Axiscades Technologies Ltd (NSE: AXISCADES) Q1 2026 Earnings Call dated Aug. 08, 2025
Corporate Participants:
Unidentified Speaker
Alfonso Martinez Fernandez — Chief Executive Officer
Shashidhar S K — Chief Financial Officer
Murali Krishnan Desaiyan — Chief Operating Officer & President
Analysts:
Unidentified Participant
Balasubramanian A — Analyst
Varun Kulkarni — Analyst
Saurabh Sadhwani — Analyst
Deepak Poddar — Analyst
Vijay Sarthy — Analyst
Mahek Talati — Analyst
Rupesh Tatiya — Analyst
Varun Kulkarni — Analyst
Presentation:
operator
Ladies and gentlemen, Good day and welcome to the Access Gates Technologies Limited Q1 FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Ms. Sangeetha Tripathi. Thank you. And over to you ma’.
Unidentified Speaker
Am. Thank you. Moderator Good evening everyone and welcome to the Q1FY26 result conference call of access KDIS Technologies Ltd. I am joined today by our leadership team to provide a brief overview of the business performance and the financial results we have with us today. Dr. Sampath Ravinarayanand our Chairman Mr. Alfonso Matiz, our Managing Director and CEO Mr. K.P. mohan Krishnan, our Deputy CEO and President Aerospace. Mr. D. Muralikrishnan our Chief Operating Officer. Mr. Sashidar S.K. our Chief Financial Officer Mr. Anurag Sharma, our President ESAI and CEO Adsolutions Mr. Shardi Babu, our President of Defense. Before we begin, please note that this call may contain forward looking statements based on companies current expectations, beliefs and opinions.
These statements involve risk and uncertainties and the actual results may differ materially. Now I hand over the call to our chairman. Sir. Dr. Srn. Over to you sir.
Alfonso Martinez Fernandez — Chief Executive Officer
Thank you Sangeeta. Thank you everyone. It has now been nearly six months since I resumed the role of chairman of your esteemed company. And during this period we have embarked on a series of strategic initiatives. I will highlight three major initiatives we have taken up one. We have set up a target of over 40% year on year growth. And we are all set for that. We have an order book of 1260 crores for this financial year. FY26 and 1827 crores for the next financial year. That is FY27. The forecast visibility plus order book and totaling to 3087 crores.
So we are comfortable in a comfortable position to achieve a 40 plus percent growth. Of course only this has to be. Everything has to be converted in delivery. But we are confident of that. There are not major dependencies at this stage for FY26 and 27. So we are confident of that growth. Please note that this is on the core areas only. That is defense, aerospace and ESAI. So we will definitely register growth of more than 40% in these areas. Especially in PAT and as well as in the revenue and the next major initiative. We have taken is power 930 which is reaching 9,000 crores.
That is $1 billion in the year 2030. So for that we are building a robust pipeline also matching infrastructure. So this all should be ready. Pipeline looks very, very good. At this point of time. We have time to convert and this all the lot of things are infrastructure dependent. So, so we are building up the world class infrastructure to be ready in time for us to grow. If this happens in 20, 28, 9 and 30, we will achieve, we will have a much greater growth for these three years. So we are kind of, at this point of time the visibility is very, very good and we are, we hope to be on track on this.
The third thing is, as you would have noticed that we have signed some good global partnerships, two of them, which is MBDA for missile activities and then INDRA for radar related activities. And we are trying to sort of this not only gives us an annuity, revenue and visibility, but also gives us a technological edge to become a frontrunner in missile and radar systems. And we are also in the process of forging more such partnerships so to stabilize our revenue and growth. So these partnerships are across all the three domains, not only confined to defense but also to ESA and aerospace.
So with this I will hand over to our CFO Mr. Sashidar to summarize our investor presentation and to the next steps. Thank you very much.
Shashidhar S K — Chief Financial Officer
Good evening everyone and thank you Dr. Srn. A warm welcome to all of you for joining us today for the Q1 FY26 earnings call. I trust you have had the opportunity to review our earnings press release and the investor presentation, both of which are available on our website as well as on the BSC and NSE platforms. Despite Q1 being a traditionally lean quarter, we are pleased to report a healthy performance for Q1FY26 marked by double digit growth in our core businesses, steady progress in our transformation roadmap and clear visibility of growth and profitability in the coming quarters.
So now I walk you through some key financial metrics for Q1FY26. Our consolidated revenue for the quarter is at 244 crores, up by about 9% year on year. The reported EBITDA for the quarter is 34 crores, up 9% year on year compared to 31 crores in Q1 FY25. With an EBITDA margin at 14% in both these quarters, the EBITDA growth year on year is at 86%. When we normalize previous year EBITDA to 18 crores by adjusting the one time rate back of ESOP provision of INR 12.9 crores. As such, the normalized EBITDA margins have also witnessed healthy momentum year on year expanding from 8.2% in Q1FY25 to 14% in Q1FY26.
Our consolidated profit after tax for the quarter is up 25% year on year from 17 crores in Q1FY 25 to 21 crores in Q1FY 26 with significant order book in defense back ended for execution in H2. The revenue and profitability metrics will accelerate in H2 26 with the ramp up in defence revenues and attended margin expansion. Our core demands in Q1 grew by 17% year on year from 156 crores to 182 crores driven by ASI which is electronic semiconductors and Artificial Intelligence which grew by 34%, defense which grew by 23% and aerospace which grew by 8% year on year.
The core segment normalized EBITDA grew by 61% year on year from INR 21 crores to INR 34 crores. Consequently, the margins of the core business have also witnessed improvement from 13.5% to 18.6%. Our core vertical saw significant order intake during the quarter as has been announced from time to time and we expect that this momentum will build further in H2FY26 supported by enhanced procurement from Indian Defense and Global OEM. Our non core verticals which is heavy engineering, Automotive and energy declined 9% year on year largely due to continued macro pressures in the automotive sector and timing related order shifts in energy.
We are currently recalibrating this business and improving the mix and cost optimization efforts in nonsore which has resulted in marginal turnaround and profitability in Q1. We are engaged with a strategic advisor in these optimization and restructuring efforts which is currently underway. In summary, all the core verticals in the aggregate continue to record healthy ebitda margins at 18.6% which is being diluted to 14% at an enterprise level on account of lower margins from the non core business. Additionally, we are progressing well on infrastructure and facility development that supports our product led nonlinear growth strategy over the next five years as has been guided by our CEO in the investor presentation.
Our objective is to grow by 40% CAGR in revenue as Dr. SRN said in Core verticals only leading up to an EBITDA margin of around 19.5% in three fiscal years up to FY28. This is fully backed by confirmed order book forecast and visibility. The current year FY26 guidance is around 25% growth in revenue including core and non core and 300bps improvement in EBITDA over the previous year driven by our core verticals. To conclude a robust and growing order book in all the three core verticals. Our strategic collaborations and global partnerships is steadily laying the groundwork for our stated aspiration of reaching a billion dollar revenue by 2030.
Thank you for your continued trust and support. We now open the floor for questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Bali Subramanyam from Ariyan Capital Markets Ltd. Please proceed.
Balasubramanian A
Thank you so much for the opportunities. Sir, I just want to understand defense and the aerospace side. I think mostly we are targeting 75% kind of revenue and how we are exposed to budget cuts or delays in Indian Defense Procurement issue 30 upgrades or LRD projects. And could you please break down these,800 crore order book with program files like SU 30 upgrades counter drone and you can share also delivery timelines. And thirdly it’s more interesting AI empowered engineering side and like what kind of efficiency gains like we can expect in terms of reduced design cycles.
Whether it is justified for premium pricing or market share gains.
Alfonso Martinez Fernandez
Thank you. I tell you on the order book it is combined of all the three activities. Currently we have order book of and forecast visibility of about 540 crores in defense and about 210 crores in visa and 450 crores in in year of space. Approximately it should add up and basically that is so difference alone is about 540 crores. This also comprises of OEM activities as well as as well as three groups actually drdo, PSU and which is of the programs you are talking about MODI which is including all the anti drone and those kind of systems and then the OEM engagements like mbda, Indra I talked about.
So the combination of all the three. So there is dependency, there is no delay in the programs we are participating and we have a long term visibility on all these things. We work across the platform. For example we are there is some distance. We are. We are across the platforms because for example our products like the direction finder is There almost in every major platform. So we have no dependencies on this for this year as well as next year. So that is next is using the PA we are probably we are working on various activities in this for the defense a combination.
We are also working with some foreign collaboration for establishing that especially in our anti drone and related activities and so on. Please note that the overall it’s not only difference. We are talking about all the three segments at this point of time. Is there anything I missed out Mr.
Balasubramanian A
Balsaronim as are this AI empowered engineering strategies ahead? Is there any measurable efficiency gained?
Alfonso Martinez Fernandez
We are working on that. I will be able to highlight more next quarter. We may sign something very interesting in the next one or two months and we’ll be in a position to explain explain further by next quarter. Give us some time. And even Government of India is focused on certain activities related to that and so we are working on that at this stage.
Balasubramanian A
Okay sir. On that Airbus provides a stability business. I just want to understand what are the tangible progress we have taken diversifying into other OEMs and tier ones and and is there any tariff impacts because of unit closure levels because US have imposed various tariff rates to various countries and how we are having advantage compared.
Alfonso Martinez Fernandez
To other first question will Mohan will answer before that I answer the last question and then hand it over to Mohan. One is the tariff impact. We don’t have much because we have 20 totally 27% US our total revenue 27% comes from US and out of which mainly it’s from major from east side and currently other revenues booked in US itself US inc. We are also for safeguarding other revenues. We are trying to book everything in US so that there is no India dependency. India US Dependency. So that will be taken care of. And what do you Mohan please explain to him what are the steps you are taking to kind of backup Airbus and the other OEMs and so on.
What are the initiatives you are taking?
Unidentified Speaker
Thanks. On your question on additional customers we see I’ve joined this access CADD in the month of April and immediately we started looking at expanding into new customers. We got some a few wins companies like tier ones like Mubia. We have started engagement with Boeing all these things. We would see the results coming in the Q3 and Q4 and we have also done some small wins in with Indian tier ones as well. So the idea is to see that we bring in more and more customers so that we have the revenues get distributed and we have a risk mitigation as well on this.
Balasubramanian A
Okay sir. So my last question. Yes, sir. So my last question regarding attrition side, it’s rose to 19 in this quarter and as we are moving as a defense and aerospace in going forward, like how what are the steps we have taken for talent retention and what are the training upskilling programs we have taken especially for critical defense and.
Murali Krishnan Desaiyan
Murali, can you answer this? Yes. So yes, attrition is. Control is an important factor for us. And we are working on various employee experience and employee engagement initiatives to ensure that our employees are retained. On top of that, we are also taking significant upskilling programs for our core domains. This includes aerospace design activities, concession repair and manufacturing engineering. We are also collaborating with various external parties and agencies to reskill and retrain our employees so that our core domains can be strengthened.
Balasubramanian A
Thank you, sir.
Murali Krishnan Desaiyan
Okay, thank you.
operator
Before we proceed with the next question, ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants, please limit your question to two per participant. The next question is from the line of Varun Kulkarni from Ingrid Asset Management. Please proceed.
Varun Kulkarni
Hi, good evening, sir. Thank you for the opportunity. Just a couple of questions. So the first one would be I see that we are, you know, we are going to commission new facilities which would contribute 30% and 50% of the total revenues in FY27 and FY28. So how are we planning to fund this capex? Would it be in the form of a joint venture or are we going to dilute any equity or raise debt? And if it is in the form of a joint venture, have we found any partner as of now? That would be question number one.
Second question would be why is the first quarter generally lower and what is the timeline of the contract? How is that decided and what would the revenue flow look like once the order is awarded and what will be the payment cycle in defense? Yeah.
Alfonso Martinez Fernandez
Thank you. First question. If we are the facilities are developed by downstream company called aaipl Absys Aerospace Infrastructure Private Limited which in turn is won by acad, which is input. So we are trying to raise money or we are trying to get strategic partnership at AIPL level. We have a very in fact we have some world commitment from in two tranches. Probably the first, a small portion we will receive in the month of probably in Q2 or beginning of Q3 and by Q4 we will probably receive a major portion. And from these are all from strategic partners who would also participate in this and this is secured and we are not in currently there is no plan of either Borrowing money or diluting anything at the listed company level.
That’s number one. Number two in the defense side the payment cycle is always hovering around 182. There’s somewhere around starting from 90 days to goes up to because portion of liquidity damages everything is that performance guarantees. So Approximately it is a one. You can safely assume it will be a 120 day, 120 day payment cycle. And there is a visibility on all these programs. What we talked about in the next two this thing we have a program based confirmed everything. So there is no. There is no risk in those things. And of course 2027 FY we need some working capital additional working capital requirement to meet this that we will have to organize at that point of time.
So otherwise we have. We don’t see any major issue in this growth as well as. And we are covered in almost all the things 30%. Yes, you are right. In 2027 our facility will be ready. One portion will be ready by Diwali itself. Around October 28th we plan to move. And phase 1A of our DAC also will be ready by March. So hopefully this should take care of 2027 requirements. 28. Of course the rest of the facility has to be ready and we have a 18 months time. I hope everything will be ready. Yeah. To answer your question as to why the Q1 is always traditionally a lean quarter that majorly because of the fact that the defence revenues which constitute a significant portion of 30% plus in fact more so in this year is kind of I would say aggregated towards Q3 and Q4. It starts from Q2 end onwards and it extends up to Q3 and Q4. And what you see predominantly in Q1 are the engineering services revenue which is of aerospace, ESA and other verticals.
Varun Kulkarni
Got it sir, that’s super helpful. One last question if I may.
operator
I would request you to please join back the queue as there are several participants waiting for their turn. Thank you so much sir. We take the next question from the line of Saurabh Sadwani from Sahasra Capital. Please proceed.
Saurabh Sadhwani
Hello. Yes, hello. Yeah, this is my question I think to Anubhav. So what led to the growth in Esai? One thing and the second one, what are we doing with Apple? The win that we announced. What are we doing with Apple?
Shashidhar S K
Okay. Good evening everyone. So yes it’s an excellent question that what has led to this kind of growth? So we have embarked on new relationship and engagement with two hyperscalers which is Amazon and Apple. And we are as you know that the market, the semiconductor market is moving towards chip manufacturing which is application oriented, end use oriented and that is where our opportunity arises and that is where we are looking for design development and even with Apple. So I hope this answers your question and to kind of answer your question as to what led to the growth in esa revenues in Q1.
Essentially our business with Tecton Instruments as compared to last year has started growing significantly which is one which is kind of expressed in the revenue growth in Isaiah.
Saurabh Sadhwani
Okay, okay, just one follow up on the Apple side. Are you trying to build Asics for them now? Apple and Amazon?
Shashidhar S K
No, no. Basically I just don’t want to dwell too much into this but I can say this is Ravinaran here. In the case of the first customer you are talking about the phone company. We are not working directly on the apps or the chips. We are working on the support activities. We are trying to clear create certain boards for them to do the test and evaluation of their product. And in case of the second company which is delivery and that is a marketplace company we are working with mostly we are working on their product side like Kindle and Alexa and those kind of things.
Again we are helping them create the product and test the products. We are setting up a world world class acoustic lab for them. The second company as part of our infrastructure that also may be ready by this October November and we probably will once if it is ready with God’s grace we will be in a position to take care of most of their products requirements. If you know time to come. In the first company we are going to work with their local partner in India who is their manufacturing partner. Closely, very closely and so and provide all the supports, support activities and boards for them.
The manufacturing partner, this partner is not traditional couple of two guys whom you know. There is a third one which is coming up. So this partner we are going to work along with the phone company. So this is two boards and what led to our growth is our we were our dependency on Qualcomm and Texas Instrument. We broke and we are working throughout the AI chip manufacturers and we are establishing a very strong relationship with two of them especially the upcoming AA chip companies. And these things are looking up good. Also we are looking at major applications in ADAS and SDB areas.
We had last week some major wins. Last couple of weeks have been extremely good and we won some of the especially in the areas of ADAs, SDV and transportation related activities in the ESA. So this looks good at this point of time outlooks not only this year, next year Looks good. And we are again working with one more hyperscaler started. So probably will be able to highlight it the next year. Next call. Okay, thank you. Thank you sir.
operator
Thank you. The next question is from the line of Deepak Bodar from Sapphire Capital. Please proceed.
Deepak Poddar
Yeah, thank you very much for this opportunity. So just first up wanted to understand on your core business, I mean we are looking at 40% CAGR over next three years. So what sort of margins aspiration we can have over next three years? I mean I think first quarter we were at about 18.6% EBITDA margin. So how should one look at as as your skill picks up?
Shashidhar S K
Currently the ESI margins are very good and currently the ECI margins are at 23%. Are you able to hear that?
Deepak Poddar
I’m trying to understand as a core business as a whole.
Shashidhar S K
Yeah, yeah, yeah. Yes, yes sir. I’m just coming back to this. Currently the ESAI margins are at about 22 23% and followed by defense margin which is at 19 plus percent followed by aerospace margin which is at 16%. But aerospace margin this time is quite less. Q2 also may maintain because of a lot of holidays and so on. So basically we are looking at an average improvement. There is lot of improvement in these three areas. We may end up anywhere between 19.2 to 19.7% or 719.8% this year and years to come it will be between 20 to 21% in the core sectors.
In next 21%. Yeah, it will be averaging between 20 will definitely be this year it will be around 90 ish 19 plus something. Next year onwards it will be 20, between 20 and 21%.
Deepak Poddar
Okay, 20, 21 next year and. Okay, okay, got it. That’s very clear. And in terms of our outlook that we have shared on our Power930 plan. So I would just, I mean if this year we grow at about 25% so we will reach around 1300 crores, kind of a top line at a console level. I mean to reach 9,000 in next four years we’ll require at least 60% CAGR growth. Right? I mean is that something, I mean are we too optimistic on that or is it something that is doable for us?
Shashidhar S K
No, no, no, no, no. Not at all. We are not throwing any numbers or not dreaming or anything because we are very systematic about it. We are very serious about it this year and next year we are working without any infrastructure or without any major change. Please understand that we are almost investing about $200 million, about 1500 crores in infrastructure before the beginning of 27. So that should lead us to a tremendous jump growth of nearly about, I would say 80, 90% or more than 70% which will compensate for, let us put it this way, first two years, about 40, 45% growth on core areas and non core.
We hope we would have got an answer for non core by next year. Definitely by beginning of next year. So the average growth will be about 45% next year. And then there will be a steeper growth because of the fuel by the infrastructure and facilities and new customer acquisitions. We are pretty much planned it out and we are. There is no hypothetical issue in this and we are fairly confident about it.
Deepak Poddar
Okay, fair enough. And just one last thing on the ESOP cost. What was the ESOP cost in this quarter? It was 12.9 crores, right?
Shashidhar S K
No, it was around 3 crores. Because at the moment there is only the chairman who is bestowed with the grant. The rest of the plan is in the works and it will start showing up from Q2 onwards. And so FY26 entire year we are targeting what, 50 to 60 crores of ESOP cost. Maybe slightly lower than that is what at the moment we are looking at. Yes. So 40, 50 crores in that range. I mean. Yeah, that’s right.
Deepak Poddar
Okay. Okay. And when we say 300 basis point improvement in margins, so we exclude this ESOP cost. Right.
Shashidhar S K
We actually have factored this ESOP cost in this. You know, it is the net improvement in terms of, you know, EBITDA margins. I mean after factoring in ESOP cost, we are expecting 300 basis point improvement in margins. Correct.
Deepak Poddar
Okay. Because currently I think last year we were at 14% first quarter. Also we were at similar 14% rate EBITDA margin.
Shashidhar S K
As I said, the real impact and the real, you know, I would say the turboing of the revenue and margins will start happening from Q3, end of Q2 and Q3 onwards.
Deepak Poddar
That’s pretty clear. I mean. Okay, that would be from my side all the way. Best to you. Thank you so much.
operator
Thank you. Before we proceed with the next question, a reminder to the participants. Please limit your question to two per participant. The next question is from the line of Harshit, an individual investor. Please proceed.
Unidentified Participant
Yeah, hello. Hi, this is Harshit Kapade. I’m calling from Elara Securities. Thanks for giving me an opportunity. Just have two questions. One thing. There is a recent Defense acquisition approval which came for 67,000 crores. Would you be able to share, you know, which of the areas execed is involved in those particular eight to nine platforms which have been, you know, disclosed. And secondly I was a question related to Prammo. I’ll just first get the first question answered.
Shashidhar S K
Sunil, can you answer this question? Yesterday the DAC approval. Is there any activities in which we are involved? So we are involved in the mountain radar.
Unidentified Participant
Okay. And okay. So in that the. The distilled beam forming and the signal processing systems will be from us. Okay. Okay. What about Brahmos missile? I think there was also a big order for Brahmos missiles of close to 11,000 crores and we are supplying WIR harness. So are we part of that or we are not part of it? Can you just repeat the question please?
Shashidhar S K
Yeah. In the 67,000 cr order they also mentioned BR missile was also part of that procurement deal. So are we not supplying wiring harness for the Brahmos missile or for that particular project? We are not participating.
Unidentified Speaker
Can you answer this? The Brahmos wiring harness is a ongoing order for us. And we will be qualifying into production soon. And the later part of deliveries we will definitely be a part of it. Apart from wiring harness, we are also working on critical electronic systems for Brahmos.
Unidentified Participant
Okay so but still we are not. You know, right now part of it. But we’ll be part of it probably. In FY27 and 28. Is that what. No, no. Let me just give a clarity. Ramos has got 71 wire harnesses. We are already selected in the major one. So within six months if we when we complete this we should be part of it and going forward not even in roughly if a beginning of FY27 onwards. So by the time this project matures or starts we will be ready for that. And remaining also I think we have a shot at that which is not at the finalist. And so we will have a major this thing in that and also onboard computers and strategic electronic units.
And also we are in the process of major development with reference to that and which I cannot disclose at this stage probably. But we will inform you Q2. So we have a sizable share in these things. Fair enough, sir. I’m wishing you all the best, sir.
Unidentified Speaker
Thanks.
Shashidhar S K
Thank you. Thank you.
operator
Thank you. We take the next question from the line of Vijay Sarthi from Shubka Ventures. Please proceed.
Vijay Sarthy
Thanks for this opportunity, sir. So you laid out your plan for the next five years. I just want to understand that most of these growth comes with a lot of being a core system supplier, integrator and not just being a component player. Understand that you also do some subsystem activity. How do you think we will progress from the next three years to the next five years? Say for instance, Project Kusha, we are doing digital beaming format, unit forming unit. But when it comes to further moving up the scale in terms of revenue, do we really see ourselves moving up the platform level or how is it likely to be? Some insights on that will help.
See, basically there are. We don’t want to single out a particular project, but basically we are one hand. We have our own modules which is going into subsystems which goes into every major product like direct fire direction finder, direct rf, as you said, digital beam forming unit. These are all our standard products offerings goes irrespective of who beams. Secondly, we are trying to. Once you take care of. If you look at Brahmos and Kusha, for example, we are already setting up competencies in major platforms such as rocket motors, Seekers and then the electronics onboard computers and electronics, these three, except Warhead, we are concentrating on everything.
So this is on the missile side and similarly the radar site. We are attempting for full radar in many cases. And also we are looking at foreign OEMs for radar maintenance, radar support, integration etc under our facility, once it happens, will be among the largest for the radar. And with Indra, with collaboration, we are also making products to start with. You are trying to do the attack on Antenna and probably at some point of time this is going to be for exports and for total system also. We are not merely the system integrated. We are.
We make our own subsystems, we integrate and we develop it from the ground. And so we have plan for all these things at this point. So in a layman would you. Would you be qualify yourself to be a tier one player in the next three to four years? Is that. Is that understanding right? We are. Yeah, of course. When. When we say we are looking at for example the. The tier one means for. In let us say in the case of. I’m hypothetically saying Kusha, it will have about four tier ones. One who takes care of the electronics and radar, one who takes our complete mirror integration, one who takes up the ground systems and one for the other propulsion and other things.
Basically we should be in a position to attempt all these things. Any one of this or something like that. Maybe once the facility is ready. And yes, we should be ready by that time in every case. That’s what is our focus. Yeah. Am I clear or.
operator
Thank you. The next question is from the line of Ruchida from Iwealth. Please proceed.
Unidentified Participant
Hello sir. A very good evening. So My question was mainly on the order book size so sorry if I’m repeating it again. So if you could just give me the bifurcation of how much is the defense order book and the other components of the order book.
Unidentified Speaker
This is sunit. So basically a difference we have already mentioned it is 540 crores approximately and which is on the. So the 540 crores comprises of DRDO PSC orders and OEM orders and a small portion in the counterbound systems. So this is our and of course deal with tan trailer order which we received. So put together this is 10 trailer order itself is 200 crores. Depending upon how much we can deliver we are hoping to deliver about 20 systems a month hopefully. And if you are able to deliver that 20 systems a month we have, we have calculated like that.
And so then there is a counter tone order and for defense comprises of these four, five major activities. Everything is confirmed and we need to sort of look at this. So this is around if it counter drone. That’s the only thing it could be 540, it could be 600 Depends on how much we can deliver. The rest will be passed on to the next financial year. And so yeah this 540 crores is just for this year, right? Deliverable. Yeah, this year. This year deliverable. This year deliverable. As of today. As of today. What is our closing order book? Total closing. This is all as of what do. You say for like last quarter we had said that our defense order book is around thousand corrod. Right. Yeah. So just trying to understand. Yeah this will be, this will be approximately if you. For what this year and next year you are looking at somewhere around close to about 1500 crores defense this year. And next year which you’ve already booked like these orders have already come already booked and secured. Okay, okay, okay. And they are supposed to be delivered in the next one one One thing. I wanted to tell you this also has offset orders in the form of OEM contracts. And this is also based on the EMOIs and agreements we have signed, our partnerships we have signed. And so this also includes that. Okay so because these are all on the services, these are all like a recurring agreements, they are recurring the happenings. So the quantities and all I’m just giving an average value basically a pessimistic value on this.
Unidentified Participant
Okay. Okay. And so this quarter our aerospace revenue has grown by just 6%.
Shashidhar S K
Right. And our full year guidance is quite on the steeper side. So what gives us the confidence that we’ll be able to deliver this kind of growth for the full year. Mohan, can you answer this? Yes sir.
Unidentified Speaker
Yeah. See we have a order book of about 450 crores. And as was stated by our chairman the first and the second quarter are usually lean contributing to about 35% of our overall sale. The remaining sale happens during the last two quarters and this has been the tradition as well. Hence we are confident of meeting our numbers.
Unidentified Participant
And just. Just one last question in the finance.
Shashidhar S K
I would request you to please join by back the queue as there are several participants waiting for their turn. Yes, thank you so much. Thank you so much ma’. Am. Thank you. We take the next question from the line of Mahek Talati from Agility Advisors. Please proceed. Yeah. Hello. Am I audible? Yeah, yeah please. Yeah. So thank you so much for the opportunity and congratulations on a decent set of numbers. So just wanted to understand there have been news about HL providing letter of intent for the to the Israeli company for adaptor Tejas MK1 from the 31st airplane as well. So how do you think will this impact us in the going impact us in the future as this is one of the major opportunity. And apart from the there are components what the. What is company providing for teasers and what is the estimated value that company data from one aircraft.
I will answer the first question and I’ll ask my colleagues Sunil to answer the next one. First question is the Israeli company you mentioned and Yelta and you mentioned that pages this thing. We are aware of that. And in Q2 next investor call I will be able to give you a much better and a good news regarding that. Okay, I don’t want to talk anything about this at this stage. But next quarter very soon we’ll give some kind of a very positive news on that. With that I will give you the details of what we add value to Tejas.
I’ll give it to Sunil who is our delivery head of defams. Yes, Sunil. Yeah. So for each LCA we will be having around 12 crores to 13 crores per aircraft as of now. And we are also looking at few more Systems in the LCA. Mach 1a which could add a couple of more crores. Can you explain what are the. So how many components are we planning here? Okay, so we are looking at a couple of things in this we already in the EW and the ERP of the radar and the mission computer and the smart multifunction display.
These adds up to around 12 crores. And then we are looking at a few more components in the lca. Okay, understood. And next also Promoter has been consistently selling shares and for some time. So why when we have such a great opportunity for growing and why is the. What is the reason behind the selling? If you could please highlight that. Yeah, let me answer the question because see strategically this has been a sensitive issue for us. We are looking at Promoter being a tep politically exposed person. We are not as a chairman of the company, I’m requesting the major promoter to reduce their stakes because we are when we are talking about forging relationship with foreign OEMs they are sensitive to this fact.
So we are trying to bring them below 50% over a period of time. I assure the foreign volumes that they will be around 49% in the next few months or in the next at least within a time frame. So that is the reason we are consciously trying to bring them down. So that is a whole thing because today it’s important for us to build these relationships and this, we don’t want this to be one of the deterrence. So this has been a management and board decision and this is on our request. They are trying to sort of high buff.
So that is okay. So we could see further selling coming up as well for next couple of. Yeah, we want to be. Ultimately there should be brought down. There are only two ways whether they sell at secondaries or we we go for some fundraising on the primary which we don’t want at this stage at this price. And anyway we don’t feel there is any liquidity event in the company for next one year at the at least on the top level. So the only option is right now to have the secondary sale. Okay. That is the only option left out and we have to.
This has to be brought below 50. Okay. Okay, answer last question was relating to that.
operator
Mr. I would request you to go back to the queue. Thank you so much sir. We take the next question from the line of Rohan Mehta from FECOM family office. Please proceed.
Unidentified Participant
Hello sir. Thank you so much for the opportunity. So you know, given the strong growth guidance across Defense, Aerospace and esci, I’m interested to know when do you think precisely the execution is going to pick up in the core segment? And do you expect Q2 to be on the similar lines as of Q1 as well or you expect certain improvements? And secondly, if orders are already in hand and no new facility needed for FY26 to meet the FY26 target, why is execution largely being pushed to H2? So if you could just spend some time explaining that.
Is it only specific to Defense or what is exactly going on?
Shashidhar S K
Let me answer this question. Number one is Q2. We are expecting a fairly good improvement though. Q2 is a bad quarter for aerospace because Europe, as you know, Airbus is from Europe. Europe is closed for about a month’s time and we lose about. And basically it is totally as a services this thing. So we almost lose about one third in the process. But still we are trying to make up. So Q2 is being kind of. Because most of the foreign companies are on holidays and so on.
There is always a sluggishness in Q2. And so that is the reason that overall Q1 and Q2 does not. Q1 is just the starting of the year and there is a sluggishness Q2 because of the holiday season. So basically. But despite that, we are planning to put forth a strong result in the Q2 compared to Q1. Definitely that will be there. I don’t want to give any guidelines, but there will be a major improvement. Major improvement in Q2, definitely. And going. Next question. Yes, there is no dependency on facility per se, but there is a dependency on manpower.
And there are. There are also customer readiness. Basically, if you look at it. Let me. Let’s see the difference. Once the product is ready, customer has to come accept it. They have to do some trials. The cycle is more better in the Q3 and Q4 defense. It is not in our hands. Even if we get the ready, we cannot the customers who come inspect, approve, take, then allow us to ship. So that is what is happening in the products and systems. So that is causing little bit of delay. Even I get the product ready today.
It will probably take about three, four, three months for us to get the final approval. So this is where everything is getting pushed to a little things. Not because of. And also manpower. So manpower because of the aggressive growth we are having, some of the activities we need to have a right people in place. There is a. There is a lack of. I would say one of the things we are seeing is that our efficiency and productivity in certain cases or certain types of orders are lower. So we are trying to build this up. So overall order book, there are execution issues and delivery issues because of these things.
And so. But Q3, Q4 because we are in the line for customer approvals and so on. So in the case of Defense, this is the main case. The case of foreign OEMs, this is because of again, there are in availability during this month, July and August. Okay, thank you. Okay. Okay. And my last question is, could you provide me what is Your average interest rate on your outstanding debt as of today, Sashi?
Unidentified Participant
Yeah. So the weighted average is about 9.5% in terms of our working capital debt which is around 48 crores. And then we have a long term debt of around 101 crores with an alternate investment fund. So you can look at it. Of course we also use BCFC facility and all of that. So we can say that the average, you know, I would say Finance cost is around 8, 8.5%.
Shashidhar S K
Sorry, could you repeat that? It’s around 8 and a half percent.
Unidentified Participant
8.5.
Unidentified Participant
Yeah. Thank you. Thank you.
operator
Thank you. We take the next question from the line of Akshay from Expone Tribe. Please proceed.
Unidentified Participant
Thank you for the opportunity, sir. I have a few questions and I will kind of run them through. So firstly for the aerospace business, you know it’s been touched upon a couple of times but just to be sure, how do we kind of what are the specific areas which will ramp up for us to get to 450 odd crore revenue that we have guided for FY26? So Airbus is a business that is at least in the past been a steady growth business but not a non linear one. So can you touch upon which areas. Will add to that nonlinearity? That’s first. Second was on we spoken about tooling. In the analyst day and then in.
Shashidhar S K
The presentation as well. On the aerospace side can you help us understand what kind of tooling are we going to be doing in the aerospace side? Is it something similar to what our UNIMAC does? And when do we start doing that work? So that’s on aerospace, on defense. So when on the NVDA side have we already sent a sample test bench to them? Is it approved or qualified? And when do we start seeing commercial supplies? Then on the Indra side pack and antenna is what we are going to be making. Right. So again when where are we on the development? When do we start selling? Would would good to know.
So yeah, these are the four questions I have. I will give the third and fourth question will answer. And so first and second question will Mohan will answer. Let me start with Shardi Babu. Let us ask Shadi Babta regarding the defense growth. See we are already partnered to MBDA. Our we are the center of excellence for test benches and recently we have announced our relationship. So we have an ongoing test bench program already already with MBDA and we have right now this year we have enhanced enhanced the overall volume of test benches from MBDA that is already in progress and it is going on and Regarding Indra, this is a first is a.
You know we will have a very short cycle of a prototype. After that we are going for production. So you will see, you’ll see the production orders either second half of this year or probably by next year we’ll have the production going on. Sure, I think. Can you cover the arrow answers?
Unidentified Speaker
Yeah, sure. So on your first question on aerospace business see for this year we are having an order book of 450crores which I mentioned some time back. Yeah. Most of these orders are from our existing customers predominantly from Airbus, Bombardier and other things. So this year we are not talking about non linear growth. This year is from our existing set of customers which we will execute from the current set of what you call offerings that we are doing. That is number one, Number two is on tooling which you are asked. Our plan for tooling is basically for the flying parts and the non flying parts. Flying parts sense that all components and assemblies, toolings, that is what we are looking at. Non flying parts is all gse, ghes, all the kind of tools that we are looking at.
So for toolings we have started some work as a. As we mentioned sometime back in one of our investor presentation we are slowly going and the, the results are likely to come somewhere in the Q3, Q4 and in the next financial year for us we have one small order from some of the Indian tier ones and which probably would help us win more orders the international customers as we set up our own facilities. I hope I have answered your question.
Unidentified Participant
Sure. So if I may ask one more question. We’ve spoken about ESWT in our presentation. What is the value of the homing.
Unidentified Speaker
Receiver in an ESWT and how many. ESWTs are going to be procured? So as part of EHWT we have the homing receiver which will come to around 1.5 crores per torpedo.32. Yeah. So we are looking at around 20 per year for I mean a total of around 100 numbers in the next five years. 100 in the next five years. Okay. Okay.
Unidentified Participant
And when will you start? So we have already started the first of production and we are, we will be delivering the first unit probably by November, December of this year. Sure, that’s very helpful. Thank you so much.
operator
Thank you. We take the next question from the line of Rupesh Tatya from Sri Rama Managers PMS. Please proceed. Sorry to interrupt. Mr. Rupesh, we aren’t able to hear you. Could you please fix that? Hello Mr. Rupeesh, you are not audible.
Rupesh Tatiya
Yes. Hello sir, your voice is Breaking. Hello. Is it better now? Hello. Much better. Yes. Okay. Okay, thank you sir. Sir, I was saying congratulations for the fantastic set of numbers. I have two questions. One on the OEM business and one on the Pusha business. So Kusha business or what? How many radars, how many digital were beam forming units are there in this long long range battle management radar? Because you have given the total production quantity of 75 and my understanding is 5. Five squadrons at least I think are in the works in the beginning. So that 75 number looks a little bit of a steep climb. So if you can just give that number and then I think in the past we have said that we’ll do 5 crore per USA missile, IFF onboard computer, rocket metal casing.
So if you can just tell whether the prototypes are approved or prototypes are under testing. Have we got the order? Are we single source supplier for this 5 crore component supply? So this is on the Kusha and then on the OEM business. Sir, this generic test benches that we are making for nvda has the prototype been made? Has the sample being sent to mbda? When? When? I mean when will it be qualified? When can we see first supply and then the similar question for the Tak and Antenna from Indra. So these are my one question on OEM and one question on Kusha.
Shashidhar S K
Rupesh, the first second question has already been answered. I think you are not listening. Both the same. The test pinch of the previous person has asked so. So Mr. Shardi Baba has already answered. Let me give some highlight on Pusha and Sunil also will answer further. Kusha is totally 47. The acceptance of necessities for 474 batteries. That means 474 systems into four numbers like 1976 or something like that. That is number of missiles. So radar tape that is totally about 474 numbers radar part. So that is for the numbers wise. So that is the basis and rest of the things and where we are eyeing is of course all the major component.
You cannot dwell too much into where what we are going because it really. So I’ll ask you to explain about this particular one particular product. But other than that we are very confident of having a major value in Kusha. But currently because it’s going little behind schedule. So we will discuss that further in the next meeting. But currently let. Sunil, can you answer on the other hand numbers here. Hi Ritesh. So we have around the DBF which is going to be received the order now and we will be delivering it by around March this financial year.
And once this that the tiles are completed and then the production will start for this. So right now we have order book for five numbers initially.
Unidentified Participant
Okay. Okay. But 75 will be done in two, three years.
Shashidhar S K
It will be, I mean it will take four to five years. Okay. And then maybe one more. I’ll allow if I will ask on. This maritime petrol radar.
Unidentified Participant
Sir, I got just one. Sorry, I just got one. Hello.
Shashidhar S K
Yeah, go ahead.
Unidentified Participant
Yeah, so my question is on this maritime petrol radar. So I think my, my understanding is Dornier 2 to 8 upgrade. I think BRDO I think has missed the bus. Then I think it is not present in any of the other LUH. I think it is present in 1 ALH Mark 3 in Indian Navy and post guard. So where are we on this maritime patrol radar? And then when can we see the order? Which platform will it be? If some clarity you can give on that.
Shashidhar S K
On maritime patrol radar, I don’t think we have given a projection. Right. So we’re not involved in that program.
Unidentified Participant
No. Okay. Okay, thank you. Thank you for answering my question.
operator
Thank you. We take the next question from the line of Varun Kulkarni from INGRID amc. Please proceed.
Varun Kulkarni
Yes sir, Most of my questions have been answered. Just one small touch up if I may. What will we be exactly manufacturing in the aerospace segment going forward or would we be focused on being a technology provider since we are classified well as a tier 2 and 3 tier in the value chain? It’s a very basic question but would like some clarification nonetheless.
Shashidhar S K
Thank you, Gohan. Yeah, so for this question, see, I would add, see what we are trying to do is we are trying to leverage our engineering expertise and then take it up to the next level for manufacturing. So for example, in tooling we are already a tool design experts. We have been doing tool design for many years. So we are graduating into tool manufacturing. So that will give us an end to end solution to our customer number one. Number two, we are also addressing another specific problem today. Because of ramp ups and other things, many of them are unable to deliver to the final assembly line.
And we have an opportunity with these spares companies where they are not getting products from the same supply chain. So we want to address that requirement wherein we will make specific components to those. They, they can call it as a speed shop or it can be called as a speed, what you call a space requirement, addressing the space requirements. And then there are other opportunities that we are working which are very early stage, like passenger to fleet conversion opportunities and various other things which probably will we’ll address it in, probably in Q3 or something when, when the opportunity gets more mature.
So this is what we have planned. And then the last one is on the MRO component repair and testing. And all these opportunities, when you look at it, the missionaries and the capability that is required are one of the same. So as a result, we’ll be able to manage our assets very efficiently and be able to give a very competitive solution to our customers. I hope I have answered your question.
Varun Kulkarni
Yes, sir. That’s it. From my side. Thank you.
Shashidhar S K
Thank you.
operator
Thank you, ladies and gentlemen. Due to time constraints, we take that as the last question and would now like to hand the closing remarks to the management over to you.
Shashidhar S K
Thank you. Thank you everyone. And thank you to all our esteemed leaders and participants for your time and interest in our company. We appreciate this engaging session and insightful questions. I hope we were able to answer all your questions. Should you have any further questions or need any additional clarification, please feel free to connect with us. Thank you and have a good day.
operator
Thank you. On behalf of Access Gates Technologies Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.