Centum Electronics , a leading provider of end-to-end electronics system design and manufacturing solutions, has announced strong financial results for the second quarter. The company's standalone performance showed significant growth, while its consolidated results were impacted by subsidiary performance.

Standalone Performance Highlights

Centum Electronics delivered impressive standalone results for Q2:

• Operational income reached INR 2,055.00 million, representing an 18.4% year-over-year growth.
• EBITDA margin expanded to 11.97%, showcasing improved operational efficiency.
• Net profit stood at INR 130.00 million with a PAT margin of 6.33%.

For the first half (H1), the company's standalone revenue climbed to INR 3,906.00 million, marking a robust 24% year-over-year growth. The EBITDA margin for H1 was 12.88%, indicating strong profitability.

Key Growth Drivers

The Build-to-Spec (BTS) business, particularly for domestic Defence and Space customers, emerged as a significant growth driver for Centum Electronics. This segment's performance underscores the company's strong positioning in high-growth sectors with high entry barriers.

Consolidated Performance

While the standalone results were strong, the consolidated performance was impacted by subsidiary losses:

• Consolidated revenue for Q2 was INR 2,906.00 million, up 11.9% year-over-year.
• Consolidated EBITDA margin stood at 6.16% for Q2, reflecting the impact of subsidiary performance.
• Consolidated PAT for Q2 was INR 42.00 million, with a PAT margin of 1.45%.

Strategic Developments

Centum Electronics has been actively pursuing strategic initiatives to strengthen its market position:

1. The company signed Memorandums of Understanding (MoUs) with:

   • Garden Reach Shipbuilders & Engineers (GRSE) for collaboration on navigation systems for the Indian Navy.
   • Bharat Electronics Limited (BEL) to enhance indigenous Defence Electronics, focusing on advanced electronic systems for Electronic Warfare, radar, and military communications.

2. Centum delivered nearly 400 critical modules for ISRO's CMS-03 satellite mission, demonstrating its capabilities in the space sector.

3. The company is evaluating strategic actions for its European business to improve overall performance.

4. Progress is being made on the planned divestment of Canadian operations, which may help in streamlining the business structure.

Order Book and Future Outlook

As of September 30, Centum Electronics' consolidated order book stood at INR 18,151.00 million, providing strong visibility for future revenue. The order book is well-diversified across the company's key business segments: Engineering Research & Development (ER&D), Build-to-Spec (BTS), and Electronic Manufacturing Services (EMS).

Conclusion

Centum Electronics' Q2 results demonstrate the company's strong performance in its standalone operations, particularly in the domestic Defense and Space sectors. While consolidated results were impacted by subsidiary performance, strategic actions being undertaken may help in improving overall group performance in the coming quarters. The robust order book and strategic partnerships position the company well for sustained growth in its key markets.

Investors and stakeholders will likely keep a close watch on the progress of the company's strategic initiatives, particularly the evaluation of its European business and the divestment of Canadian operations, as these could significantly impact future consolidated performance.

Centum Electronics Limited , a leading electronics company, has taken a significant step to enhance employee engagement and ownership. The company announced the allotment of 28,998 equity shares to employees under its Centum-Restricted Stock Unit Plan 2021.

Key Details of the Allotment

• Number of Shares: 28,998 equity shares
• Allotment Date: November 11, 2025
• Exercise Price: ₹10 per share (face value)
• Total Funds Raised: ₹2,89,980

Impact on Share Capital

The allotment has resulted in an increase in the company's paid-up equity share capital:

Corporate Governance

The allotment was approved by the Board of Directors based on the recommendation of the Nomination and Remuneration Committee, demonstrating Centum Electronics' commitment to proper corporate governance practices.

Stock Listing

The newly issued shares will rank pari passu with existing equity shares and are set to be listed on both the BSE and NSE, ensuring liquidity for the employee shareholders.

This move by Centum Electronics aligns with the growing trend of companies using equity-based compensation to attract, retain, and motivate employees. By offering stock options, the company is fostering a sense of ownership among its workforce, potentially leading to increased productivity and alignment with shareholder interests.

The allotment under the Restricted Stock Unit Plan showcases Centum Electronics' focus on creating long-term value for both its employees and shareholders. As the company continues to grow in the electronics sector, such initiatives may play a crucial role in maintaining a motivated and committed workforce.