Stock in Focus After Receiving ₹668 Cr Contract from HAL to Develop Radar Systems

Synopsis: A stock that has given a compounded return of 67 percent in the last three years has now bagged a Rs 668 crore HAL order for AESA radar development and production. The company’s 9MFY26 order book is 4.5 percent higher than the FY25 levels.

A small-cap stock in the business of advanced electronics manufacturing and system integration has secured a major order from Hindustan Aeronautics Limited for designing and developing an AESA radar system, strengthening its presence in high-reliability solutions, indigenous manufacturing, and long-term growth visibility across complex technology-driven programs.

With a market cap of more than Rs 4,000 Cr, Centum Electronics Ltd saw its stock hit an intraday high of Rs 2846, which is 7 percent higher than the previous close of Rs 2671. The company stock has given a compounded return of 67 percent in the last three years.

News

Centum Electronics Limited secured an order from Hindustan Aeronautics Limited (HAL) for the design and development of an Active Electronically Scanned Array (AESA) radar system for the Utility Helicopter- Maritime programme. The order is to be executed in 2 phases, and has a total value of Rs 668 Crores.

The order covers Phase-1, involving design and development over the next two financial years, with an indicative gross value of Rs 78 crore. Phase-2, subject to successful execution, includes serial production and delivery over five years, with an indicative gross value of around Rs 590 crore.

The AESA radar will enhance maritime surveillance by detecting, classifying, and tracking multiple targets, improving helicopter operational capabilities. This project highlights Centum’s advanced radar expertise, system integration strengths, and long-standing partnership with HAL.

The Order Book and Mix

The consolidated order book increased from Rs 1,626 Cr in FY25 to Rs 1,700 Cr currently (9MFY26), marking a YoY growth of 4.5 percent. This growth was driven by expansion across BTS and EMS, reflecting strong order inflows, sustained execution momentum, and improving demand across diversified industry segments.

Segment-wise, EMS or Electronics Manufacturing Services rose 7 percent YoY from Rs 665 Cr to Rs 714 Cr, BTS or Build-To-Spec grew 5 percent YoY from Rs 792 Cr to Rs 834 Cr , while ER&D or Engineering Research & Development declined by 11 percent YoY from Rs 168 Cr to Rs 150 Cr. Overall, the improved segment mix supports stable revenue visibility and medium-term growth.

Revenue Mix

In 9MFY26, Centum Electronics reported total revenue of about Rs 873 crore, with EMS contributing Rs 462 crore, which is 53 percent of the total, while BTS contributed 29 percent with Rs 254 crore, and ER&D contributed Rs 156 crore, or has an 18 percent share, reflecting the clear dominance of the EMS (Electronics Manufacturing Services) segment in the company’s overall revenue mix.

Business & Financial Overview

Founded in 1993, Centum Electronics Ltd is an Indian electronics manufacturing and systems integration company providing high-reliability solutions for railways, defence, aerospace, industrial and space sectors. It operates across EMS, Build-to-Spec, and engineering services, focusing on mission-critical electronics, embedded systems, and advanced technology platforms.

In the latest quarter the company saw a YoY revenue growth of 21 percent, going from Rs 273 Cr in Q3FY25 to Rs 331 Cr in Q3FY26, while the QoQ went up by 19 percent from Rs 277 Cr in Q2FY26. The company made a Net loss of Rs 19 Cr in Q3FY25 while this number increased to Rs 62 Cr in Q3FY26.

The company currently has an EBITDA margin of 9.5 percent, which has grown by 220 bps on a QoQ basis, while on a YoY basis, this has fallen by 20 bps. The company has a 3-year sales CAGR of 14 percent, while the TTM number is at 16 percent. 

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