Rossell Techsys Q4 FY26 Earnings Call Transcript Released

Rossell Techsys Limited has released the transcript of its earnings call held on May 12, 2026. The call, which deliberated on the business performance and financial highlights for the quarter and financial year ended March 31, 2026, featured discussions led by Managing Director Mr. Rishab Mohan Gupta, CEO Mr. Senthil Balasubramanian, COO Ms. Zeena Philip, and CFO Mr. Jayanth V.

During the call, the company highlighted a transformative financial year '25-'26, marked by significant growth and strategic execution. For the fourth quarter, Rossell Techsys reported its strongest performance to date, with revenues of approximately ₹142 crore, a 62% year-on-year increase, and profits of around ₹9.5 crore. For the full fiscal year '26, revenue surged by 87% to ₹485 crore from ₹259 crore in FY25. Profit before tax more than doubled from ₹10 crore to ₹28 crore, and EBITDA increased from ₹38 crore to ₹66 crore, despite substantial investments in capacity, people, inventory, and market expansion.

The company's order book visibility is strong, supported by strategic agreements aggregating approximately ₹3,000 crore. Confirmed purchase orders stand at around ₹715 crore, with new orders received during the year totaling approximately ₹570 crore. Bids submitted across aerospace, defense, space, and semiconductor segments aggregated nearly ₹4,500 crore, including a landmark multi-year space contract valued at approximately ₹400 crore and repeat orders from overseas defense customers.

Operational highlights include consistent on-time performance in aerospace and defense programs, with Boeing agreeing to level-load future schedules. The semiconductor segment emerged as a key growth driver, with significant volume ramp-ups and plans to onboard another major overseas customer. Space programs progressed from qualification to volume-ready execution, with the first large production batches successfully executed and plans to scale meaningfully in FY27. The company is also evaluating expanding its US subsidiary's presence to capitalize on growing demand.

Rossell Techsys has formally unlocked the Indian market for manufacturing, repair, and aftermarket services with its DPL license and AS9110 MRO certification, establishing strong domestic partnerships. The company is also positioning for a more meaningful entry into commercial aerospace programs, which it believes has the potential to be transformational.

Financially, inventory increased by 45% while revenue grew 87%, reflecting disciplined working capital management, with inventory coverage improving to 7.67 months from a historical 10 months. To meet growing demand, the company is leasing an additional 210,000 sq ft facility, which will house space and semiconductor programs, ensuring capacity is not a constraint on growth.

Financially, the company secured additional working capital facilities and is actively pursuing fundraising initiatives to strengthen its balance sheet for accelerated global scale-up. The workforce has grown to nearly 1,200 employees, with continued investment in training and upskilling. In line with its commitment to balancing growth with shareholder returns, the company announced a dividend distribution.

During the Q&A, management indicated that margins are expected to improve in FY27, targeting a range of 17% to 22%. They also projected similar revenue growth for FY27 as seen in FY26. The company is exploring fundraising via QIP for growth enablement infrastructure and to support accelerated global scale-up. Efforts are underway to reduce inventory levels further. The company also addressed a loss-making Boeing order, with approximately ₹70 crore remaining to be executed in FY27. Significant growth of 300-400% is anticipated for both semiconductor and space segments in FY27. The company hopes to receive RFPs for commercial aerospace by Q2 FY27, with potential for significant scale in subsequent years. MRO business is expected to bring in more value and significantly increase profit margins. Deliveries for a large strategic contract with Boeing (T-7 program) have started, with ramp-up expected in Q3 FY27, with strategic agreements valued at close to USD $200 million. The company envisions moving up the value chain, potentially into electromechanical integrated systems and assemblies, with profit margins increasing to 21-30% in Phase 2 (FY28-29). The MRO business is also expected to yield higher profit margins. Employee costs were around 15.5% of revenue in FY26 and are expected to improve in FY27. The semiconductor business has significant potential, with a target of up to USD $200 million in revenue in three to five years. Cash flow is expected to improve in the coming years.