Rossell Techsys Limited has released the transcript of its Q4FY26 earnings conference call pursuant to Regulation 30 and 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The call was held on 12 May 2026 at 9:30 AM IST, covering business performance and financial highlights for the quarter and financial year ended 31 March 2026. The transcript was filed on 14 May 2026, addressed to both BSE Limited and National Stock Exchange of India Limited, and was signed by Chief Financial Officer Jayanth V.

Financial Performance

Managing Director Rishab Mohan Gupta described Q4FY26 as the strongest quarter in the company's history. The company delivered revenues of approximately INR142 crores in Q4, representing a 62% year-on-year increase, with profits of approximately INR9.50 crores for the quarter. For the full year, key financial metrics showed substantial improvement across all parameters.

Management noted that while revenue nearly doubled, inventory increased by only 45%, reflecting disciplined working capital management. The company is targeting further reduction in inventory coverage to approximately 4 months over time.

Order Book and Revenue Visibility

The company's revenue visibility is supported by strategic agreements and confirmed purchase orders. During the year, bids aggregating nearly INR4,500 crores were submitted across aerospace, defense, space, and semiconductor segments. A landmark multi-year space contract valued at approximately INR400 crores was secured, along with repeat orders from overseas defense customers.

Of the INR715 crores in confirmed purchase orders, management indicated an approximately 50-50 split between aerospace and defense, and non-aerospace and defense segments. The INR3,000 crores in strategic agreements are primarily on the aerospace and defense side, with purchase orders typically placed 6 to 12 months before delivery.

Segment Highlights

Aerospace and Defense: Programs delivered consistent on-time performance throughout the year. Boeing acknowledged the company's efforts and agreed to level-load future schedules. Approximately INR75 crores of the Boeing program was executed during the year, with approximately INR70 crores remaining for the current financial year, weighted toward the first two quarters. The T-7 program is expected to ramp up in the later part of the current financial year and grow consistently over the next five to seven years.

Semiconductor: Following successful customer qualification in the second quarter of FY26, volumes ramped up immediately. Semiconductor and space segments together contributed approximately 20% of FY26 revenue. Management is targeting 300% to 400% growth in both semiconductor and space revenues in FY27. The company is also in the process of onboarding an additional major overseas semiconductor customer. Long-term revenue potential in semiconductors was cited at up to USD200 million over three to five years.

Space: The company progressed from qualification to volume-ready execution, securing a major space contract valued at approximately INR400 crores. The first large production batches were successfully executed. Additional customers are being onboarded in the space segment. One space customer is also encouraging an expanded presence through the company's US subsidiary, Rossell Techsys Inc. (RTI).

MRO: The company has obtained its DPL license and AS9110 MRO certification, formally unlocking the Indian market for manufacturing, repair, overhaul, and aftermarket services. Revenue pickup from MRO is expected in coming quarters, with interest from both existing and new customers globally.

Capacity Expansion and Balance Sheet

To address growing customer demand, the company has decided to lease an additional facility of approximately 210,000 square feet adjacent to its existing operations, replacing a previously contemplated new construction. Space and semiconductor programs will be migrated to the new facility. Management stated this decision enables faster operational readiness and ensures capacity will not constrain growth.

On the balance sheet, the company secured additional working capital facilities during Q4. A QIP fundraise is being actively pursued, with proceeds intended for three areas: capacity expansion and infrastructure, operational and quality systems, and working capital for scale. Management indicated the QIP size is being targeted in the range of 7% to 10% of market capitalization.

Workforce and Shareholder Returns

The company's workforce grew from 680 to nearly 1,200 over two years. Employee increments and performance bonuses were implemented during the year. The company also announced a dividend distribution in line with its commitment to balancing growth investments with shareholder returns.

Management Guidance

Geographically, approximately 98% of revenue is export-driven, with approximately 80% of exports originating from North America. The company is actively diversifying into Southeast Asia, the Middle East, and Europe. All shipments are currently air-freighted, with freight costs borne by customers.

Earnings Call Details

The management team on the call comprised Managing Director Rishab Mohan Gupta, Chief Executive Officer Senthil Balasubramanian, Chief Operating Officer Zeena Philip, and Chief Financial Officer Jayanth V. The trading window for dealing in Rossell Techsys securities remains closed until 48 hours after the declaration of financial results, in accordance with the company's Code of Conduct for Prevention of Insider Trading.

Rossell Techsys Limited's Board of Directors, at their meeting held on May 11, 2026, approved the audited standalone and consolidated financial statements for the financial year and quarter ended March 31, 2026. The statutory auditors, M/s. Raghavan, Chaudhuri & Narayanan, Chartered Accountants, issued an unmodified opinion on both the standalone and consolidated financial results. The board also recommended a final dividend of ₹0.30 per equity share of face value ₹2/- each (15% of face value) for the financial year ended March 31, 2026, subject to approval by shareholders at the ensuing Annual General Meeting.

Q4 Operational Highlights

Rossell Techsys posted notable year-on-year improvement in Q4 operational metrics. The company reported Q4 EBITDA of ₹163M compared to ₹153M in the same period last year. EBITDA margin, however, contracted to 11.44% from 17.40% year-on-year, reflecting the significant scale-up in revenue. Standalone net profit for Q4 stood at ₹75M versus ₹69M in the corresponding prior-year period, while Q4 standalone revenue surged to ₹1.42B from ₹878M year-on-year.

Standalone Financial Performance

Rossell Techsys delivered a strong performance on a standalone basis for FY26, with revenue from operations nearly doubling compared to the prior year. Total income for the full year reached INR 49,006.38 lakhs against INR 26,208.72 lakhs in FY25. The company operates in a single segment — engineering and manufacturing of electrical wire harness and interconnect systems. An exceptional cost of INR 102.28 lakhs was recorded for the quarter ended December 31, 2025 and the year ended March 31, 2026, on account of past period employee benefit liability as calculated under the New Labour Codes, which became effective November 21, 2025.

The following table summarises the standalone financial results:

Consolidated Financial Performance

On a consolidated basis, which includes the wholly owned subsidiary Rossell Techsys Inc., the group reported total income of INR 49,019.50 lakhs for FY26 compared to INR 26,236.22 lakhs in FY25. Consolidated revenue from operations stood at INR 48,511.66 lakhs for FY26, net of intercompany transfers. The subsidiary Rossell Techsys Inc. reported total assets of INR 573.58 lakhs as at March 31, 2026, total revenues of INR 522.53 lakhs and INR 1,757.56 lakhs for the quarter and year ended March 31, 2026 respectively, net profit after tax of INR 5.32 lakhs and INR 115.25 lakhs, and total comprehensive profit of INR 21.42 lakhs and INR 144.71 lakhs for the quarter and year ended March 31, 2026 respectively, with net cash inflows of INR (138.99) lakhs for the year ended on that date.

Balance Sheet Highlights

The standalone balance sheet as at March 31, 2026 reflects significant expansion in the company's asset base and working capital position compared to the prior year. On a consolidated basis, total assets stood at INR 63,095.79 lakhs as at March 31, 2026 compared to INR 42,289.57 lakhs in the prior year, while total equity on a consolidated basis was INR 15,486.14 lakhs versus INR 13,360.53 lakhs.

Cash Flow and Dividend

The standalone cash flow statement for the year ended March 31, 2026 shows net cash used in operating activities of INR (8,160.46) lakhs and net cash used in investing activities of INR (2,236.66) lakhs, while net cash from financing activities was INR 14,878.02 lakhs. Cash and cash equivalents at the end of the standalone period stood at INR 4,658.09 lakhs compared to INR 177.19 lakhs at the beginning of the year. On a consolidated basis, net cash used in operating activities was INR (8,279.81) lakhs, net cash used in investing activities was INR (2,256.30) lakhs, and net cash from financing activities was INR 14,878.02 lakhs, with cash and cash equivalents at the end of the year at INR 4,749.84 lakhs compared to INR 407.93 lakhs at the start. The company reported no defaults on its outstanding working capital loans of INR 40,940.54 lakhs as at March 31, 2026, and no outstanding unlisted debt securities. The Board has recommended a final dividend of ₹0.30 per equity share of face value ₹2/- each for the financial year ended March 31, 2026, to be paid within the timelines prescribed under applicable law if declared at the ensuing Annual General Meeting.

Related Party Transactions

Key related party transactions for the period are summarised below:

Demerger and Post-Demerger Transition

During the financial year, Rossell Techsys completed the transfer of its registrations, assets and liabilities — including bank accounts and loan facilities — to its own name following the demerger from Rossell India Limited. However, agreements with certain customers are yet to be amended in the company's name, and supplies and services for such customers continue to be routed through the demerged entity pending amendment of the respective agreements. The financial results have been prepared in accordance with the conceptual framework under Ind AS 1 — Presentation of Financial Statements, which emphasises the substance of transactions over their legal form.