AXISCADES Technologies Ltd has initiated the voluntary solvent liquidation of its wholly owned German step-down subsidiary, add-solution GmbH, as the company seeks to exit its remaining automotive engineering services exposure and improve earnings quality.
The members’ resolution for liquidation was adopted on September 24, 2026, with the dissolution becoming effective from September 25, 2026, following its registration with the German Commercial Register.
German automotive downturn triggers exit
Based in Wolfsburg, add-solution provides engineering design services to the automotive industry. AXISCADES said the downturn in the German automotive sector reduced demand for these services, resulting in losses for the business over several consecutive quarters.
Following an evaluation of strategic alternatives, the Group concluded that voluntary solvent liquidation was the appropriate course of action.
The process is a solvent liquidation and not an insolvency proceeding and will be undertaken in accordance with applicable German law.
Subsidiary contributed 1.35% of FY26 turnover
The decision is expected to remove a recurring drag on AXISCADES’ consolidated profitability.
add-solution contributed ₹15.62 crore, or 1.35%, of AXISCADES’ consolidated turnover in FY26. The subsidiary had a negative net worth of ₹14.37 crore as of March 31, 2026.
On a standalone basis, add-solution incurred a PAT loss of ₹34.48 crore between FY25 and Q1 FY27 and continued to report losses.
AXISCADES said the liquidation will help address the recurring losses while supporting the quality of its earnings.
Focus shifts to aerospace, defence and technology
The liquidation follows the recently completed transfer of AXISCADES’ automotive engineering services business and effectively completes the Group’s exit from automotive engineering services.
The company said the move will enable management to focus its attention and resources on its growth platforms, including aerospace manufacturing, defence, XIDA and space.
AXISCADES does not expect the liquidation to have any material impact on its operations or profitability. At the same time, the company expects the move to eliminate a recurring drag on consolidated profitability.
Liquidator to oversee winding-up
The liquidator will realise the subsidiary’s assets, settle its liabilities and complete the winding-up process in accordance with German law.
Any accounting impact arising from the liquidation will be recognised in AXISCADES’ financial results for the relevant periods in accordance with applicable accounting standards.
The company said it will keep the stock exchanges informed of material developments as required under the SEBI (LODR) Regulations, 2015.
AXISCADES targets earnings quality
AXISCADES Technologies Ltd Group CFO Shashidhar SK said the decision reflects a financially disciplined approach to dealing with a non-core, loss-making business.
“This is a financially disciplined decision to address a non-core, loss-making exposure. The orderly, solvent process supports our focus on earnings quality, capital efficiency and disciplined execution of Power 930,” he said.
AXISCADES Technologies is a publicly listed technology company headquartered in Bengaluru, with operations across Europe, the Americas and the APAC region. The company provides product-based aerospace and defence solutions along with advanced electronics, semiconductor and AI products, working with global OEMs and Tier 1 suppliers.