Axis Solution FY26 Results (BSE: 511144)
Signal: Margin expansion
The read
The FY26 trajectory is operationally positive but bottom-line quality is mixed: revenue grew 19.6% and EBITDA grew 27.0% with a 100bps margin expansion to 19%, while PAT fell 14.0% because the tax charge rose to ₹104 million from nil; the ₹4,774 million order book provides visibility, but conversion, working capital and post-merger share-count dilution remain the key investor checks.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹240.7 Cr | +19.6% | N/A |
| Net profit | ₹28.8 Cr | -14.0% | |
| EPS | ₹3 | -59.9% | |
| EBIT margin | 19% |
P&L walk
FY26 revenue increased to ₹2,407 million (+19.6% YoY), gross profit to ₹1,030 million (+22.0%), and EBITDA to ₹451 million (+27.0%), lifting EBITDA margin to 19%; however, PAT fell to ₹288 million (-14.0%) because tax rose to ₹104 million from nil.
Key positives
- Revenue increased 19.6% YoY to ₹2,407 million and EBITDA increased 27.0% to ₹451 million, with EBITDA margin expanding 100bps to 19%.
- Order book stood at ₹4,774 million, approximately 2.0x FY26 revenue, providing forward execution visibility.
- The business has expanded beyond process instrumentation into proprietary products, digital/IIoT platforms, hydrogen, new energy and international markets across 25+ countries.
Key concerns
- PAT declined 14.0% to ₹288 million despite 27.0% EBITDA growth because tax increased to ₹104 million from nil in FY25.
- EPS declined 59.9% to ₹3, materially faster than PAT, indicating dilution or a changed share base following the reverse-merger and subsequent capital changes.
- Debtor days were 174 and inventory days 58; elevated receivables make cash conversion and order-book execution important to monitor.
Research and educational content only. Not investment advice.