Voluntary solvent liquidation initiated for German step-down subsidiary add-solution GmbH

German step-down subsidiary add-solution GmbH enters voluntary solvent liquidation, not an insolvency.

Mon 5 Oct 2026

FY26 consolidated turnover contribution

₹15.62 crore (1.35% of consolidated turnover)

Net worth as at 31 March 2026

₹(14.37) crore (negative net worth)

Standalone PAT loss (FY25 to Q1FY27)

₹34.48 crores

Dissolution effective date

25 September 2026 (members' resolution 24 September 2026)

Ownership

100% step-down subsidiary, held through AXISCADES GmbH

Voluntary solvent liquidation of German step-down subsidiary

What was announced

• The wholly owned German step-down subsidiary, add-solution GmbH, held through AXISCADES GmbH, has been placed into voluntary solvent liquidation.
• The members' resolution was adopted on 24 September 2026, and the dissolution is effective from 25 September 2026. It has been registered with the German Commercial Register office.
• The company describes this as a voluntary solvent liquidation under German law, and not an insolvency proceeding.
• add-solution is based in Wolfsburg, Germany, and provides engineering design services to the automotive industry. It became part of the group in June 2023.

Why the company gives for the decision

• The update points to a downturn in the German automotive sector that reduced demand, with the business recording losses for several consecutive quarters.
• Following an evaluation of strategic alternatives, the group determined that a voluntary solvent liquidation was the appropriate course.
• The company says this completes its exit from automotive engineering services, after the recently completed transfer of the Automotive Engineering Services business, and removes the group's remaining automotive engineering exposure.
• It says the decision addresses recurring losses and supports earnings quality, and lets management attention remain on its growth platforms: aerospace manufacturing, defence, XIDA and space.
• The company states the liquidation is not expected to have any material impact on its operations or profitability, while removing a recurring drag on consolidated profitability.

The numbers to note

• Contribution to FY26 consolidated turnover: ₹15.62 crore, which is 1.35% of consolidated turnover.
• Net worth as at 31 March 2026: ₹(14.37) crore (negative net worth).
• On a standalone basis, add-solution incurred a PAT loss of ₹34.48 crores between FY25 and Q1FY27, and continues to incur losses.
• Ownership: 100% step-down subsidiary, held through AXISCADES GmbH.
• Consideration / buyer: Not applicable. Related party transaction: Not applicable.

What happens next

• The liquidation will be carried out in accordance with applicable German law. The liquidator will realise assets, settle liabilities and complete the winding-up process.
• Any accounting effects will be recognised in the company's results for the relevant periods in accordance with applicable accounting standards.

Management commentary

Shashidhar SK, Group CFO, said: "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."

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