AXISCADES reports Q1 FY27 record revenue of Rs 346.7 crore, driven by Defence and XiDA growth

AXISCADES reports Q1 FY27 record revenue of Rs 346.7 crore, driven by Defence and XiDA growth​

Bengaluru: AXISCADES Technologies Limited, a technology, engineering, and manufacturing company focused on Aerospace, Defence, Space, and XiDA/electronics and AI, announced its consolidated results for the quarter ended June 30, 2026. The company reported record revenue from operations of Rs 346.7 crore in Q1 FY27, marking a 42.2% increase year on year (YoY) and 27.0% sequentially.

The results reflect the performance across both continuing and discontinued operations as mandated by accounting standards.

Financial Performance Snapshot​

AXISCADES reported strong revenue growth while navigating a significant portfolio transition. Continuing operations contributed Rs 183.4 crore in revenue from operations. The company noted that, excluding Add Solutions—which is targeted for exit in FY27—revenue from continuing operations was approximately Rs 181 crore, an increase of about 100% from Q1 FY26 (approximately Rs 90 crore).

Reported EBITDA stood at Rs 27.9 crore, yielding an margin of 8.1%, down from Rs 34.1 crore and 14.0% in Q1 FY26. The company reported a loss before tax of Rs 11.9 crore and a loss after tax of Rs 14.8 crore.

Management-defined normalised figures, which exclude certain one-time provisions aggregating Rs 15.06 crore (including receivable and hedge provisions), showed normalised EBITDA of Rs 41.0 crore, up 20.5% YoY, with a margin of 12.4%. After adjusting for the Rs 21.81 crore exceptional charge related to discontinued operations, management-defined normalised profit before tax was Rs 23.1 crore.

Key financial metrics across quarters are detailed below:

Growth Drivers in Core Segments​

The company highlighted significant growth across its key strategic platforms: Defence and XiDA.

Defence Systems: Revenue from the Defence segment more than doubled, reaching Rs 125.0 crore. The business secured or advanced eight programmes since April 1, 2026, including four in-quarter programs and four sole-source wins after the balance sheet date. Assured Forecast Visibility (AFV) for FY27 through FY30 stood at Rs 4,557 crore.

XiDA Platform: Revenue in the XiDA division increased by 62.9% year on year and 30.3% sequentially, reaching Rs 49.5 crore. EBITDA for XiDA rose 114.5% to Rs 14.7 crore, achieving a margin of 29.7%. The Q1 performance was bolstered by the US business, which contributed Rs 15.2 crore in revenue and Rs 7.0 crore of EBITDA, securing two global tier-one customers: one of the world's largest semiconductor equipment companies and a major AI and hyperscale technology company.

Space and Manufacturing: AXISCADES has established its Space division. A satellite manufacturing, assembly, integration, and testing facility is currently under construction at the Devanahalli Atmanirbhar Complex. The company earmarked Rs 300 crore from proposed divestment proceeds for the Space platform, allocated between facilities/training (Rs 120 crore) and two planned joint ventures (Rs 180 crore).

In terms of capability building, Property, plant, and equipment along with capital work-in-progress increased by Rs 40.1 crore during Q1 FY27. The Devanahalli AeroLand has been commissioned, while land acquisition for the Missile Atmanirbhar Complex in Hyderabad is complete, and construction is commencing.

Portfolio Transformation Details​

The company confirmed the ongoing divestment of its Engineering Services and Aerospace Services businesses to the Akkodis Group, a process initiated in May and June 2026 respectively. This divestment program carries a minimum consideration of Rs 1,685 crore and a total estimated consideration of approximately Rs 2,256 crore (equivalent to USD 237 million).

The completion is planned across two phases: Phase 1 by August 31, 2026, with approximately Rs 180 crore in initial proceeds anticipated within five days. Phase 2 is targeted for November 30, 2026, to complete the total divestment program. Upon completion, the company expects to recognise a gain on disposal of approximately Rs 1,255 crore, subject to final accounting determination and closing adjustments.

Management commentary stressed that Q1 FY27 marked the start of AXISCADES’ transition into a focused manufacturing, products, and solutions company. The Chief Growth & Strategy Officer noted that revenue per employee is set to rise significantly from Rs 42 lakh in FY26 to Rs 1.2 crore in FY27, indicating a shift from a people-led services model to a products and manufacturing focus.

Portfolio Transition and Capital Deployment​

The proceeds from the divestment are intended to fund the company's transition into Aerospace Manufacturing, Defence Systems, XiDA, and Space technologies through strategic acquisitions and infrastructure investment, all without equity dilution.

In addition, management is targeting the completion of the exit of Add Solutions by Q4 FY27.

AXISCADES Stock Price Movement​

Shares of AXISCADES Technologies Limited slipped on Thursday, settling at ₹1529.4 after shedding ₹8.40 or 0.54%. The stock saw a volume of 98,907 shares traded during the session.