CENTUM - Centum Electron

📊 NSE: CENTUM 🏢 Electronics - Components 📅 Last Updated: 12/13/2025 20:49

💰 Financial Performance

Revenue Growth by Segment

Consolidated total income grew 6.06% YoY to INR 1,164.1 Cr in FY25. Standalone revenue grew 18.3% YoY to INR 756.8 Cr. The EMS division is the largest contributor, accounting for nearly 50% of consolidated revenue. Standalone revenue for H1 FY26 grew 25% YoY.

Geographic Revenue Split

India operations (Standalone) contribute approximately 65% of consolidated revenue (INR 756.8 Cr out of INR 1,164.1 Cr). International operations in France and Canada contribute the remainder, though they face headwinds with revenue contraction in the French automotive sector.

Profitability Margins

Consolidated Operating Profit Margin improved from 4% to 5% in FY25. Standalone EBITDA margin expanded to 13.48% in FY25 from 12.3% in FY24. PAT margin remained at 0% on a consolidated basis due to subsidiary losses.

EBITDA Margin

Consolidated EBITDA grew 12.7% YoY to INR 96.7 Cr (8.3% margin). Standalone EBITDA grew 29.6% YoY to INR 102 Cr (13.48% margin). Management targets a standalone EBITDA margin of 13-15% for FY26.

Capital Expenditure

Historical capex for FY25 was INR 14.6 Cr for Property, Plant & Equipment. Planned capex includes INR 34.97 Cr earmarked from QIP proceeds for new equipment and machinery to support the growing order book.

Credit Rating & Borrowing

CareEdge Ratings assigned a 'Positive' outlook. Interest Coverage Ratio (ICR) improved to 1.86x in FY25 from 1.37x in FY24. Total borrowings reduced by INR 21 Cr to INR 96.1 Cr as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

Critical electronic components and materials including semiconductors, safety-critical modules, and RF components; specific material names not disclosed.

Import Sources

Sourced through a global network of suppliers to support international and domestic manufacturing hubs.

Capacity Expansion

Current capacity not quantified; planned expansion involves utilizing INR 34.97 Cr from QIP for new machinery to cater to the Strategic Electronics Business Unit (SEBU) order book.

Raw Material Costs

Not explicitly disclosed as a % of revenue, but average inventory increased 13.7% to INR 326.8 Cr to support anticipated H2 FY26 deliveries.

Manufacturing Efficiency

Capacity utilization in France was negatively impacted by volume slowdowns in the automotive and aerospace sectors.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Growth will be driven by a 30% standalone revenue target for FY26, divestment of the loss-making Canadian subsidiary, evaluating strategic options for the European business, and scaling the high-margin Build-to-Spec (BTS) business for Indian Defence and Space sectors.

Products & Services

ISR (Intelligence, Surveillance, and Reconnaissance) subsystems, FPGA development, analog and RF systems, safety-critical electronic modules, and Electronic Manufacturing Services (EMS).

Brand Portfolio

Centum, Centum Electronics, Centum T&S (CTS).

New Products/Services

Next-generation ISR ecosystem products and subsystems for the Indian tri-services.

Market Expansion

Focusing on emerging as a leading player in India’s ISR ecosystem and deepening presence in high-priority sectors like Space and critical industrial technologies.

🌍 External Factors

Industry Trends

The industry is shifting toward modernization of legacy platforms and safety-critical applications in high-reliability markets like Space and Defence.

Competitive Landscape

Intense competition in the Engineering R&D (ER&D) market, particularly in France, and L1-based competition in domestic defence.

Competitive Moat

Moat is based on safety-critical application expertise and being a single-source supplier for many products, which is sustainable due to high switching costs and technical complexity.

Macro Economic Sensitivity

Highly sensitive to global macroeconomic conditions; weak conditions in Europe and Canada have led to inadequate revenue to offset operating costs in those regions.

Consumer Behavior

Shift in government procurement toward domestic 'Build-to-Spec' partners in India is benefiting the standalone business.

Geopolitical Risks

Geopolitical tensions impact the global supply chain for critical components and can delay project timelines.

⚖️ Regulatory & Governance

Industry Regulations

Subject to stringent certifications and approvals from government agencies; delays in these can extend execution cycles and impact revenue recognition.

Environmental Compliance

Operates in highly regulated sectors where changes in environmental regulations can increase operational complexity and costs.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the timing and success of the divestment of loss-making subsidiaries in Canada and France, which currently drag down consolidated margins.