Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Aimtron Electronics Ltd (NSE: AIMTRON) Q4 2026 Earnings Call dated Apr. 28, 2026
Corporate Participants:
Mukesh Vasani — Chairman and Chief Executive Officer
Sneh Shah — Whole Time Director
Unidentified Speaker
Nikita Shah — Chief Financial Officer
Analysts:
Vinay Pandit — Analyst
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Deepak Poddar — Analyst
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Darshit Shah — Analyst
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Presentation:
Vinay Pandit — Analyst
Ladies and gentlemen, on behalf of Captify Consulting investor relations team I welcome you all to the H2 and FY26 post earnings conference call of Aimtron Electronics Limited. Today on the call from the management, we have with us Mr. Mukesh Vasani, Chairman and Promoter, Mr. Snesh, whole time Director and Ms. Nikita Shah, Chief Financial Officer. As a disclaimer I would like to inform all of you that this call may contain forward looking statements which may involve risk and uncertainties. Also a reminder that this call is being recorded.
I would now request the management to briefly run us through the investor presentation and the business and performance highlights for the period ended March 2026. The growth plan and vision for the coming year post which we will open the flow for Q and A over to the management team.
Mukesh Vasani — Chairman and Chief Executive Officer
Good afternoon everyone and thank you Vinay. On behalf of Aintron, Electrons limited and our board of directors, I warmly welcome all our investors, analysis, shareholders, advisors and stakeholders in today’s call. Please welcome. We sincerely appreciate your continued trust, support and interest in aimtran’s journey last two years almost. Actually we are only a few days away, a few weeks away from our, you know, finishing the second years. So you know, last two years aimtron journey. Your confidence encourages us to keep building aimtron with a long term vision, strong governance and disciplined execution.
At Aintron. We are moving forward with our Aimtron 2.0 vision with strengthening our core electronics manufacturing capabilities, expanding our global presence. You see that we have already acquired a company in Decatur, Illinois and building a deeper customer relationship like stickiness of the customer and creating a more professional, scalable and future ready organization. We remain focused as we promised previously also on sustainable growth, operational excellence, innovation and long term value creation for all stakeholders.
Again, thank you so much for taking the time today. As you know we are only one year away from main board entry and we are very prepared. I guess all the checkbox already checked off except we have a three years timeline. So with your support, you know once we finish three years we’ll move forward on that also and we started the preparation. I think today your interest is more on question answers and result. So I will hand over to Sneh and Nikita to just give little overview about Aintran end result and then we’ll go for question and answer again.
Thank you so much. Really appreciate.
Sneh Shah — Whole Time Director
Thanks Mukesh for the brief. Certainly I think it has been a great story like past two years to what trajectory we have changed. So considering that as Mtron so initially we used to be more on like PCB assembly more of an EMS which we redirected towards ESDM ODM LED manufacturing design. LED manufacturing kind of an activity and that is now getting surfaced in last couple of quarters result as well. So as M Drone basically we are termed as an ESDM electronics system design and manufacturing. So we are in like manufacturing facilities in two.
One is in US which we recently acquired one company that is renamed as Mton International Controls and then the presence in in Bangalore as well and sectors we’ll go more in depth on which are the sector we are already there.
Mukesh Vasani — Chairman and Chief Executive Officer
So this year we added more like one was
Sneh Shah — Whole Time Director
AgroTech and Aerospace and Defense where we got qualification under certification of esn. Hello.
Unidentified Speaker
Yes May please continue.
Sneh Shah — Whole Time Director
Okay so this year like we enter trusted telecom partner and railways also like we started encountering the orders and RDS approvals will takes place in next couple of quarters and agree. So these are the global certifications that we have in place. For instance 13485 makes us visible globally for MedTech products along with CD SEO which are now mandatory for made in India equipments. So we do Several things under MedTech 1694 approved for specific to automotive 100 as we stated we recently got approval last year and trusted telecom partner that also got approved.
We are already approved under that last year and RDSO is something that is under progress and probably this year by first half or probably by third quarter we are expecting a closure on that part. Next. So probably like this is more on how the Amtron Electronics India is an holding company. So we created one subsidiary called Mtron Mechatronics that’s a greenfield project. We acquired a space here in Vadodra itself where down the line we are expecting to have injection molding, sheet metal and all that in house.
And then we created wholly owned subsidiary Mtron Electronics LLC that is in Texas and that is like basically a wholly owned subsidiary of MDON India itself. And then Anton International Controls is like AEL probably falls under EL llc. EIC falls under EL LLC Texas. Next BLI we applied for ECMS under SFP segment small fiber optics. So just to give up more brief like small form factor pluggables that comes from 1g to 50g probably India demand is getting aggregated and it’s expected like to 40 to go up to 40G capacity.
Range and that is what we are also advancing in that direction. So we are working on TOT as of now transfer of technology with one of the international player that is in progress as of now. And once we get that like to sign and probably down the line we will be eyeing on how do we have more rollover on that part. So that will be under emped on mechatronics. So this is like more often solutions that we provide product engineering solutions PES we call so that includes like hardware, software, firmware, mechanical and if you see last half of the year proud to say that our PCBs like in the 26th of January to what parade it was been displayed.
Drones were displayed for. The complete China plus one kind of a suri because it was more of a defense level. Then we entered railway where we are providing like SIL four level integrated systems that is anti collision advanced collision system along with a couple of signaling orders that we have started getting in data centers story probably into the market has started now. We have been working on this since almost a year where we got one of $12 million there where like designing from scratch starting from 1kv 2kv 3kv battery without battery and company where we are as of now going with three variants, six SKUs of it and probably down the line we are expecting to go more and then AI dashboard camera it’s as of now getting used in gsrtc, local bus, Gujarat State Road transportation and down the line that is expected to get rolled over in Pan India again not immediately but down the line that’s what.
So this is all are getting manufactured at Amdron itself. Next
Mukesh Vasani — Chairman and Chief Executive Officer
Next maybe Nikita I can take this.
Nikita Shah — Chief Financial Officer
Everyone, a warm welcome for the financial discussion regarding 31 March 2026. For H2 2026, Amtron Electronics reported consolidated revenue from operations of 1.786 millions and E was 369 millions and profit after tax was 257 million. H2 FY26 revenue grew at 45.7% over H1 FY26 over a full year basis. FY26 consolidated revenue from the operations grew at 89.2 percentage year on year. That is 3012 million compared with the 15. 92 million of FY25. Profit after tax increased at 79.4 percentage to 460 million compared with the to 56 million in financial year 25 EBITDA margin stood at 22.6% in FY26 PAT margin stood at 15.3% in FY26 this is after the consolidation of the subsidiaries and for the current financial year.
So next
Mukesh Vasani — Chairman and Chief Executive Officer
Next slide I think SN you want to take the order book. Thank you Nikita.
Sneh Shah — Whole Time Director
So if we combine all group of companies, probably we stand at somewhere around 600 crore kind of an open order book that includes Mtron India as well as AIC in total and geography wise probably it’s more of an India, it’s more of an international clientele with around 20, 25% as an export. And when it comes specific to EIC, it’s all domestic. That is specific to US market.
Mukesh Vasani — Chairman and Chief Executive Officer
You have any more slide or we can start the question answer.
Vinay Pandit — Analyst
I think we’ll move to Q A.
Mukesh Vasani — Chairman and Chief Executive Officer
Yeah, because that’s the main. Yeah,
Vinay Pandit — Analyst
Yeah.
Mukesh Vasani — Chairman and Chief Executive Officer
Thank you actually and thank you. The Nikita and SNE sharing we have some voice to a bit breaking but hopefully our investor, you know, see that maybe you can see on the website and look at the full presentation and see. Yeah,
Unidentified Speaker
Yeah.
Questions and Answers:
Vinay Pandit
So we’ll take the. We’ll take the first question from Ashutosh Shukla. Ashutosh, you can go ahead and ask your question
Unidentified Participant
Now. Audible.
Vinay Pandit
Yeah. Yes,
Unidentified Participant
Yes.
Unidentified Participant
Hello sir, can you tell me the impact of PCB price increased and DRAM shortage impact in the business?
Mukesh Vasani
So you know, els business currently we have already some of the locking price and you know, so we do not have that much impact directly, indirectly at this point. And because we are not the end user and what we do, we communicate with our customer and make sure they are prepared so we transfer that cost to our, you know, customers. So at this point
Unidentified Participant
In
Mukesh Vasani
Trans book, yes, we have some semiconductor shortage but we do not have that any pricing impact at this point on our EBIT or on our brand.
Unidentified Participant
Hello. Okay. And one more question. Sure. With LNT recently entering in electronic manufacturing services and ESDM space and commissioning its PCB assembly and manufacturers facility facility in Coimbatore. How do you see this development impacting a competitive positioning, pricing environment and overall growth prospect?
Mukesh Vasani
I think you know, we already in previous call we already shared some of the information that this is a huge pie, a trillion dollar pie, a pizza, you know, it’s not even LNT can eat everything. So there is always a way. If you have a niche market, if you have a specialty business, you have a hardened electronics, you have some special things, then there is no way, you know, they can beat us. So I think that is there is enough business. And if you look at our open order book and a pipeline right now is almost 70, 80 million dollars just worth of pipeline.
We have so I don’t think so. It’s going to hurt us. And also when bigger company comes they have a bigger overhead and it’s very hard to move Titanic versus a speedboat. So aimtrans goal is to be a speedboat versus Titanic. Thank you.
Unidentified Participant
We’ll take the next question from the line of Amijen Samit you can unmute and go ahead please. I think we’ll take the next question from the line of Mr. Priyanshu Jai.
Unidentified Participant
Oh am I audible Sir. Hi sir. Congratulations on good set of results. Every quarter we come and like you surprise us with the results. I have few questions. So first is on the like top line basis. So for this year. So what is the internal target which we are targeting for this year?
Mukesh Vasani
SN
Sneh Shah
Probably we’ll keep our strategy in line with 40 50% CAGR growth because next couple of years with this as an base year I would say next couple of years we are riding on thousand crore kind of a journey.
Unidentified Participant
That is
Sneh Shah
What our ultimate goal is. So you can keep in tech with 40 50% CAGR kind of and growth that will be that will try to continue delivery.
Unidentified Participant
Okay sir so second question is on the EBITDA margin side. So recently we acquired like the ICT one so due to that we are seeing some impact on the beta margins on consolidated levels around 22% 22.5.
Sneh Shah
So probably we already have stated so that company AIC now EMTRON International controls. So if you see when we bought at that phase of time it was kind of early double digit EBITA itself.
Unidentified Participant
Yeah
Sneh Shah
And it’s hardly two months we already have started activities on that part. So ultimate goal is like slowly and gradually probably now this financial it will get consolidated full year. So you’ll see the scope of improvement on what it was there before and what it is now because we do like have expertise on that ESDM market. And best part is we are seeing the synergies and already transition phase has started and completed. So we know now where exactly to tap and where exactly we can make the bottom line out.
So that is where we have started working on that part and probably down the line you will see the results probably like couple of years down the line we are even eyeing on how do we take it up to the M tron kind of a margin antron level market for EBITDA as well as pat.
Unidentified Participant
Okay so like on consolidated levels we can assume 22% is the conservative like the most least EBITDA margins we can see going forward. Right.
Sneh Shah
Couple of years down the line not Immediately.
Unidentified Participant
Oh
Sneh Shah
This year it was early double digit kind of 11 somewhere around 11% any time
Unidentified Participant
Sir on consolidated levels you’re saying
Sneh Shah
Standalone specific to eic.
Unidentified Participant
Okay sir I’m talking about on consolidated levels like so consolidation
Sneh Shah
We will be intact to what pat margins and EBITDA we are into so that that pad 15% like couple of percentage one or two percentage here and there abita 20 to 22% kind of a range will be intact on the consolidation mode.
Unidentified Participant
Okay sir so third is on the like top line as we aiming for 1000cr so like I think for the next two years we don’t require any kind of a capex but after that we are planning is there anything which you want to disclose right now?
Mukesh Vasani
So I think you can see that our mechatronic facility is coming out and there is some capacity will be there also. So right now we don’t need to spend any more Unless you have let’s say 510 crore here and there minor tools upgrade or maybe small machines upgrade but we are not seeing another huge expansion cost in the existing setup. But mechatronic will have another setup with two SMT line to start with and four SMT lines over there. If you look at this you don’t need that much because we already have nine SMT lines right now.
So in nine SMT line we can easily go up to 800900 crore. So I think at this point we don’t need any other capex at this point but thank you so much. You can take next.
Vinay Pandit
Sure thank you sir I would restrict I would request all participants to limit two questions in the initial first round and then come back in the queue. We will take the next participant. You can go at please.
Unidentified Participant
Am I audible?
Vinay Pandit
Yes
Unidentified Participant
Sir. Could you please clarify that how much percent of ips are developed in house and how much of that is source externally or externally acquired? How is company able to manage its design function with relatively low employee benefit costs Especially given that design led businesses typically incur higher talent costs.
Sneh Shah
Okay so we do have like design team in house where we have hardware, software, firmware, mechanical everything. So we are somewhere around team of 45 to 50 and then we do have design partners so including that we have a team of around 150 team members and IP typically remains with customer. We don’t own the IP so we try to be built from scratch and take the manufacturing licensing kind of an activity and we do support them from scratch from concept to design to prototype to production and that too for a complete boxblue system integration.
Mukesh Vasani
With that said we about our customers requirement to get to the market easy. We have about 80 platforms ready. That means those are the IPs. We have a number of IPs in the IoT other areas. Controls or storage, power storage in those areas. We already have a basic design control configuration is ready and whenever customer comes in three to four months, hey, here’s the product. So you can take it and if they pay then they own it. If they don’t pay then we take the royalty or contract for 57 years.
Unidentified Participant
Okay. So management is guiding around 40 50. Sorry.
Vinay Pandit
Yeah, yeah. Please continue.
Unidentified Participant
Yeah, so management was guiding roughly around 40 50% revenue growth in FY27. If we consider the numbers of consolidated ICS business there seems almost no growth in XICS business. So can you please throw some light on that?
Sneh Shah
Sure. So specific to ICS we have clearly stated growth definitely is there. So growth here focus is more on EBITDA and PAT level revenue. Definitely it is not going to be same as India like 40 to 50% so growth over there would be in double digits specific to revenue. But here the main focus is on how do we take it up for double digit kind of a pattern, double digit kind of an ebitda.
Vinay Pandit
Sure. Sir, we’ll take the next question from Akash Srivastava. Akash, you can go ahead please.
Unidentified Participant
On delivering very strong result sir, actually I have got all my answers and all all the questions of my. I have received answer to all my questions. So I don’t have anything further to ask.
Vinay Pandit
Thank you. Thank you. Akash. We’ll take the next question from Pratik Bagaria. Pratik and Gold please.
Unidentified Participant
Hi. Am I audible?
Vinay Pandit
Yes.
Unidentified Participant
First of all congratulations for a great set of numbers. I have few questions. First can you take me through the revenue split between India versus abroad. And also if you could split between different sectors like railways, defense and so on.
Sneh Shah
Sure. Kamrash, if you can just open up that presentation. I don’t have the numbers handy but if you can just open up the present slide. So if you see like probably like this year as well 70 approximately around 70% kind of an activity was more towards an domestic customers with international clientele. And focus was more on a box build. We have stated before as well. So if you see like major industrial telecom and power and Audi Robotics were the top five contributing sectors in terms of industry.
And if you see geography like India and US were the top two and almost split of PCBA to box build was 70:30 kind of a ratio and ODM model because it’s like design cost is generally less as compared to the overall project size. So ODM model that is end to end solution gets splitted to less than 5%.
Unidentified Participant
So the new addition of clients happened basically in which sector? In the last six months
Sneh Shah
It has been a combination of all. Just an example new sector. If I say then Aerospace and defense we added somewhere around 2% overall. Railway we started entering into that along with oil and gas. So oil and gas probably now we are looking at on something on higher side. Because last year if I see. Just give him. Just give me a number. We did almost 424 prototypes. So considering that number like like oil and gas we are seeing a good traction and considering to what geopolitical situations are.
So it seems to be on a better side to greet on that spot as well. So overall if you see like telecom sector, power sector and robotics is something that we added in second half of the year.
Unidentified Participant
So do we foresee the same tailwinds in the similar sectors in the next one or two years? Or do you see railways or defense coming up as a bigger players?
Sneh Shah
Railways and defense definitely we are eyeing on it. But as it is more like. Like more I would say conversion cycles are too high. So it’s not that it is these two sectors are going to dominate it. We are going to be part of the sectors where again we would be focusing on more of a niche market segment kind of activity to what typically we do. Because as we stated like this 26 January parade to what drones were displayed. We supplied the PCBAs. So what would you like to continue with safe kind of and project same kind of momentum.
But other sectors apart from these two to what you have stated probably will try to dominate for this year as well. This current financial year as well.
Unidentified Participant
Okay, fair enough. Thank you. And my second question would be what would be the top three four risk that you see in the coming two years in terms of execution.
Sneh Shah
So majorly as of now if you see like inventory levels. If you see has moderately increased and like due to three reasons. One was more of if you see like what global situations are going around. Chips are getting on like shortage and price are getting increased. So that supply chain side is the only factor we see can be a challenge. Rest all. I don’t think so. Apart from that. And that is where we started. We already have like start taking the annual orders with like monthly and quarterly split deliveries based on customer requirements.
So to what all inventory we carry probably it’s more often customer projects Oriented only where we have minimal or we don’t have any impacts from our site at least
Mukesh Vasani
I think if we have a very niche market people has to use it or take it. Is that correct? So you know even Corona time Intra did not have any problems. So I think if we continue focusing on the NIST market complex box build we will not have that much problem because there is always need and there is always requirement for those kind of product and we always you know ready to go one step beyond and that’s how we prepare for that also you know very strong infrastructure we have. So something happened let’s say in a geopolitical situation and all these buildings, all these properties, Even you know US facility, Intran International Control, we have 4 acre land and we have about 58,000 square foot building also.
So we have land and building every single place. So we don’t have to worry about any kind of turmoil. So as nay said mainly supply chain but we are communicating with the customers and make sure I think that’s what the main we see the mitigation for risk. Thank you.
Vinay Pandit
Do you have any further question? We’ll take the next next question from Tahir. Tahir, you can go ahead please.
Unidentified Participant
Hi sir, thank you for the opportunity and congrats on the good set of numbers. First question from my side will be sir, can you please provide inform the operational SMT lines we had for the entire FY26 and the plans which we had to expand in the expand our SMT lines greenfield expansion like about we have planned to add one more line in FY27. So what are the updates on that part?
Sneh Shah
We have Fuji platform as well as Bangalore and the new greenfield project that we are coming up with also will be the same Fuji platform itself that’s in Japanese made and as of now like collaboration is completed and constructions are ongoing that facility construction is done. Probably it will be Q3 and Q4. Probably it will be Q4 this financial year and post that at that phase of time we’ll be having that setup up and running and initially we’ll be having mechanical setup up and running and then as phase two we’ll be having this electronics or PCB or SMD lines commissioning done.
Unidentified Participant
Okay. Okay. So we are planning to get it operational by Q3F27 for the mechanical part and assembly line will be after that in phase two. And when and what is the timeline for that part?
Sneh Shah
A quarter More on addition of Q4.
Unidentified Participant
Okay, so we are planning to add 1:1 SMT lines by end of FY27
Sneh Shah
FY27 or Q1 calendar Q Q1 next financial year latest by that time.
Unidentified Participant
Okay, okay then second question was on the margins front our gross margins has decreased from around 31% in FI H1FY 26 to 28% in H2 due to the increase in COMC. Was there any raw material price impact during this period?
Sneh Shah
Probably I would request or suggest that if you can compare year on year because if you see always first half to second half there is always going to be a change because I would prefer to go on the year to year basis because if you see year on year probably we are in line and first half to second half we have scaled up and initially like there are a couple of orders from ODM models which got from ODM got shifted to manufacturing and couple of reasons where geopolitical regions where shipment costs were on higher side supply chain constraints were there.
So considering all that aspects there are going to be minor fluctuation here and there. But if you see the complete year then probably we are going to be in line with to what we have been projecting.
Mukesh Vasani
Also if we remember, you know we discussed also last call also and previous couple times that entrance journey is still you know compared to like thousand crore still you know 300 crore is like you know is some type of sometimes it’s going to be all the ratios will not meet. I hope I’m communicating so because sometimes one customer, you know one sector, one area is going to be up and down a little bit. So hopefully if you have a maybe a year after you can ask that question we’ll have a better answer for you.
You know. So that’s where you will see a a real result year over year and quarter over quarter. So once we enter the main board you will see a better by the time our at least our revenue will be more than 500cr. I think that’s what, that’s what I’m I’m just adding to the sn.
Vinay Pandit
So we’ll take the next participant Mr. A. Kalia A. You can go ahead please
Unidentified Participant
Sir. Thanks for taking my question and congratulations on the great setup number. My first question is regarding the cash flow. So we have generated for 40 current negative cash flow this financial year and by way can we expect the generator positive cash flow and what percentage of EBITDA can we convert over the next two to three years. And also there is one line item of 70 crore loans and advances given to other parties. So can you please elaborate on that part?
Sneh Shah
Sure. So we’ll take second question First Nikita, if you can take that up. Because that’s more of an internal. Just an example like acquisition done for AIC and projection for construction of Mtron Mechatronics. So we can give more brief on that part. Nikita, if you can just add that.
Nikita Shah
Yes. Regarding the consolidation figures, I can see that loans and advances. That is showing at 58.3. Sorry. So it. Are you referring to the consolidated value or a standalone value?
Unidentified Participant
Ma’, am, I am referring to the consolidated cash flow at one item. One line item is the 16.8 crore of the loans and advances. I am referring to that only.
Nikita Shah
Just a second.
Vinay Pandit
Yeah, muted. Mukesh, we can take the other question in the meanwhile. Akshay, do you have any other
Mukesh Vasani
Question? Sure,
Unidentified Participant
Sure. Not an issue. We can also connect. Yeah.
Mukesh Vasani
16.8 crore is given to Entron LLC in Texas. Intron Electronics LLC in Texas to acquisition. And that is the part of the payment we did from our, you know, acquisition from you know, international intern International control. So that is the money you see over there, cash flow. But yeah, take a next question by the time Nikita come back.
Unidentified Participant
Okay, sir. Okay, understood. So yeah, so my second part on that question was to when can we generate the positive cash flow and by what percentage of EBITAC we can generate over the next two to three years?
Sneh Shah
Probably. If you see we are in a aggressive growth trajectory and that is where like this impacts have been there. So if we see like once we reach to the stable phase of thousand crore. So we may continue with this kind of a momentum because of aggressive growth that we are ranking into 40, 50% and above. Because even if you see past two years it has been 60 to 70% and even above when it comes to the growth trajectory. So initially to accommodate that growth we may need to accommodate on that part.
But once we reach a thousand crore kind of a journey post that we’ll be able to see the stabilization on that part.
Vinay Pandit
Sure. Thank you. We’ll take the next question from Deepak Poda. Deepak, please. Yes. You’ll have to speak up a bit louder.
Deepak Poddar
Okay. Okay, great. So just a few things from my side now. ICS, what’s our current revenue? And this 282300 crores target that we have is over next three years, right? I mean ideally that 1000 crores we are targeting out of the thousand crores, 300 we are expecting to come from ICS.
Sneh Shah
Yes. So on peak we can dig it up to 25 to 30 million. That is what we are eyeing on from specific to EIC M international controls and this year will be somewhere around 17 million approximately. That is what we are eyeing to
Deepak Poddar
17 million FY27.
Sneh Shah
Yeah.
Deepak Poddar
So 17 million effectively means around 170 cross something like that. Right?
Sneh Shah
Approximately.
Deepak Poddar
Okay. Okay. So so ideally when we say 45, 50% growth. So from 300, even if I take 50% growth, we are reaching from 300 to 450 crores. Right. So that is an increase of 150 crores. But 170 crores is coming from this new facility only. Right.
Sneh Shah
So definitely you are good in maths. No doubt with that. But I would say on 300 we are still coming up with 40 to 50% because there would be organic growth as well as a part of India. So if we see on the consolidation mode like inorganic as well as organic probably would be in that range.
Deepak Poddar
Okay, so this 40, 50% is conservative, right. Because if you see organic growth as well plus the acquisition, so ideally your growth would be much higher. Right. I mean historically I found you guys to be very conservative. Right. And so would that be a right assumption? Is 40, 50% is a conservative number?
Mukesh Vasani
I think we don’t know the geopolitical situation is a correct.
Deepak Poddar
I
Mukesh Vasani
Think we are very conservative and we are very transparent in numbers and commitment. If I say okay, I’m going to be 70, 80 compared to last year and they cannot do it, then I want, I don’t want to make that mistake. So would like to go with conservative. You know, that’s the growth we are eyeing on 40 to 50% because we are seeing the open water book, we are seeing the pipeline and if you can get more, it’s good for everybody. Is that correct? So that’s what, you know, we are looking for more. We are looking triple but you know, it might not be possible tomorrow.
What happened in the White House tomorrow? What happened in the world? We don’t know. So, so at this point with the current open order book, we are eyeing on 40 to 50% growth.
Deepak Poddar
And, and we do expect organic growth as well. Right? That, that’s what you mentioned.
Mukesh Vasani
Thank you. Yeah. You, you things. I think you. Yeah.
Deepak Poddar
So I was asking you do expect the organic growth as well, right?
Mukesh Vasani
Yes, definitely. Okay.
Deepak Poddar
Okay. So my second question is on your RFQs. I mean you, you mentioned around 900 to 950 crores of RFQs. We have. Right. So, so, so by what sort of conversion we are expecting and by when and, and, and we have, we have around 20, 40 crores of inventory and of money locked in inventory and receivables so. So how should one look at that? I mean it’s a substantial number.
Sneh Shah
It’s a sales question for you. Second question first specific to inventory as now we are more focused on ODM model. One of the prime reason where you see that inventory numbers are increasing. It’s not to that spike, but there is a moderate increase. And first is like you see if you see our ODM business has grown to almost 2x as compared to the last year. And ODM business naturally requires higher inventory as we need to manage components of assemblies and product readiness at our end compared to pure EMS players.
So if you see secondly the strong growth visibility and customers order Pipeline for FY27 that’s also one of the important reason that considering the current geopolitical issues we are because we have to stock up certain critical components proactively to get avoid getting stuck in supply chain uncertainties. So considering that inventory curve is moderately high. So that’s one part receivables. If you see like couple of payments are. If you see this is more often 31st March results. So out of which almost 40, 30, 40% has already been received because some are 60 days, some are 75 days kind of a story.
So we all started receiving that payments. They not worried because that conversion cycle keeps on rotating around.
Vinay Pandit
Thank you. We’ll take the next question from Surendra Reddy. Surendra, you can go ahead please.
Unidentified Participant
Sir. Congratulations on a good set of numbers. So my first question is like you mentioned in the last call like we have received a like order in the defense from the Mini Ratna. So are we expecting more kind of orders on that segment and may know the margins on that front?
Sneh Shah
Certainly yes, because a couple of Navaratna PSUs like we already started working with them. Low or mid level kind of quantities and where like prototypings and pilot phases are already done. And now we are trying to see on how can we scale that projects. So we are working with different different divisions of IT. And margins probably will be at M drone level when it comes to aerospace and defense. Some somewhat I would say bit on higher side as well. But when it comes to consolidation like we generally are on 15% kind of a path margins that we typically look into.
Unidentified Participant
Okay. Yeah. Okay sir. And the second question is like is there any acquisitions going or like is any any under developments like under final stage kind of thing like just like ICS or something?
Mukesh Vasani
I think it’s too early to say. The reason is current geopolitical situation is kind of a vulnerable. So we look at it a couple more. But right now we put on hold right now. But ICS is called AIC now. But AIC is already up and running and we start making money on that and I’ll start sending, you know so it’s good thing that. So we have settled down now for that one. We put new ERP system, we put new Internet system, we put all this whatever requirement. But coming back to your questions. Yes, we are looking couple of places one of the design led companies.
We are looking in North America and in European market. So we’ll just wait and watch kind of situation right now.
Vinay Pandit
Thank you. We’ll take the next question from Sumit Chopra. Sumit, you can go ahead please.
Unidentified Participant
Yeah, hi. Am I audible?
Vinay Pandit
Yes.
Unidentified Participant
Yeah. Hi sir, I just need one clarification to the question of previous participants. So any specific percentage you would like to guide or comment upon from the organic growth point of view? Because those numbers are not reconciling because like he was also quoting 4050 growth with the current. So I, I got you that you are. You are guiding this percentage number from a conservative point of view. But anything, any color you would like to throw from Mtron without, without aic. If you want to comment upon.
Mukesh Vasani
This is the EMS business. You look at it, every single company, there’s tons of orders and tons of materials works in the pipeline from every bar for everybody. So considering that we are seeing organically also 40 to 50% growth plus additional AIC. So we give you a range for 450 to 550 at the end of the year. So you never know what’s going to happen in this geopolitical situation. So again we could have a 550 then your math will be right correct. If you go, let’s see if I say our next year will be around 550 to 600 crore then everybody will be happy.
But let’s see tomorrow happens. Something happened in Iran or Iraq or somewhere then we will be screwed up again. So how are you going to do mathematics? Our end goal is to get thousand crore journey if you’re going to do either with 40 to 50% growth or inorganic. But we will get that. That’s our end goal and that’s we are prepared for that. We cannot give you exact numbers or a very close number because we do not know the situation. So that is the reason. Yes, mathematic doesn’t fit in my mind also.
But right now my goal is. Let’s see if I give you 550 to 600 for end of next year I think you’ll be happy and your match will fit in that, but something happened then you will be unhappy and I’ll be unhappy. So that is the reason. Thank you.
Vinay Pandit
Also I think we need to clarify in the presentation what we’ve given is cagr which is a three to five year trend that we’re talking about and not just one year growth number.
Mukesh Vasani
Yeah, thank you very much for correcting
Vinay Pandit
Sumit. Do you have any further questions? Yes.
Unidentified Participant
Yeah, yeah. Sir, my second question is regarding the mix of box build and PCBA. So as we can see in H2 this mix has improved from the H1 but. But the same is not visible in our EBITDA margin. So any specific reason for that?
Sneh Shah
It’s more of a combination of that node itself because that is getting more of a value addition chain. So for instance initially with our existing customers we were just doing PCB as an example I’m giving where from there we shifted back to complete box builder, complete system integration. So for instance initially the PCB value would be thousand rupees, which has now increased that turnaround to 2500. So bottom line still remains the same to what we stood before or it has rather like been on the positive side where even it has helped us for top line as well.
So it is a combination of top line as well as bottom line.
Vinay Pandit
Sure. We’ll take the next question from Anuj Harya. Anuj, you can go ahead please.
Unidentified Participant
Yeah. Hi. Congratulations. A great set of numbers. Just following up on the previous part of the tense question, right? I mean ideally we’ve spoken that Box Build has a higher margin, higher set of margins compared to pcba. So sne, what you just said doesn’t make sense, right? If you’re earning the same percentage of margins by expanding the order value that just doesn’t fit in the logical framework from what was committed earlier.
Sneh Shah
So if you see like along with that there has been change in order trajectory as well. So initially if you see it used to be like 510 crore kind of an activity for a single order which trajectory is now changed to 25 to 40 crore to 50 crore kind of a single orders. So that is also a part of it where it’s a, it’s a combination of all factors not only just for PCBA to Box build because if you see ODM model then ODM model probably would have a higher margin as compared to Box build as well. But if you see what we try to do is we try to combine all the factors and try to see on how do we maintain the pattern 15 level and EBITDA around 20% and above.
Unidentified Participant
Understood. So for the coming year, that’s FY27. We expect the same split. That is a 70% of box build and 30, approximately 30% of PCBA. Or you expect the percentage of box build and ODM to rise up to nearly 80%.
Sneh Shah
It is going to be more or less the same activity where box bill is going to be around 65 to 70 and PCB is going to be in that 30% kind of range itself.
Unidentified Participant
Got it
Mukesh Vasani
A little bit to sne here. Every company has to start with the PCBA. Is that correct? Cannot have 100 box built directly. But what Anton is looking for, where is a complex PC board? Where is a very, you know, high mix, you know, high dollar. Those we forecast those, those we target. So in our dictionary we don’t separate too much as a box mill versus PCBA versus design. We look at first our team is prepared. Hey, is fit in our range 13 to 15 or 20 to 24 percentage EBITDA range. If not fit then it doesn’t matter for us as a box build or as a PCB only or it’s a defense or as an IoT or as a telecom.
So we are a little different in EMS trend right now we would like to be a role model to set up a new trend versus separating everything. Find a medical customer, they are doing X ray imaging. Find a medical customer, they are doing defibrillator. Find a drone who is working as a surveillance. So find those kind of customers or a Mercedes customer car or as somebody Tesla or somebody, find those customer, they have either either PC board or caterpillar, they don’t care. You know, either the PC board or either you do just the metal part still is the same margin.
So that is something we are eyeing on and that is something our you know, DNA. I think again I’m not just discouraging you but you know, those are the thoughts we had. You know, a lot of question we had in previous your machine. How many, you know, you know, per hour, how many do pick and place, how many parts they place doesn’t matter. Now what is our EBITDA and bottom line? I think that’s what we focus and that is our, our DNA and that’s our goal also. Thank you.
Vinay Pandit
Thank you. We’ll take the next question from Sachin Gulati. Sachin, you can go ahead please.
Unidentified Participant
Am I audible?
Vinay Pandit
Yes.
Unidentified Participant
Yeah. Thank you for the opportunity and congratulations for good set of numbers. So before asking question I have one or two suggestions. One is if we can share this PPT little bit in advance because it is just here so that we can come prepared and go through in advance. Second, till we migrate to main board, can we consider some quarterly business update?
Mukesh Vasani
Very good question. And first question will be me and Vinay will work together and see next time our goal was to set a trend to give early result. So my goal is to give every first last Monday of every year or every quarter I would like to give the results. So that is the reason we have to rush a little bit here and there. But we are setting the trend and we will go from there and then next time we’ll make sure will give you that, you know, a day in advance. So that is our goal and we’ll do it for sure.
Next question here is. Yes, yes, yes,
Unidentified Participant
Yes. Please go ahead.
Mukesh Vasani
Yeah, so quarterly we are ready for the quarterly. I think there’s a new auditor auditor system. We will try to you know, do a quarterly but at least we would like to give you a quarterly update for sure. And you know we have only 3/4 left, you know and then we have to go quarterly anyway. So we are preparing our team to start quarterly. Let’s see how it goes. Our goal is to give you quarterly but maybe anyway we have to learn that anyway. So I think we are ready for that. We’ll let you know and we’ll announce accordingly at the time comes.
Unidentified Participant
Yeah. And second is our PCB was used in drone showcased in Republic Day parade. So what is further progress update as far as this drone segment is concerned?
Mukesh Vasani
Sales
Sneh Shah
Question. So basically we are regularly doing monthly shipments for specific to drone for domestic as well as international market. And down the line we are even eyeing on how do we enter to box wheel space like just an example camera box build assembly and somewhat of that kind payload and all that. So that exploration is already going on. But as of now PCBA we are already supplying them on regular basis wire harness. We have recently started encountering on that part two and down the line we’re exploring on how can we do like payload systems, camera module assemblies and all and along apart from that we are also exploring if we can do a complete Boxwell system integration as well.
Vinay Pandit
Thank you. We’ll take the next question from Rushinsha. Rushin, you can wait.
Unidentified Participant
Sir, can you please explain the difficulty level of designing a PC board? Like how difficult it is to design a PCB board? Is it very like the difficulty level is very easy that everyone, everyone can do or there are any levels to difficulties that we do some very high difficult task which is reflected in our margins compared to other peers.
Mukesh Vasani
Your text.
Unidentified Participant
Hello.
Sneh Shah
Certainly certainly like it can be defined to different levels of difficulties, different stage of it. Just an example like video game. Every like every like layer or every stage you clear that comes the criticality increases. So we are into that niche market kind of an activity where just an example where someone is making just say PCB of fan or tub light. That’s too easy to do get things done. But to make this 1kv 2kv 3kv ups you need an expertise for specific to power electronics high voltage kind of an activity where instrument cost itself is around 3035 lakh to test that equipment and for battery load testing and all specific to ups.
I’m saying as of now just in power electronic subject if you see like we it took us four to six months just to develop one category of product. So that too because we have an expertise or else it takes years and years of time and still people are not able to get the products ready.
Mukesh Vasani
So Vin, in the s of the time. Can you take a shorter question and shorter answer? Maybe one question from everybody? Only one question.
Vinay Pandit
Yeah, let’s finish this person.
Unidentified Participant
So can I ask one last question?
Mukesh Vasani
Yeah. For last time also rushing. Already asked two questions before. Also rushing. If you don’t mind let have other people please take a listen. We’ll take it. Yeah,
Vinay Pandit
Sure. We’ll take the next question from Darshan Shah. We’ll just request all participants to restrict one question
Mukesh Vasani
For participant please.
Vinay Pandit
Yeah, yeah, that’s it. You can go ahead.
Darshit Shah
Hi, sorry I couldn’t go to the presentation properly. So can you let me know how much was the consolidation that happened from the acquisition in the current financials?
Sneh Shah
1.6 million dollar and it was specific for two months to EIC I’m talking about.
Mukesh Vasani
Correct.
Vinay Pandit
We’ll take the next question from Somil Jain. Somil, you can go ahead please.
Unidentified Participant
I’m okay. Congrats on a strong FY26. One question on the order book and revenues. Telecom as a segment which is if I remember correctly not a large contributor to revenues last year. Year. By last year I mean FY25. But in FY26 it has been a significant contributor and also as a part of the order book it’s a, you know, significant part of that. And similarly power and data center segment is again a significant part of the order book. Can you talk about product ramp up within these products? Are these led by single order, single customers, single products and with the potential scale that we can get with these products.
That will be from my side. Thank you.
Sneh Shah
Sure. So if you see specific to power segment and data centers. So power electronics there are a couple of customers in that but of which one of the biggest contributor is S&P 500 Company, Fortune 500 Company, Ohio based company which are a leading player in data centers. So as of now we are working with them on 1kv to 3kv kind of six variants of it where we do have a visibility of going up to 20 KVA kind of an opportunity just from that one customer. Fortune 500 customer I’m talking about. So which can be like kind of this year revenue size as well.
So can be that big opportunity. Again not immediately but down the line once we are going ahead in this journey. And specific to telecom we are doing Wi Fi 6, Wi Fi 7 kind of equipment and apart from that SFP and all that fiber optics or optical trans receivers and all that are also going to be part of it down the line. So it is going to be a combination of all factors and multiple orders. It’s not only one customer contributing to all the complete sector.
Vinay Pandit
Thank you. We’ll take the next question from Rohan. Rohan, you can unmute and ask your question. We first. Rohan, go ahead please.
Unidentified Participant
Am I audible?
Vinay Pandit
Yeah.
Unidentified Participant
My question was with respect to something that you just mentioned on the data center end. I think we received some hundred crore order and just wanted to have some more light on that. What is the sort of product and what is the opportunity, what is the revenue that we foresee in the coming future.
Sneh Shah
So as I stated we are making ups for that. There are six variants, three subcategory, three sub categories. 1kV, 2kV, 3kV with battery without battery that are going to be used in data centers, EPC and commissioning as a backup. And as of now it’s a fortune funded company and certainly if you see can be as big as like last year’s revenue as well. But again it is not going to be immediate and one one shot it is going to be a long term association.
Vinay Pandit
Thank you. We’ll first give a chance to participants who’ve not had a chance to ask any question. We’ll take the next question from Aryan Bhatia. Aryan, you can go ahead please. Yeah, again you’re unmute please go ahead. I think there’s a problem in his line. We’ll take the next question from Jigar Jani can go ahead please.
Unidentified Participant
Yeah. Hi. First of all congratulations sir on a great set of numbers once again hope it continues for a long time. Just one question which is related to the acquisition. So could you I if I heard it correctly the ICS or AIC is doing 11% margins as of now on EBITDA level. And large part of your growth say next year will come from this business and the full consolidation of this business. And it will take some time for this to ramp up to standalone margins which are about 20% odd. So do you foresee some margin pressure on a near term basis till this gets kind of coming down to our levels of 20% or on the standalone basis and just on a data keeping one, what is the execution timeline for the order book that we have of about 570 crore by when can we see the execution?
So let me,
Mukesh Vasani
Let me just give you a little heads up on this one. So answering this, so if you see after we acquired we almost lost a lot of expenses using lot of Indian, I know our Indian talents over there in the back end. Let’s see we have, they have four people in purchasing. Now we have only one person purchasing and three people over here. So from 11% to jump to already 15% right there I should give a range but just give you 11 to let’s say 11 to 12 double digit. We had some low double digit so now we are in mid double digit.
Now also all the machines, all these efficiencies, they didn’t have that much capacity wise they have only 55%. So we are adding more that way saving some overhead, you know so it easy to get from lower double digit to higher double digit by mid this year and even the later this year it will be a very close to lower double digit to higher double digit let’s say 18 to 20%. So that’s our accomplishment will be even though let’s see now purchasing power going to be increased. You know let’s say we used to buy only 200 crores of color worth of material per share.
Now we are buying 300 now. So that’s why it’s going to be also 2 to 3% saving right there. So those are the things in acquisition we are getting talents, we are getting a lot of other stuff. So that is the reason you know from low double digit to higher double digit will be very easy to go and it will be within a year or two as we promised it will be an internal value margin.
Vinay Pandit
So this other question was on the execution timeline of the current order book.
Mukesh Vasani
So execution is always 12 to 18 months. Normally we take order only 12 months but some customer, let’s see well settle customer like abb Snider over there is Caterpillar. So those customer they are very stable and they want to buy some of the parts for longer. So we give them six months extra. But otherwise normally in EMS industries 12 months is the blanket order. So current open order book is 12 to 16 months.
Vinay Pandit
Sure. We’ll take the next question from Shaurya Sajwani. Shari, you can vote please.
Unidentified Participant
Hello. Hi Mukeshi. Hi Sne. Just first of all congratulations on a fantastic set of numbers. I honestly just wanted to fundamentally understand the rationale behind the ICS acquisition. You know more on the product, the market size, the competitive positioning, what synergy it has with our Indian AIM Tron. Is it different? You know just fundamentally understand what value add is it providing to the company other than the top line and bottom line addition. Like you know what efficiencies we can achieve, et cetera.
Mukesh Vasani
So if you, if you find some time go to Aimtron Media page. Nirmal gave us about 15 minute just for this. You know what we are getting out of this acquisition. You know he gave also 10 other comparison and why we selected ICS we call AIC. Now in the essence of time I’m not going to go too much in depth but you need to really need to see the video. In that video has every single answer of your questions about how, what kind of mindset of the ownership, you know, what kind of system they have, why we say select you know ICS and all nine ard calling technical American language.
So coming back to main is rugged electronics. Rugged electronics means a lot of indoor work, is that correct? We are doing indoor, let’s say a home automation is an indoor but we are doing outdoor out to the sun over there. That’s a farming equipment. You know the equipment is kind of more in moisture or rugged or coating or parting. So those are the expertise they have. Plus they have some agritech IP also they have there means we have now every tech IP we have also Agritech means agriculture technology.
It’s another subject. We don’t have that much over here because we are doing a simple farming with tractor only. But if you look at that all these tools over there is very, very you know advance in agriculture also. So those are the scenarios we had and that’s how we selected. But if you have some times please visit mtran and we can, we can give you more in person demo what is beneficiary and you are most welcome to visit our ICS or AIC facility over there when you are in our state. So most welcome to see that also.
And next call I will bring some videos also. So you can see see that differentiation
Vinay Pandit
Due to. Due to shortage of time. We’ll take the last question from Surendra. Ready Surendra. You can go ahead and ask your question please.
Unidentified Participant
Thank you for the opportunity. Like all come together like organically, inorganically and ASMD like a defense everything like what is the top line and bottom line we can expect for FY27. Please
Mukesh Vasani
Say bye Sales question.
Sneh Shah
We already gave that updates probably we are eyeing on that 40 to 50% CAGR kind of roll over year on year. So that’s the strategy we are building and that’s the platform we are trying to build for both top line and specific to bottom line. If you see that it is more of an 15% kind of a margin with few percentage or few basis point here and there. That is what we are
Vinay Pandit
Sure sir, since that is the last question for the day. Would you like to give any closing comments before we end this call?
Mukesh Vasani
I. I really appreciate this. You know investors community and sometimes we have to say little different. So sorry you know. Sorry somebody I said you know no second question. But in the essence of time. But our goal is to be transparent. Our goal is to bring American quality with Indian talent and that is scalability. We have. We do have a differentiator is we are American company means American mindset company. And if you look at our building, if you look at our floor over there you will see the differentiator.
So let’s hope to get you know thousand for journey as soon as possible and. And that’s our goal with that. Really appreciate everybody’s time and thank you so much.
Vinay Pandit
Thank you sir. Thank you for joining on the call and thank you to all the participants for joining on the call. This brings us to the end of today’s conference call. Thank you.