Strong order book, margin miss weigh on near-term

Delivered 26.5% YoY (₹393.1 Cr vs ₹310.6 Cr prior year)

EBITDA ₹34.2 Cr, 8.7% margin; order book ₹2,810 Cr (INR28.1 Bn)

1.6x confirmed; prior guidance from Q1 was 1.5x full-year target

Q2 delivered 8.7%, below stated 9-10% range for FY27

Normalized PAT still grew 25.8% YoY; management confident leverage will drive margins up as revenue scales

Prior Q1 guidance: 9–11% for Strengthen phase (FY27–29). Q2 delivery: 8.7%; management clarified FY27 target 9–10% (lower end of prior range). Still maintained, not cut, but execution softer.

Prior Q1 guidance: 1.5x full-year. Q2 delivery: 1.6x in single quarter. Order book momentum stronger than expected.

Added multiple salespeople, bid team, marketing costs, Chief Growth Officer. Impact: ~100–150 bps margin drag in Q2; management expects this to plateau.

Prior guidance: expected FY27–29 ramp. Actual: already seeing revenue contributions in last 2 quarters; management expects continued quarterly growth.

Four major programs totaling ~$1B; some contracts signed, prototyping underway. Expected production ramp FY29–FY30 (slightly earlier than original 'meaningful revenue 1–18 months' target from Q1).

100–150 bps margin impact. Not capitalizing development costs (conservative); will decline as revenue scales. No specific annual budget disclosed.

FY27: 9–10% EBITDA margin. FY28+: double-digit. Order book conversion constrained by material availability and 18–24 month delivery cycle; ~40% win ratio on $1B pipeline.

Investments in sales/marketing now complete (added team, bid people, CGO). B2S programs ($1B total) will ramp FY29–FY30. Expected $400–500M quarterly order conversion going forward.

~$1B is mostly pipeline (not in order book yet), with 4 major programs and some contracts signed. Maturation from design → prototype → production → revenue over FY29–FY30. Order book will increase as contracts close.

Yes, 30–35% growth going forward. Q2 softer due to material constraints and some customer delays. H2 will be 'definitely going above 30%' growth.

Altek expansion being scaled for US market, primarily supporting B2S and aerospace/defense. Will drive incremental export revenue as programs mature.

Mix of forex variations, export incentives, and other non-recurring items. Varies quarterly; not a stable recurring line.

Based on order book conversion and existing pipeline. Supply chain and material availability remain constraints; management expects customer delays to moderate.

4 programs, ~$1B total; prototyping and testing underway. Signed contracts with some customers; full production FY29–FY30 ramp.

Already generating revenue last 2 quarters; management expects continued growth as customer demand accelerates.

Q2 delivered 8.7%, below range. Management attributes to temporary investments (sales, marketing, product development). Expects margin to recover in H2.

Assumes completion of growth investments and leverage on revenue scale. No specific target disclosed, but implies 10%+. Depends on order book conversion and no further disruptions.

H1 normalized PAT margin improved to 4.2% from 3.4% prior year. Management expects continued healthy underlying profitability.

Management explicitly stated: 'The challenge is in the materials right now.' Memory market disruptions and geopolitical uncertainties (ongoing since prior year) delay order fulfillment despite strong backlog. Conversion of $400–500M quarterly order intake is at risk.

Four B2S programs (~$1B pipeline) are still in design, prototype, or early testing phase. Revenue expected FY29–FY30 onwards. If products fail qualification, miss timelines, or underperform margins, strategic Transform phase (13–18% EBITDA target) is at risk.

Management guidance: FY27 margin 9–10%, FY28+ double-digit. Q2 delivered 8.7%, below target. Margin recovery depends on: (1) completing growth investments (sales, marketing, product dev), (2) leverage on revenue scale, (3) no further disruptions. Any extension of investments or demand softness could delay recovery.

Aerospace is 47% of revenue; Industrial 31%; Defense 7%; Medical 14%. Aerospace-heavy concentration creates exposure to cyclical aerospace demand. Key customers (Honeywell, unnamed eVTOL OEM, unnamed defense contractors) not fully identified.

Global supply chain disruptions, memory market volatility, and geopolitical uncertainty explicitly cited by management. International revenue (93%) exposed to trade, tariff, and demand volatility.