Centum Electronics Ltd (NSE: CENTUM) Q3 2026 Earnings Call dated Feb. 16, 2026
Corporate Participants:
Nikhil Mallavarapu — Executive Director
Sundararajan Parthasarathy — Chief Financial Officer
Analysts:
Unidentified Participant
Krishna Doshi — Analyst
Ankit Babel — Analyst
Bala Subramaniam — Analyst
Jatin Jadhav — Analyst
Rupesh Tatia — Analyst
mehul Pajuani — Analyst
Somil Jain — Analyst
Nemish Sundar — Analyst
Ankur Gulati — Analyst
Karan Sanwal — Analyst
Anant Shenoy — Analyst
Presentation:
operator
Good morning ladies and gentlemen and welcome to The Centrum Electronics Limited Q3 and 9 month FY26 earnings conference call hosted by Ashika Institutional Equities. 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 this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded before we proceed. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call.
These statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Ms. Krishna Doshi from Ashika Institutional Equities. Thank you. And over to you Ms. Toshi.
Krishna Doshi — Analyst
Thank you. Good morning and a very warm welcome to everyone. On behalf of Ashika Institutional Equities, I welcome you all to Centum Electronics Limited Q3FY26 earnings conference call. Today we have with us the management team presented by Mr. Nikhil Malavarapu, Joint Managing Director and Mr. Sundarajan Parth Sarti, Chief Financial Officer. We thank Centum Electronics for giving us the opportunity to host the call and we will now like to hand over the floor to the management for their opening remarks post which we will open the floor for Q and A. Thanks and over to you Nikhil Sir.
Nikhil Mallavarapu — Executive Director
Thank you Mr. Shi and good morning everyone. Welcome to our earnings con call to discuss the performance of the third quarter and nine months the financial year 2026. Start with a special thanks to our host today at Ashka SO Stockbroking. Let me start today’s call by summarizing the essence of the call. This quarter clearly represents an important inflection point for Centum with few critical announcements and as a result allow us a little bit extra time to share our opening remarks after which we will open the floor for the Q and A. So we’ve delivered a healthy operating growth in our continuing business during the quarter and have taken decisive steps to realign our global portfolio and strengthen the long term foundation of the company.
I will first brief you on the key performance highlights for the quarter and the period under review. Provide an overview of the decisions taken with regard to our overseas subsidiary after which our CFO Mr. Sundar Rajan Patasathi will take you through the financial highlights. So starting with the core business Our stand alone operations continued to demonstrate strong momentum during the quarter driven by robust execution in our high margin build to spec segment. Growth was led by strong execution in our domestic defense and space programs particularly across radar systems, space based electronic warfares and tank electronics programs.
We continue to see a healthy demand visibility in these segments supported by our differentiated capabilities and long standing customer relationships. A key milestone during the quarter was forging a strategic partnership with GRSE for the Air navigation program. This marks our entry into mission critical air navigation systems and aligns strongly with our strategy of moving up the value chain towards integrated systems and platform level solutions. I’m happy to share that we have already received the first order under this program and we expect more orders in the coming quarters as we build traction. Further, we were declared L1 bidder for the development and production of a complete radar system for a major airborne platform of a defense psu.
This is a significant validation of our capability in complex radar systems and strengthens our position in high value defense programs. On the capacity expansion front, we also completed the groundbreaking at Kiadb Aerospace park in Bengaluru where we will be setting up a dedicated facility for systems integration and capability enhancements in critical technology areas. On the EMS front we also saw strong execution with ramp up of deliveries to a new semiconductor equipment customer. We also secured new orders from this customer during the quarter and with the favorable policy announcement under the India Semiconductor Mission 2.0, we believe we are well positioned to benefit from the growth in the semiconductor CAPEX cycle globally.
We also secured new business awards in the energy and industrial segment from an existing customer, a leading global OEM for new grid automation and power distribution product lines. These initiatives further diversify our revenue base and strengthen our industrial electronics portfolio. Our order book is also strengthened further during the period providing healthy revenue visibility into the coming quarters and based on the current pipeline and customer traction, we expect good momentum if order intake in Q4 as well. Now let me address the overseas subsidiaries candidly. Over the past several quarters we have been transparent about the challenges in our Canada and France operations and our intent to address them in a time bound manner.
In line with this commitment, we have now discontinued operations in our Canada based subsidiaries and initiated closure related actions in accordance with applicable regulations. This effectively stops further operational losses from these entities. In the European subsidiary Over the past few years we have also made sustained and serious efforts to bring a turnaround. These included leadership changes, strategic repositioning, operational restructuring, cost optimization initiatives and capital infusion from the parent company. We committed management bandwidth and financial resources to restore stability and growth. However, despite these efforts, the prolonged weak macro environment in Europe, subdued demand in the R and D services market, increased competitive intensity, impacting margins and balance sheet constraints at the subsidiary level have not enabled a sustainable turnaround.
After careful evaluation, we determined that reallocating capital and leadership attention towards our core growth segments would generate stronger long term returns for shareholders. Accordingly, the Board has approved initiating actions with respect to our French subsidiaries to assess options including divestment, sale or transfer of business or judicial reorganization as permitted under the relevant laws. To summarize, we have discontinued operations in Canada and initiated restructuring actions in France in line with these decisions, certain one time exceptional items have been recognized in the quarter to appropriately reflect their financial impact. Based on our present assessment, we do not expect any further material financial impact beyond what has already been recognized.
Overall, with the overseas restructuring actions now substantially addressed, our strategic focus remains on strengthening the Company’s capital allocation discipline, allowing us to fully concentrate on profitably scaling our rapidly growing core ESDM platform. With that, I would like to hand over the call to our CFO Mr. Sundar Rajan to brief you on the financials.
Sundararajan Parthasarathy — Chief Financial Officer
Thank you Mr. Nikhil and good morning everyone. Let me now brief you on the financial highlights for the third quarter and nine months of the financial year ending 2026 March. At the standalone level, revenue from operations for Q3 FY26 stood at rupees 238 crores reflecting a very strong growth at 27% year on year and the EBITDA for the quarter stood at rupees 26 crores, higher by 27% year on year and the profit before exceptional items in tax for the quarter stood at 19 crores registering a growth of 77% year on year. For the nine month period, the standalone revenue stood at INR 630 crores registering a growth of 25% year on year and the EBITDA registered a growth of 50% to INR 76 crores translating to a margin of 12.1% representing about 200 basis points over the corresponding year.
Last year Corresponding period Last year, profit before exceptional items and tax for the nine month period stood at INR 58 crores reflecting a growth of 128% year on year. This clearly reflects improved scale, better program mix and operating leverage in India’s ESGYM business. Now coming to the consolidated performance, the revenue from operations for Q3FY26 stood at rupees 331 crores registering a growth of 21% year on year. And the EBITDA for the quarter stood at Rs. 31 crores with a margin of 9.5%. The profit before exceptional items and tax expense from continuing operations was at 18 crore rupees which is up by 53% year on year.
For the nine month period, consolidated revenue stood at INR 873 crores up 15% year on year. The EBITDA for the nine months stood at rupees 78 crores translating to a margin of 8.9%. Profit before exceptional items and tax expense from continuing operations was at INR 45 crores which is up by 155% year on year. To reiterate, we delivered strong results this quarter and are well on the path to delivering a stronger quarter to end the year largely backed by the standalone performance. The financial results for the quarter end nine months period reflects the impact of exceptional items and one time impacts to give effect to the developments relating to the overseas subsidiaries as discussed by Mr.
Nikhil earlier. Now let me explain the accounting treatment relating to these overseas subsidies. Following the board approval during December 2025 we have discontinued the Canadian operations that has been specifically classified as discontinued operations in the Q3 financial statements. Accordingly, all the prior period numbers have been restated to reflect the operating results of the continuing operations. The net operating results include loss relating to Canada that has been reflected separately under discontinued operations. In the Consolidated Financials for the nine month period, loss before tax from discontinued operations amounted to rupees 39 crores and for the quarter 3 FY26 it was at 29.8 crores including one time impact of 24.9 crores.
These numbers relate to Canadian subsidiaries. Again, now coming to the exceptional items included in the Consolidated Financial the exceptional items for Q3 in consolidated financial statements were at 57 crores and for the nine months period it was 55.6 crores. These relate primarily to impairment of goodwill and intangible assets arising from restructuring options of the French subsidy. At the stand alone level, the impact is more pronounced due to impairment of investments during the quarter three the Company has fully impaired its investment in subsidiaries amounting to rupees 153.8 crores in standalone books. In addition, exceptional items at standalone books also include provision for receivables relating to supplies made to the Canadian subsidiary.
All these actions ensure that the standalone balance sheet now reflects a conservative and realistic valuation of the overseas exposures. To summarize clearly, number one, Canadian operations have been classified as discontinued. The numbers have been recast accordingly, standalone exceptional items largely relate to the impairment of investments in subsidies and provisions against receivables connected to Canada. Lastly, consolidated exceptional items that is in the consolidated financial statements primarily reflect goodwill assets impairments relating to the French subsidiary. However, it’s important to emphasize that these exceptional items are largely one time in nature predominantly non cash accounting adjustments. With these provisions now substantially recognized, we believe the balance sheet appropriately reflects the current structure and the future performance will more clearly represent the strength of our continuing India estimate operations.
I can now confidently say that the underlying business momentum remains positive, margins are improving and the capital structure is now cleaner and more aligned with our strategic focus. With this, we can open the floor for Q and A session. Thank you.
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 the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants, you are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have the first question from the line of Ankit Babil from Shubcom Ventures. Please go ahead.
Ankit Babel
Good morning sir and congrats for good standalone numbers. So my first question is that why there has been an adjustment of last year Q3 numbers on a standalone basis. Because whatever restructuring which has happened is all in subsidiaries. So why the standalone numbers have been adjusted, restated.
Sundararajan Parthasarathy
Sorry Ankit, I didn’t get your question. Standalone numbers have not been restated relating to these two subsidiaries for prior years. It’s only the consolidated financial segment. If you read the.
Ankit Babel
You know, because if I see your standalone numbers for last year so your. As of now your profit is coming at. Around. At PBT level it’s 10, 107 million. Right. But when you had, you know declared the results of last here it was coming somewhere. One second.
Nikhil Mallavarapu
Yeah, it was coming at 91 million. So there is a difference. And in the notes also you have mentioned about this note number eight where you have presented the restated numbers in your stand. So the.In standalone.
Sundararajan Parthasarathy
Sorry to interrupt. Ankit. There was a amalgamation last quarter we announced about the TNS India Private Limited. There is one entity that’s the only restatement in the standalone financials. Again, I can provide the reconciliation offline if you.
Ankit Babel
Okay, okay.
Sundararajan Parthasarathy
Yeah.
Ankit Babel
Okay. Okay. So second question is what is the value of the radar order which is where you are. L1 from a defense PSU.
Sundararajan Parthasarathy
We will. We will disclose that the. At the time that receive It. Yeah. So we expect, we expect that to hopefully happen in Q4. So.
Ankit Babel
Okay. Okay. And my last question is now on as you had mentioned in the press release that you guys are looking for even divestment of the Prince subsidiary. But since you have already taken the write off of full investment value. So do you expect any, any realization happening and you know, if you succeed in selling or divesting your French subsidiary?
Nikhil Mallavarapu
Yeah, thanks for the question, Ankit. I think based on our assessment today, we don’t expect to realize anything, you know, meaningful from this, from this divestment we’ve had. We’ve taken certain actions already over the last couple of months to assess this. And while we continue to look for options, I think based on the current external environment in France and Europe, the general MA activity also has slowed down in of terms anticipation of better future. And as a result we don’t expect to realize much from this process. And that’s why to be prudent also we have taken full impairment of the carrying value of the asset.
Ankit Babel
Okay, so any timeline wherein you expect to carry close it the divestment.
Sundararajan Parthasarathy
So Ankit, as mentioned, this will. There is a judicial reorganization process also that may kick in which typically has about four to six months of observation period. And within that they’ll have to find suitable bidders and the process will take its own time. So I think by, by next quarter that is Q4 financials reporting timeframe, we expect some more clarity and as soon as we get to know any further details we’ll definitely be updating the investors.
Ankit Babel
Why I was asking this question is this till the time you don’t divest also whatever loss of profit comes in those subsidies will. Will be born by center, right? Will it will be part of center.
Sundararajan Parthasarathy
That’s correct. That’s why during the month of. Sorry during the quarter, next six, eight weeks we will get to know more and based on the IFRS standards at the appropriate time. And we need to stop consolidating. We will stop consulting also when it requires.
Ankit Babel
Okay. Okay. So again one confusion here. So as you mentioned that you know in case if there are losses because you have not been able to turn around the company. So in case there are losses, then you had also mentioned that you have already taken the provisions. So if any further losses comes in would be over and above the provisions which you have already taken. And I’m talking about the operational losses because that business is still. Correct, it’s still running.
Sundararajan Parthasarathy
You’re right. So the operating loss we cannot accrue ahead of time. So until the time we consolidate the financials of the European subsidiaries, the operating loss will be consolidated at the same time. Like I mentioned, once the process kicks in, we’ll get more clarity on the date of, you know, losing control or any subsequent action. Accordingly, we will stop.
Ankit Babel
So considering the visibility.
operator
I would request you to please rejoin the queue again for more questions.
Ankit Babel
Okay ma’. Am.
Sundararajan Parthasarathy
Thank you.
operator
Thank you. Ladies and gentlemen. In order to ensure that the management should be able to address all the questions from the participants in the question queue, we request you to kindly limit your questions to two per participant. If you have a follow up question, please rejoin the queue again. We’ll take the next question from the line of Bala Subramaniam from Arihant Capital. Please go ahead.
Bala Subramaniam
Good morning sir. Thank you so much for the opportunity. Semi first question. I think we have been declared as a L1 beta for complete radars this term. So I’m trying to understand what is the approximate order value and execution timeline for this project and generally what kind of margin profile for this, this kind of competency systems levels compared to traditional BDS business. And secondly, we also got a partnership with GRSE for air navigation program. And what’s the total potential value for this program over the next three to five years. Whether we can able to extend this kind of program to other shipbuilding partners like MDL or GSL or any other navigation mission systems for the Indian Navy.
Nikhil Mallavarapu
Thank you for the question. So first with regard to the radar system order, this is a. I would say development followed by production order. So what we will receive first is the first phase of the production order. And then subsequently we will be receiving the production orders. The total value of this program is to the tune of about 700 crores over a. I would say 5 to 7, 5 to 6 year sort of time horizon. The first tranche of course as I mentioned for what we will receive in the short term we will announce it as and when we receive it, it will be disclosed.
And the second one which is the air navigation system. This again we had already disclosed. The order that we have received already is to the tune of about 30 crores from GRSC itself. You’re absolutely right. We expect to receive orders from all from several other shipbuilders, shipyards including GSL and HSL and so on in. In the coming quarters and years. We estimate that again the total opportunity here is again to the tune of about 500 crores or so. Again in a three to five year kind of time horizon of order booking.
Bala Subramaniam
Sir, I’ll operate On the margin side for these programs.
Nikhil Mallavarapu
Yes, yes, yes, the margins for these programs, obviously they, I would more, I would categorize it just generally to say that, you know, in this business we expect to be at 20 to 25% EBITDA margin. And so these are more or less in line with that, with that profile.
Bala Subramaniam
Okay, sir, sir, my second question under the space based cyber lanes program, I think the address opportunity size is nearly thousand crore and how much we can expect next one or two years? Sir. And secondly, he could elaborate more on Indian Semiconductor Mission 2.0. Like it, it’s one of the major tailwind for the EMS business and I’m trying to understand what kind of specific opportunities we have and we are looking specifically for especially on supply chain for assembly, testing, marking and packaging side or we are focusing on design and prototyping side.
Nikhil Mallavarapu
Oh yeah, so great, thanks. So the first one with regard to the SBS program, it is substantial. We are starting to see some orders coming in. We expect to book some of this in Q4. Some of them have been declared L1 and again we expect to start receiving Those orders in Q4 or Q1 of the following year. As I said, total opportunity size is there in the range of about 1000 crores. And you know, as things progress over the next few quarters we will be having a clearer idea of how much of that we are able to book.
But things are moving in a very positive way and you know, we expect the orders to start coming in as I mentioned, or have already started to come in, in Q4 and subsequent quarters. The next point with regard to India Semiconductor Mission 2.0, this is a new policy announcement that we saw in the budget. The details are still yet to be fully clarified on the this front but we understand that in this instance there are a lot of. There is a major impetus and push to involve the broader ecosystem of semiconductors, including the capital equipment used in semiconductor fabs.
And in that respect, as I was mentioning earlier, one of our major new customers that we’ve added in the last year and ramped up in Q3 in fact is a major player. They are one of the top global capital equipment suppliers to semiconductor fabs and they have a strong commitment in terms of their procurement in India. And so we expect revenues from this sector to also increase, you know, in a very good way over the next two to three years.
operator
Thank you. We will take the next question from the line of Jatin Jadav from Suhasrar Capital. Please go ahead.
Jatin Jadhav
Hello. Am I audible?
operator
Yes, you are audible.
Jatin Jadhav
First of all congratulations. I actually had two questions regarding the airborne platform, the complete radar system. So could you just elaborate what exactly kind. What exactly is the kind of radar which we are providing or the kind of solution which you are providing for the defense psu?
Nikhil Mallavarapu
Sure. I mean, it’s essentially a radar system for a helicopter platform. And it is intended for multipurpose function, including, you know, search and tracking. There’s for surveillance and a few other, you know, modes. I can’t disclose too much about the detail, technical details of the program, but suffice to say, it’s for a major helicopter platform. And as I mentioned, more details will be announced once we receive the order.
Jatin Jadhav
Got it, sir. And the partnership which we have done with grse, what exactly is this air navigation system which we provide? If you could throw some light on it.
Nikhil Mallavarapu
Yeah, very simply put, this is a navigation system that is. That enables aircrafts to land on ships, land or take off from ships. It’s like a air traffic controller that you would typically see at an airport. This is a more sophisticated, advanced version of that, that is, that is there for. Specifically for military applications. And we are making the system that is onboard the ships itself. As of today, there is really only one such system that is deployed on the aircraft carrier that we have. But there is a need that many more warships that are already in service or in being under construction will require this.
Will require this system. So what we are delivering essentially is for that.
Jatin Jadhav
Got it, sir. Thank you so much. I’ll get back into the queue.
operator
Thank you. We will take the next question from the line of Rupesh Tatia from Long Equity Partners. Please go ahead.
Rupesh Tatia
Hello. Hello, sir. Thank you for the opportunity. My first question is, can you just talk about T90 tank stabilization system? I think there’s a big effort to indigenize those systems. And how many systems are we present? What kind of opportunity that will be? That is question number one. Second question is recently, I think, ISRO1PSLV satellite launch. PSLV launch failed. So maybe you can give some idea about, you know, how it will impact us positively negatively and any subsequent orders we can expect in this program. So these are the two questions initially.
Nikhil Mallavarapu
Yeah, sorry, I didn’t understand exactly the first question. It was something about stabilization system. Could you just repeat?
Rupesh Tatia
T90 tanks. Right, the T90 tank. Yeah, I think it’s a Russian design and I think India is looking to indigenize those tanks. Some of the components. Are we present in that program because we have some tank electronics.
Nikhil Mallavarapu
Right.
Rupesh Tatia
We have a division tank electronics.
Nikhil Mallavarapu
Yes, we’ve indigenized several things on, on the on tank electronics which were previously Russian designs or Russian imports. We have been successful in doing several different subsystems on board the tank and we continue to work on a couple of others which are in advanced stages of development and so on including what you just mentioned. So that this is an ongoing program and there are also some potential new opportunities for an upgradation and so on that are in the pipeline. And yeah, so these are for various parts of the tank including the siting systems to the, you know, fire suppression systems and so on.
So that’s, that was the first question and then I think your second question was with regard to the unfortunate event of the failed launch a few weeks ago. This was actually the launch was the main payload for the launch in fact was something that was delivered from Centum. So it was quite an unfortunate event because we were looking forward to establishing a capability that would have been again a first time for India. It was a hyperspectral imaging payload with, with a high level of resolution and accuracy which we don’t have today. That being said to your question, there is expected to be a repeat mission but we are yet to receive any concrete details regarding that as of now.
But clearly the need for such programs and payloads is only increasing. To use space based intelligence is a critical need and we are fairly confident that the demand for such payloads and electronics will only increase as we go forward.
Rupesh Tatia
So just one follow up for both of these programs. Can we expect let’s say 400, 500 crore of orders each over the next let’s say three to five years?
Nikhil Mallavarapu
I mean I won’t, let me not say specifically for the program but more broadly if you’re talking about the tank electronics upgrades or the space based payloads then yes, we do see a fairly healthy pipeline to the tune of what you mentioned in the coming, in the coming few years.
Rupesh Tatia
Okay. Okay, thank you. I’ll get back in with you.
Sundararajan Parthasarathy
Thank you.
operator
Thank you. A reminder to all the participants, you may press star and one to ask a question. We will take the next question from the line of mehul Pajiani from 40 cents. Please go ahead.
mehul Pajuani
Hello sir. Thank you so much for the opportunity. Sir, if you can highlight how do we see the budget in terms of the budget spending on defense and aerospace for our company. That is question number one and I will ask question number two later.
Nikhil Mallavarapu
Yeah, I mean I think at a high level several positives I think we can still take away clearly the increase of the defence capex Budget has been important and significant, which is. And with the continued trust and focus on indigenous production or indigenous design and manufacturing, clearly a very positive sign for companies like us who have been in this space for a long time with very strong capabilities and strong relationships. So the budget I think was in line and reflective of the need to modernize our forces and I think it is a positive direction for Indian companies in the space.
mehul Pajuani
Sir, my second question is about the global market. With the kind of evolving geopolitical scenario, has the prospects for our company, you would say, are we in a better position than last year in terms of the geopolitical market scenario, in terms of the total addressable market?
Nikhil Mallavarapu
Yeah, very, very good question actually. When you. With all that’s happening in, in Europe or in Israel and so on, we have seen on our EMS side of the business an increased order book coming from some of these customers. So we clearly are seeing the increased spending on Electron on defense hardware, you know, coming in over there. And we expect this to continue, you know, for the next few years also because there are capacity and capacity constraints in some of these geographies. So some of our existing customers itself, we are seeing, you know, more opportunities coming from them, which is for exports and nothing to do with India.
Positive, positive opportunity. Yeah.
mehul Pajuani
Right. One last question. When do we know about the L1 where we have been classified by. When did we know about the decision, Final decision?
Nikhil Mallavarapu
We hope, we hope in this, in this quarter we should have a, you know, we should have the order and.
mehul Pajuani
Sir, can we reveal the PSU which is where we have this for?
Nikhil Mallavarapu
No, I. We will release all of that at the time of receiving the order.
mehul Pajuani
Okay sir, thank you so much.
operator
Thank you. We will take the next question from the line of Somil Jain from Lucky Investments. Please go ahead.
Somil Jain
So thank you for the opportunity and congratulations. First on the BTS side, the sequential execution seems to be slightly, slightly on the softer end. Anything that we should read from, from that, the order book still remains as the. If you could talk about execution in this quarter. And secondly of the BTS order book, how much is the Ellen Systems unexecuted bit already remaining in an order book?
Sundararajan Parthasarathy
So on the first part, as you know in our BTS segments typically we keep reminding all the investors that it’s not supposed to be reviewed as a viewed as a quarter on quarter business because it’s not a linear thing. It all the values and the timing depend on the programs that are at various stages. Right. So that way if you look at it sequentially. Yes, there could be up and down. But there has been a trend also as you could see maybe from Q4 of last year to Q3 of this year. But that doesn’t reflect the full year’s prospects.
That’s the concern. And year on year you can see clearly it’s grown very well. And BTS contribution to these trans is on the rise. So that way you can be assured that it’s. There is nothing concerning on the front.
Nikhil Mallavarapu
Yes, and maybe I’ll just add one point here because in fact, as we mentioned in our opening remarks, a good part of the growth has been driven by the BTS part itself. So we have seen growth happening on the BTS side. One thing just to keep in mind is that if you’re, if you’re trying to compare the order book with the revenues, it’s just something to keep in mind that typically order execution cycle on the BTS side of the business would be typically in the range of about two to two and a half years, whereas on the EMS side of the business it’s a lot more shorter, maybe less than 12 months.
So that’s just something that’s important to highlight while viewing the numbers.
Somil Jain
Got it. And the portion of Ellen Systems in our unexecuted order book for the BTA side.
Nikhil Mallavarapu
Yeah, sorry, we don’t have exactly the number because right now, but, but we’re making good progress on that. We expect to have a fair amount of billing also happening in Q4, but there’s always a mix of orders and we are expecting also pretty healthy inflow of orders in Q4 as well from various types of even space based electronics apart from the other ones that I already mentioned.
Somil Jain
Got it. If I can squeeze in a couple of more questions on the EMS side, can you talk a little bit about the ramp up on the semiconductor equipment? If you can give any quarterly numbers for this quarter and going ahead, what kind of sort of further ramp up you see if any.
Nikhil Mallavarapu
We won’t disclose specific quarterly numbers, but I’ll just say that, you know, this is a customer that we had been, that we had won just at the beginning of this financial year. It has been a very rapidly moving business. Typically the timeline from when you get awarded a business to when you do a prototype and qualification to actually starting to see a ramp up of production is something that takes two to three years. But in this case it’s been very fast. We’ve been awarded already. We were awarded in Fact already about 65 different part numbers that have all been qualified.
And in Q3 there was major, the serial production deliveries have begun. We expect, as I mentioned earlier, that in this financial year, we expect to do at least $10 million of business, if not more, which was practically zero in the past year. And going forward, we feel we can get to at least 30 million revenue range per year with this customer in the next two to three years. So actually probably even in a two year kind of time frame. So very, very bullish about this segment and our engagement with the customers moving in a positive way.
Somil Jain
Perfect. Okay.
operator
And finally, sorry to interrupt. Soumil, I would request you to please rejoin the queue again for more questions.
Somil Jain
Sure.
operator
Thank you. We will take the next question from the line of Nemesh Sundar from Elara Capital. Please go ahead.
Nemish Sundar
Yeah. Hi sir, thank you for the opportunity. Questions from my side. So, firstly, on the QRSAM order that Bell is expected to receive by Q4 or Q1. So would we be part of that? Like, would we be receiving any orders. From Bell for the same for radars or any subsystems?
Nikhil Mallavarapu
Yes, there are. It’s a major program. Clearly there are certain active opportunities that we are engaging with Bellon and we do expect to have some order booking coming from. From. From this program specifically. I’m not able to share exactly the numbers now, but we have a few different opportunities and products that we are engaging on this program.
Nemish Sundar
Okay, sir. And for a longer term, like two major projects are currently being talked about, like the AMCA program where consortiums have been shortlisted and for the 114 Rafaels that have now received the AON approval from the mod. So for these two programs, I know they are longer term, but would we be in any position to pay? What would be our scope, if any, in these projects?
Nikhil Mallavarapu
Yeah. So I mean, with regard to the RAFA program itself, first of all, we are already a supplier to the program through Thales, who is our major customer here. We are one of only two companies, I would say, who are supplying electronics to this platform currently. And what we are supplying is in fact something that is we are integrated into the global supply chain and it is being delivered and shipped all over the world. And we hope and expect that as these programs evolve in India, that we will work to have a larger work share and partnership with our very strategic customers on this side.
On the amca, that I would say is still quite an early stage, but. But here again we are positioning to work on the various core electronic systems on board the aircraft, whether it’s the radar, EW or the avionics that go on board the program. So Those are still at an early stage and we will be closely monitoring that as and it evolves. To thalassali. Supplying any electronics or any like design or how is the agreement there? Yeah, we supply electronics, so we supply various subsystems, electronic assemblies and so on to thalis globally.
Nemish Sundar
Okay. So and just one last thing on. LCA pages mark one is so are we involved there? Like are we supplying any components to them? Components or subsistence. Repeat that for LCA pages mark 1, A2. Hal, are we also involved there? Like the 180 numbers order that Hal is currently executing.
Nikhil Mallavarapu
On LCA. Our presence is fairly small, so we don’t have a big presence on board the lca.
Nemish Sundar
Okay, thank you so much sir.
operator
Thank you. We will take the next question from the line of Ankur Gulati from Genuity Capital. Please go ahead.
Ankur Gulati
So can you give some color on the standalone margins and when can we.
operator
Sorry to interrupt. In between. Ankur, you’re not audible.
Ankur Gulati
Hi audible now.
operator
Yes, please proceed.
Ankur Gulati
Yeah, so can you give some color on standalone margins? When can we expect them to steer back to mid teens?
Nikhil Mallavarapu
Yeah. So I think you know this is where we mentioned the mix of business. Whereas our build to spec business is in the range of 20 or more, the EMS side of the business is closer to 10%. We do have some operating leverage that will open up. So you’ve seen already as we mentioned, in the nine month period EBITDA margins have improved by about 200 basis points at the stand alone level. Typically Q4 for us is a bigger quarter also. So. So we will maintain or improve our margins in Q4 and going forward into the next years again as we continue to have revenue growth, we will see the operating leverage come in and we expect a steady improvement of margins also in the coming years.
Ankur Gulati
The last question, is there a seasonality in EMS and build to spec quarter on quarter wise or is it pretty much well spread out across the quarters?
Sundararajan Parthasarathy
Yes, we do have clearly most definitely, especially in our BTS business there is a lot of lumpiness. These are again the revenues are tight to major program deliveries and so on. So we do have a fair amount of lumpiness especially in our BTS business. On the EMS side of the business it’s a little bit more stable. But here again there are certain programs and customers where you will see a spike of deliveries in a specific quarter but more or less as a trend. I would look at this as a lot more stable as compared to our BTS business which tends to be lot more lumpy in nature.
operator
Thank you. We Will take the next question from the line of Shahi Vijay from Capstock and Securities. Please go ahead.
Unidentified Participant
Thank you for the opportunity. Sir, my question is regarding the subsidiary. Just a follow up. So for the Canada subsidiary that we wrote up around 50 crores which was for the, the. Sorry, am I audible?
Sundararajan Parthasarathy
Yeah, yeah, go ahead.
Unidentified Participant
Yeah. So for the Canada subsidiary, 50 crore that we wrote off for the receivables, can we expect a similar write up for the French subsidiary? Because I understand that the 150 crore is investment in. Yes sir.
Sundararajan Parthasarathy
Yeah, so sorry to interrupt. You are asking if there is anything similar expected relating to French in like 50 crores. Okay. So no, as far as the French subsidies are concerned in standalone there is nothing that we can be expect to come and impact in Q4 or in the future whatever the investment impairment that has been taken. And there is no account receivable that is doubtful or anything because there have been some steady payments also coming in.
Unidentified Participant
All right. And so regarding the 50 crore Canada subsidiary ITOC, can we expect some recoverable amount in the future?
Sundararajan Parthasarathy
So that’s a good question. So when the council finalized and audited we took a clear assessment of what is outstanding and how much is receivable recoverable. So to tell you what we wrote off or provided for is after considering the values that we received in this quarter, about 500k dollars or about 500 crores has been received. And towards the end when the entities get eventually wound up, any subsequent cash collections from customers that we carry may also come back to India after everything gets settled and the court order gets received. So if at all that would be very minimal but not a major recovery that we can expect.
Unidentified Participant
Got it. Thank you sir and all the best.
Sundararajan Parthasarathy
Welcome. Thank you.
operator
Thank you. We will take the next question from the line of Karan Sanval from Nivesha. Please go ahead.
Karan Sanwal
Thank you for the opportunity. So just wanted to understand what, what, what product are we doing for the semiconductor business currently?
Nikhil Mallavarapu
These are our customer. Is what? Our customer is one of the leading suppliers of the capital equipment used in the semiconductor manufacturing process itself. And what we supply to them essentially are box builds and PCBAs. These are built to print services where it’s the customer’s design and we are contract manufacturer for them. So this sits in our EMS part of the business and as I mentioned we supply either box bills or PCBAs to them.
Karan Sanwal
So majorly it would be a part of the EMS business, right? The entire.
Nikhil Mallavarapu
Yes, it’s all part of the EMS business. Yes.
Karan Sanwal
And just to confirm previously you mentioned it is a 10 million dollar opportunity for FY26 and it would be 30 million for the next two years, right?
Nikhil Mallavarapu
No, yeah, yes. 10 million for the FY26 is correct. And, and we expect it to get to an annual run rate of about 30 million in, in two years.
Karan Sanwal
Understood. One last question. Are we expecting any other semiconductor client or you know, coming up in a big way, way apart from what we have already received? Because there are also talks in the industry that another, you know, a big semiconductor equipment player is targeting India for the, you know, setting up basis. So are we in advance of or any intimation from the client to you know, explore products with them?
Nikhil Mallavarapu
We are in, we are exploring. I can’t say anything that I can, I can disclose at a very advanced stage to be disclosed at the current stage. But we are, you know, very, you know, very well aligned in terms of our capabilities and processes for this type of business. So as and when opportunities come up, I’m fairly confident we would be, you know, well considered for this.
Karan Sanwal
Thank you so much.
Nikhil Mallavarapu
Thank you.
operator
Thank you. We have the next follow up question from the line of Somil Jain from Lucky Investments. Please go ahead.
Somil Jain
My questions have been answered. Thank you.
operator
Thank you. We will take the next question from the line of Anant Shenoy from AS Capital. Please go ahead.
Anant Shenoy
Sir. My question is on the semiconductor side since many of the companies in the semiconductor were working on the capital equipment side. It’s a high margin segment for us and since we are reporting it in the EMS side, like what kind of margins are they similar to the EMS margin of 10, 12% or do we expect higher margin on semiconductor side?
Nikhil Mallavarapu
No, the business model is what drives the margins here. So we do expect you may have a very minor variation but a rough mean of about 10%. EBITDA is what we feel is a sustainable long term margin for any EMS business in this type of industries, whether it is defense, aerospace, whether it is semiconductors or industrials and so on. Of course as you go into consumer and so on those drop. But you know, we typically, we have done various global benchmarking and all of that and you know, the EMS business in these type of sectors are typically around the 10, 11% EBITDA levels.
Anant Shenoy
Sure, thank you.
Nikhil Mallavarapu
My next question is as I mentioned. Sorry, yeah, no, I was just mentioning again that it’s important to keep in mind these are all cost plus models because the customer designs the product and we are manufacturing for them. So we always obviously look at various ways to improve productivity and reduce costs and so on but you know, with EMS business it’s typically around 10, 11% is what is to be expected.
Anant Shenoy
Sure. My next question is about the Viru Paksha. Like we were supposed to get the order. Did we have already win the order? And for the tile content, the exact receiver part, have you won the order?
Nikhil Mallavarapu
Yes, we won the order and the programs are in execution.
Anant Shenoy
Okay, like what is the quantum any. Can you throw some light? What kind of these are.
Nikhil Mallavarapu
These are development orders at this stage. So, so they’re I would say still, still at the smaller stage. Obviously when these come into production there will be much larger programs going into hundreds of crores of possibilities. But at this stage these are development orders so they’re much, they’re smaller orders.
operator
Thank you. We will take the next follow up question from the line of Rupesh Tatiya from Long Equity Partners. Please go ahead.
Rupesh Tatia
Yeah, hello sir. Thank you. Thank you for the follow up. This Viru Paksha order, I have a follow up on that. So will we get major share? Are there like more competitors in this space? Can you give some idea? And there are 250 Su30 Mark 1s that will come for upgrade 2530 per year. So what kind of market share we expect in this product?
Nikhil Mallavarapu
Yeah, it’s a bit early at this stage to give a very confident, clear answer with, with regard to market share and so on. There’s still various things that you know, will play out as the development progresses. Just I think suffice to say that you know, we are, there are, you know, two other major players or competitors in this part of the program and you know, the hour, but we are building a very critical and important part of the entire radar system itself. So.
Rupesh Tatia
Okay, okay. And so then other than, I mean some of these programs were talked about in sbs, in Tank Electronics, in Viru Paksha, any other major programs that we are, you know, looking to win market share, anything above 300 crore kind of size, anything bigger than that, Maybe you can give some idea around that.
Nikhil Mallavarapu
It’s a bit early for me to disclose those at this stage. There are clearly multiple ions in the fire that we are working on. I would say broadly in the areas again of electronic warfare systems. That’s a big focus area for us. And you know, I’m not able to divulge at this stage the programs specifically, but we have a pretty healthy pipeline of opportunities coming up there as well.
Rupesh Tatia
Okay, okay, thank you. Thank you for answering the questions.
Nikhil Mallavarapu
Thank you.
operator
Thank you. We will take the next question from the line of Pranev Bastavala, an individual investor. Please go ahead.
Unidentified Participant
Yeah, congratulations Nikhil. I think so after very long time some very decisive decision, tough decision has been taken and I’m sure that this will go a long way in creating, clearing a path for this organization. So my questions are basically how you place your this company from where you want to take it. Say maybe it may be around 900 to 1000 crore turnover, say individual level from this level where we will we are looking at in next three years and how you want to concentrate on the EMS business itself which is going to be quite bigger on the coming time when we are seeing the global opportunities and especially even in the defense when the others are expanding.
Do you look at it that how we can move to tier one level in this particular space especially Centum is very good in as far as space sector. Please. Thank you.
Nikhil Mallavarapu
Thank you. Pranav and I must you’ve been a long term investor and a guide for us over the years. So some of these I guess difficult decisions as you rightly mentioned are also things that we take as a result of the strong and clear inputs from investors like yourself. So appreciate the vote of confidence on this decision. With regard to our path forward here we have obviously very aggressive growth plans I think you know, starting first on the defence side of the business. We have strong objectives of growing this multifold in the coming years. I won’t specify exactly a number terms of guidance or anything like that but we will grow this substantially.
As you already see, we expect to close this year’s order book already at a very healthy rate based on what we are seeing from Q4 also. And the pipeline of orders and opportunities that we are driving internally is quite aggressive. So we do expect to see a multi fold increase of our defense and space business. And big part of this is also driven by our objective to position at system level. And as I mentioned already on the call today, two of the first major validations of this strategy have come in the form of this navigation system and the full radar system which we are expecting the order for in the current quarter.
So we are well on our way on that side. Secondly, on the EMS side of the business, again we on one side have been focused on the product segments that we’ve been addressing in terms of apart from of course defense, aerospace, but also industrial, medical and mobility. And I would say that the vision for this part of the business going forward also is quite positive. We want to ensure we have high quality customers. This is a business that is very easy to take business at a Low margin and scale. But we want to ensure we take high quality customers and ensure that our execution of these type of programs are done well.
A lot of investment and effort is going into our own internal processes and systems in terms of implementing automation, AI kind of solutions in critical core areas. And that also I think will be key point of differentiation as this business evolves. Pipeline is healthy. I think we talked also on a few of these areas throughout the call today. Our defense and space, our defense and aerospace global customers itself are seeing increased demand volume. So we will continue to work on that. We have certain strategic opportunities there. We also on some of the newer areas, whether it’s industrial or the semiconductor kind of equipment, are all also progressing well.
And even in terms of new customer additions and so on, we have a very clear plan and strategy of identifying key target accounts and having a sales team and sales force that’s driving to capture that business. So these are some of the actions that are ongoing and, and as I say, we want to scale up this business in an aggressive way and working the granular details to make sure that it’s executed well.
Unidentified Participant
My second last question that basically EMS is a business which will grow at 10, which has an ROI of 10 to 12% and it’s a different kind of a business. But when we are looking at defense and aerospace sector, they many of them command an EBITDA of 35 to 40%. So what we are planning to move to that kind of an EBITDA level or are we even planning for Tire 1 supplier in coming three to five years with some JVs?
Nikhil Mallavarapu
Yeah, we are, we are pursuing, you know, it is not one at the expense of the other. I would say basically while on the EMA side of the business, one of the things that is important to highlight is that while the EBITDA margins are in the range of 10, 11%, the ROCE for this business can be north of 20, 25% because capital requirement is much lower as compared to the defense and space products business. So this will continue to be an important part of our overall portfolio and we’ll continue to develop that part of the business.
But clearly in terms of significant new investments on the defensive aerospace product side, to position ourselves as a tier one either through our own internal R and D development, but also through these strategic partnerships with the global players are something that we are clearly pursuing. We have the ability to increase the EBITDA margins to the levels that you just mentioned will come largely if they are indigenous designed products. And this is where you know, our focus of developing and strengthening more and more on the internal R and D capabilities is a key part of our strategy.
But in parallel we also pursue the partnerships with global players to capture opportunities that are there more imminently. And I think this example of the GRSE partnership is one wherein we actually have technology coming from a European partner and something that enabled us to quickly access and capture the market for this. So we follow multi pronged strategy to be able to win business and also grow margins.
operator
Thank you very much ladies and gentlemen. Due to time constraint, we will take that as the last question for today. And with that concludes the question and answer session. I now hand the conference over to Ms. Krishna Doshi for closing comments. Thank you. And over to you, ma’. Am.
Krishna Doshi
Thank you so much. On behalf of Ashika Institutional equities, we would like to thank the management of Centrum Electronics Ltd. For the call and many thanks to the participants for joining the call. Thank you very much, sir. We may now conclude the call.
operator
Thank you everyone. On behalf of Centrum Electronics Limited, that concludes this conference. Thank you all for joining us. And you may now disconnect your line.
Sundararajan Parthasarathy
Thank you.
Nikhil Mallavarapu
Thank you all for participating. Thank you.
operator
Thank you, sir.