SAAKSHI - Saakshi Medtech
Financial Performance
Revenue Growth by Segment
Overall revenue grew 31% YoY in H1 FY26 to INR 58.31 Cr from INR 44.45 Cr. The Aerospace segment saw a 7-fold (614%) increase, reaching INR 1 Cr in H1 FY26 compared to INR 0.14 Cr in H1 FY25. Defense currently contributes a minor 5% of the total order book.
Geographic Revenue Split
Not specifically disclosed, though the company is targeting new Japanese customers in the compressor segment and Tier-1 global aerospace clients.
Profitability Margins
Net profit for H1 FY26 stood at INR 6.63 Cr. ROE increased to 6.54% and ROCE advanced to 7.45%, driven by operational optimization and a 31% surge in revenue against regulated costs.
EBITDA Margin
EBITDA margins reached approximately 18% in H1 FY26, a significant jump attributed to operating leverage from higher throughput. Management expects to sustain these 18% levels in H2 FY26, though future expansion may be capped by incoming depreciation from new assets.
Capital Expenditure
Total investment in CAPEX reached INR 15 Cr in H1 FY26, with Capital Work-in-Progress (CWIP) at INR 9.4 Cr for the new 41,000 square feet integrated manufacturing facility.
Credit Rating & Borrowing
The company maintains a conservative debt-to-equity ratio of 0.17. Borrowing costs are not explicitly stated, but the current ratio is strong at 2.34, providing flexibility for growth.
Operational Drivers
Raw Materials
Engineered metal components and fabrication materials (steel/alloys) used for mechanical assemblies and control panels; specific material % of total cost not disclosed.
Capacity Expansion
Commissioning a new 41,000 sq. ft. integrated facility to bring operations under one roof. A second phase of expansion is scheduled for completion by March 2026 to cater to high-volume aviation and HLA (Higher Level Assembly) contracts.
Raw Material Costs
Raw material costs are managed through regulated procurement; however, inventory increased in H1 FY26 to INR 147.63 Cr (total assets) to support the 31% revenue growth.
Manufacturing Efficiency
The new facility is designed for 'high mix and high value' manufacturing, aiming to unlock significant operational leverage and eliminate legacy rental overheads.
Strategic Growth
Expected Growth Rate
50%
Growth Strategy
Growth is driven by a transition to high-margin segments like Aerospace (7x growth) and new business lines in Power Devices, Semiconductors, and Heat Exchangers. The company is leveraging a new 41,000 sq. ft. facility to scale serial production for Tier-1 aerospace customers and data center power generation requirements.
Products & Services
Control panels, Engineered Metal Assemblies, Heat Exchangers, Higher Level Assemblies (HLA), Textile Manufacturer Control Panels, and Machine Tool Fabrication.
Brand Portfolio
SAAKSHI (Saakshi Medtech and Panels Limited).
New Products/Services
New business in Power Devices, Semiconductors, Heat Exchangers, and Machine Tool Fabrication; Aerospace revenue grew from INR 0.14 Cr to INR 1 Cr (7-fold increase).
Market Expansion
Expanding into the Aerospace sector with Tier-1 customer discussions and targeting Japanese compressor OEMs.
Strategic Alliances
Advanced discussions are underway with several Tier-1 aerospace customers to secure long-cycle serial production contracts.
External Factors
Industry Trends
The industry is shifting toward high-value mechanical fabrication and integrated assemblies. Saakshi is positioning itself by moving up the value chain into aerospace and semiconductor-related power devices.
Competitive Landscape
The company competes in the engineered metal assembly and control panel market, focusing on high-margin, high-complexity niches rather than commodity fabrication.
Competitive Moat
The moat is built on 'elevated quality processes' and 'advanced traceability systems' which are critical for the aerospace sector, creating high switching costs for OEM customers.
Macro Economic Sensitivity
Growth in data centers is directly driving demand for the company's power generation requirement products.
Consumer Behavior
Increased reliance by OEMs on outsourced high-quality integrated manufacturing is driving demand for Saakshi’s HLA services.
Regulatory & Governance
Industry Regulations
Operations are governed by aerospace-grade quality standards and advanced traceability requirements necessary for serial production for global OEMs.
Risk Analysis
Key Uncertainties
The primary uncertainty is the timeline for depreciation 'kicking in' from the new facility, which management suggests will prevent further margin expansion beyond 18% in the near term.
Geographic Concentration Risk
Operations are concentrated in Pune, Maharashtra (Bhosari MIDC), though customers are becoming more global (Japanese/Aerospace).
Third Party Dependencies
Dependency on Tier-1 aerospace OEMs for serial production ramp-ups; failure to convert 'advanced discussions' into contracts could impact the 50% growth target.
Technology Obsolescence Risk
The company is mitigating this by investing in new business lines like semiconductors and power devices for data centers.
Credit & Counterparty Risk
Receivables are noted as being on the 'higher side' by investors, representing a potential credit risk if customer payment cycles lengthen during the 31% revenue surge.