Bengaluru-based aerospace and defence tech firm AXISCADES achieves a 42.2% revenue increase in Q1, yet posts a net loss due to restructuring costs linked to its planned sale of engineering services business, signalling a significant transformation phase.
AXISCADES Technologies shares slipped on Friday after the Bengaluru-based aerospace and defence technology group reported a sharp rise in revenue for the June quarter but a net loss linked to costs tied to the restructuring of its engineering services business.
The stock was changing hands lower in Mumbai afternoon trade after the company said consolidated revenue for the quarter ended June 30, 2026, reached a record ₹346.7 crore, up 42.2% from a year earlier and 27% from the previous quarter. Despite that top-line growth, AXISCADES reported a loss after tax of ₹14.8 crore, reversing a profit of ₹20.9 crore in the same period last year.
The company said the weaker bottom line reflected ₹21.81 crore in deal-related expenses connected with the planned sale of its engineering services business to Akkodis for $237 million. Reuters-style market data from the trading session showed the shares briefly dropped to ₹1,416.10 before recovering part of the loss. The stock is still well below its May high, though it has risen strongly over the past five years.
EBITDA, or earnings before interest, tax, depreciation and amortisation, fell to ₹27.9 crore from ₹34.1 crore a year earlier. AXISCADES attributed the decline to one-time provisions on receivables, a hedge unwinding charge and higher hiring costs as it positions itself for a manufacturing-led transition. On an adjusted basis, the company said normalised EBITDA was ₹41 crore, with a margin of 11.8%, while normalised net profit was ₹20.2 crore.
The retained business, which now includes defence, XiDA, its electronics and artificial intelligence unit, and an early-stage aerospace manufacturing arm, reported revenue of ₹183.4 crore, roughly doubling from the same quarter a year ago on a like-for-like basis. Defence revenue more than doubled to ₹125 crore, while XiDA generated ₹49.5 crore and a 29.7% EBITDA margin.
AXISCADES also said its assured forecast visibility in defence stood at ₹4,557 crore after adding ₹332 crore of new sole-source wins during and after the quarter. The company expects an aerospace manufacturing acquisition, with annualised revenue of ₹180 crore, to close in the second quarter of FY27.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
