. Jigar, you can go ahead, please.
Hi. First of all, congratulations on our great set of numbers once again. Hope it continues for a long time. Just one question, which is related to the acquisition. If I heard it correctly, the ICS or AIC is doing 11% margins as of now on EBITDA level, large part of your growth, say next year, will come from this business and the full consolidation of this business, and it will take some time for this to ramp up to standalone margins, which are about 20% odd. Do you foresee some margin pressure on a near-term basis till this gets kind of coming down to our levels of 20% odd on the standalone basis? Just on a data keeping one, what is the execution timeline for the order book that we have of about INR 570 crores? By when can we see the execution of this?
Let me just give you a little heads up on this to answer this. If you see, Jigar, after we acquired, we almost slashed a lot of expenses. We're using a lot of our Indian talents over there in the back end. Let's say they have four people in purchasing. Now we have only one person purchasing and three people over here. From 11%, we jump to 11%, 15% right there. I should give a range, but just give you 11%-12% double digit, we have some low double digits. Now we are in mid-double digit now.
All the machines, all these efficiencies, they didn't have that much. Capacity-wise, they have only 55%. We are adding more that way, saving some overhead. It's easy to get from lower double-digits to higher double-digits by mid this year. Even the later this year, it will be a very close to lower double-digit to higher double-digit. Let's say 18% to 20%. That's our accomplishment will be. Even though let's say now purchasing power will be increased. Let's say we used to buy only 200 per material purchase. Now we are buying 300. That way, it's going to be also 2% to 3% saving right there. Those are the gains in acquisition. We are getting talents. We are getting lot of other stuff.
That is the reason, from lower double-digit to a higher double-digit will be very easy to go. It will be within a year or two, at least, honest, it will be an Aimtron margin.
Sir, this other question was on the exhibition timeline of the current order book.
Exhibition is always 12 to 18 months. Normally we take order only 12 months, but some customer, let's say, well-settled customer like ABB, Schneider, Pomerantz, Caterpillar. Those customer, they are very stable, and they want to buy some of the parts for longer, so we give them six months extra. Otherwise, normally in the EMS industries, 12 months is the blanket order. Current open order book is 12 to 16 months.
Sure. We'll take the next question from Shaurya Sajwani. Shaurya, you can go ahead, please.
Hello. Hi, Mukesh. Hi, Sneh. First of all, congratulations on a fantastic set of numbers.
Thank you.
I honestly wanted to fundamentally understand the rationale behind the ICS acquisition. More on the product, the market size, the competitive positioning, what synergy it has with Indian Aimtron. Is it different? Fundamentally understand what value add is it providing to the company other than the top line and bottom line addition, like what efficiencies we can achieve, et cetera.
If you find some time, go to Aimtron media page. Nirmal gave us about 15 minutes just for this. What we are gaining out of this acquisition. He gave also 10 other comparison and why we selected ICS. We call AIC now. In the absence of time, I'm not going to go too much in that, but you really need to see the video. That video has every single answer of your questions about how, what kind of mindset of the ownership, what kind of system they have, why we select ICS, and whole nine yard, they call in technical, American language. Coming back to main is regular electronics. Regular electronics means lot of these indoor vertical, correct? We are doing indoor, let's say a home automation is an indoor. But we are doing outdoor, out to the sun over there. That's a farming equipment.
The equipment is kind of more moisture or rugged or cooling or thawing. Those are the expertise they have. Plus, they have some AgriTech IP. Also, they have. That means we have now AgriTech IP. AgriTech means Agriculture Technology. It's another subject we don't have that much over here because we are doing a simple farming with tractor only. If you look at that, all these tools over there is very advanced in agriculture also. Those are the scenarios we had and that's how we selected. If you have some time, please visit Aimtron and we can give you more in-person demo what is beneficiary. You are most welcome to visit our ICS or AIC facility over there when you are in our state. Most welcome to see that also.
Next call, I will bring some videos also, so you can see that kind of differentiation.
Due to shortage of time, we'll take the last question from Surendra Reddy. Surendra, you can go ahead and ask your question, please.
Yeah. Thank you for the opportunity. All come together, like organically, inorganically, and ESDM, like defense, everything. What is the top line and bottom line we can expect for FY 2027, please?
Say it again. Yes, sure.
We already gave that updates. Probably we are eyeing on that 40% to 50% CAGR kind of a rule over year-on-year. That's the strategy we are building and that's the platform we are trying to build for both top line and specific to bottom line. If you think that it is more of an 15% kind of a margin with few percentage or a few basis points here and there, that is what we are eyeing on.
Sure, sir. Since that was the last question for the day, would you like to give any closing comments before we end this call?
I really appreciate this community and sometimes we have to say those different. Sorry, Shaurya or somebody I said, no second question. In the absence of time. Our goal is to be transparent. Our goal is to bring American quality with Indian talent, and that is the scalability we have. We do have a differentiator is we are American company, means American mindset company. If you look at our building, if you look at our floor over there, you will see the differentiator. Let's hope to get a 1,000-crore journey as soon as possible, and that's our goal. With that, really appreciate everybody's time, and thank you so much.
Thank you, sir. Thank you for joining on the call, and thank you to all the participants for joining on the call. This brings us to the end of today's conference call. Thank you.