Apsis Aerocom revenue rises 55% as EBITDA margin falls

Apsis Aerocom Limited increased H1 FY27 revenue 55.1% year on year to Rs 21.17 crore, but EBITDA margin fell 4.4 percentage points to 30.8% from 35.2% as material intensity and Unit II running costs rose ahead of fuller utilisation. EBITDA nevertheless increased 35.7% to Rs 6.52 crore.

How did Apsis Aerocom perform in H1 FY27?

Apsis Aerocom reported growth in revenue and profit during H1 FY27, although profit expanded more slowly than sales. Revenue rose from Rs 13.65 crore in H1 FY26 to Rs 21.17 crore, while EBITDA, or earnings before interest, tax, depreciation and amortisation, increased from Rs 4.80 crore to Rs 6.52 crore. Profit before tax rose 24.9% to Rs 5.31 crore and profit after tax rose 21.4% to Rs 3.97 crore.

The gap between sales and profit growth appeared in margins. EBITDA margin declined to 30.8% from 35.2%, profit-before-tax margin declined to 25.1% from 31.1%, and profit-after-tax margin declined to 18.7% from 23.9%. The effective tax rate was 25.2%, versus 23.1% in H1 FY26, while diluted earnings per share were Rs 3.29 compared with Rs 3.71 after more shares were issued following the initial public offering.

Why did Apsis Aerocom’s EBITDA margin fall?

Apsis Aerocom’s EBITDA margin fell because material cost and other expenses took a larger share of H1 FY27 revenue. Material cost, including changes in inventories, increased to 37.5% of revenue from 33.6%, reducing the margin by 3.8 percentage points in the margin walk. Other expenses rose to 12.4% from 10.7%, reducing the margin by a further 1.7 percentage points.

Other items, net, added 1.2 percentage points in the H1 FY27 margin walk, partly offsetting the cost increases. The resulting EBITDA-margin movement was 4.4 percentage points, from 35.2% to 30.8%. Management attributed the reduction to higher material intensity and Unit II running costs before full utilisation, and said it expects rising Unit II utilisation through H2 FY27 to support margins.

Depreciation rose to 4.7% of revenue from 3.4%, while profit-after-tax margin declined by 5.2 percentage points, a wider movement than the EBITDA-margin decline. The presentation identifies material intensity and pre-utilisation costs at Unit II as the stated reasons for pressure, and does not identify changes in pricing or customer mix as causes.

Which businesses drove Apsis Aerocom’s revenue growth?

Apsis Aerocom’s defence business was its largest segment in H1 FY27, generating Rs 12.86 crore, or 60.7% of total revenue, after growing 56.2% from Rs 8.23 crore. Aerospace revenue rose 26.5% to Rs 5.79 crore and represented 27.3% of sales. Defence therefore remained the main contributor to the Rs 21.17 crore reported revenue base.

Healthcare was the fastest-growing main segment, rising 197.5% from Rs 0.75 crore in H1 FY26 to Rs 2.24 crore in H1 FY27. Its revenue mix reached 10.6%, while other businesses rose 215.9% from Rs 0.09 crore to Rs 0.29 crore and represented 1.4% of revenue. Healthcare expanded from a smaller base, while aerospace grew more slowly than total company revenue.

Unit II was inaugurated on 14 August 2026 at Hitech Defence & Aerospace Park, adding 20,000 square feet, 15 machines and more than 45 employees. Apsis Aerocom had 33 computer numerical control machines, 28,500 operational square feet and 125 employees across both units as of 30 September 2026. About 140 of roughly 250 parts developed last year were in production, and the company expects these new parts to generate about Rs 15 crore during the year across Unit I and Unit II.

What do Apsis Aerocom’s balance sheet and cash flow show?

Apsis Aerocom reported net worth of Rs 52.92 crore at 30 September 2026, compared with Rs 48.90 crore in March 2026 and Rs 10.22 crore in March 2025. Cash and bank balances, including fixed deposits, were Rs 15.07 crore, while total long-term and short-term borrowings were Rs 3.46 crore. Reported net cash was Rs 11.61 crore and debt to equity was 0.07 times.

Property, plant and equipment stood at Rs 24.61 crore on 30 September 2026, which the presentation described as 2.0 times the March 2026 level. Interest cover was 25 times, calculated as earnings before interest and tax divided by finance cost. The increase in depreciation to 4.7% of H1 FY27 revenue occurred alongside the larger property, plant and equipment base.

Cash and cash equivalents declined from Rs 34.44 crore at the start of H1 FY27 to Rs 12.95 crore at the end of the period. Operating activities generated Rs 2.78 crore, investing activities used Rs 23.33 crore and financing activities used Rs 0.94 crore. The cash-flow table excludes other bank balances, explaining why its closing cash differs from the Rs 15.07 crore cash-and-bank-balance figure; net working-capital days were 63, comprising 45 receivable days, 56 inventory days and 38 payable days.

Conclusion

Apsis Aerocom paired 55.1% H1 FY27 revenue growth with increases in EBITDA, profit before tax and profit after tax, but costs consumed a greater share of sales. Material cost rose to 37.5% of revenue, other expenses reached 12.4% and depreciation rose to 4.7%, resulting in EBITDA margin of 30.8% and profit-after-tax margin of 18.7%. Defence, at Rs 12.86 crore, remained the largest revenue segment.

The next disclosed factor to watch is Unit II utilisation through H2 FY27. Management expects higher utilisation to support margins after the unit’s 14 August 2026 inauguration, while more than 100 additional parts are targeted for conversion into production orders in FY27 and FY28. The company also expects the current new-part pipeline to generate about Rs 15 crore during the year across its two units.