ROSSTECH - Rossell Techsys

📊 NSE: ROSSTECH 🏢 Engineering 📅 Last Updated: 12/14/2025 12:27

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 145.3% YoY in Q2 FY26 to INR 126 Cr. H1 FY26 revenue grew 121.2% YoY to INR 212.2 Cr. Growth is driven by core Aerospace & Defense, with new contributions from Semiconductor and Space segments.

Geographic Revenue Split

Operations are split between India (manufacturing) and the USA (Rossell Techsys Inc). Specific regional % split is not disclosed, but major revenue is derived from global OEMs like Boeing and Lockheed Martin.

Profitability Margins

Gross margins are currently 37-38%. H1 FY26 PBT turned positive at INR 10.7 Cr compared to a loss of INR 5.9 Cr in H1 FY25. Margins are temporarily suppressed by FAI (First Article Inspection) learning curves on new contracts.

EBITDA Margin

H1 FY26 EBITDA margin was 12.77% (INR 27.1 Cr). Management has provided a sustainable long-term EBITDA margin guidance of 15% to 22% as production scales and efficiencies improve.

Capital Expenditure

Planned capex of INR 70 Cr for a 150,000 sq. ft. capacity expansion within existing premises. Total manufacturing area will increase from 225,000 sq. ft. to 375,000 sq. ft. over an 18-month timeline.

Credit Rating & Borrowing

Not disclosed in available documents; however, the company is evaluating a QIP of up to INR 300 Cr to strengthen the balance sheet and reduce reliance on debt for working capital.

⚙️ Operational Drivers

Raw Materials

Specific raw materials include copper wires, cables, connectors, and electronic components for panels. Individual cost % per material is not disclosed.

Capacity Expansion

Current capacity is 225,000 sq. ft. Expanding by 150,000 sq. ft. (66% increase) at a cost of INR 70 Cr to meet rising demand from new space and semiconductor orders.

Raw Material Costs

Raw material costs are managed through a strategic procurement strategy aimed at reducing inventory levels while maintaining operational discipline.

Manufacturing Efficiency

Initial efficiency on new contracts is lower due to FAI requirements; efficiency is expected to improve significantly post-qualification as production becomes lean.

📈 Strategic Growth

Expected Growth Rate

100%+

Growth Strategy

Growth will be achieved through a 66% capacity expansion, a planned INR 300 Cr QIP for working capital, and scaling new segments in Space and Semiconductors where bids totaling INR 932.2 Cr have been submitted.

Products & Services

Interconnect systems, wire harnesses, and electronic control panels for aerospace, defense, and space platforms.

Brand Portfolio

Rossell Techsys

New Products/Services

Qualified for major space programs and qualified as a supplier for a new semiconductor customer, with revenue contributions starting in Q2 FY26.

Market Expansion

Aggressive expansion into the Space and Semiconductor sectors to complement existing Aerospace and Defense leadership.

Strategic Alliances

Long-term strategic agreements with Boeing (T7 program), Lockheed Martin (Outstanding Supplier Excellence 2025), and Airbus.

🌍 External Factors

Industry Trends

The industry is shifting toward high-volume semiconductor and space technologies. Rossell is positioning itself as a future-ready leader by diversifying beyond traditional defense interconnects.

Competitive Landscape

Competes with global Tier 1 and Tier 2 aerospace and defense suppliers.

Competitive Moat

Moat is built on high entry barriers (FAI qualifications), long-term OEM partnerships, and specialized certifications (AS9110, CMMC 2.0) which are difficult for new entrants to replicate.