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 of 529, a price-to-book of 87.2, 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) and PAT ₹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 commanding 74.7% — 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 named Euro Asia Exports Ltd was content exporting embroidered sarees and bridal wear. Fast forward to 2025 — it’s now called RRP 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 up 5,667% 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 of 1.27 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 has no debt, a sky-high ROE, and a newly energized promoter base led by Rajendra 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 as evolving 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