This article first appeared on GuruFocus .
Release Date: February 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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AXISCADES Technologies Ltd ( BOM:532395 ) reported a 25% year-on-year revenue growth for Q3 2026, reaching 343 crores.
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The company achieved its highest ever quarterly EBITDA margin of 18.3%, marking a 360 basis points expansion year-on-year.
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EBITDA for the quarter increased by 55% year-on-year to 63 crores.
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The aerospace, defense, and DI sectors, which contribute 78% of total revenue, grew by 36% year-on-year.
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The company is on track to achieve a 40-50% EPS growth for FY26 and FY27, with a strong order pipeline and customer demand.
Negative Points
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The company's non-core activities have pulled down overall margin percentages.
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There are macroeconomic and customer-specific headwinds impacting the heavy engineering, automotive, and energy sectors.
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The company is facing challenges in maintaining high margins in its services segment, which is seeing declining margins.
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There is a dependency on facility readiness and certifications for future growth, particularly in the ESI segment.
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The company is undergoing a significant CapEx cycle, which will continue through FY27 and FY28, potentially impacting short-term financials.
Q & A Highlights
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Warning! GuruFocus has detected 2 Warning Sign with BOM:532395.
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Q: Could you explain the significant growth in the US market despite tariffs, and how are customers responding to these tariffs? A: We are not impacted by tariffs as our activities are not tariff-sensitive. The US market is performing well, and we expect the geographical revenue distribution to remain balanced across the US, Europe, and India. (Respondent: Unidentified_3)
Q: What is the outlook for defense margins, and how do you foresee depreciation and CapEx over the next few years? A: Defense margins are expected to align with industry standards as programs mature. The CapEx cycle will continue through FY26 and into FY27 and FY28, with depreciation following standard rates. (Respondent: Unidentified_4)
Q: Can you provide an update on the development of the RF seeker for missiles? A: We are developing an RF seeker for larger missiles, including drones. Successful trials were conducted, and we aim to complete integration by March, with full qualification expected by Q2. (Respondent: Unidentified_3)
Q: What is the status of the mission computer for the NCA Mark One, and is it platform agnostic? A: The mission computer is platform agnostic and can be adapted for other platforms. The software includes algorithms provided by defense labs and AI algorithms developed by us. (Respondent: Unidentified_8)
Q: Are you on track to achieve the projected 40% growth in core business for FY26 and FY27? A: Yes, we are on track for a 40% growth in core business for FY26 and FY27. We are confident in our order book and execution capabilities. (Respondent: Unidentified_3)
Q: What is the current order book, and what is the composition of the same? A: Our forecast visibility is around 3,300 to 3,400 crores, with a robust pipeline. Defense remains the primary growth area, followed by EI and aerospace. (Respondent: Unidentified_3)
Q: Can you provide details on the potential divestment of non-core business? A: We are on track for a resolution by March end, and details will be shared in the next investor call. (Respondent: Unidentified_3)
Q: What are the future plans for the new facilities and their capabilities? A: We are developing facilities for missile electronics, radar integration, and aerospace manufacturing. These will support advanced manufacturing and system integration for global OEMs. (Respondent: Unidentified_3)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
