INDUSTRY STRUCTURE AND DEVELOPMENTS
The industrial automation, analytical and instrumentation sector in India is undergoing a structural transformation, largely influenced by increased regulatory oversight, digitization of operations and sustainability focused mandates. Regulatory bodies such as the Central Pollution Control Board (CPCB) have mandated compliance with updated norms governing Continuous Emissions Monitoring Systems (CEMS), Online Continuous Effluent Monitoring Systems (OCEMS) and Steam and Water Analysis Systems (SWAS), resulting in a rising demand for integrated monitoring, reporting and compliance enabling technologies.
The growth trajectory in core sectors such as power, petrochemicals, refineries, pharmaceuticals, steel and Cement has led to increased capital expenditure in automation infrastructure, which includes analysers, smart transmitters, pressure regulators and enclosure based thermal management systems. The Make in India initiative and Production Linked Incentive (PLI) schemes have provided domestic manufacturers with a favourable policy ecosystem, enhancing Companys competitiveness through backward integration and local assembly. Globally, emission control norms and digitization drives across the EU, Middle East and Southeast Asia are driving demand for hazardous area certified systems, integrated shelters, CEMS, SWAS, CAAQMS and HVAC modules. This convergence of regulatory stringency and operational efficiency has created a structural shift toward modular and plug and play system architectures.
Company, with its portfolio encompassing industrial analysers, panel accessories, HVAC shelters and automation modules, is strategically positioned to leverage this industry realignment. Our technical design capabilities and product customization strengths meet the growing need for lifecycle supported solutions in both domestic and international markets.
References:
CPCB Guidelines on Continuous Emission Monitoring Systems (2023)
DPIIT: Make in India Reports
Frost & Sullivan Industry Reports (2023 24) www.axisindia.in, Axis internal product databases
OUTLOOK
Company anticipates a stable yet accelerated growth cycle over the next three to five years, supported by strong domestic industrial expansion, global climate mandates and automation led efficiency drives. The Company is aligned with Indias infrastructure push under programs such as Gati Shakti, Smart Cities Mission and AMRUT 2.0, which are catalysing investment in water quality monitoring, emissions control and process automation across sectors. We expect continued demand for CEMS, SWAS, smart I/O modules, HVAC Analyzer shelters and digital process control panels.
Internationally, our geographic expansion into the UAE and European markets is expected to yield a compounded annual growth rate (CAGR) of 25 28% in export revenue. We are targeting an increase in our global business contribution to 25 30% of total revenue by FY2028. Company is committed to developing system integrated solutions that are compliant with international directives such as ATEX, IECEx and CE. On the digital front, the Company is integrating cloud based data acquisition systems, remote diagnostics and smart enclosures into its product suite. These innovations support recurring revenues through Annual Maintenance Contracts (AMC), calibration services and predictive maintenance modules. Our internal financial roadmap projects a top line of 650 700 Crores by FY2028, with an EBITDA margin expansion to 14 15%. Investments in localized warehousing, engineering hubs and service infrastructure will aid cost optimization and delivery speed. With a stable order book, diversified customer base and sustained demand across Greenfield and brownfield projects, Company remains confident in its forward looking operational strategy.
References:
Axis Solutions Projections Fy2024 28
Invest India: Gati Shakti, AMRUT, Smart Cities Dashboard
PwC Industrial Automation Trends 2025
www.axisindia.in, internal sales and business plans
OPPORTUNITY AND THREATS
Opportunity
1. Make in India & Local Manufacturing Push
The Company sees significant potential in aligning with the Government of Indias "Make in India" initiative by localizing key assemblies and components. This strategic move is expected to reduce costs, improve supply chain resilience, and enhance overall competitiveness. Furthermore, a stronger domestic manufacturing footprint positions the Company to better qualify for PSU and private sector projects that prioritize or require products with Indian origin, thereby expanding market opportunities.
2. Rapid Industrial Automation Growth in Emerging Markets
The growing emphasis on digitalization, Industry 4.0 adoption, and ESG (Environmental, Social, and Governance) goals is driving increased demand for advanced instrumentation, data analytics, remote monitoring, and MRO (Maintenance, Repair, and Overhaul) solutions. These trends reflect a broader shift toward smarter, more sustainable, and efficient industrial operations, creating opportunities for the Company to offer value added technologies and services aligned with evolving customer and regulatory expectations.
3. MRO Services & Lifecycle Contracts
Post installation support, spares management, and Annual Maintenance Contracts (AMC) present strong opportunities to generate recurring revenue from the existing customer base. By offering comprehensive after sales services, the Company can enhance customer satisfaction, strengthen long term relationships, and ensure sustained engagement beyond initial project delivery. This focus also contributes to revenue stability and improved lifecycle value of deployed systems.
4. Entry into New Verticals
Emerging and fast growing sectors such as water treatment, renewable energy, pharmaceuticals, data centers, and electric vehicle (EV) manufacturing are increasingly adopting the Companys product offerings. These industries require high performance, reliable, and efficient solutions areas where the Companys technologies are well aligned. The expansion of these sectors presents strong growth opportunities, enabling the Company to diversify its customer base and strengthen its presence in future focused markets.
5. Government Driven Sustainability Initiatives
Stringent environmental regulations in the power, cement, steel, and oil & gas industries are driving the need for advanced monitoring and control systems. Company is well positioned to capitalize on this demand, leveraging its expertise and product portfolio to help clients achieve compliance while improving operational efficiency and sustainability.
Threats
1. Price Competition from Local Low Cost Vendors
The market for basic instrumentation products remains highly competitive, with numerous small players often resorting to aggressive pricing strategies to gain market share. This price undercutting can exert pressure on margins, particularly in commoditized segments. However, the Company continues to differentiate itself through product quality, technical expertise, and value added services, maintaining its competitive edge in a challenging pricing environment.
2. Disruptive Technology Shifts
Rapid advancements in wireless, AI integrated, and self calibrating sensors are transforming the industry, potentially rendering some conventional products obsolete. The Company is actively monitoring these trends and investing in innovation to ensure its offerings remain relevant and competitive
3. Policy & Compliance Risks in Export Markets
Expanding into Middle East, Southeast Asia, and European markets involves navigating regulatory certifications, establishing reliable local partnerships, and managing region specific political and economic risks. The Company is taking a structured approach to mitigate these challenges while pursuing strategic growth in these geographies.
4. Talent Retention in Technical Sales & Support
The migration of skilled manpower to multinational corporations or competitors poses a potential challenge in maintaining execution excellence and managing long standing customer relationships. The Company is addressing this risk through talent retention initiatives, continuous skill development, and a strong organizational culture that fosters employee engagement.
5. Volatile Project Based Business
The Companys dependency on large scale projects and seasonal demand from EPCs and PSUs can result in uneven cash flows across reporting periods. To mitigate this, efforts are underway to diversify the revenue base, enhance order book visibility, and strengthen collections and working capital management practices.
SEGMENT PERFORMANCE
The Company has strategically aligned its operation around three core business segments: Automation and Digitalization, Infra & Water and Industrial Engineering & Systems, each reflecting its commitment to innovation, sustainability and long term value creation. The Automation and Digitalization segment focuses on delivering smart, connected solutions that enhance efficiency and operational intelligence across industries. The Infra & Water segment addresses critical infrastructure needs, with an emphasis on sustainable water management, urban development, and environment resilience. The Industrial Engineering & Systems segment provides integrated engineering solutions and turnkey systems for complex industrial applications, supporting clients in achieving productivity, reliability, and technological advancement. These strategic focus areas position the Company to capitalize on evolving market trend and drive growth across diverse sectors.
Details |
Automation and Digitalization 2024 25 |
Automation and Digitalization 2023 24 |
Infra & Water 2024 25 |
Infra & Water 2023 24 |
Industrial Engineering & Systems 2024 25 |
Industrial Engineering & Systems 2023 24 |
Revenue from |
||||||
2391.46 |
0 |
6087.03 |
0 |
11588.94 |
13636.09 |
|
Operations ( in Lakhs) |
||||||
Profit before Interest |
||||||
374.89 |
0 |
1832.74 |
0 |
1646.59 |
3556.73 |
|
and Tax ( in Lakhs) |
The Automation and Digitalization Segment, introduced during the year, recorded revenue of 2391.46 Lakhs and a profit before interest and Tax (EBITDA) of Rs. 374.89 lakhs, reflecting strong initial traction in smart technologies and digital solutions.
The Infra & Water Segment, too introduced during the year, recorded revenue of 6087.03 Lakhs and a profit before Interest and Tax (EBITDA) of Rs. 1832.74 Lakhs, driven by increased execution of water infrastructure and urban development projects.
The Industrial Engineering & Systems segment remained the largest contributor with 11,588.94 Lakhs in revenue and 1,646.59 lakhs in (EBITDA), though it saw a decline compared to the previous year due to lower project volumes and margin pressures.
KEY DEVELOPMENT IN 2024 25
The Hon
ble National Company Law Tribunal, Delhi Bench, sanctioned the Composite Scheme of Amalgamation and Arrangement between Axis Solutions Private Limited (the Transferor Company or ASPL) and Asya Infosoft Limited, now known as Axis Solutions Limited (the Transferee Company or AIL), on 27th August 2024. Pursuant to the Scheme, the merger became effective on 11th July 2024 (Effective Date), resulting in the dissolution of ASPL without winding up and the transfer of all its assets and liabilities to the Transferee Company. This entailed the transfer of all ASPLs assets and liabilities to the Company, effective from 1st April, 2023, the Appointed Date under the Scheme.The Resolution Plan approved under the Corporate Insolvency Resolution Process (CIRP), as sanctioned by the Hon
ble National Company Law Tribunal (NCLT), Ahmedabad Bench on 11th July 2024, has been successfully implemented. Pursuant to the terms of the approved plan, the management and control of the Company have been formally taken over by Mr. Bijal Dineshchandra Sanghvi, in consortium with M/s. Axis Solutions Private Limited (Resolution Applicants), with effect from 11th July 2024.All necessary actions as stipulated in the Resolution Plan including settlement of admitted claims, infusion of funds, issuance/ allotment of securities (if applicable), and reconstitution of the Board of Directors have been completed within the prescribed timelines. Consequently, the Company has formally exited the CIRP in compliance with the Insolvency and Bankruptcy Code, 2016.
RISK AND MITIGATION
The Board holds the primary responsibility for overseeing risk management and internal controls to ensure alignment with the Company
s strategic objectives. This includes defining the Companys risk tolerance, continuously assessing and monitoring key risks and reviewing reports from internal auditors on risk assessments and control measures. Given the evolving regulatory landscape, market volatility and operational challenges, the Company remains committed to undertaking proactive risk mitigation through robust governance frameworks, compliance mechanisms and strategic decision making to safeguard long term business sustainability.MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Risks/Threats |
Risk Description |
Mitigation Strategy |
Working Capital and |
In FY 2024 25, the Company |
the Company has undertaken |
Liquidity Risk |
experienced strong topline |
enhanced monitoring of |
growth, particularly in its |
receivables, accelerated billing |
|
infrastructure linked and |
processes, and is actively |
|
project driven segments. |
negotiating milestone based |
|
However, this growth is |
payment terms. Additionally, |
|
accompanied by inherent risks, |
efforts are underway to reduce |
|
including elongated receivable |
inventory holding periods. The |
|
cycles and elevated working |
Company is also exploring |
|
capital requirements. A |
structured working capital |
|
significant portion of |
solutions and export finance |
|
collections, especially from |
instruments to manage timing |
|
government and semi |
gaps and ensure better |
|
government clients, tends to be |
alignment of cash flows with |
|
concentrated in the last |
operational requirements. |
|
quarter, which increases the |
||
risk of temporary cash flow |
||
mismatches and may impact |
||
liquidity management. |
||
Project Execution and Site |
The Infra & Water segment |
To address these risks, the |
Readiness Delays |
operates across multiple states |
Company is institutionalizing |
and requires coordination with |
dedicated project management |
|
various stakeholders, which |
teams, implementing digital |
|
introduces operational |
tools for real time tracking of |
|
complexities. Risks in this |
execution progress, and |
|
segment include delays in civil |
adopting a selective bidding |
|
readiness, obtaining approvals |
approach guided by pre defined |
|
from municipal authorities, and |
risk assessment filters. These |
|
payment holds on the client |
measures aim to enhance |
|
side. These factors can result in |
execution efficiency, reduce |
|
cost overruns, accumulation of |
delays, and improve overall |
|
unbilled revenues, and blockage |
project control. |
|
of working capital, thereby |
||
impacting project timelines and |
||
financial performance. |
Risks/Threats Risk Description Mitigation Strategy
Technology Obsolescence and The growing reliance on To mitigate this risk, the Innovation Risk proprietary products, such as Company has established an in turbidity and chlorine analyzers house R&D cell dedicated to within the Automation & areas such as sensor calibration, Digitalisation vertical, brings embedded systems, and cloud with it the risk of technological based diagnostics. Additionally, obsolescence. A failure to it has integrated collaborations continuously upgrade and with technical institutes and enhance product capabilities incorporated pilot feedback may expose the Company to loops into its innovation increased competitive pressure lifecycle to ensure continuous and the potential loss of product enhancement and relevance in digitally driven technological relevance. tenders and customer requirements.
Supply Chain and Import A significant portion of key To mitigate these risks, The Dependencies components used in sensors, Company is actively pursuing analyzers, and automation domestic vendor development panels continues to be sourced and implementing a dual from Europe, the US, and East sourcing strategy to reduce Asia. This dependence on global reliance on single geographies. supply chains exposes the The Company also undertakes Company to risks arising from partial hedging of currency international supply exposure and maintains disruptions, freight cost strategic inventories of high inflation, and foreign exchange lead time components to volatility, all of which can safeguard against supply adversely affect cost structures disruptions and cost volatility. and lead to delays in delivery schedules.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
(in Lakh except EPS)
Risks/Threats |
2024 25 |
2023 24 |
Revenue from Operations |
20067.43 |
13636.09 |
Profit before Tax |
3439.37 |
2192.04 |
Profit after Tax |
3500.48 |
3133.64 |
Earnings per Share (EPS) (Basic) |
7.84 |
7.17 |
Non Current Liabilities |
1417.17 |
1744.67 |
Current Liabilities |
6990.05 |
5604.81 |
Equity Share Capital |
4726.03 |
4426.03 |
Other Equity |
7034.78 |
1384.37 |
Total Equity |
11760.81 |
5810.40 |
Total Equity and Liabilities |
20168.03 |
13159.88 |
In FY 2024 25, the Company delivered strong operational performance, with a 47.10% increase in Revenue from Operations and a 56.9% rise in Profit Before Tax, indicating efficient cost management and business growth. This performance is further reflected in the company
s strengthened financial position, with Total equity more than doubling to Rs. 11760.81 Lakh, driven by a significant increase in retained earnings under other equity and a rise in Equity Share Capital. While current liabilities increased to support higher operational activity, Non current liabilities declined, suggesting improved long term financial stability.KEY FINANCIAL RATIOS
Sr. No. Key Financial Ratios |
2024 25 |
2023 24 |
Changes in % |
Reason for Change |
1 Debtors Turnover |
2.1 |
3.07 |
(31.6) |
Increase in year end trade receivables |
(in times) |
due to timing of collections for Sales |
|||
boked in Q4. |
||||
2 Inventory Turnover |
3.70 |
3.08 |
20.09 |
|
(in times) |
||||
3 Interest Coverage |
11.72 |
9.23 |
26.98 |
Improvement in the Interest Coverage |
Ratio (in times) |
Ratio was driven by strong business |
|||
growth and a lower debt profile resulting |
||||
from loan repayments. |
||||
4 Current Ratio |
2.12 |
1.46 |
45.62 |
Increase in current assets due to higher |
receivables and cash generation from |
||||
operations. |
||||
5 Debt to Equity |
0.32 |
0.59 |
45.72 |
Reduction in debt through repayment |
Ratio |
from operational surplus; increase in |
|||
retained earnings. |
||||
6 Operational |
17.83 |
17.83 |
(0.01) |
|
Margin (in %) |
||||
7 Net Profit |
17.52 |
23.27 |
||
Margin (in %) |
||||
8 Return on Equity |
30 |
55 |
(45.89) |
Lower profitability on higher equity |
(in %) |
base due to retained earnings and fresh |
|||
equity infusion., The Companys net |
||||
worth has shown a significant increase |
||||
from #58.10 crore in the previous year |
||||
to 1117.61 crore in the current year, |
||||
primarily driven by a strong accretion |
||||
to reserves on the back of robust |
||||
financial performance. |
||||
9 Creditors |
5.51 |
3.72 |
47.99 |
Faster payments to vendors in |
Turnover (in Times) |
current year compared to previous |
|||
year. |
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has implemented several policies and procedures for effective internal financial control to ensure the orderly and efficient conduct of its business. These includes adherence to the Company
s policies, the safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and the timely preparation of reliable financial information. The control systems are regularly reviewed by the Management and Internal Auditors from time to time. However, there have been no significant changes in these systems.The Company has also adopted various policies and procedure to safeguard its interests. These policies and procedures are reviewed from time to time. A proper reporting mechanism has been implemented in the organization for reporting any deviation from the policies and procedure.
HUMAN RESOURCE
Axis firmly believes that our team members are our greatest asset. We are proud to have a talented team of 250+ professionals who consistently perform at their best. At Axis, the management embraces a unique, parent like approach, creating a workplace that feels like home and fostering a true sense of belonging and family among all members.
Our leadership style is affiliative, participative, and pacesetting and focused on building commitment, harmony, and teamwork, while striving for excellence in everything we do. We are dedicated to cultivating a culture of respect, care, and mutual honor.
To strengthen our team spirit, Axis regularly introduces human resource initiatives that promote employee engagement and team building. We celebrate major festivals, Women
s Day, and Axis Foundation Day as a united family. We also recognize and reward excellence through our Employee of the Month program.Additionally, Axis places a strong emphasis on Learning Beyond Classrooms by investing in future talent through structured recruitment cycles. We offer Summer and Final Year Internships for Engineering and MBA students, organize factory visits for real time shop floor and manufacturing exposure, and conduct Faculty Development Programmes, Guest Lectures, and Technical Workshops. These initiatives not only enhance industry academia collaboration but also help us identify and nurture future talent from the grassroots.
In recognition of our employee first culture, Axis has been certified as a Great Place to Work for two consecutive years a testament to our commitment to creating a positive, engaging, and growth driven workplace.
This inclusive, growth oriented, and open culture makes Axis a place where every team member feels valued, respected, and inspired to grow together.
As on 31st March, 2025 the total number of permanent employees stood at approximately 169.
ACCOUNTING TREATMENT
The financial statements of the Company were prepared in accordance with the Indian Accounting Standards (Ind AS), ensuring consistency with the prescribed accounting guidelines. No departures from these standards were made during the preparation of the financial statements.
CAUTIONARY STATEMENT
The Management Discussion and Analysis Report includes statements that pertain to the Company
s objectives, projections, estimates, and expectations. It is important to note that these statements may be considered forward looking under applicable laws and regulations. It must be understood that the actual results may differ from what is either explicitly expressed or implied in these statements. IIFL Customer Care Number
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