AXISCADES Technologies Ltd Q2FY26: From Defence Drones to Digital Dreams — ₹299 Cr Quarter, ₹23 Cr PAT, and the Rise of India’s Engineering Brain Factory

1. At a Glance

If Bhagavad Gita had a verse on quarterly results, it would probably say —“Karmanye vadhikaraste, ma phaleshu kadachana”— do your engineering services, don’t obsess over short-term margins. AXISCADES seems to have taken that quite literally.

The Bengaluru-based engineering tech player reported aQ2FY26 revenue of ₹299 croreandPAT of ₹23 crore, an 83.9% YoY jump in profit, while maintaining a healthyOperating Profit Margin of 16%.Themarket cap now stands tall at ₹6,532 crorewith a P/E ratio of 70.8 — high, but that’s what you get when you’re half defence and half digital.

In the past 3 months alone, the stock has soared~25.8%, riding on back-to-back order wins — fromcounter-drone systems to Su-30 upgrade prototypesand now an expanded partnership withAlterafor mission-critical defence tech. The balance sheet showsnet borrowings down 60% in FY24,ROE at 12.7%, andROCE at 13.8%.

No dividends yet, but investors aren’t complaining — who needs income when the capital gains are multiplying faster than the company’s CAD files?

2. Introduction

If ISRO built satellites for emotions, AXISCADES would be the ground station — receiving signals of pride, curiosity, and a pinch of disbelief. Once seen as just another engineering services firm, AXISCADES has now transformed into a multi-sector powerhouse, blending aerospace, defence, automotive, and semiconductors with cutting-edge embedded and digital solutions.

And boy, have they turned their luck around. Froma loss of ₹10 crore in Mar 2021to aTTM PAT of ₹90 crore, this company’s comeback arc could make even Bollywood jealous. It’s like watching a middle-order batsman suddenly start hitting sixes on every ball — and that too, with French, Israeli, and Indian defence OEMs cheering from the pavilion.

The numbers are telling. Sales have grown11.2% YoYwhile profit exploded102% YoY. Debt-to-equity ratio has cooled to0.37, and thepledged sharesdropped from a terrifying68% in FY21to a much saner15.8% in FY26.

AXISCADES isn’t just writing code; it’s rewriting its destiny — one radar system, one embedded board, and one QIP at a time.

3. Business Model – WTF Do They Even Do?

In simple terms — AXISCADES makes machines smarter and militaries stronger.

The company offersproduct engineering solutionsacross multiple verticals — aerospace, defence, automotive, energy, semiconductors, and heavy engineering. But don’t let that corporate jargon fool you — what they really sell isbrains as a service.

They’re the invisible engineers behind visible power — fromradar and sonar systemsfor the Indian Army, toembedded systemsfor aircraft and drones, toautomation softwarefor German automotive giants.

Their two main segments are:

1. Technology Services & Solutions (~73%)– where the company provides R&D, design, digital, and automation services to global OEMs.
2. Strategic Technology Solutions (~27%)– the high-margin defence and integration arm that’s been winning multi-crore contracts faster than a politician collecting allies before elections.

Recent projects include a₹223.95 crore orderfor tank transporter trailers and a₹680 crore contractfor radar and sonar systems. Their subsidiaryMistral Solutionseven bagged theDefennovation Award 2024for developing radar processing systems for India’s Arudhra radar.

In short, AXISCADES doesn’t just design — itdefends, digitizes, and dominates.

4. Financials Overview

At ₹5.42 EPS (quarterly), the annualized EPS hits ₹21.68, giving aP/E of ~70.8x— hot enough to fry an egg on your brokerage app.

Margins are holding steady at16% OPM,