AXISCADES Q3FY25: 95% PAT Growth, ₹3000Cr Defense Tech Expansion Plan

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AXISCADES Technologies Limited – Q3 FY2025 Value Pick

AXISCADES Technologies Limited – Q3 FY2025 Results

Value Pick Multibagger stock for long term

Company Overview

AXISCADES Technologies Limited is a leading technology enabler in Aerospace, Defence, and Electronics, Semiconductor & AI (ESAI). The company is shifting from a service-based model to a product-driven, non-linear growth strategy to enhance margins and scalability.

Q3 FY2025 Financial Performance

Revenue

₹274 Cr

YoY +18.4% QoQ +3.7%

EBITDA

₹40 Cr

YoY +36.9% QoQ +21.7%

PAT

₹14.8 Cr

YoY +95.9% QoQ +20.7%

EBITDA Margin

14.6%

vs 12.4% in Q2 FY25

Key Drivers

Core Segments (72% of revenue): Grew 33% YoY
  • Defence: +88% YoY
  • Aerospace: +11% YoY
Non-core segments: Declined -11% YoY

Future Growth Plans & Planned Expansions

Strategic Infrastructure Investments

ESAI Hub

180,000 sq. ft. near BIAL

June 2025 completion

Unmanned Warfare Centre

Electronic City, Bangalore

June 2025 completion

Defence & Aerospace Cluster

20.7 Acres near KIADB Aerospace SEZ

Product & Business Strategy

  • Aerospace: AI-enabled MRO, aircraft interiors, and power-by-hour logistics
  • Defence: Investments in radar integration, unmanned warfare, and AI-enabled RF systems
  • ESAI: Expansion in post-silicon chip design, AI/SLM devices, and Edge Data Centres

Management Targets

50% revenue growth in core domains in FY26
300 bps EBITDA margin expansion
Transition to product-driven model

Competitive Landscape & Key Risks

Competitive Advantages

  • Strong Aerospace & Defence expertise (6,000+ man-years)
  • Strategic foreign partnerships
  • High-margin, product-driven shift

Risks

⚠ Execution Risk – Large infrastructure projects may face delays
⚠ Foreign Dependency – Heavily reliant on global A&D contracts
⚠ Capital Allocation – ₹255 Cr debt; over-leverage risk

Financial & Valuation Analysis

Market Cap

₹3,021 Cr

Stock P/E

56.3x

Premium vs peers

Book Value

₹143

P/B Ratio: 5.0x

Returns

ROCE: 13.8%

ROE: 7.11%

Valuation Perspective

  • High growth visibility with strong Defence & Aerospace tailwinds
  • Strong EBITDA growth supports long-term expansion
  • Premium valuation demands consistent earnings execution

Fair Value Estimate: ₹680 – ₹720 (based on forward P/E of 40x FY26E EPS)

Investment Thesis

Positive Factors

  • Strong core segment growth (+33% YoY in Q3 FY25)
  • Large capex plans drive long-term value
  • Improving margins & product-driven shift

Investment View

Moderate Buy for long-term investors, but watch execution risks.

This report is for informational purposes only and does not constitute investment advice. Investors should perform their own due diligence before making any financial decisions.

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