Rossell Techsys Limited (NSE: ROSSTECH) has secured a significant long-term contract with aerospace giant Boeing (NYSE: BA), further solidifying its position in the global aerospace supply chain. The Bengaluru-based company has signed an Indefinite Delivery, Indefinite Quantity (IDIQ) agreement to manufacture electrical panel assemblies for Boeing's T-7A Red Hawk advanced pilot training system.

Contract Details

The newly inked contract allows Rossell Techsys to produce up to 1,200 shipsets of electrical panel assemblies through 2033. This agreement builds upon the company's previous IDIQ contract for wire harness assemblies for the same platform, showcasing Boeing's continued trust in Rossell's capabilities.

Expanding Partnership

Rossell Techsys has been associated with the T-7A Red Hawk program since its engineering and manufacturing development stages. The company's consistent performance and quality output have not gone unnoticed, as evidenced by two prestigious Boeing 'Supplier of the Year' awards.

Rishab Gupta, Managing Director of Rossell Techsys Limited, expressed pride in the strengthened partnership, stating, "This contract further strengthens our long-standing partnership with Boeing, which began in 2013. It is a privilege to contribute to this global initiative and reinforce India's position as a hub for aerospace manufacturing excellence."

Diverse Portfolio

The collaboration between Rossell Techsys and Boeing extends beyond the T-7A Red Hawk. The Indian company supports Boeing across multiple defense platforms, including:

• F/A-18 Super Hornet
• F-15 Eagle
• AH-64 Apache
• CH-47 Chinook
• V-22 Osprey
• P-8 Poseidon
• KC-46 Pegasus

To date, Rossell Techsys has delivered more than 160,000 critical assemblies to Boeing, underscoring its reliability and expertise in the aerospace manufacturing sector.

About Rossell Techsys

Headquartered in Bengaluru, Rossell Techsys Limited is a globally focused company that provides end-to-end design, custom engineering, and manufacturing services for the Aerospace, Defense, and adjacent industries. The company boasts a strong export footprint and operates with multiple integrated certifications across quality, risk management, environmental stewardship, organizational health, and cybersecurity.

This latest contract not only strengthens Rossell Techsys' relationship with Boeing but also reinforces India's growing importance in the global aerospace manufacturing landscape. As the company continues to expand its capabilities and portfolio, it is well-positioned to capitalize on future opportunities in the aerospace and defense sectors.

Rossell Techsys Limited , a leading provider of mission-critical solutions for the aerospace and defense sector, has reported a robust performance for the first quarter of fiscal year 2026. The company's management shared insights on its growth trajectory, diversification efforts, and future outlook during a recent earnings call.

Financial Highlights

• Total income for Q1 FY26 nearly doubled to INR 88.29 crores, up from INR 45.60 crores in Q1 FY25.
• Profit before tax improved from a negative INR 5.98 crores to a positive INR 4.01 crores.
• Profit after tax rose from a negative INR 4.47 crores to a positive INR 2.98 crores.

Operational Highlights

• The company's customer base has expanded significantly, growing from just 4 customers in 2020 to over 30 customers currently, with 26 active engagements.
• Rossell Techsys has diversified its portfolio beyond defense, venturing into space, energy, and semiconductor sectors.
• Boeing's contribution to the company's revenue is expected to be approximately 40% this year, down from previous years, indicating successful diversification efforts.

Future Outlook

• Management anticipates substantial growth in financial performance for the full year, with expectations of a multi-fold increase in revenue and potential multi-fold increase in profitability.
• The company is targeting EBITDA margins in the range of 18% to 22% in the short term.
• Rossell Techsys is evaluating inorganic growth opportunities to expand its capabilities and move up the value chain.

Strategic Initiatives

• The company is undertaking a capacity expansion of 15,000 square feet within its existing premises at an estimated cost of INR 1.5 crores, expected to be operational by Q3 FY26.
• Rossell Techsys is focusing on increasing its technical capabilities from the current 5-7% of aircraft components to 12-15% in the near term.
• The management is considering a fund-raise initiative to fuel growth and support expansion plans.

Sector-wise Performance

Challenges and Mitigation

• The company acknowledged an increase in inventory and working capital but stated it as a strategic decision to support growth.
• Management expects inventory levels to normalize by the end of the fiscal year, with a target of achieving a three-month inventory cycle in the long term.

Rishab Gupta, Managing Director of Rossell Techsys, expressed confidence in the company's growth prospects, stating, "We are very well positioned this year. As a company, we're expecting significant growth on our top line and bottom line, and that should continue in the short-, medium- and long-term."

The management's focus on diversification, capacity expansion, and potential inorganic growth initiatives positions Rossell Techsys for continued growth in the evolving aerospace and defense landscape.