Bengaluru: AXISCADES Technologies Limited has announced a strategic transaction to divest its Aerospace Engineering Services business to global digital engineering consulting company Akkodis, marking the completion of its Engineering Services Divestment Program and a significant milestone in the company’s transformation into a proprietary products and IP-focused manufacturing platform.
The AXISCADES transaction is intended to reshape the company from a services-led organization into a manufacturing and technology-focused enterprise spanning aerospace, defence, space, electronics, semiconductors, and artificial intelligence.
Combined with the previously announced disposal on 26 May 2026, the divestment program is expected to fully fund the company’s Power 930 growth plan and support the establishment of its new Space division.
Under the agreement, Akkodis will acquire a 51% controlling interest in AXISCADES’ Aerospace Engineering Services business in the first tranche, with the remaining 49% to be acquired over the following 24 to 30 months.
The transaction remains subject to customary regulatory approvals, with the first tranche expected to close during Q3 FY27 between October and December 2026.
The business being transferred includes design, engineering analysis, certification support, and lifecycle engineering services for global aerospace OEMs.
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During the transition period, Akkodis and AXISCADES will operate as strategic partners for 18 to 24 months under a bilateral customer support arrangement and transitional services agreement to ensure seamless integration.
According to the company, the two-tranche structure has been designed to optimize long-term value creation rather than facilitate a one-time transactional handover.
AXISCADES Completes Strategic Engineering Services Divestment Program
The completion of the Engineering Services Divestment Program represents one of the most transformative strategic initiatives in the history of AXISCADES and provides the capital base required to execute its publicly committed Power 930 strategy through both organic and inorganic growth.
Following the divestment, the transformed AXISCADES platform will operate across four strategic growth pillars:
- Aerospace Manufacturing, Supply Chain Management and MRO, leveraging the company’s DAC, MAC and DAL facilities to supply global Tier-1 OEMs while providing end-to-end supply chain orchestration and lifecycle support.
- AXISCADES Aerospace & Technologies Private Limited (ACAT), the wholly owned defence arm focused on defence manufacturing, strategic electronics, and system integration aligned with the Government of India’s Atmanirbhar Bharat priorities.
- XiDA Inc, the group’s AI-centric Electronics and Semiconductor platform, which will integrate the current Mistral ESAI division and ACTL AI team while serving as the platform for future international ESAI acquisitions.
- The newly established Space Division, dedicated to satellite bus manufacturing and related system integration to address emerging Indian and global commercial space opportunities.
- Power 930 Plan to Receive Full Funding
The proceeds from the transaction will support the implementation of the company’s Power 930 vision, which targets approximately ₹9,000 crore in revenue and approximately ₹960 crore in profit after tax by FY2030.
The capital deployment will include:
- Capacity expansion, certification and tooling investments across DAC, MAC and DAL aerospace manufacturing facilities.
- Establishment of satellite bus manufacturing infrastructure and system integration capabilities under the new Space division during FY27.
- Strategic acquisitions in Aerospace and ESAI segments planned for FY27 and FY28 through XiDA Inc and the India platform.
- Investments in Defence Manufacturing and Integration capabilities through ACAT in line with Atmanirbhar Bharat priorities.
- Strengthening the company’s balance sheet and strategic flexibility during the FY27 transition period.
- Chairman Highlights Strategic Vision
Dr. Sampath Ravi Narayanan, Founder, Chairman and Managing Director of AXISCADES Technologies Limited, said: “Subject to receipt of applicable regulatory approvals, we would be proud to have Akkodis as our strategic joint venture partner over the next two years.
Their global customer footprint would help the joint venture to reference and acquire new customers faster; the joint venture, in turn, will help Akkodis deepen their India footprint and aerospace engineering service enhancement. This would be a joint venture designed to create value on both sides, and a transformation designed to compound relationships rather than reset them.”
He further added: “The sixteen years of management experience, executive-level customer relationships, aerospace industry reputation, brand recognition and global standing that we built alongside this business will be channelized by AXISCADES towards Manufacturing.
They help us move decisively up the aerospace value chain — much as an architectural firm transition from design into construction — and they give us a jumpstart, into aerospace manufacturing.
This transition aligns directly with the Government of India’s Atmanirbhar Bharat priorities and with our own ambition for a global India aerospace footprint, and we expect it to catapult our growth trajectory through the coming years.”
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Discussing the broader strategy, Dr. Narayanan said: “Establishing AXISCADES as a focused Aerospace Manufacturing platform will simultaneously accelerate our defence platform under ACAT, our AI-centric ESAI platform under XiDA Inc, and the new Space division, we are establishing for satellite bus manufacturing and related system integration.
The structural insight here is that the manufacturing technologies that underpin aerospace are largely dual-use and tri-use across defence and space, which means we are building one foundation that scales across three of the most strategically important industries of this decade.
The proceeds from this divestment will fund the Power 930 plan organically and inorganically, including capacity build-out at our DAC, MAC and DAL facilities, the FY27 and FY28 acquisitions pipeline in Aerospace and ESAI, and the new Space division.”
Strategic Joint Venture During Transition
Subject to regulatory and competition law approvals, the joint venture between Akkodis and AXISCADES will operate during the 24-to-30-month period between the first and second tranche closings.
While AXISCADES will retain a 49% economic interest during this period, the companies will remain independent outside the joint venture framework.
Within the arrangement, AXISCADES expects to benefit from access to Akkodis‘ global customer relationships, potential commercial opportunities that combine Akkodis’ engineering capabilities with AXISCADES’ manufacturing expertise, and transitional services covering systems, certifications, and employee continuity to protect customer operations throughout the integration process.
The company stated that this carefully structured transition is intended to maximize value creation while supporting the long-term evolution of AXISCADES into a manufacturing-led platform across aerospace, defence, space, electronics, semiconductors, and AI.
