Megasoft Ltd

Contract expansion with Rolls-Royce

• New Bromford-linked long-term contract valued at about £125m.
• Builds on existing Rolls-Royce long-term agreement of ~£300m.
• Bromford acquisition adds aero engine rings, casings and precision manufacturing.
• Manufacturing to occur at Sigma's India and UK facilities, enabling dual-sourcing.
• Strengthens long-term revenue visibility and UK manufacturing footprint.

Bromford acquisition and integration

• Bromford adds complementary capabilities in aero engine rings and casings.
• Acquisition supports Sigma's growth through targeted acquisitions.
• UK Leicestershire site enhances Sigma's UK manufacturing presence.

Outlook and strategic implications

• Management cites higher-value, long-duration aerospace programmes.
• Strategy focuses on scale via acquisitions and expanded customer relationships.
• Rolls-Royce programme pipeline improves revenue visibility.

Material contract win

• Indrajaal Ranger orders from Government of India total ₹155 crore.
• ₹145 crore Indrajaal-Sigma consortium order; ₹10 crore urban police order.

Meeting Details

• Date and time: 20 August 2026 at 09:00 IST.
• Type and mode: Physical group conference.
• Event: Kotak Manufacturing Forum 2026.
• Key participants: Company Secretary & Compliance Officer.
• Purpose: Schedule for analysts/institutional investor interaction.

Additional Notes

• Schedule subject to change due to investor/company exigencies.

Business Overview

• Integrated global aerospace and defense player with UK-India manufacturing footprint.
• 90%+ international order book; 800+ employees; 350k sq ft facilities.
• Acquired Bromford Precision Solutions and AS Strategic to expand global footprint.
• LTA with Rolls-Royce valued at ~INR 3,800 Cr; export orders ~INR 1,013 Cr.
• Sri City transfer-of-work ready; UK capex to unlock efficiencies.
• Innovation Award at Boeing Supplier Summit for R&D efforts.

Key Operational Highlights

• Global platform building via organic and inorganic growth.
• Export order for 147,000 base-bleed artillery shells; Rolls-Royce LTA secured.
• Transfer of work to India enables margin expansion.
• Capex investments in UK facilities to drive efficiencies.

Financial Performance

• Revenue from operations: Q4FY26 INR 323 Cr; Q1FY27 INR 374 Cr.
• Operational EBITDA: Q4FY26 INR 55 Cr; Q1FY27 INR 61 Cr.
• PBT: Q4FY26 INR 127 Cr; Q1FY27 INR 49 Cr.
• PAT: Q4FY26 INR 125 Cr; Q1FY27 INR 38 Cr.
• Tax: Q4FY26 INR -2 Cr; Q1FY27 INR -11 Cr.
• Depreciation: Q4FY26 INR 7 Cr; Q1FY27 INR 8 Cr.
• Order book ~INR 8,000 Cr; export orders INR 1,013 Cr; Rolls-Royce LTA INR 3,800 Cr.

Capital Structure & Liquidity

• No debt/equity changes disclosed in this chunk; focus on capex & working capital for UK.

Strategic Priorities & Outlook

• End-to-end capability expansion; forgeings and composites; grow via organic and inorganic means.
• Strengthen UK/Europe presence; establish USA footprint; deepen OEM access.
• Transfer of work to India; margin expansion via delegatory approvals.
• Backfill UK capacities by scaling defense programs; automation-focused UK capex.

Governance & Leadership

• Sunil Kumar Kalidindi, Group CEO; Shridhar Thathachary, CFO; Dr. Pramod Raju, President, Corporate Finance & M&A.
• Independent directors include Lt. Gen. B. S. Raju; Suryanarayana Raju Nandyala; Amb Dr. T. V. Nagendra Prasad; Leona Ambuja; Kalyan Sivalenka.
• Key management: Sudharsan Manivel; Sanjay Pukalay; John Rooney; Shridh ar Thathachary; Dr. Uma Garimella; Cheemarla Damodar Reddy.

Financial highlights

• Consolidated Operational Revenue of ₹37 4 crore, up 16% QoQ
• Consolidated Operational EBITDA ₹ 61 crore, up 11% QoQ
• PAT from continuing operations ₹ 38 crore

Key developments

• Rolls-Royce LTA valued at about GBP 300 million (≈₹3,800 crore).
• Acquisition of Bromford Precision Solutions completed (July 14, 2026).
• AS Strategic acquisition completed.
• Export order USD 104.9 million for 155mm base bleed shells; to be executed in 6–12 months.
• M107 shells order execution; first consignment completed; deliveries over next two quarters.
• Nasmyth pipeline active bids across aerospace/defence for contracts up to 10 years.
• Boeing Innovation Award to Nasmyth at Global Supplier Summit.
• Sri City facility commissioned; on track for full-scale production in Q3.
• Investments into UK facilities; capex and working capital to unlock efficiencies.

Meeting Details

• Date: Monday, 17 August 2026; Time: 3:00 PM–5:00 PM IST; Physical group meeting.
• Venue: Jio World Convention Centre, Mumbai.
• Event: Analysts/Institutional Investors Meeting.
• Organizer: Sigma Advanced Systems Limited.

Participants

• Company representation: Company Secretary and Compliance Officer (no personal names).

Purpose

• Investor interaction with analysts/institutional investors.

Meeting Details

• Board meeting scheduled for August 13, 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve standalone and consolidated unaudited financial results for quarter ended June 30, 2026.

Other Notes

• Trading window is closed and will reopen 48 hours after results declaration.

Transaction overview

• Export order valued at USD 104.9 million (INR ~1,013 crore) for 147,000 base-bleed shells.

Execution timeline

• To be executed over 6–12 months.

Technology and product

• Manufactures base-bleed shell bodies with aerodynamics, energetics, propulsion, and systems engineering.
• Base-bleed shells reduce drag via rear gas unit to extend range.

Strategic impact

• Aligns with global artillery modernisation and extended-range capabilities.
• Strengthens Sigma’s position in international defence supply chains.
• Expected to be margin accretive and improve profitability.

Corporate footprint

• UK subsidiary Nasmyth supports global manufacturing footprint.
• Sigma is listed on BSE and NSE; operations in India and UK.

Reference programme

• Contract to serve as reference programme for overseas customers.

Capital raise via preferential allotment

• Board approved allotment of 1,32,56,470 equity shares at ₹347 per share.
• Aggregate value ₹459.99 crore on cash basis via preferential issue.
• Allotment approved under EGM dated June 28, 2026.
• Post-allotment paid-up capital: 18,94,96,175 shares and ₹1,89,49,61,750.
• Company name changed from Megasoft Limited to Sigma Advanced Systems Limited.

Dematerialisation processing status

• Securities received for dematerialisation were confirmed to depositories by the RTA.
• Dematerialised securities have been listed on the stock exchanges where previously listed.
• Physical certificates for dematerialisation were mutilated and cancelled, with depositories' names substituted as registered owner within time limit.