Defence stock in focus after bagging ₹29.40 Cr order for advanced naval navigation systems

Synopsis:- The defence-focused electronics player gained attention after securing a ₹29.4 crore naval navigation order, boosting its maritime portfolio. Despite short-term stock volatility, a strong ₹18,151 million order book and a margin range of 6–11% highlight long-term execution potential in mission-critical systems.

The shares of the electronics system manufacturer gained up to 1 percent in today’s trading session after the company bagged a significant order for the development of Advanced Naval Navigation Systems worth Rs 29.40 crore.

With a market capitalization of Rs 3,175.71 crore, the shares of Centum Electronics Ltd were trading at Rs 2,168 per share, decreasing around 3 percent as compared to the previous closing price of Rs 2,231.95 apiece.

Significant order

According to the company filing, Centum Electronics has secured a  Rs 29.4 crore domestic order from Garden Reach Shipbuilders & Engineers Limited for Advanced Naval Navigation Systems. The order strengthens Centum’s defence electronics portfolio and marks a key milestone, expanding its footprint in mission-critical maritime systems for frontline warships, with execution targeted by February 2028.

Financial & Other Highlights

The company delivered a strong turnaround in Q2FY26, with revenue rising 12% to  Rs 290.62 crore. More importantly, it swung from a marginal loss to a  Rs 4.23 crore profit, indicating improving operational efficiency, better cost control, and early signs of a sustainable earnings recovery.

Over the past one year, Centum Electronics Ltd’s operating margins have remained volatile. OPM ranged from a high of 11.27% in Mar 2025 to 6.16% in Sep 2025, reflecting inconsistent execution. Despite periodic margin improvement, sustained cost pressures continue to cap operating profitability and margin stability.

Centum Electronics Ltd reported steady revenue growth, with consolidated revenue rising from  Rs 9,229 million in FY23 to  Rs 11,554 million in FY25. EMS remained the largest contributor at  Rs 5,743 million, followed by BTS at  Rs 3,629 million and ER&D at  Rs 2,182 million, indicating balanced growth across verticals.

The consolidated order book stood strong at  Rs 18,151 million as of September 30, 2025, providing healthy revenue visibility. BTS accounts for the largest share at 49.65% ( Rs 9,012 million), followed by EMS at 42.04% ( Rs 7,631 million) and ER&D at 8.31% ( Rs 1,508 million), reflecting a diversified and stable business mix.

Centum Electronics Ltd is an Indian electronics system design and manufacturing company serving aerospace, defence, industrial, and mobility sectors. It offers end-to-end solutions across EMS, BTS, and ER&D, with a strong focus on high-reliability products and long-term partnerships with global and domestic clients.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Defence stock in focus after bagging ₹29.40 Cr order for advanced naval navigation systems appeared first on Trade Brains.