Highness Microelectronics guides for 85-100% revenue growth in FY27 on defense and railways push
CEO Gaurav Kejriwal is targeting ₹100 cr revenue in four years, but first he needs to ramp a Goa factory and land more orders.
What's new
- FY27 revenue guidance is ₹30-32 cr, an 85-100% jump from the ₹16.11 cr reported in FY26.
- Management set a four-year target of ₹100 cr revenue, calling it a '4-year' goal rather than five.
- A ₹20 cr capex for backward integration in Goa is targeted for first production by July-August 2025.
Themes from the call
Demand
Order book is ₹8-9 cr for Q1 FY27, with a ₹30 cr pipeline over the next 18 months, led by defense and railways.
Margins
FY26 EBITDA margin was a high 41%, but management says 35% is the sustainable long-term target as the Goa plant adds costs.
Capital allocation
The ₹20 cr Goa capex in two phases is aimed at cutting input costs by 8-10% initially and 15% at maturity.
Guidance watch
- FY28 target is ₹50+ cr revenue, with a four-year goal of ₹100 cr by capturing 10-50% of the railway/metro display import market.
- FY27 EBITDA margin guidance is 35% with PAT margin above 25%.
Risk flags
- Capacity utilization is only 20% today, and the full ramp of the new Goa facility is 12-14 months away.
- Revenue depends heavily on lumpy defense and railway project cycles.
Key quotes
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"We want to reach 100 crores in revenue, and that should take closer to 4 years rather than 5."
— Gaurav Kejriwal, CEO
The brief
Highness Microelectronics is coming off a strong FY26, with revenue up 14.5% to ₹16.11 cr and EBITDA jumping 46% to ₹6.61 cr. But the big story is the aggressive forward guidance. Management is guiding for ₹30-32 cr in FY27, which would nearly double the business. The push is coming from defense, railways, and medical segments, where the company sells customized display solutions. Defense and aerospace made up 39% of revenue last year, railways 21%, and medical 27%. The big capex is in Goa, where a ₹20 cr investment for backward integration is supposed to start commercial production by mid-2025. The idea is to stop importing so much glass and cut costs by 15% over time. That should help bring EBITDA margins down from the current 41% to a more sustainable 35% as the business scales. The international side is interesting too, with 44% of revenue already coming from exports and a new partnership with Axiom USA to crack the North American market. CEO Gaurav Kejriwal is painting a picture of a niche player that can grow fast in a big import-reliant market. The catch is execution. The factory is not running yet, capacity utilization is only 20%, and the revenue targets depend on winning big-ticket defense and railway orders that can be lumpy. The four-year ₹100 cr target is bold, but the path there requires flawless factory ramp and sustained order flow.
Highness has the guidance, the margins, and the target market. Now it needs to build the factory and prove the orders are real.