Sigma Advanced Systems Limited has acquired 100% of the equity share capital of UK-based Bromford Precision Solutions Limited for approximately GBP 11.89 million (approximately INR 153 crore). The strategic move aims to strengthen Sigma's position as a leading supplier to key OEMs in the aerospace and defence sector by integrating Bromford's specialised manufacturing capabilities. The transaction, expected to close by end July 2026, represents an enterprise value to adjusted EBITDA (CY2026 estimate) multiple of approximately 4.6x.

Transaction Structure

The acquisition is being executed through Sigma Advanced Systems UK Limited, a wholly-owned subsidiary, with the entire consideration payable in cash. requisite approvals under the National Security and Investment Act, UK, have already been obtained. The deal is not a related party transaction, and the promoter, promoter group, or group companies do not have any interest in the entity being acquired. The disclosure was made to the exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Strategic Rationale

This acquisition marks a significant milestone in Sigma's international growth strategy, strengthening its position within the Rolls-Royce supply chain while complementing its UK division, Nasmyth Group. Bromford's capabilities directly complement Sigma's expertise in manufacturing larger components for the same OEM customers, giving the combined platform a deeper full-range product offering. Bromford brings new product offerings through long-term contracts to manufacture components such as engine lock plates.

About Bromford Precision Solutions

Bromford Precision Solutions Limited, incorporated in the United Kingdom in 1988, is a manufacturer supplying specialised complex aero engine rings and engine structures directly to leading OEMs in the UK and Europe. The company operates from its facility in Leicestershire and specialises in manufacturing complex aeroengine ring components and other complex precision-machined aeroengine structures such as compressor casings, ducts, brackets, and lock plates. It is an operationally profitable business with approvals from leading OEMs including Rolls-Royce and Siemens.

Financial Overview of Bromford Precision Solutions

Value Creation Plan

Sigma intends to apply its operational playbook to create sustained value at Bromford through margin expansion, India-based manufacturing, and revenue growth. The company plans to target EBITDA margin improvement through capital investment and automation, transition select component manufacturing to India to optimise costs, and achieve revenue growth through deeper penetration with leading OEM customers. Bromford's experienced management team will continue to lead day-to-day operations.

Sigma Advanced Systems reported a net profit of ₹128 crore for the quarter ended March 31, 2026 (Q4 FY26), driven by its integrated aerospace and defense operations. For the full fiscal year FY2026, the company recorded a net profit of ₹268 crore. Revenue from operations stood at ₹323 crore in Q4 FY26 and ₹492 for the entire year, reflecting the company's position as a Tier 1 global player in the sector.

The company disclosed its financial performance in a revised corporate presentation dated July 1, 2026, filed pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015. The presentation outlined the firm's strategic priorities, focusing on driving growth in core and transformational areas while unlocking value through margin expansion. Sigma Advanced Systems operates across 10+ international export markets with 300K+ sqft facilities across 8 locations.

Financial Performance

The Profit and Loss statement for the period indicates a Profit Before Tax (PBT) of ₹130 crore for Q4 FY26 and ₹301 crore for FY2026. The company incurred a tax expense of ₹2 crore in the quarter and ₹33 crore for the full year. Fixed assets as of March 31, 2026, were recorded at ₹334 crore, with total liabilities standing at ₹1,059 crore.

Strategic Expansion and Operations

Sigma Advanced Systems detailed its value chain play, spanning from components to fully integrated products. The company has made strategic investments, including acquiring a 51% stake in AS Strategic to strengthen its presence in Indian, European, and global markets. Its portfolio includes defense products and IP, such as AI-led counter UAS systems, and aerospace sub-assemblies supplied to global OEMs like those for the F-35 and Gripen platforms.

The manufacturing footprint includes bases in the UK and India, with a new state-of-the-art facility coming up in Sri City. The company leverages deep customer relationships and long-life platforms, with 15 to 20 years of life remaining in the majority of active platforms. Key management personnel, including Group CEO Sunil Kumar Kalidindi and CFO Shridhar Thathachary, lead the operations.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE933B01012/b3e309a8f2b64e3f.pdf