💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for Q2 FY26 grew 19.43% YoY to INR 31.19 Cr. The Manufacturing segment grew 16.45% YoY to INR 17.51 Cr, while the Services segment grew 23.48% YoY to INR 13.68 Cr.

Geographic Revenue Split

Not explicitly disclosed in percentage terms, but the company operates through foreign subsidiaries in UAE (AOL FZE), Mauritius (Aksh Technologies), and China (AOL Composites Jiangsu), indicating significant international exposure.

Profitability Margins

The company reported a consolidated Net Loss margin of -7.73% for Q2 FY26. While still loss-making, the net loss narrowed by 38.02% from INR 3.89 Cr in Q2 FY25 to INR 2.41 Cr in Q2 FY26.

EBITDA Margin

Core segment profitability is mixed; the Services segment achieved a profit of INR 1.42 Cr (approx. 10.4% margin), whereas the Manufacturing segment recorded a loss of INR 1.60 Cr in Q2 FY26.

Capital Expenditure

Historical capital expenditure is reflected in Property, Plant, and Equipment valued at INR 95.11 Cr as of September 30, 2025, down from INR 99.74 Cr in March 2025 due to depreciation.

Credit Rating & Borrowing

The company faces severe credit stress, evidenced by a SARFAESI Act notice from Union Bank of India. Current consolidated borrowings stand at INR 81.49 Cr as of September 2025.

⚙️ Operational Drivers

Raw Materials

Glass preforms, silica, aramid yarn, and various resins/chemicals used in the production of Optical Fiber and FRP rods.

Import Sources

Not disclosed in available documents, though the presence of a Chinese subsidiary (AOL Composites Jiangsu) suggests sourcing or manufacturing links in East Asia.

Capacity Expansion

Current installed capacity is not specified in units; however, segment assets for Manufacturing are valued at INR 221.50 Cr as of September 2025.

Raw Material Costs

Not explicitly broken out as a percentage of revenue in the quarterly summary, but manufacturing segment results remain negative, suggesting high input or fixed costs relative to current output.

Manufacturing Efficiency

The manufacturing segment is currently underperforming with a loss of INR 1.60 Cr in Q2 FY26, indicating sub-optimal capacity utilization or high overheads.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company is focusing on its Services segment, which is currently profitable (INR 1.42 Cr profit in Q2 FY26). Strategic recovery depends on resolving debt via the SARFAESI proceedings and settling export-related statutory dues through government amnesty schemes.

Products & Services

Optical Fiber, Fiber Optic Cables, FRP (Fiber Reinforced Plastic) Rods, and turnkey telecommunication services.

Brand Portfolio

AKSH, Live Smart.

Market Expansion

The company maintains a global footprint through subsidiaries in UAE, Mauritius, and China to capture international demand for fiber optics.

🌍 External Factors

Industry Trends

The industry is shifting toward high-speed data transmission and 5G, which increases demand for optical fiber; however, Aksh is currently constrained by financial liquidity rather than market demand.

Competitive Landscape

Competes with global and domestic optical fiber manufacturers; the company is currently at a disadvantage due to its 'modified' auditor opinion and financial stress.

Competitive Moat

The company possesses an integrated manufacturing setup for optical fiber and FRP rods, but this moat is currently weakened by a negative consolidated net worth of INR 1.54 Cr.

Macro Economic Sensitivity

Highly sensitive to telecom infrastructure spending and government policies regarding fiber-to-the-home (FTTH) and 5G rollouts.

Consumer Behavior

Increasing demand for high-bandwidth internet is driving the need for fiber optic expansion globally.

Geopolitical Risks

Operations in China (Jiangsu) and UAE (FZE) expose the company to regional trade policies and geopolitical stability in those corridors.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Export Promotion Capital Goods (EPCG) and Advance Authorization Scheme regulations. Non-compliance has resulted in a contingent liability of INR 28.57 Cr (interest and duty).

Taxation Policy Impact

The company reported a tax credit/benefit of INR 1.01 Cr for Q2 FY26, which helped narrow the net loss.

Legal Contingencies

The company is contesting a SARFAESI Act notice from Union Bank of India. There is also a significant unprovided liability of INR 20.17 Cr in interest and INR 8.40 Cr in cenvatable duty related to export schemes.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the company's ability to continue as a 'going concern' given the negative equity of INR 1.54 Cr and the SARFAESI proceedings by lenders.

Geographic Concentration Risk

Significant assets are tied up in foreign subsidiaries, with 'Liabilities classified as held for sale' amounting to INR 78.44 Cr.

Third Party Dependencies

High dependency on Union Bank of India for debt resolution and the Indian Government for the amnesty scheme regarding export duties.

Technology Obsolescence Risk

The fiber optic industry is capital intensive; failure to invest in next-gen fiber manufacturing could lead to obsolescence.

Credit & Counterparty Risk

Trade receivables stand at INR 23.76 Cr (standalone), representing a significant portion of current assets and a risk if customers delay payments during the company's financial restructuring.