Centum Electronics Q2 FY27 results: net profit ₹22.93 crore vs ₹4.23 crore, revenue up 7.4%

How did Centum Electronics perform in Q2 FY27?

Centum Electronics’ consolidated Q2 FY27 revenue was ₹312.06 crore, against ₹290.62 crore in Q2 FY26 and ₹204.15 crore in Q1 FY27. Revenue was up 7.4% year on year and 52.9% sequentially, while total income was ₹314.38 crore against ₹301.32 crore a year earlier.

EBITDA was ₹39.68 crore, compared with ₹17.89 crore in Q2 FY26 and ₹23.56 crore in Q1 FY27. The EBITDA margin rose to 12.7% from 6.2% year on year and 11.5% sequentially. PBT was ₹30.85 crore, against ₹8.85 crore and ₹15.95 crore respectively.

Net profit was ₹22.93 crore, against ₹4.23 crore in Q2 FY26 and ₹105.50 crore in Q1 FY27. Basic EPS was ₹15.53, compared with ₹2.96 a year earlier and ₹71.47 in the previous quarter. On a standalone basis, revenue was ₹312.06 crore and PAT was ₹22.81 crore.

What changed in Centum Electronics' costs and profit?

Against Q2 FY26, total expenses fell 3.1% to ₹283.54 crore. Cost of materials rose ₹33.49 crore to ₹212.16 crore, while employee cost fell ₹51.90 crore to ₹40.46 crore, finance costs fell ₹3 crore to ₹5.45 crore, and depreciation fell ₹5.59 crore to ₹5.71 crore. Other expenses fell ₹0.42 crore to ₹24.73 crore.

Other income fell ₹8.37 crore, or 78.2%, to ₹2.33 crore, and tax expense rose ₹3.31 crore to ₹7.92 crore. There was no exceptional item in Q2 FY27, Q2 FY26 or Q1 FY27. The filing reports the figures but does not state the reasons for the changes in employee cost, other income or tax.

Against Q1 FY27, total expenses rose ₹93.03 crore to ₹283.54 crore. Cost of materials increased ₹31.15 crore, employee cost increased ₹8.50 crore, finance costs increased ₹1.03 crore, depreciation increased ₹0.21 crore and other expenses increased ₹7.39 crore. Other income rose ₹0.02 crore and tax expense rose ₹3.20 crore.

How did the first half of FY27 go?

H1 FY27 consolidated revenue was ₹516.21 crore, down 8.5% from ₹564.01 crore in H1 FY26, while total income was ₹520.84 crore against ₹577.66 crore. The first-half results include discontinued operations, which contributed to the reported profit.

PBT rose from ₹19.06 crore to ₹46.8 crore, while PAT increased from ₹8.71 crore to ₹128.43 crore. Basic EPS was ₹87.0 against ₹6.91 in H1 FY26. Management said the H1 PAT included ₹943 Mn from discontinued operations, with continuing-operations PAT of ₹341 Mn.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹1,206.66 crore, compared with ₹1,302.71 crore at 31 March 2026, and total equity was ₹460.1 crore against ₹325.07 crore. Borrowings rose to ₹133.54 crore from ₹121.99 crore, while cash fell to ₹24.53 crore from ₹37.91 crore.

Inventories increased to ₹538.11 crore from ₹456.21 crore, trade receivables to ₹317.69 crore from ₹299.67 crore and trade payables to ₹259.84 crore from ₹252.97 crore. H1 FY27 operating cash flow was ₹16.69 crore, against ₹54.73 crore in H1 FY26; investing cash flow was negative ₹24.17 crore and financing cash flow was negative ₹4.65 crore.

H1 FY27 capital expenditure was ₹19.82 crore, compared with ₹23.45 crore in H1 FY26. The filing excerpt does not provide a closing cash figure for either half-year period.

How has Centum Electronics done over the last 8 quarters?

Revenue reached a recent high of ₹368.74 crore in Q4 FY25 and fell to ₹273.39 crore in Q1 FY26 before recovering to ₹312.06 crore in Q2 FY27. EBITDA margin rose from 6.2% in Q2 FY26 to 14.3% in Q4 FY26, then was 12.7% in Q2 FY27.

Profit was highest in the latest series at ₹105.5 crore in Q1 FY27 and fell to ₹22.93 crore in Q2 FY27. The prior low was a net loss of ₹61.75 crore in Q3 FY26. Q2 FY27 was the second consecutive quarter in which profit rose year on year.

What else did the company announce?

The board approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026. It also approved, subject to shareholder approval, increasing the company’s borrowing limit from ₹500 crore to ₹1,000 crore and creating charges over movable and immovable assets to secure borrowings up to ₹1,000 crore, including existing borrowings.

The board approved the allotment of 1,333 equity shares following the exercise of vested stock options under the Centum Restricted Stock Unit Plan, 2021. Paid-up equity share capital increased from ₹14,76,20,160 to ₹14,76,33,490. The audit committee was reconstituted with Ramesh Ramadurai appointed as a member.

What did Centum Electronics' management say?

Management said the Q2 performance reflected a defence-and-space-led BTS acceleration and an EMS ramp-up, with the order book at ₹19.5 billion, up 38% year on year. The company’s stated benchmark margins were 20%+ for BTS and 9–10% for EMS. Management also said it would increase domestic-market presence under its Make in India and China +1 approach and exit from loss-making subsidiaries.

Management identified the inventory build and supply-chain constraints as working-capital pressures, saying customer prepayments covered about 50% of net inventory. It also highlighted longer working-capital cycles in BTS, with 225–350 days and order books executed over 25–30 months, and said it was pursuing new areas including semiconductor equipment, security systems, EV and battery management systems and point-of-care diagnostics.

Management’s stated priorities included moving up the value chain into complete defence systems, such as multi-function radar, satellite constellations for ISR, avionics, radar and EW systems, T-90 tank electronics and communication and ISR payloads for drones. The company also said it was targeting new technology areas and expanding the domestic market.

How did other Aerospace & Defense companies do?

Nine Aerospace & Defense peers that have filed this quarter had a median revenue growth of 42.9%. All nine peers grew revenue faster than Centum Electronics, while none grew slower, and seven of the peers whose profit was compared reported higher profit.