RRP Defense Ltd Q2FY26: From Embroidered Sarees to Drones and Defense Deals — The ₹14 Crore Sales Phoenix with ₹1,324 Cr Market Cap is Now Armed and Dangerous

1.At a Glance

Ladies and gentlemen, buckle up. RRP Defense Ltd (BSE: 530929), once known for trading embroidered sarees and “Bollywood Bonanza” shawls, has somehow catapulted itself into India’s defense-drone orbit with the kind of plot twist that even Netflix would call “too unrealistic.” The stock, now priced at ₹965, carries a market cap of ₹1,324 crore — all this with just ₹14.1 crore of annual revenue and ₹2.5 crore of PAT. That’s right — the company trades at a nosebleed P/E of529, a price-to-book of87.2, and a price-to-sales ratio that screams “valuation yoga.”

Yet, the last quarter (Q2FY26) was an eye-popper:Sales ₹5.30 crore(up 7,471% YoY) andPAT ₹1.59 crore(up 15,800% YoY). Return on equity? 87%. ROCE? 82.7%. Debt? 0. And promoters? They’ve hiked their stake from 1.85% to a commanding74.7%— the kind of takeover maneuver you’d expect in a Bollywood corporate thriller.

So, what does this phoenix really do? From sarees to sponge iron to drones — RRP Defense has shapeshifted more than a Marvel villain. Let’s unpack this curious case of how a ₹14 crore revenue trader became a ₹1,300 crore “defense play.”

2.Introduction

Once upon a time in 1981, a small company namedEuro Asia Exports Ltdwas content exporting embroidered sarees and bridal wear. Fast forward to 2025 — it’s now calledRRP Defense Ltd, talks about drones, defense tech, and AI surveillance, and is suddenly on every “multibagger” Telegram group’s radar.

What happened in between? Probably several existential crises and one very visionary rebranding exercise. Because when your OPM jumps from 0.3% to 20.6%, and your stock goes up5,667% in a year, you’re either doing something revolutionary or writing your own myth.

The company recently approved a₹226.88 crore acquisition of RRP Drones Innovation Pvt. Ltd.via a share swap of1.27 crore shares at ₹178 each.For a firm that was once barely reporting profits, this is a scale jump that screams, “We’ve found a storyline that sells.”

But here’s the kicker: RRP hasno debt, a sky-high ROE, and a newly energized promoter base led byRajendra Kamalkant Chodankar, who seems to be steering this reincarnation like Tony Stark after watching too many episodes of “Made in Heaven.”

So yes, the defense narrative is hot. But can this former textile trader really fly drones? Or is this just an encore of India’s favorite smallcap phenomenon — the “great thematic pivot”? Let’s dig.

3.Business Model – WTF Do They Even Do?

RRP Defense’s business model can be best described asevolving faster than a GST rate change.

Historically, the company dealt in trading fabrics, garments, and random export materials. The old avatar, Euro Asia Exports, even listed “Designer Attire” and “Indian Tradition” as products. Then came the “sponge iron” phase — because why not? After all, who doesn’t want to go from lehengas to metallurgy?

Now, the narrative has morphed again. Through its acquisition ofRRP Drones Innovation Pvt. Ltd., the company aims to become a player indefense, drones, surveillance, and thermal imaging technologies. The latest announcement even mentioned aLetter of Intent (LoI)for40 PR110 Thermal Imagersworth₹2.8 crore, to be delivered over FY25-26 and FY26-27.

From that angle, it looks like RRP is no longer selling sarees but surveillance — a classic Indian capitalism glow-up.

But one thing’s for sure — whatever RRP is selling, investors are buying. Perhaps the business model isn’t just “defense and drones,” but “defend the stock price and drone the shorts.”

4.Financials Overview

Quarterly Performance (₹ in crore)

Annualized EPS:₹4.64P/E:965 / 4.64 =208x(vs. Industry PE 34.4)

Commentary:This is not a balance sheet — it’s a screenplay. The