Centum Electronics STOCKS SURGE: Brokerage Issues BUY Signal with ₹3,000 Target!

Author

Abhay Singh | Whalesbook News Team

Detailed Coverage:

Centum Electronics announced its Q2FY26 financial results, showing a revenue growth of 14.2% year-over-year, although this was slightly below expectations. The growth was primarily fueled by strong execution in its built-to-spec (BTS) business, serving domestic defence and space clients. The company boasts a healthy order pipeline, with its BTS orderbook standing at INR 650–665 crore and EMS orders at INR 763 crore. These orders are expected to be executed over the next 2–2.5 years for BTS and 10 months for EMS. Centum Electronics continues to strengthen its market position through strategic alliances, including memorandums of understanding with Garden Reach Shipbuilders & Engineers for naval navigation systems and Bharat Electronics Limited for defence electronics. The company is also contributing to ISRO’s CMS-3 GSAT-7R program. Management is focused on enhancing operational efficiency and making targeted capital expenditures. The company anticipates a strong second half of FY26, projecting standalone revenue growth of approximately 30% and an EBITDA margin of 13–15% for the full year.

Impact This report provides a positive outlook and a BUY recommendation from Choice Institutional Equities, which could lead to increased investor interest and potentially boost the stock price. The detailed order book and strategic partnerships suggest strong future revenue streams. Rating: 7/10

Difficult terms: Q2FY26: Second quarter of the Financial Year 2026 (July-September 2025). YoY: Year-over-Year comparison. BTS: Built-to-Spec, meaning products made to exact customer specifications. INR: Indian Rupee. Domestic defence and space customers: Indian clients in the military and space sectors. Order pipeline: Potential future orders. Orderbook: Value of confirmed unfulfilled orders. EMS: Electronics Manufacturing Services, where a company manufactures electronics for others. Strategic partnerships: Collaborations for mutual benefit. MOUs: Memorandum of Understanding, a preliminary agreement. GRSE: Garden Reach Shipbuilders & Engineers Ltd., a naval shipbuilding company. BEL: Bharat Electronics Limited, an aerospace and defence electronics firm. ISRO: Indian Space Research Organisation, India's space agency. CMS-3 GSAT-7R program: A specific Indian space program. Operational efficiency: Using resources effectively to minimize waste. Targeted CAPEX: Specific investments in assets or projects. Standalone revenue growth: Revenue from the company's own operations. EBITDA margin: Profitability before interest, taxes, depreciation, and amortization, as a percentage of revenue. CAGR: Compound Annual Growth Rate, average annual growth over a period. FY26 – 28E: Estimated fiscal years 2026 through 2028. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. PAT: Profit After Tax, the company's net profit. PE: Price-to-Earnings ratio, a stock valuation metric. FY27–28E EPS: Estimated Earnings Per Share for fiscal years 2027-2028. ADD: A stock rating category meaning 'hold' or 'add to existing position'. BUY: A stock rating category recommending purchase.