India's defence budget crossed ₹6.2 lakh Cr in FY25 with a stated goal of 25% domestic procurement. Global aerospace MRO market is estimated at $115Bn (2025), growing at 5.5% CAGR. Aircraft deliveries (Airbus, Boeing combined) backlogged to 2030+, creating multi-year demand for engineering services. India's Make-in-India and IDDM defence policy mandates domestic content — structural tailwind for Axiscades.
AXISCADES (est. 1990, listed NSE/BSE) is India's leading engineering solutions company for aerospace, defence, heavy engineering, and automotive sectors. 2,300+ engineers across 14 global engineering centres (North America, Europe, Asia). 35+ years of domain expertise.
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 524 | 610 | 822 | 955 | 1,031 |
| EBITDA% | 9.5% | 11.5% | 10.8% | 12.5% | 15.1% |
| PAT (₹ Cr) | (21) | 23 | (5) | 33 | 75 |
| EPS (₹) | (5.74) | 5.86 | (1.37) | 7.82 | 17.63 |
| ROCE | 12% | 14% | 23% | 14% | 14% |
| Quarter | Revenue | EBITDA% | PAT |
|---|---|---|---|
| Q1 FY26 | ₹244 Cr | ~14.0% | ₹21 Cr |
| Q2 FY26 | ₹299 Cr | ~15.5% | ₹23 Cr |
| Q3 FY26 | ₹343 Cr | 18.3% ↑ | ₹28 Cr |
| 9M FY26 | ₹886 Cr | 16.2% | ₹72 Cr |
| FY26E (Full) | ₹1,260 Cr | 16.5% | ₹104 Cr |
| FY27E | ₹1,570 Cr | 17.5% | ₹150 Cr |
9% (5Y)
Q3 FY26 YoY: +25%
9M FY26 YoY: +16.2%
+21.3% CAGR
Q3 FY26 PAT YoY: +87.2%
9M FY26 PAT YoY: +63.6%
+40–50%
YoY EPS growth guided
for both FY26 & FY27
₹258 Cr
Gross Debt (Sep 2025)
Net Debt: ₹67 Cr
Low-leverage — manageable
₹730 Cr
Book Value: ₹163/share
P/BV: 9.19x
Premium justified by asset-light model
75 Days
WC Days (vs 49 prior year)
Increased — Monitor
Elongation vs prior year warrants watch
| Metric | Value | Comment |
|---|---|---|
| CMP | ₹1,498 | -16% from 52W high |
| Mkt Cap | ₹6,370 Cr | Small-cap territory |
| FY25 P/E | 58.1x | Premium; justified by growth |
| FY26E P/E | ~60x | ₹1,498 / ₹24E EPS |
| FY27E P/E | ~40x | ₹1,498 / ₹37E EPS — more compelling |
| P/BV | 9.19x | Asset-light model |
| EV/EBITDA (FY25) | ~40x | Premium aerospace multiple |
| 52W High / Low | ₹1,779 / ₹702 | 5Y stock CAGR: 99%! |
| Company | Rev (FY25) | EBITDA% | ROCE | P/E |
|---|---|---|---|---|
| LTTS | ₹9,800 Cr | 20%+ | 35%+ | 35x |
| Cyient | ₹7,200 Cr | 15% | 20% | 24x |
| Tata Technologies | ₹4,700 Cr | 19% | 25% | 38x |
| KPIT Tech | ₹5,200 Cr | 22% | 28% | 48x |
| AXISCADES | ₹1,031 Cr | 15.1% | 14% | 58x |
AXISCADES trades at a premium to peers despite smaller scale and lower ROCE. This premium is justified by: (1) 40–50% EPS CAGR guidance — highest in peer group; (2) Defence supercycle exposure; (3) Power930 long-runway optionality. However, execution risk on the ambitious Power930 plan warrants staged entry.
FY25 defence budget: ₹6.2 lakh Cr (largest in history). 25% domestic procurement mandate. IDDM policy creates demand floor for domestic engineering firms. HAL, DRDO, BEL order books all at multi-year highs.
Boeing + Airbus combined order backlog: 14,000+ aircraft, 10+ year delivery visibility. MRO market $115Bn (2025), growing 5.5% CAGR. Airlines adding capacity post-COVID; engineering services demand strong.
Global engineering R&D spend outsourced to India: growing from $40Bn (2023) to $60Bn+ (2027E). Cost arbitrage + talent pool make India the preferred engineering hub. AXISCADES well-positioned given its global delivery model.
Western OEMs reducing supply chain concentration in China. India as alternative engineering and manufacturing hub. AXISCADES's global relationships position it to capture new mandates from diversifying clients.
Automotive segment declining now but EV transition creates new engineering demand. AXISCADES has embedded software + mechanical expertise for EV platforms. Medium-term recovery opportunity as ICE declines.
Digitisation, AI integration, digital twins in manufacturing are next-gen demand drivers. AXISCADES's digitisation & automation capabilities align with these megatrends in aerospace and heavy engineering.
AXISCADES is not cheap on conventional metrics (P/E 58x), but the growth trajectory is exceptional. With 40–50% EPS CAGR guidance backed by record Q3 FY26 margins, and secular tailwinds from India defence + global aerospace recovery, this is a rare high-quality small-cap that warrants a growth premium. Staged accumulation on pullbacks is the preferred approach. Not a buy at any price — use technical levels for disciplined entry.
| Level | Price (₹) | Significance | Action |
|---|---|---|---|
| 52W High / Strong Resistance | 1,779 | Previous breakout high — reclaim = new Stage 2 leg | TARGET |
| Resistance Zone | 1,600–1,700 | Prior consolidation; first hurdle on recovery | WATCH |
| CMP | 1,498 | Current price — in pullback zone | ENTRY |
| Buy Zone (Ideal) | 1,350–1,450 | Near 200 DMA support + prior breakout zone | BUY |
| Strong Support | 1,150–1,250 | Prior consolidation base; high-conviction add zone | ADD |
| Stop Loss | 1,050–1,100 | Below 200 DMA + Stage 2 breakdown level | STOP |
| 52W Low / Absolute Floor | 702 | Stage 1/2 transition base — not expected to revisit | EXIT |
At ₹9,000 Cr revenue (FY30), stock would be mid-cap. Massive institutional buying tail + index inclusion = significant re-rating potential.
Stop loss at ₹1,050–1,100 is non-negotiable to protect against this scenario.
ACCUMULATE
CMP ₹1,498 is acceptable entry. Preferred: wait for ₹1,350–1,450 pullback for better R:R. Start with 50% position now; add balance on dips.