1. At a Glance
C2C Advanced Systems Ltd, India’s very own “Iron Man suit” designer for the Defence Ministry, has gone full throttle in FY26. From a ₹1,074 crore market cap to 143% profit growth, the company’s Q2 FY26 numbers look like a Bollywood action climax — loud, dramatic, and oddly satisfying.
At ₹646 per share (as of 21 Nov 2025), C2C sits with a P/E of 25.1, a ROE of 21%, and a ROCE of 26.2% — the kind of ratios that make defense PSUs look like they’re still loading PowerPoint slides. The firm reported Q2 revenue of ₹66.1 crore and PAT of ₹23.7 crore, up a fiery 52.9% YoY and 143% YoY in profits.
The Bengaluru-based defense-tech specialist isn’t just making radars and combat systems anymore; it’s signing MoUs with Adani Defence, bagging Canadian naval contracts worth ₹41.7 crore, and somehow managing to irritate ICRA enough to earn a monitoring report about “unverified vendor payments.” Because what’s Indian defense tech without a pinch of corporate controversy?
2. Introduction
If DRDO is the grand old professor of India’s defense R&D, C2C Advanced Systems is the young, over-caffeinated IITian building drones that actually work. Founded with a dream to vertically integrate defense electronics, this company has taken “Make in India” so seriously that 93% of its revenues come from… overseas.
Let that sink in — an Indian defense electronics firm that mostly earns abroad. The rest of the industry is waiting for domestic tenders; C2C is already installing command systems for the Royal Malaysian Navy, shipping radar simulators to foreign warships, and doing AI-based drone detection work.
But the charm of C2C is not just in its exports or its 180% TTM sales growth. It’s the contrast. A ₹99 crore IPO (Nov 2024), ₹65 crore order book, ₹646 stock price, and ₹0 dividend — because clearly, the company believes the real ROI is emotional satisfaction from building naval simulators.
Also, there’s the drama: a BDO audit discrepancy, a preferential allotment at ₹581, and an Adani Defence partnership that made Twitter investors briefly believe they’d found India’s next HAL.
Who said defense couldn’t be entertaining?
3. Business Model – WTF Do They Even Do?
C2C Advanced Systems operates like a cross between a defense contractor, a data analytics firm, and a sci-fi movie studio. Their core idea: build everything in-house — from hardware to embedded systems to software that controls everything from warships to drone swarms.
Here’s the buffet they serve:
- Combat Management Systems (CMS): Basically, the “Windows 11” of warships. Helps naval commanders see and shoot faster. Already deployed for the Royal Malaysian Navy.
- C4I Systems: Command, Control, Computing & Communication — the military WhatsApp for secure communication and battle control.
- Anti-Drone Systems: India’s new obsession — AI-driven radars that can detect and neutralize drones faster than a Delhi aunty spots a discount at
- Sarojini.
- Integrated Platform Management Systems (IPMS): For automating ship propulsion and damage control. Think “Alexa for warships” but more patriotic.
- Digital Twin & Industry 4.0 Products: Predictive maintenance and virtual supply chains for both defense and industrial clients.
- Simulators: Because every soldier deserves a gaming console.
And if that wasn’t enough, they’re also opening an Experience Center in Dubai, because what’s better than showing off your combat tech next to the Burj Khalifa?
So, yes, they make India safer — but they also make defense tech look cooler than ever.
4. Financials Overview
| Metric | Latest Qtr (Sep 2025) | YoY Qtr (Sep 2024) | Prev Qtr (Mar 2025) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹66.1 Cr | ₹43 Cr | ₹72 Cr | +52.9% | -8.2% |
| EBITDA | ₹29 Cr | ₹14 Cr | ₹28 Cr | +107.1% | +3.6% |
| PAT | ₹23.7 Cr | ₹9.7 Cr | ₹19 Cr | +143% | +24.7% |
| EPS (₹) | 14.22 | 7.94 | 11.48 | +79% | +23.8% |
If your profits are growing 143% while your auditors are growing suspicious, you’re either a genius or you have excellent Excel formatting skills.
The Q2 numbers scream efficiency — OPM of 45%, EPS of ₹14.22, and minimal interest costs. The company has reached that rare defense nirvana where margins look like SaaS companies, and debt is just 0.22x equity.
5. Valuation Discussion – Fair Value Range
Let’s decode the valuation like a defense analyst on caffeine.
(a) P/E Method
EPS (TTM) = ₹25.7
Industry P/E = 65.8
C2C P/E = 25.1
If valued closer to industry median:
Fair value = ₹25.7 × (35–50 range) = ₹900 – ₹1,285 per share.
(b) EV/EBITDA Method
EV = ₹1,122 Cr, EBITDA (TTM) = ₹61.3 Cr → EV/EBITDA = 18.3x.
Peers like Data Patterns, Zen Tech trade at 40–70x.
Re-rating potential (if C2C cleans up ICRA drama) = ₹1,100 – ₹1,400 range.
(c) DCF Approximation
Assuming 30% CAGR for 3 years (based on 3-year profit CAGR 142%) and a discount rate of 12%, intrinsic value lands between ₹900–₹1,200.
Fair Value Range (Educational Only): ₹900 – ₹1,250 per share.
Disclaimer: This fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking
