This article first appeared on GuruFocus .
-
Standalone Revenue (Q3 FY26):INR 238 crores, 27% growth year on year.
-
Standalone EBITDA (Q3 FY26):INR 26 crores, 27% growth year on year.
-
Standalone Profit Before Exceptional Items and Tax (Q3 FY26):INR 19 crores, 77% growth year on year.
-
Standalone Revenue (Nine Months FY26):INR 630 crores, 25% growth year on year.
-
Standalone EBITDA (Nine Months FY26):INR 76 crores, 50% growth year on year, margin of 12.1%.
-
Standalone Profit Before Exceptional Items and Tax (Nine Months FY26):INR 5 crores, 128% growth year on year.
-
Consolidated Revenue (Q3 FY26):INR 331 crores, 21% growth year on year.
-
Consolidated EBITDA (Q3 FY26):INR 31 crores, margin of 9.5%.
-
Consolidated Profit Before Exceptional Items and Tax (Q3 FY26):INR 18 crores, 53% growth year on year.
-
Consolidated Revenue (Nine Months FY26):INR 873 crores, 15% growth year on year.
-
Consolidated EBITDA (Nine Months FY26):INR 78 crores, margin of 8.9%.
-
Consolidated Profit Before Exceptional Items and Tax (Nine Months FY26):INR 45 crores, 155% growth year on year.
-
Exceptional Items (Q3 FY26):INR 57 crores in consolidated financials.
-
Exceptional Items (Nine Months FY26):INR 55.6 crores in consolidated financials.
-
Discontinued Operations Loss (Nine Months FY26):INR 39 crores related to Canadian operations.
-
Discontinued Operations Loss (Q3 FY26):INR 29.8 crores, including one-time impact of INR 24.9 crores.
-
Impairment of Investments (Standalone Q3 FY26):INR 153.8 crores.
-
Warning! GuruFocus has detected 3 Warning Signs with BOM:517544.
-
Is BOM:517544 fairly valued? Test your thesis with our free DCF calculator.
Release Date: February 16, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Centum Electronics Ltd ( BOM:517544 ) reported a strong standalone revenue growth of 27% year-on-year for Q3 FY26, reaching INR 238 crores.
-
The company achieved a significant milestone by forging a strategic partnership with GRSE for the air navigation program, marking its entry into mission-critical air navigation systems.
-
Centum Electronics Ltd ( BOM:517544 ) was declared L1 bidder for the development and production of a complete radar system for a major airborne platform of a defense PSU.
-
The company completed the groundbreaking at KIADB Aerospace Park in Bengaluru for a dedicated facility for systems integration and capability enhancements.
-
The order book has strengthened, providing healthy revenue visibility into the coming quarters, with expectations of good momentum in Q4 order intake.
Negative Points
-
Centum Electronics Ltd ( BOM:517544 ) faced challenges with its overseas subsidiaries, leading to the discontinuation of operations in Canada and restructuring actions in France.
-
The company recognized certain one-time exceptional items in the quarter due to the restructuring of its overseas subsidiaries, impacting financial results.
-
Despite efforts, the prolonged weak macro environment in Europe and increased competitive intensity impacted margins and prevented a sustainable turnaround for the European subsidiary.
-
The company does not expect to realize any meaningful value from the divestment of its French subsidiary due to the current external environment.
-
Operational losses from the European subsidiary will continue to impact Centum Electronics Ltd ( BOM:517544 ) until the divestment process is completed.
Q & A Highlights
Q: Why were standalone numbers restated when restructuring occurred in subsidiaries? A: The standalone numbers were not restated due to subsidiary restructuring. The restatement was due to an amalgamation with DNS India Private Limited, not related to the subsidiaries. (Sundararajan Parthasarathy, CFO)
Q: What is the value of the radar order where Centum is the L1 bidder? A: The total value of the radar program is approximately INR700 crores over five to six years. The first tranche will be disclosed upon receipt. (Nikhil Mallavarapu, Joint Managing Director)
Q: Will there be any realization from the divestment of the French subsidiary? A: Based on current assessments, we do not expect to realize any meaningful value from the divestment due to the external environment in France and Europe. (Nikhil Mallavarapu, Joint Managing Director)
Q: What are the expected margins for the radar and air navigation system programs? A: The margins for these programs are expected to be in the range of 20% to 25%, aligning with our business expectations. (Nikhil Mallavarapu, Joint Managing Director)
Q: How does the geopolitical scenario affect Centum's market prospects? A: The geopolitical situation has led to increased orders from defense customers, particularly in Europe and Israel, indicating a positive trend for Centum's EMS business. (Nikhil Mallavarapu, Joint Managing Director)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
