Synopsis:
Techera Engineering India Limited expects 30-40% growth in FY26, supported by strong demand, while EBITDA margins of 18-20% are projected to rise toward 22–23% in the second half as operational efficiency improves.
This Micro-cap Defence stock, engaged in designing, manufacturing, and supplying precision tooling, components, and automation systems primarily for the aerospace and defence sectors, hit a 5 percent upper circuit after the company announced revenue growth guidance of up to 40 percent for the financial year 2026.
With a market capitalization of Rs. 402.70 crores, the shares of Techera Engineering India Limited hit a 5 percent upper circuit of Rs. 243.75 per share on Monday, up from its previous closing price of Rs. 232.15 per share.
Management Guidance
Techera Engineering India Limited expects strong performance in FY26, with management guiding for at least 30-40 percent growth. With a solid project pipeline, the company believes it can comfortably achieve 30-35 percent year-on-year expansion driven by sustained demand.
Margin Guidance
Techera Engineering India Limited Management highlighted that the company currently operates with an EBITDA margin of about 18-20 percent, which is expected to improve to nearly 22-23 percent in the second half of the year.
Further, the company also emphasized steady long-term improvement, noting that margins are likely to remain above 20 percent and gradually move toward the 22-25 percent range over the next three to four years.
Order Book
Techera Engineering India Limited has an active order book of around Rs 40 crore, supported by a strong pipeline of opportunities. The company has submitted RFQs worth nearly Rs 120-130 crore, with 50-60 percent of this funnel coming from PSU clients. The remaining opportunities lie in automation projects and private-sector demand, indicating healthy future growth visibility.
Capital Expenditures
Techera Engineering India Limited’s current facilities can support nearly Rs. 120 crore in revenue, and further automation can expand output with minimal additional capital. However, future growth in machining-intensive defence and aerospace projects may require new capabilities, certifications, and selective capacity enhancement.
Client Base
Techera Engineering India Limited serves a strong customer set, including HAL for on-site assemblies and tooling, multiple divisions of Godrej & Boyce, Safran for export work, and Skyroot. The company is also exploring new opportunities in the U.S. with Pratt & Whitney and Delta Ops.
Services Offering
Techera Engineering India Limited offers a wide range of engineering solutions, including the design and manufacturing of tooling systems, advanced automation such as niche test equipment and AI-based camera systems, MRO services, ground support equipment, and an expanding portfolio of “flying parts” for aerospace applications.
Geographic Reach
The company operates primarily in India but is steadily increasing its global presence. Its international reach includes work with Safran Singapore and business development and MRO activities through its U.S. subsidiary, TechEra USA Inc.
Company Overview
TechEra Engineering (India) Limited was established in 2018 and is based in Pune and is a specialized manufacturer and supplier of precision tools and components primarily for the aerospace and defence sectors.
The company designs and produces assembly tooling, jigs, fixtures, maintenance and repair (MRO) equipment, ground support systems, and precision-machined components, essential for aircraft and defense manufacturing.
The company uses advanced manufacturing technologies such as 5-axis machining and 3D modeling to deliver high-quality, precise products that meet stringent aerospace industry standards.
TechEra is engaged in producing critical components like wing tooling, fuselage tooling, and aerospace assembly lines, supporting national security and technological advancement in India.
Recent quarter results
Coming into financial highlights, Techera Engineering India Limited’s revenue has increased from Rs. 17.57 crore in H1 FY25 to Rs. 24.30 crore in H1 FY26, which has grown by 38.30 percent. The net profit has converted from negative to positive, from a net loss of Rs. 1.23 in H1 FY25 to a net profit of Rs. 1.39 crore in H1 FY26.
Techera Engineering India Limited’s revenue and net profit have grown at a CAGR of 36.85 percent and 55.56 percent, respectively, over the last two years.
In terms of return ratios, the company’s ROCE and ROE stand at 13 percent and 9.68 percent, respectively. Techera Engineering India Limited has an earnings per share (EPS) of Rs. 3.46, and its debt-to-equity ratio is 0.48x.
Written By – Nikhil Naik
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