1. At a Glance – Blink and the Valuation Hits You
Rossell Techsys Ltd is that newly demerged aerospace kid on the block that markets love to hype and auditors love to squint at. Current price hovering around ₹679 gives it a market cap of roughly ₹2,570 Cr, built on TTM sales of ₹431 Cr and PAT of ₹22 Cr. That’s a Price-to-Earnings multiple of ~117x—basically priced like a startup, audited like an MSME, and funded like a leveraged contractor.
Q3 FY26 (Dec 2025) delivered ₹129.9 Cr revenue, up 71.6% YoY, while PAT grew a modest 18.3% YoY to ₹5.41 Cr. Margins are holding, debt is rising, and cash flows are… let’s just say “aspirational.” Promoters own 74.8%, no pledges, FIIs/DIIs have dipped a toe, and the stock has already run 77% in one year.
Question for you already: Is this an aerospace compounder in the making—or a balance sheet doing aerobatics without a parachute?
2. Introduction – From Demerger Baby to Market Darling
Rossell Techsys was carved out of Rossell India and listed in FY24, instantly inheriting the market’s favorite three-letter acronym: A&D. Aerospace and Defence. Add a US C-Corp structure, a Delaware registration, an Arizona address, and suddenly every investor thinks this is a mini-Boeing supplier.
Reality check: Rossell Techsys supplies Electrical Wiring & Interconnect Systems (EWIS), electrical panel assemblies, test solutions, and after-market services for defence platforms. This is not glamorous fighter-jet design—it’s the plumbing and nervous system. Essential? Yes. Sexy? Only to engineers and auditors.
The company scaled revenue aggressively post-demerger, but profitability is crawling while leverage is sprinting. And the market, being the market, is pricing FY30 dreams into FY26 numbers.
Let’s open the hood.
3. Business Model – WTF Do They Even Do?
Think of Rossell Techsys as the electrician of military aircraft and defence platforms.
What they actually do:
- EWIS (Electrical Wiring & Interconnect Systems): The veins and arteries of aircraft.
- Electrical Panel Assemblies: Control panels that decide whether something flies—or doesn’t.
- After-Market Electrical Services: Repairs, rework, and upgrades.
- Test Solutions: Because defence customers don’t trust jugaad.
They also offer “limited manufacturing,” supplier management, sourcing, quality assurance, and project management—basically everything except taking balance sheet responsibility.
Operations span Bangalore (certified to AS9100) and the US (Tempe, Arizona). Clients include Indian DPSUs, DRDO, defence forces, and foreign OEMs like Lockheed Martin, Boeing, and Honeywell.
Now ask yourself: If demand is this strong, why are returns still single-digit?
4. Financials Overview – Growth Is Loud, Profit Is Whispering
Quarterly Performance Table (₹ Cr)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 129.93 | 75.74 | 125.91 | 71.6% | 3.2% |
| EBITDA | 17.19 | 14.40 | 15.77 | 19.4% | 9.0% |
| PAT | 5.41 | 4.57* | 5.67 | 18.3% | -4.6% |
| EPS (₹) | 1.44 | 1.38 | 1.50 | 4.3% | -4.0% |
(*derived from YoY growth %)
Annualised EPS (Q3 rule):
Average of Q1–Q3 FY26 EPS × 4 ≈ ₹5.6, which matches TTM.
Witty takeaway: Revenue is flying at Mach
