AXISCADES — REBUILDING A DEFENCE TECH POWERHOUSE 🚀

AXISCADES India’s defence opportunity is expanding. But the bigger opportunity may be in the technology and engineering systems behind it. That's where AXISCADES is repositioning itself. The company is transforming into a focused technology business built around Defence, XIDA, Aerospace and Space — moving beyond its earlier engineering-services structure towards higher-value manufacturing and advanced technology. And H1 FY27 shows strong growth in the retained business. Retained revenue reached ₹378.9 crore, up 55% YoY, while Q2 retained revenue grew 30% YoY. Defence revenue increased 46% and XIDA grew 55% during the first half. The company also reported ₹23.1 crore revenue from Aerospace Manufacturing in H1, while its Cloud Wave business delivered an EBITDA margin above 20%. The strategic transformation is equally important. AXISCADES completed Phase 1 of its divestment to Akkodis and received the first tranche of consideration. This is intended to simplify the business and strengthen its financial capacity to invest in its core growth areas. The growth flywheel: Defence orders → Engineering capabilities → Manufacturing expansion → Higher-value contracts → Revenue scale-up. The company has also secured 16 new defence orders since its previous results, while its Space business is targeting first revenue in FY28. But investors must read the reported numbers carefully. Q2 consolidated PAT of ₹47.3 crore included ₹95.4 crore from discontinued operations, primarily the gain on the Phase 1 disposal. Continuing-business profitability therefore needs separate evaluation. Q2 EBITDA before the ₹12 crore ESOP charge was ₹23.4 crore. The risks remain significant: execution, manufacturing capex, working capital, customer concentration, divestment timelines and the ability to convert order visibility into sustainable profits. AXISCADES is attempting a major business transformation.