Centum Electronics: ₹1,797 Crore Order Book Signals Strong Growth Potential in Defence, Space and Electronics

Centum Electronics Ltd has outlined an ambitious growth roadmap across defence, aerospace, space, electronics manufacturing and other high-reliability industries in its September 2026 investor presentation. The company is increasingly positioning itself not just as an electronics manufacturer but as an end-to-end technology and systems partner for mission-critical applications.

As of June 30, 2026, Centum had a standalone order book of ₹1,797 crore, supported by strong demand across both its Electronics Manufacturing Services (EMS) and Build-to-Specification (BTS) businesses.

Centum Electronics at a Glance

Centum Electronics has been operating in the electronics industry since 1993 and has built capabilities across defence, aerospace, space, industrial, transportation, automotive and healthcare.

The company has:

• ₹1,797 crore standalone order book
• Around 1,650 employees
• 350,000 sq. ft. manufacturing footprint
• 17 granted patents
• More than 125 publications
• Presence across domestic and global OEMs
• 54% of revenue from exports
• Three-year standalone revenue CAGR of around 25%
• FY26 adjusted ROCE of 21%

The company operates through two major business segments: EMS and Build-to-Specification (BTS).

EMS Remains the Larger Business

Electronics Manufacturing Services contributed around 72% of revenue, while BTS contributed approximately 28% in Q1 FY27.

Centum’s EMS business provides end-to-end manufacturing solutions, including component sourcing, PCBA manufacturing, testing, validation, mass production and lifecycle support.

EMS revenue increased from ₹498.5 crore in FY24 to ₹696.1 crore in FY26. Q1 FY27 revenue stood at approximately ₹148.2 crore.

The EMS order book stood at ₹871.8 crore as of Q1 FY27.

The company serves multiple industries, including industrial and energy, medical, electric mobility, defence and aerospace.

Its products include electronics for air traffic management, defence optronic equipment, sonar systems, electric-vehicle battery management systems, high-voltage inverter PCB assemblies and healthcare equipment.

Long-Term Customer Relationships

One of the important strengths highlighted by Centum is customer stickiness.

Around 30% of revenue comes from customer relationships exceeding 20 years, while another 40% comes from customers with relationships of 10–20 years.

The company also stated that around 70% of its products are single-sourced, highlighting the critical nature of its products and the importance of qualification and reliability in its target markets.

BTS Business: Higher-Margin Growth Engine

The Build-to-Specification business focuses on complex, mission-critical electronics for defence, aerospace and space applications.

BTS revenue increased from ₹134.3 crore in FY24 to ₹277 crore in FY26, while Q1 FY27 revenue stood at approximately ₹56.6 crore.

More importantly, the BTS order book reached ₹925.4 crore as of Q1 FY27.

The company said BTS projects typically have a 2–2.5-year execution cycle, compared with 6–9 months for EMS.

Centum is involved in applications including:

• Radar subsystems
• Electronic warfare payloads
• Satellite subsystems
• Missile control and guidance
• Tank electronics
• Avionics
• Communication systems
• Railway electronics

This segment is strategically important because BTS generally offers higher margins, with the company indicating a benchmark margin of 18–20% or higher for strategic programmes.

Order Book Crosses ₹1,700 Crore

Centum’s standalone order book has expanded significantly.

The order book increased from ₹947.9 crore in FY23 to ₹1,117.8 crore in FY24, ₹1,341 crore in FY25 and ₹1,644.8 crore in FY26.

By Q1 FY27, the order book had reached ₹1,797.2 crore.

The company expects BTS orders to be executed over 2–2.5 years, while EMS orders generally have shorter 6–9-month execution cycles.

This provides visibility across both near-term manufacturing revenue and longer-duration strategic programmes.

Major Defence and Space Opportunities

Centum is moving further up the value chain from supplying individual modules and subsystems toward complete system-level solutions.

Among the strategic opportunities highlighted by the company are:

HAL AESA Radar Programme

Centum has received a ₹66 crore Phase 1 order from Hindustan Aeronautics Limited for the indigenous AESA radar system for the Utility Helicopter–Maritime platform.

The presentation indicates a potential ₹500 crore Phase 2 production opportunity.

Space-Based Surveillance Programme

The company highlighted a roughly ₹350 crore order for a three-satellite constellation under the Space Based Surveillance Programme.

There is also potential for additional constellation opportunities.

BEL Partnership

Centum has entered into an MoU with Bharat Electronics to jointly develop and manufacture electronic warfare, radar and secure military communication systems for the Indian Armed Forces.

Naval Navigation Systems

The company also highlighted a ₹29.4 crore order from Garden Reach Shipbuilders & Engineers for advanced naval navigation systems for frontline warships.

These projects demonstrate Centum’s ambition to participate in larger strategic programmes rather than remain limited to component-level manufacturing.

Defence and Space Could Become Major Growth Drivers

Centum expects strong structural growth in India’s defence and space electronics markets.

The company highlighted India’s increasing defence spending, indigenisation initiatives and the “Make in India” push as major growth drivers.

According to the company’s presentation, India’s defence production could increase from around ₹1,541 billion in FY25 to ₹3,000 billion by FY29, implying an estimated CAGR of around 18%.

India’s space market is also projected to grow from approximately $12 billion in 2025 to $44 billion by 2033.

Defence exports are another opportunity, with the presentation indicating growth from approximately ₹384 billion in FY25 to ₹500 billion by FY29.

EMS Industry Provides Another Growth Opportunity

Centum sees significant opportunities from the global China+1 strategy, with multinational companies diversifying supply chains and increasing sourcing from India.

The Indian EMS market is projected by the company to grow from approximately $40–45 billion in FY25 to around $150 billion by FY30.

Several factors could support this growth:

• China+1 supply-chain diversification
• Production-linked incentives
• Semiconductor manufacturing expansion
• Growth of OSAT and semiconductor equipment
• Electronics localisation
• Rising EV electronics demand
• Increasing medical-device manufacturing
• Growth in aerospace and defence electronics
• Shift towards design-led manufacturing

Centum’s positioning in high-reliability and mission-critical electronics could allow it to participate in higher-value segments rather than competing purely on manufacturing cost.

Financial Performance Shows Strong Revenue Growth

On a standalone basis, operational revenue increased from ₹632.8 crore in FY24 to ₹776.1 crore in FY25 and ₹973.1 crore in FY26.

Q1 FY27 operational revenue was approximately ₹204.8 crore.

Standalone EBITDA increased from ₹78.7 crore in FY24 to ₹120.9 crore in FY26, although Q1 FY27 EBITDA was ₹23.1 crore.

The EBITDA margin was:

• FY24: 12.44%
• FY25: 12.13%
• FY26: 12.42%
• Q1 FY27: 11.28%

Standalone PAT was ₹135 million, or ₹13.5 crore, in Q1 FY27, compared with a loss in FY26 largely affected by exceptional items.

FY26 standalone PAT was negative at ₹117.1 crore, primarily due to an exceptional item of approximately ₹203.3 crore.

Balance Sheet and Working Capital Need Monitoring

Centum’s business is working-capital intensive, particularly because of the nature and duration of its projects.

At FY26, standalone inventories stood at approximately ₹456.8 crore, while trade receivables were around ₹307.3 crore.

The company has highlighted working-capital management as an important part of its dual-business model.

EMS has a shorter working-capital cycle of around 85–110 days, while BTS typically requires around 225–350 days.

The company describes EMS as its “cash engine”, generating relatively stable cash flows, while BTS acts as the “value engine” because of its higher-margin and strategic nature.

From Subsystems to Complete Systems

One of the biggest strategic changes at Centum is its attempt to move up the electronics value chain.

The company is expanding from:

Electronic modules → Subsystems → System design → Integration → Testing & validation → Lifecycle support

The objective is to become a full system solution provider for mission-critical applications.

This strategy could increase the company’s addressable market and potentially improve customer relationships and margins over time.

Future Growth Areas

Centum has identified several areas for future expansion, including:

• Multi-function radar and radar subsystems
• Satellite constellations
• Fighter aircraft and helicopter avionics
• Electronic warfare systems
• T-90 tank electronics
• Drone communication and ISR payloads
• Semiconductor equipment
• Security systems
• Smart energy and industrial automation
• EV and battery-management electronics
• Medical devices
• AI-led manufacturing
• Industry 4.0

The company also plans to strengthen partnerships with global OEMs, academic institutions, startups and technology partners.

Investor Takeaway

Centum Electronics is positioning itself at the intersection of several high-growth themes: defence indigenisation, space technology, electronics manufacturing, China+1, semiconductor localisation and electric mobility.

The most notable positive factor is the expansion of the order book to nearly ₹1,800 crore, with BTS accounting for more than half of the total order book. The company’s growing exposure to radar, electronic warfare, satellites and other strategic programmes could provide long-term growth opportunities.

At the same time, investors should monitor working-capital requirements, EBITDA margins, execution of large BTS programmes and the sustainability of revenue growth.

The company’s strategy of combining the relatively stable EMS business with the higher-margin BTS business provides a potentially attractive growth model. However, execution will remain crucial as Centum attempts to transition from a subsystem supplier into a broader mission-critical electronics and system integration company.

Overall, the September 2026 investor presentation points to a company targeting higher-value electronics opportunities, backed by a growing order pipeline and strong exposure to India’s defence, aerospace and space ecosystem.