Rossell Techsys Powers Future Growth and Profits

Ashwin Thakker

— 2 min read
  • Outlook for Sales: Anticipates substantial, multi-fold revenue growth for the full year FY26, building on a near-doubling in Q1 FY26 (INR45.60 Cr to INR88.29 Cr YoY). Holds confirmed Purchase Orders (POs) of over INR700 crores, with approximately INR150 crores executable in FY26, and a strategic order book of INR2,500 crores providing visibility for years. Aims for INR1,000 crores revenue in the longer term.
  • Outlook for Margin: Forecasts full-year EBITDA margins in the range of 18% to 22% and PAT margins between 8% to 12%. Profitability is expected to see a substantial uplift compared to the previous year, with Q1 FY26 marking a turnaround from negative PBT/PAT to positive. Strategic inventory build-up is expected to normalize, leading to improved working capital by year-end FY26.

Rossell Techsys Limited kicked off FY26 with exceptional Q1 results, nearly doubling revenue and turning profitability positive. This strong start underpins management's ambitious forward guidance. The company anticipates substantial growth across top and bottom lines, driven by strategic capacity expansion, value chain integration, and a diversifying customer base, positioning it for sustained success.

Solid Financial Outlook and Order Momentum

Rossell Techsys projects "a substantial, multi-fold increase" in full-year revenue and profitability for FY26, anticipating a "substantial uplift in operating margins." The company targets full-year EBITDA margins in the 18-22% range and PAT margins between 8-12%. Management expects Q1's typically slower performance and lower margins to normalize significantly in the subsequent quarters. This positive outlook is underpinned by a robust order book, including INR2,500 crores in strategic agreements and over INR700 crores in confirmed purchase orders, ensuring strong revenue visibility for the coming years. Approximately INR150 crores of current confirmed POs are slated for execution in FY26.

Strategic Expansion and Capability Enhancement

Driving future growth, Rossell Techsys is strategically investing in capacity and capability expansion. The company plans to increase its technical contribution to aircraft components from 5-7% to 12-15% in the near term, focusing on forward integration into systems and expanded MRO services. A 15,000-square-foot capacity expansion, estimated at INR1.5 crores, will be operational by Q3 FY26. Rossell Techsys has significantly diversified its customer base, growing from just two to over 30 active clients. The company is also exploring inorganic growth through fund-raising and investing in automation to enhance operational efficiency.

Rossell Techsys is strategically positioned for sustained, multi-fold growth. With ambitious targets for revenue and margin expansion, backed by a strong order book, capacity additions, and a diversifying customer base, the company is building a resilient and future-ready organization. Its commitment to value chain integration and operational efficiency signals a clear path for long-term success.

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