Goodluck Defence  and  Aerospace has emerged as a key growth engine for Goodluck India, with the Defence business delivering a strong start to FY27. During Q1 FY27, Goodluck Defence  and Aerospace generated around ₹80 crore of revenue with an EBITDA margin of approximately 38%. Management has raised its FY27 Defence revenue guidance to ₹300–350 crore, while maintaining a sustainable EBITDA margin guidance of 30–35%.

Goodluck Defence and Aerospace  has secured two major orders during the quarter. The first is a ₹255 crore order for approximately 50,000 155 mm ERFB artillery shells, to be executed over 10 months. This implies an estimated realization of approximately ₹51,000 per shell.

The company also received a ₹52 crore order for 20,000 155 mm shells, to be executed over 3 months, implying a realization of approximately ₹26,000 per shell.

Together, these orders represent approximately ₹307 crore of Defence orders covering around 70,000 shells, with a blended realization of approximately ₹43,900 per shell. However, the blended figure should not be treated as a standard realization because the two orders are for different shell variants and have different pricing.

Goodluck Defence  and Aerospace also received DGQA quality assurance certification for 107 Ready-to-Fill artillery shells, strengthening its qualification for future Defence opportunities.

The company currently has an annual capacity of 150,000 shells and plans to expand this to 400,000 shells, with achievable capacity expected at around 350,000 shells annually.

However, the expansion has been delayed by approximately 6–9 months due to financial closure and regulatory approvals. Commercial production from the expanded facility is now expected around Q4 FY28, subject to approvals. The Defence expansion requires approximately ₹400 crore of capex.

A major issue raised during the concall was the dilution of the Defence subsidiary. Goodluck Defence and Aerospace has raised approximately ₹285 crore by issuing around 75 lakh shares at ₹375 per share.

Investors questioned whether external investors were receiving exposure to the Defence business at an attractive valuation and whether a demerger or rights issue would have created better value for existing Goodluck India shareholders.

Goodluck  Defence and Aerospace  now has strong near-term order visibility, high margins and significant capacity expansion potential. With ₹307 crore of announced orders, a 30–35% sustainable EBITDA margin, and FY27 revenue guidance of ₹300–350 crore, the business could become a significant contributor to Goodluck India’s earnings.

At the upper end of management’s guidance, ₹350 crore of  revenue at a 35% EBITDA margin would translate into approximately ₹122.5 crore of EBITDA.

Goodluck Defence  and Aerospace IPO: Management has given an IPO timeline of within 18 months.