Airfloa Rail Technology Ltd. reported a sharp rise in revenue and profit for FY26 as the Chennai-based engineering company expanded its rail business and entered the defence electronics segment through a joint venture with Big Bang Boom Solutions (BBBS).
The company posted revenue of ₹319.6 crore for FY26, up 66 percent from ₹192.4 crore in FY25. Net profit rose 52 percent to ₹39.1 crore.
Listed on the BSE SME platform in September 2025, the stock was trading around ₹317, compared with the previous close of ₹307. The company trades at a P/E ratio of about 19.5 times and has a market value of roughly ₹920 crore.
FY26 performance
Over the past three years, the company has reported steady growth.
| Particulars | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue | ₹119.3 crore | ₹192.4 crore | ₹319.6 crore |
| EBITDA | ₹31.3 crore | ₹48.3 crore | ₹64.3 crore |
| Net profit | ₹13.5 crore | ₹25.8 crore | ₹39.1 crore |
Revenue in the second half of FY26 reached ₹229 crore.
Margins came under pressure
Despite strong sales growth, profitability moderated.
- EBITDA margin fell to 20.1 percent in FY26.
- Margin stood at 25.1 percent in FY25.
- In FY24, EBITDA margin was 26.2 percent.
- H2 FY26 EBITDA margin stood at 18.4 percent.
The company benefited from lower interest costs after using IPO proceeds to reduce debt.
Receivables remain high
Trade receivables rose to ₹214 crore from ₹128 crore a year earlier.
Other working capital metrics were:
- Debtor days: 195
- Cash conversion cycle: 203 days
Management said it has already collected around 20 percent of FY26 receivables and expects collections to reach 50-60 percent by June.
Defence joint venture approved
Airfloa’s board has approved a 51:49 joint venture with Big Bang Boom Solutions.
Under the arrangement:
- Airfloa will hold a 51 percent stake.
- BBBS will hold 49 percent.
- Airfloa will act as the manufacturing partner.
- BBBS will provide technology and research capabilities.
The venture will focus on:
- Electronic warfare systems
- AI-based autonomous platforms
- Precision components
- Advanced materials
Order book stands at ₹469 crore
The company reported an unexecuted order book of ₹469 crore, equivalent to about 1.5 times FY26 revenue.
Its bid pipeline stands at around ₹1,200 crore, with management indicating a historical win rate of 20-25 percent.
Major orders include:
- ₹73.9 crore order for Amrit Bharat coach interiors from Integral Coach Factory
- ₹23.9 crore order from Integral Coach Factory
- ₹62.4 crore order from Acme India
- ₹22.9 crore Chennai Metro lighting order through BEML
- ₹11.8 crore order for roller blinds
The order book was largely unchanged from ₹472 crore a year ago.
Revenue mix shifted in FY26
Private-sector orders accounted for 60 percent of FY26 revenue, while government business contributed 40 percent.
In the previous year, government contracts accounted for around 65 percent of revenue.
However, the current order book remains heavily tilted towards public-sector business:
- Government orders: 89 percent
- Railway-related orders: 96 percent
Vande Bharat and defence credentials
Airfloa supplied interiors and seats for the Vande Bharat train and has executed a 97-coach export project for Sri Lanka.
The company has also supplied components for:
- Regional Rapid Transit System (RRTS)
- Metro projects
- Vistadome coaches
- T90 tank hull assemblies
- DRDO missile-launch wagons
Its independent directors include Sudhanshu Mani, who led the Vande Bharat project.
Airfloa holds several certifications and approvals, including:
- AS9100
- ISO 9001
- IRIS certification
- Approved vendor status with HAL
- DRDO approvals
- Indian Railways approvals
- CVRDE approvals
About the company
Founded in 1998, Airfloa Rail Technology manufactures train coach bodies, interiors and precision-engineered components for railway, aerospace and defence applications.
The company was listed on the BSE SME platform in September 2025.
TL;DR:
Airfloa Rail Technology reported FY26 revenue of ₹319.6 crore and net profit of ₹39.1 crore. The company has also approved a 51:49 defence joint venture with Big Bang Boom Solutions to develop electronic warfare and autonomous systems.
AI summary:
- Airfloa’s FY26 revenue rose 66% to ₹319.6 crore.
- Net profit increased 52% to ₹39.1 crore.
- The company approved a 51:49 JV with Big Bang Boom Solutions.
- Order book stood at ₹469 crore.
- Trade receivables increased to ₹214 crore.