Apsis Aerocom targets Rs 500 cr revenue in five years as order book grows 69%
Unit 2 capacity expansion powers FY27 guidance of Rs 48 crore, with defense segment anchoring 65% of FY26 revenue
What's new
- FY26 revenue grew 49.6% to Rs 30.67 crore; order book surged 69% to Rs 40.5 crore
- EBITDA margin fell to 37% from 49% due to Unit 2 pre-revenue costs and listing expenses
- Largest customer concentration dropped from 52% to 35% of revenue
Themes from the call
Demand
Order book at Rs 40.5 crore (1.32x FY26 revenue) with pipeline exceeding Rs 100 crore and 30% conversion rate.
Margins
EBITDA margin compressed to 37% from 49% due to Unit 2 fixed costs and listing expenses; normalization expected upon operational ramp.
Capacity
Unit 2 capex of Rs 60 crore for 35 machines; partial operations from July 2027, full status by end-FY28.
Guidance watch
- FY27 revenue target of approximately Rs 48 crore (Unit 1 Rs 30 crore, Unit 2 Rs 18 crore at sub-50% utilization)
- Five-year revenue target of Rs 500 crore by 2031
Risk flags
- Unit 2 ramp assumes less than 50% utilization in FY27; execution risk on machine installation and customer onboarding
- Raw material cost inflation from geopolitical supply chain disruptions pressuring margins
Key quotes
-
"In the next 5 years, we are targeting revenue in the range of 500 crores"
— Basavaraj K. S., Managing Director -
"Pipeline exceeds Rs 100 crore at 30% conversion rate, gated by capacity not demand"
— Apsis Aerocom management
The brief
Apsis Aerocom is in a transition year. FY26 revenue grew 49.6% to Rs 30.67 crore, but the growth is masked by the costs of setting up Unit 2. EBITDA margin fell to 37% from 49% as the new facility incurred rent, utilities, and manpower costs before generating any revenue. That compression is temporary, but the timing is awkward for a company fresh from an IPO.
The order book tells the real story. At Rs 40.5 crore, it covers 1.32 times FY26 revenue, with a pipeline exceeding Rs 100 crore. Management says the constraint is capacity, not demand. Defense remains the core driver at 65% of revenue, with new order wins exceeding Rs 30 crore during FY26. The 69% jump in order book shows the market is there, but converting it depends on Unit 2 coming online.
Customer concentration is improving. The largest customer fell from 52% to 35% of revenue, and four new customers were onboarded post-IPO. Forty percent of FY26 revenue came from exclusive-supplier arrangements, creating structural pricing power in a market where competition is sparse.
The Rs 500 crore five-year target is ambitious. It requires Unit 2 to ramp to Rs 60 crore, followed by a potential Unit 3 generating over Rs 70 crore. For now, FY27 guidance of Rs 48 crore is more tangible: Unit 1 at full capacity, Unit 2 contributing Rs 18 crore at sub-50% utilization. The margin profile should stabilize as fixed-cost absorption improves.
The key risk is execution. Machine procurement has 6-10 month lead times, with full installation extending to end-December 2027. Any delay pushes revenue recognition further out. For a company with Rs 7.5 crore in PAT, the capex is meaningful.
The demand is real, but Apsis must prove it can build capacity as fast as it can win orders.