Ladies and gentlemen, on behalf of Kaptify Consulting Investor Relations team, I welcome you all to the H1 FY 2026 Post-Earnings Conference Call of Aimtron Electronics Limited. Today on the call from the management team we have with us Mr. Mukesh Vasani, Chairman and Promoter, Mr. Nirmal Vasani, Senior Technology Director and Promoter, Mr. Sneh Shah, Full-Time Director. 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 brief us about the business and performance highlights for the period ended September 2025, the growth plan and vision for the coming year, post which we will open the floor for Q&A. Over to the management team.
Thank you, Vinay. Good morning. Hello, everyone. Thank you for joining today. It is my pleasure to welcome all of you, our investors, our business partners, and well-wishers who continue to support this exciting Aimtron journey. When I look back when I started in 2011, I had one simple dream. To build a company that stands on three T. T for technology, T for trust, and T for teamwork. We began small, as you all know, but with a big belief that Indian talent with American quality standards on Indian soil can create world-class manufacturing, that is the differentiator for Aimtron. Today, Aimtron is one of India's fastest-growing ESDM company, providing design, manufacturing, and complete EMS with system integration. I'm just repeating that word, with system integration across India and throughout the globe.
As we move forward into the next phase of growth, what we proudly call Aimtron 2.0. I would like to welcome our Senior Technology Director, Nirmal Vasani, to walk you through our performance and vision in action. Nirmal.
Thank you. Aimtron 2.0 is about transformation, building a future-ready company that connects design, data, and manufacturing into one powerful ecosystem. For the first half of 2026, Aimtron delivered some record results. Our revenue is up 112%. Our EBITDA and PAT are equally record-breaking, and we've maintained strong profitability, supported by a very strong product mix, better cost controls, and more efficient operations. Our order book, as of the end of September, stands at a record-breaking INR 4,635 million, which is about three times our FY 2025 revenue.
Yep.
This is a clear sign of strong customer trust and long-term visibility. Some of the major deals that we've signed today speak to this. It reflects the growing trust in Aimtron's capabilities. On one hand, we have an INR 975 million ODM contract with leading U.S. infrastructure firm. We have a domestic AI, IoT box build order for 50,000 units worth over INR 460 million, as well as a strategic order from a Navratna PSU in the communications domain. I also want to share some other exciting opportunities that we have on the horizon. We've received a tooling and prototype manufacturing order from an existing Texas-based drone military customer. This project supports the naval as well as ground-based troop applications and marks Aimtron's next major step into high-precision design and prototyping for the defense industry.
We've started construction on a new three-acre greenfield facility, which will include six state-of-the-art SMT lines, as well as a dedicated ODM research and defense zone, helping us build smarter, faster, and greener manufacturing for the future. Thank you.
Sneh, would you like to proceed with the remaining presentation?
Thank you, Nirmal. I think, Nirmal, our Aimtron 2.0 is more than growth. It is a new way of thinking. We are building Aimtron on three strong pillars. Like 3 I's. I for innovation, creating a new design and manufacturing solution in AI, IoT, EV, defense, and aerospace. You name it, we have it. I for integration, bringing together India global operations under one system. We are globally in the U.S. and India and maybe future, you might have a question about M&A. In that scenario, bringing together India and global operation under one system, one culture, that is integration, is also very important pillar at Aimtron. Third one is impact. Building technology that is not only makes business success, or not to make the business sense, but also supports society through jobs, learning, and sustainability. A full ecosystem.
That's what we are also trying to accomplish and these three Is. We just announced our big milestone, AS9100D. I think you've already seen the message on the exchange. Which opens now new door to global aerospace and defense customers. We just connected through a couple of prospects. Airbus A350 programs. There is so many opportunities. Again, the horizon is open up. I think in execution, Nirmal, you want to add a minute? I would like to request again, you can see if you can show us the outlook.
As we move forward, our execution is evolving entirely. We're focusing on converting the strong order pipeline that we have today into consistent high-margin growth. We're strengthening automation, digital systems, and people capabilities. Our goal for the next three years is to create a platform of an even higher revenue scale while maintaining the same Aimtron culture of humility, teamwork, and performance. Thank you.
Great. Thank you, Nirmal. At the closing, Vinay, thank you for arranging this call. To all our investors and networking business partners, thank you for believing in Aimtron and walking this path together. Aimtron is growing fast, but we are growing with purpose though. A lot of company growing fast. A lot of companies will grow, but our goal is to grow with purpose. We are not only building product, we are building the possibilities. That's about Aimtron 2.0. Aimtron 2.0 is our bridge to the future. A future where innovation and impact move together. Thank you. Before your questions, I would like to request our Whole-Time Director, Mr. Sneh to share the briefs of PPT very quickly, then we can go on question answer. Once again, thank you so much for Kaptify team and our investor and our friends. Thank you.
Thanks, Mukesh and Nirmal, for the trajectory on what exactly we are hanging on Aimtron 2.0. Coming to the presentation. Probably, we'll go in depth and a quick glimpse of it. We'll go with the company overview first, followed by business profile and way forward. Then we'll just see the business, our financial highlights. As you know, as Aimtron, we are into ESDM, that is Electronic System Design and Manufacturing, where we focus on concept to creation kind of an aggregation as a one-stop solution. We started 2011 in Gujarat, Vadodara, and down the line, we have now presence in Bangalore and U.S., that is in Texas. As of now, we have five SMT lines, four in Gujarat, Vadodara and one in Bangalore. The current diversification that we have, there are myriad of sectors that we are already serving.
For instance, automotive or specific to BMS or somewhat of that kind. Power or IoT robotics and industrial are a couple of major contributors this year as well as coming down the line. You already met both the promoters, Mukesh, who is the Founder, heart of the Aimtron Group, and Nirmal, coming up with Aimtron 2.0. If you come out the progression of our timelines were. 2014, we inaugurated our Vadodara facility that was inaugurated by Vajubhai Vala. He was the Karnataka governor. 2018, we crossed INR 20 crore. Post that, 2021, 2022, we started the post-COVID facility in Bangalore. That facility also was inaugurated by Ashwath Narayan. He was the IT, BT minister at that phase of time. With time, we thought of to enter more into an ODM model.
We started our design house, both in Gujarat, Vadodara and Ahmedabad. That has a capability for one-stop solution for hardware design, mechanical design, and a complete R&D kind of an opportunity or a facility. Down the line, we had couple of certifications with global standards, and we got listed under NSE. From that, our journey got shifted completely. The trajectory has changed. On what exactly we do, as we stated, initially we help customers to provide, anyone comes with a concept, we help them to design the complete product or the complete opportunity from concept to creation. That includes hardware design. We have Altium licenses for hardware design, like PCB, Gerber layout and all that activities. We do have SolidWorks for mechanical design and couple of other software like Valor for PCB assembly when it comes to DFM.
Once design gets ready, we need to review the design and more of an technical front that we do DFM. We take that opportunity for prototype first. Once prototypes are approved, it goes to the pilot batch. It comes to the mass production. PCB assembly, it's an heart of it. We have started aggressively for complete box build or system integration. That includes plastic, sheet metal, die casting. Cable assembly, we started in-house, post our IPO journey. Now we are providing complete one-stop solution, even to that level that we can ship to the end customer directly as a part of drop shipment. We build the complete product as a finished product, finished good, including packaging and all, and we can ship to their end customer directly. Again, this is in-depth on what exactly a vertically integrated one-stop solution.
Once design and new product development comes into the picture, post that PCB assembly, comes sheet metal, magnetics. All this, probably sheet metal, plastics and other mechanical parts, we are outsourcing. The new greenfield project that we are eyeing at, we are eyeing at that how can we do it in-house and how can we remove or how can we self-reliance on that front too, along with the PCB assembly that we are doing it in-house. Focusing down the line more on a bigger box build project, like size of a cabinet or ATM size projects or casino slot machines kind of a project. That is what down the line the goal would be. ODM, that's an important zone now, because everyone when eyeing on EMS has a $500 billion journey by 2030.
Similarly, this particular segment of ODM, if you see post-COVID, to what one country plus one strategy is going around. Globally, like by 2024, the size of that ODM model is around INR 1.2 trillion. That is now getting shifted to almost INR 2 trillion plus by 2030. That is what the projections numbers are. Now we have started focusing more on this ODM model kind of projects, where we provide the complete capabilities and focusing more on concept. Till date, like last decade of Aimtron, if I say, whatever design projects were there, that was like initially we used to engage on production or manufacturing projects. Through that, we used to get design projects. We are trying to reverse the story, where we can get a design project first, and then through that tailwind, we can get the manufacturing projects.
In that scale, like with high precision assembly and complete solutions, by market-ready packaging, labeling, and complete quality assurance kind of product. Fit to market, we are just seeing so that any customer, like just an example in China or any other part of the world, where ODM model is still in a proactively mode for any global developed economy. If anyone wants a product, they will just keep 10 products in front of you for same product line. You just brand it, name it, and then they will sell it with their brand name. There are design houses in India who have this IPs ready, but they don't know where to sell, how to sell.
We are just trying to bridge that gap as a complete ecosystem where we can own that IP, and we can just see to it how can we deliver that to customer. Today, no one is ready to wait for design, say like one year, 12 months, because any design project you go, it's going to take years, like one year or two year of timeframe. In today's fast-centric world, no one is ready on that front. We can just expedite that with minor changes here and there with base reference, and we can see to how can we transform that. That's part of product engineering service, like whatever hardware, embedded systems and power electronics and a couple of other stuff that we do, with multilayer PCB design and with softwares like Altium and SolidWorks. These are global standards.
For example, ISO 13485 is specific for Medtech along with CDSCO. That is for our made in India, vocal for local. IATF 16949, that's an international automotive task force certification. That is also complied now. We have CSA, that is for Canadian Standards Association. That is Canada and South America market opportunity gets opened up. Even considering all that factors, we recently covered AS9100 as well. That is for aviation and defense industries. All these sectors with keeping in mind environmental management system. We have ISO 14000 as well. Like zero carbon credits, conflict mineral policies and all. We just try to see that we almost tends to zero as of now, and just try to see on how can we maintain environmental management as well. This is in-depth of what we have in terms of machineries.
Will not go in depth, like everyone knows that more or less. Inline, we have inline SPI, inline automated X-ray machines, and it's more of a state-of-the-art facility, where complete, without any human intervention, the complete PCBAs can be manufactured in SMT.
I'd like to add one line here, Sneh. Machine can be bought by $50,000 from China and $500,000 from Japan. We have the top-of-the-line machines, that's what I would like to highlight here, because we like that quality standards. Continue.
Definitely, the new AI integration, IoT integration that we are doing it. Even if I reflect on this, probably we have MES system, and it's a complete paperless documentation system and process. Even sitting anywhere of any part of the world, we can just see to it what is going around in the manufacturing shop floor, what is going to be the next product line item that is going to be on the line, and much more different complete collaborative systems that starts from RFQ to final shipment. Everything gets routed through that system itself. These are just the product line that we are doing it as of now for specific to automotive, like we do onboard chargers, climate systems. Climate systems get exported to European markets. Industrial and gaming.
Industrial, it's major contributor, more of an industrial pump controller units or HVAC kind of an PCBAs for that. Defense and aerospace, bit on a lower end as of now. We already started. Recently, there was an emergency procurement from Government of India. Couple of our customers were part of it. When they received the orders, we were passed on that PCB orders. A couple of them in drone industry. On a leading drone manufacturer of India, we are the one who provides them the PCBA solutions. Down the line, we may even start box build assemblies as well for them. Couple of military communication systems-related PCBAs for Navratna PSUs in Bangalore and couple of southern part of India.
Yep.
Anyhow, telecom has been a significant rollover now. We are doing network switches and more of a security networking kind of activities. Medtech volume would be less, but then they are high margin kind of an business. Smartwatch wearables specific to Medtech, critical equipments like X-ray or ventilators, so PCBs for that. Then lentil wearables where we see that torch coming up and all that PCB is there. That's our flex PCBs, flex plus rigid PCBs, combination of all. Aerospace and defense, that's a growing traction as of now. We have strong new inquiries, as Nirmal stated. We already got one momentum from Texas, specific to U.S. troops and all. That is going to be for Navy and U.S. troops. India also, we are working aggressively.
Probably down the line, we may have some strong announcement on that front too, that we are bidding couple of projects to PSUs in India. That's kind of an ODM model, where we will support them from design, and from design, we'll take it up to the complete production level. Way forward strategies, more focusing on ODM model and a complete system integration. Geographical expansion is in place. Like post-IPO also, we started one remote sales office in Germany, and then one office in Texas, U.S., under Aimtron Electronics India directly. We also have done implementation of Lean and Six Sigma and a couple of other programs to increase the operational efficiency and enhance that.
As a part of backward integration, we already started cable assembly in-house. As a part of forward integration and expansion, we already have announced a new greenfield project that is going to be coming up down the line. Post-IPO, I believe we have gone for a much more trajectory to what we have been eyeing at. We have committed 40%-50% CAGR growth, but we have been surpassing there quarter on quarter or half a year to half year and year on year, both last year as well as this year. Post-IPO, probably we have reflected three results and all three are evidence of it. If you see a major contribution that was there, that was part of the new ODM model project that we won, that is almost INR 100 crore kind of an infrastructure, U.S.-led firm, and it's an almost $8 billion company.
We are now targeting such kind of tier I prospects or tier I pipelines are already in place, where even they have floated now a bigger RFQ than the current one, and we are trying to see on how can we encounter that kind of opportunities down the line. PSUs, already started activities on that front. Last quarter, probably last six months or last six to nine months, we are just trying to see on how can we take an entry to that kind of players. Registration, certifications, and audits and all that were in process. Probably down the line, fruits are going to be there in that part of books too. Strategic expansion, as we stated, like greenfield project, that will have down the line six assembly lines. Again, not immediately, but down the line.
That new lines that we had last year, it's an AI inspection capabilities, we can see even in the reflection in our current results that with almost minimal manpower or with negligible increase in expenses, we can increase our output to 2X, 3X, 4X kind of an activity. Then post as global footprints, we started greenfield project. Till today, we are still debt-free as on 30th September. All the certifications now are in place where to enter into the new segments, new markets, emerging sectors. Past one year, we entered couple of new sectors. One was AI, one was IoT. We even entered this year green energy. That's upcoming because zero carbon credits and all that is something people are eyeing at, a sustainable growth in terms of renewable energies.
Now we are eyeing at aerospace and defense also as one of the sectors down the line. Key financials, probably, I think as everyone is aware, we had an 112% year-over-year growth, net profit also increased by almost 81% year-over-year. This is just a revenue breakdown on how exactly the bifurcation was, on what exactly the contribution was. Box build in first half of the year was almost 35%, down the line that would increase to more than 50% in second half of the year. Still as a part of to what everyone had in question during the tariff situation, we worked proactively, we just try to balance the way out on how can we balance with India and export as an customer base. This time, almost 60% to 65% was domestic revenue with global clientele.
Then down the line, around 35%, 40% was approximately an export market. Current open order book, INR 463 crore, almost 3X the revenue of FY 2025. If we see to what RFQs we were having, when Mukesh stated in the last con call. We were having an open pipeline of around INR 700 crore to INR 800 crore RFQ. Probably, this is just a glimpse of that reflection on how much got converted on that front, still couple of discussions are ongoing that may get reflected in second half of the year. Typically for a sales cycle takes place around six to nine months and might be more as well. That ODM project we talked about, it took us almost more than around 12 months of time to close on that project.
That is something, it takes time, it's not going to be an overnight journey, but definitely fruits will be on a positive side. I'm not going in-depth on results as everyone would have seen that. Industry insights are like by 2030 everyone is expecting INR 500 billion and that even Government of India is tailwinding this sector on how can we just see to it. That trillion dollar opportunity is something that we are eyeing on. EMS is going to be one of the powerhouse with strong manufacturing design and export-related activities. These are the key segments and emerging areas or emerging investment areas as of now. PLI ECMS scheme, we are also exploring on that front. We already explored a couple of things on that.
Once we have a right time, probably we'll go with that discussion. ECMS on component side, we already have started working on that front. I believe that's it from mine. Yes, important stuff like we received two awards this time, one from ELCINA for export contribution towards in SME segment and one was for related to business excellence on what exactly we are doing in ESG Amazon sector.
I think more likely today is Investors Day, so let them ask questions Sneh.
Sure.
Thank you for taking up this presentation. Vinay, we can open up for the question answers for half an hour, and then we can conclude.
Sure. All those who wish to ask a question may kindly use the option of raise hand. Once you raise hand, we'll invite you to ask questions. In case there's a problem at your end, please put a message in the chat box and we'll invite you to ask the question. We'll take the first question from Agrim. Agrim, you can go ahead, please.
Hi. Good morning. Good morning, everyone. My question here is, what is the revenue expectation for [FY 202 6]?
We already have given the guidelines of 40%to 50% CAGR year-on-year. Probably this time we may surpass it. In first half of the year, we have given the projections of around INR 250 crore+, somewhere around INR 270 crore to INR 880 crore. We are in line with that numbers as on this financial year.
Okay. The next one being, can we sustain the 25% EBITDA for the next two or three years, maybe?
We already have stated, in terms of EBITDA and PAT, to what we focus is upcoming trending technologies and OEM kind of a model. EBITDA and PAT level probably like 20% on an northern side of it probably we can expect that. PAT also 15% ± a couple of percent here and there definitely is going to be a sustainable one.
Okay. One final question being, what is the segment which is contributing very highly to the margins for us? Which segment is contributing the most?
I would not say sectors, but I would say it's more of an product portfolio that we eye on because as I stated, we focus more of an upcoming trending technologies. Which is going to be just an example like for example, telecom players as of now. Most of them are doing Wi-Fi five kind of an equipment. Today to what equipment we are doing, there is Wi-Fi six level and plus kind of an equipment. We invested two testing site for power electronics and in that we have capabilities to test up to Wi-Fi seven kind of an equipments. That is something that we eye on, and down the line, if you see the current open order, there is a tailwind towards in box build. Probably contribution of box build is going to be on higher side down the line.
Okay.
That is going to help us to maintain and sustain our margins. Structure profitability will be in alignment, I would say.
Okay. Thank you. That will be all from my end.
Thank you.
Thank you, Agrim. I request all the participant to limit yourself to two questions only since there are a lot of participants. We'll take the next question from Milroy. Milroy, you can unmute and go ahead, please. Milroy, you are not audible.
Can you tell me about
I'm writing this on note, Mil.
Yeah. Mr. Milroy, you're not audible. You can just post your question in chat. I will ask it on your behalf.
Let's take next question by the time.
Yeah, we'll take the next question from Sally. Sally, you can unmute and go ahead, please.
Am I audible?
Yes.
Yes.
Good morning, everyone. We saw that the revenue growth has increased significantly. On the PAT level, PAT margins, if you compare it with H1 of the last year, the PAT margins have quite gone down. I did notice the COGS has gone significantly up if you compare it to H1 of last year. Just wanted to understand the reason behind this. Is it the expansion plans that we're executing or any other reasons associated with the increase in the COGS?
Thanks, Sally for the question. Probably if you see when we are eyeing on scalability down the line, it's going to be part of it. If you see the major part of it was because box build is getting contributed more. Till date it was more of an PCBA or PCB assembly, down the line, if you see it's going to be more of a system integration. That will include cable assembly, plastic, sheet metal, or a complete system integration or a complete box build. That is the prime reason, probably that will help us to not only increase the revenue, but also margin will be normalized. I don't think our structural profitability will be in vain. That is something that is still reasonable to what we are projecting as of now.
The greenfield project probably to what you are looking for. Next year is something that we are eyeing on somewhere around Q3 and/or Q4 is something we are eyeing at to get it into the operational mode. If something gets on a positive note with couple of things going around, we may be on a faster note. As of now, you can expect to be operational by somewhere around December or next year Q4.
Are we expecting expansion in the PAT margins in the coming second half of the year? Do you say it'll be on the same levels?
I would say it would be more or less same, with the same sustainability that we are trying to, because we already have stated 15% with few percent changes here and there. Structural profitability will be in alignment.
Okay. All right.
Just to add one line to Sneh. Even though situation never happened in the past, like tariff situation, geopolitical situation, we, means Aimtron team, did wonderful job to manage and maneuver and make the right move to maintain the revenue and the PAT both. I think that's what really a good and beautiful thing about Aimtron. Continuous SWOT analysis, continuous thinking, how we can make it, how we can turn around, how we can be agile, and that's why we did it. I think maybe adding to Sneh's answer. Thank you.
All right. Thanks, sir.
Thank you, Ali. We'll take the next question from the line of Mayank Kapoor. Mayank, you can unmute and go ahead, please.
Yeah. This is Mayank.
Yes.
Hey, team. Thank you for the amazing set of results and the detailed walkthrough of the presentation. Most of my questions have been answered. Just one left, which is on the PSU Navratna order that we have bagged recently. Just wanted to understand three things about it. First of all, is it related to aerospace or defense? Secondly, is there any direction in terms of value or execution timeline that you can give us? Thirdly, is this a major part of the order book that was shared earlier?
Sure. I think a good tail of questions, I would say. If I would like to give a glimpse of first on how exactly our strategy is going to be for our defense program. If you see defense program have much longer qualification cycles and they are lumpy natures with high working capital needs. We would rather grow sustainably than chase the near-term optics. We have seen couple of peers who has been affecting on profitability. Currently, to what we are working was again on high tech kind of an activity. You may see that order activity might not exceed double digit kind of an overall contribution, but the value of it would be much more higher than that.
Recently, to what Navratna PSUs we are working currently, that is more of an military communication kind of an activity, radar and surveillance and all that kind of an equipment PCB is that we are working. Just one example. One PCB is just 32-layer PCB, and then one BGA module that we put on top of it, that BGA module is around INR 32 lakh. Just one module itself is INR 32 lakh kind of an worth, kind of an module. That kind of PCBs is something or that kind of an opportunity is something that we are eyeing at. We are consciously working on it, but not that aggressive in Defense right now despite of opportunities.
Yeah, in case again, like anything in global terms, definitely we are eyeing on it and working with couple of global players on just see to it on how can we go into that global, like to what extent we are doing, something similar to that. Mukesh, you probably can add anything. Yeah.
I would like to add one line, Mayank. Defense is a buzzword. Honeywell does a tailwind and Honeywell does the black box for Defense. I'm just talking about. What Aimtron is focusing on the control box. The size of the order it also matters, but also the PAT and gross margin also matters. I think we are balancing that also b ecause a lot of companies, they do Defense business, but still they don't make money. It happens too. That was we are very careful on that. Just to add that. Thank you.
Yeah. Thank you for answering that. Just another question that I had. I believe this was answered in the last phone call, but I didn't get it fully. I think in H2 of 2026 we are going to have higher contribution from box build, as was stated earlier in the presentation. Should we expect some sort of margin improvement either in terms of EBITDA margin or PAT margin on H2 versus H1?
That would be a [guesstimate]. Whatever right now we are targeting 15 plus or minus one or two.
Got it. Makes sense.
Thank you.
Thank you so much, sir. I wish you all the best.
Thank you.
Thank you, Mayank. We'll take the next question from the line of Deepak Hooda. Mr. Deepak you can unmute and go ahead please.
Yeah. Am I audible, sir?
Yes.
Yeah. Thank you very much, sir, for this opportunity. Just wanted to understand first that you mentioned about a lot of tier 1 pipeline are already in place. Our current order book is close to INR 465 crores. What's the quantum of the pipeline we are looking at in terms of accretion to our order book? Can you throw some light on that? That would be very helpful.
Sure. If I just give you, like as I stated in presentation as well, just to give you a glimpse of it, that INR 97.5 crore or INR 100 crore kind of an ODM project. That's an INR 8 billion revenue group or a global leader in providing solutions for data centers and communication network, who is eyeing on India as a key market for outsourcing design-led ODM projects. We already have secured one project and down the line they are even eyeing at, you can say 400, 500 kind of an opportunity next three to five years. There are a couple of other companies where initial phase of discussions are ongoing. One is again related to power sector, who is a leading from India, again a global player based out in India, where audits are completed.
That also can be a scale of around INR 50 to INR 100 crore next couple of years of time frame. Such kind of players we already have started activities and engagement. Again, as I stated, for specific to sales cycle, it takes time. ODM project, it took us almost 15 months of time frame to get converted from initial discussion to a final closure. Because when you discuss initially, then comes when both leadership teams comes into the picture, engagement of them. Post that, we just see to it like RFQ share. Comes the audit phase. Post-audit, again, negotiation phase comes up, and then it comes to the proto batch. Once proto is done, if in case design, then design. After that proto and then production batch comes into the picture.
If you see the complete cycle of it, then probably 12 to 15 months is something that we eye on for a closure.
Okay. What would be the total quantum of this pipeline? I mean, overall, I mean, that may get added to your order book over next six months, 12 months.
Same kind of a trajectory we have to what it was there in first half of the year. We are just trying to see on how can we more get into the conversion mode. Same kind of RFQ pipeline we still have intact.
Okay. Cool. Any kind of year-end order book target you would have? I mean, compared to what INR 465 crore we would have currently.
Sorry, if you can be louder. Your voice was not audible.
Okay. I was just trying to understand any kind of order book target you would have at year-end FY 2026 ends by March 2026, what sort of order book you want to maintain?
I think a good question. Based on that you can even assume next year revenue. Next year revenue, you can say again, a 40% to 50% CAGR is something that we are going to eye on. We'll remain with almost you can say what we are projecting next year. We'll be helping you out later end of this year. Yeah, we do have some targets internally on what should be the open book, and we'll give you more clarity towards the end of the year.
Okay. That's very helpful, sir. I think that's a bit from my side. All the way best wishes.
Thank you, Deepak.
Thank you very much.
We'll take the next question from Rehan Seel. Rehan, you can unmute and go ahead, please.
Yeah, sorry. There is some background noise from my side. Could you please check my chat box if you could?
Your voice is quite clear. You can ask the question.
Okay. Like MRD will write?
Yeah.
Yeah. You have answered most of couple of questions, I have left with one. Sir, could you please share more on the nature of your recent AI IoT order from the U.S. client and metaverse and these events could lead to recurring ODM programs to follow or follow-on orders regarding the same?
Okay. Both are different. Like AI, we already closed that order. We announced that last quarter, last half of the year itself. That was INR 1.8 million kind of an order. Execution has already started on that front. IoTs, there are two major orders. One is from the U.S. client that I recently spoke. More opportunities are coming up from their door as well, related to, again, ODM kind of a model itself. Another local domestic project that we closed with 50,000 units. Down the line, they are even expecting more on that front. This 50,000, again, the engagement of deliverables has started, and down the line by Q4 or financial year, we're expecting something more on that trajectory too.
Okay. Just more clarification on the PLI scheme regarding the components. My second question is on the side of with the new PLI scheme for passive components and strong government initiatives for defense and med tech manufacturing. Are you evaluating any participation in any of these policy programs?
We are exploring on ECMS, Electronic Component Manufacturing Scheme, specific to SFD, small fiber optics. Probably we'll give you more glimpse when we get 100% clarity on it. Yes, definitely explorations are ongoing for SFD because we are already getting more tractions on telecom sector. That's part of going to be telecom and network security.
Okay. Fair enough. Thank you.
Thank you, Rehan. We'll take the next question from Akshay Shah. Akshay, you can go ahead, please.
Thank you for the opportunity and congratulations for good execution, sir. Sir, you mentioned that you are exploring also Airbus, some part of order from Airbus program. Can you elaborate that at what part of value chain are you working there?
Mukesh,
I think, Sneh, I can add a little bit here. This is in a qualification process right now as a prospect mode. We are India, everything is almost done. We are in the mode, because now we just got recently.
Hello. Your voice is-
Mukesh sir, we lost your voice between.
Actually, to give you a brief on that front till Mukesh comes back. Probably initial engagement has already started. Again, as I stated before, that conversion is going to be something that's going to take time. Initially, any new projects comes or any new customer comes, that is a bit on a smaller edge, for us to start with. Then down the line, slowly and gradually, that size of revenue increases. Sky's the limit. There is no limitation to that. Definitely, down the line, it can turn big.
More I want to, .
Hi, Go ahead. Go ahead, please, sir.
Yeah. I want to understand that what part of value chain are you exploring there? Are you exploring PCB or are you exploring box build or design there? What kind of opportunity is there for you?
Mostly we are an ESDM company. Is that correct? Unless we have to take only PC board, we're going to go forth and take it. We encourage our customer with full box and even cable. Under program, we'll do cable and a small box also, control box.
Okay. Sir, are we having an Indian facility IPC-A-610 Class 3 certificate?
Yes, sir.
Okay.
We have also won three awards in a state level about the soldering and performance also.
Okay. Thank you so much.
IPC standard Class 3 soldering technique, so we won the award also through IPC.
Okay. Thank you so much, sir, and all the best for future.
Thank you.
Thank you. We'll take the next question from the line of Darshit Shah. Darshit, you can unmute and go ahead, please.
Yeah. Thankful, unfortunately, congratulations on good set of numbers. I have a couple of questions. One question is on expanding our global footprint, even the recent, of our fundraise document you mentioned about acquisitions. Can you highlight what is the roadmap there? What are we looking at? I understand we are also coming up with a greenfield capacity. Over and above that, we are looking something for inorganic growth. If you can share some highlights of what's the need of going globally, apart from the greenfield project that's already coming up. Mukesh, if you can share some thoughts on that.
Let me start with Aimtron to that one. Nirmal, you want to share some hints first, then I'll add.
Sure. When it comes to the subject of M&A, every company sort of has their own unique rationale for why they're pursuing going down that path. For Aimtron, our circumstances are a little unique. We have a lot of expertise in how we can manufacture well. We have a lot of expertise in deriving profitability from a seemingly low margin business structure. For us, finding a company with the right culture, finding a company with good talent, helping guide them towards a stronger bottom line performance can be something that can bring a lot of value to the table. When we're looking at these M&A opportunities, I've personally visited multiple of these facilities. Very preliminary discussions right now, mind you. I don't want to make it sound like it's anything more advanced than what it actually is.
When going and evaluating these opportunities, what I'm really looking for is, do they have the right people in place? Do they have the right talent in place? Is this a culture that can work with us, that can work with Aimtron, that can work with India, really grow our global footprint? That is very important. It's not going to take the place of the greenfield projects that we're doing. Those are all organic growths, we certainly are not going to sacrifice any of our attention in the organic areas. The inorganic growth is very good at opening up new levels of expertise, opening up new sectors, opening up new opportunities that otherwise, as Sneh mentioned, we might have to spend maybe 10 months, 12 months, 15 months trying to gain entry into. Aimtron is very diligently evaluating all the opportunities.
We're not going to make a short-sighted, short-term decision. We're going to ensure that whatever we select is going to be the best for our long-term growth and for your long-term future.
I think, you want to see maybe more a kind of a firm answer, but without telling steady, we cannot tell most of the things here. Just to give you just a little highlight that we showed let's say five, six opportunities right now. As Nirmal said, he already visited all six facilities. We are trying to sort list. Recently, just about a month ago, everything settled down about the turmoil in the White House. Looks like now people accepted whatever tariff is there, whatever the situation. Now started. Within a short time, you will get some answer from us or some announcement from us. Please stay tuned.
Sure. That was helpful to understand. My second question is with our venture into aerospace particularly and defense. Sorry, you are speaking something, Mukesh. I'm sorry. I cut you.
No, that's okay. Continue.
My second question is on our entry to aerospace particularly, you mentioned about the Airbus A350 program, and I understand that the qualification process in all this is pretty stringent and time-taking, but once you kind of get through, it's a long-term contract that you get in because of the criticalities involved and even the content is pretty decent. Can you share in which process we are in with Airbus as far as the qualification is concerned and a little bit insight on how big this aerospace opportunity can be for us going down the line?
This is kind of a long process to even explain right now. In the essence of time, I would like to maybe take one-on-one later on.
Sure.
Right now what I'm trying to say is we had one company, a Japanese company called Nidec, and they literally failed us. When we look at the reason to fail us, they went to the final inspector and the person who was the final inspector has glasses on eyes. They asked question, "When you went to the doctor to see your eye?" The person said two years. Clarify anything, they just failed. They explained that if your person never calibrated eye in the last two years, his number may be changed or something changed. We are looking those companies. They can look at that depth. It took us about a year to get to that level, to get an MBA, to bring him to the factory and then still fail. I'm just talking about four years ago story.
Now we are totally changed and we know that. We learned hard way. Those are the Airbus program or some of the Caterpillar program or some of the program we have in pipeline, it's almost 20 years programs. Some is 10 years, some is 20 years. Again, I said earlier also, defense is the buzzword. A lot of people, they think, "Oh my God, defense." Defense has a lot of things, plus and minus also. We need to be a very balanced even defense also, that's what we are trying to accomplish. We'll give you more information later on as time goes too. Thank you.
Sure. Thank you so much.
Thank you, Darshit. We'll take the next question from the line of Sumit Chopra. Sumit, you can unmute and go ahead, please.
Hello?
Yes, Sumit, go ahead, please. Hello, Sumit, you can unmute and go ahead.
Let's move to the next participant.
Yeah. We'll take the next question from Praneet. Praneet, you can unmute and go ahead, please. Praneet, you can unmute and go ahead please and ask the question.
Hello. Thank you for the opportunity. I was wondering about in terms of production capabilities, I understand. Hello, am I audible right now?
Yes.
Hello?
Yeah, you're audible.
Yes. You're audible. Yes.
Sorry. Yeah.
Let me please answer you online.
Thank you for the opportunity.
Yeah, let me give an answer online.
I was wondering about production capability.
Yes. We have a capability up to INR 1,000 crore.
Okay.
With minor, as Sneh also said in presentation, with minor additional expense, we have a capability up to INR 1,000 crore.
With the existing-
Existing about INR 500 crore. That is why we started greenfield project.
In terms of going forward. Got it. Okay, I'm sorry for interrupting, but-
No.
Got it. How much maintenance CapEx or what kind of CapEx will we be expecting to spend in the next three years? You already have INR 2,000 crore.
3% to 5%. Next three years, we no need more than.
3% to 5% of top line, is it?
Before. Sneh, can you take it because I don't have a clear answer here.
Sure.
A clear, actually voice clear. I don't have a clear.
Basically for an INR 1,000 crore, to what current capacity we have is around INR 450 to 500 crore, the current infrastructure that we have. And next new coming facility that we are going to add up, that is going to have additional INR 500 crore kind of a capacity on top of the current INR 500 crore capacity. That new greenfield project that is coming up, that will have six assembly lines down the line, and that will help us to reach an INR 1,000 crore kind of a revenue.
What kind of asset turn do we expect from each SMT line with the new ones versus the old ones?
Probably even the current SMT lines to what we have is state-of-the-art. With one SMT line, we can approximately generate around INR 100 crore kind of a revenue.
Okay. There won't be much of a difference with the new ones and the old ones.
No. The current that we have, it's a newer one only.
Understood. Got it.
Sunit, I would ask you to please join the queue. There are many in line.
Yeah, sure. Thank you.
Yes. We'll take next question from Harshit Shah. Harshit, you can unmute and go ahead, please.
Thanks for the opportunity. Congratulations on good set of numbers. I have, sir, two questions. One is about greenfield Vadodara project. We have six SMT lines under construction. You have said it's a phased rollout. Can you please share the timelines of the rollout? How many SMT lines will be online, in current financial and in next financial year? The second question, sir, is about your order book execution. In current six months, we have executed order of INR 126 million. We have INR 4,639 million on hand. I'm not expecting any number. How much orders are we going to execute? Is there any timelines? What kind of order we are expecting in these six months execution? Thank you.
Sure. We'll go with your second question first. Our order execution probably to what numbers we have projected for this year. You can consider the projections, and you can do the reverse calculation. Based on that, we'll be able to get the real numbers. In short, we'll be in line with this year's projected numbers to get to that milestone in terms of an execution. The new greenfield project that we are coming up with, that is going to be a single floor kind of plant, which is going to be with global standards. That is going to be a seamless production floor with MES-driven real-time traceability and couple of other IoT-related activities that are going to get imparted into it. Initially we'll have two SMT lines.
Down the line, once that two gets into the full-fledged utilization mode, then we'll add two more and then two more. That is what the plan is. That too will have injection molding and basic sheet metal also in-house. That will help us for our sustenance in complete box with system integration.
Just the first two SMT lines will be ready by what time, sir? Is there any timelines?
Initially one SMT lines, we are planning to get it operational by end of next year Q3 or early Q4.
Okay, thank you.
Thank you, Harshit. We will take the next question from Yama Kumar. Yama, you can unmute, please.
Hello, sir. Thank you so much for the opportunity. Sir, I got two questions. One is on the fundraising and other one is on the SMT line timeline. My first question is in case of fundraising, is that, in your last concall, you have mentioned that the equity is too precious to dilute. In this recent press release, you have issued preferential shares, and share warrants, they'll convert into preferential shares in 18 months. Can you throw some light on that? Also, what is your timeline for this SMT line, for this whole six new SMT lines that will be coming up in the greenfield segment? If you can put it in proper timeline basis in tranches also.
Sure.
Sorry for that.
Mukesh will answer second question first, and then we can go with the first one.
Okay.
Specific to SMT lines operational, we are planning to have two SMT lines every year, once it gets operational. You can expect that next financial year, we'll have addition of two SMT lines, and then down the line every financial year, we'll add two every year. That's what the plan is.
As a rule of thumb, one SMT line can produce up to INR 100 crore. Is it correct? That's what we already discussed, and we know everybody in our industry right now, EMS industry. The answer is very tricky. Is that correct? We are a paid-up company. We don't have any debt. Why we are raising the fund? On the other side, to bring up the facility takes at least a year and a half to two years, unless you buy something. Right now, our current capacity is INR 500 crore, INR 450-500 crore. We are thinking that will be filled in two years, this year and next year. In two years, that will be filled. If you go even 60%, 70% CAGR, it will be filled. We need to prepare for the third facility or third capacity.
That's why we thought instead of taking the loan, let's get the warrant and we calculate that, before we go to main board, if you can have at least a facility ready for INR 1,000 crore, production capability. That's what we did. Right now, the boom and a trillion-dollar EMS industry, there is a lot of opportunities there. We are feeling that it will require some time to set up the facility. Like a phase by phase, we can get the money and we invest the money. Good for investor also and good for us also. That's why we went with the preferential route.
Sir, you said that debt will be a better option rather than equity. That is somewhere a bit conflict that is coming up. Do I need a better clarification on it?
No, I understand. Debt is always good. If you have too much debt also, that is also not good. Is that correct? Debt we cap for, let's say I have an opportunity tomorrow to buy an INR 200 crore company. The question I have is, my paid up capital, I have to look at the return earning and everything. At that time, I can use that wild card. That's why we did not play that card at that time. There is so many things come in picture, correct? Let's wait and watch, because now we're also looking at M&A right now, exploration. We need some debt over there, too. Is that correct? At that time, I think if we have a capability to expand more with our current capacity, financial capacity, I'm talking, and the debt, we can buy a better option.
That's why. It will be too early to compare that much in a journey like this. Once you cross INR 500,000 crore then you can compare, your debt is too high or maybe this is. We still have about 69%, 70% still control on debt. It's not that much. We also put our own money, too. It's not that much we dilute the equity also.
All right, sir. Thank you so much, sir, for that clarification. Appreciate it.
Last to add on to that, a lot of exciting things are coming up on that front. There will be mixed baggage of all, and down the line, you will have more questions on that front.
Thank you. Due to paucity of time, this was the last question for the day. Mukesh sir and Sneh Shah, would you like to any closing comment before we end this conference call?
I think it was a good call, and it was very good questions. I see there's a lot of activities in investor community also that, where Aimtron is going to go, what Aimtron has to give, what is the next move, where is M&A, how this sustainability. One thing you will see from Aimtron is the transparency and hard work and teamwork. That's what we are focusing on it. Whatever we say, we try to accomplish, or we don't say. That is something we would like to put a challenging, a trend in this industry. EMS is kind of a sector. You have a very much variety of people and factories you will see.
Aimtron would like to set a path for EMS industry, how we can do a quality product, how we can do a best product with best margin, and still it can have a top line also. That is something we are trying to accomplish, and we'll be moving in that path. We are going in that path, and I think time will tell. We'll let everybody regret that you are partnered with us, and most welcome to stay with us. I think you will not regret for that.
If I can just add one more thing to that. I see that a lot of these questions, they're coming from a very good spirit. They're coming from a very good place of what can I predict Aimtron's success to be? I'm going to give you the short and simple answer, the best answer I can possibly give you. Up until now, Aimtron's philosophy has been to let the results speak for themselves. Please continue to watch over us. We'll continue to give you good results. Thank you, everyone.
Thank you. Thank you to all the participants and the management team. This brings us to the end of today's conference call. You may all disconnect now. Thank you.