Synopsis: Sigma Advanced Systems shares rose 4% after the company announced the acquisition of 100% stake in UK-based Bromford Precision Solutions Ltd. for GBP 11.89 million. The acquisition strengthens Sigma’s global aerospace manufacturing capabilities, expands its presence in the Rolls-Royce supply chain, and is expected to support long-term revenue growth.
The shares of the large-cap company, which specializes in the design, development, and high-precision manufacturing of mission-critical systems and components for the global aerospace and defense industries, are in focus upon announcing the acquisition of 100% equity stake in UK-based Bromford Precision Solutions Ltd
With a market capitalization of Rs. 10,353.20 crores in the day’s trade, the shares of Sigma Advanced Systems Ltd rose upto 3.7 percent, making a high of Rs. 605.30 per share compared to its previous closing price of Rs. 583.15 per share.
What happened
Defense and aerospace engineering company Sigma Advanced Systems Ltd. has announced the acquisition of 100% equity stake in UK-based Bromford Precision Solutions Ltd. for GBP 11.89 million (around Rs. 153 crore). The deal, expected to close by the end of July 2026, will strengthen Sigma’s global aerospace manufacturing capabilities and expand its presence in the Rolls-Royce supply chain.
Strengthens Global Aerospace Manufacturing Platform
The acquisition enhances Sigma’s international footprint by adding Bromford’s expertise in manufacturing high-precision aeroengine rings, compressor casings, ducts, brackets, and lock plates. Bromford’s capabilities complement Sigma’s existing operations and its UK subsidiary, Nasmyth Group, enabling the combined business to offer a broader range of precision-engineered products to global aerospace and power generation customers.
Growth Through Cost Optimisation and Automation
Sigma plans to improve Bromford’s profitability by investing in automation and expanding manufacturing efficiencies. The company also intends to shift the production of selected components to India, following its existing global manufacturing model, which is expected to lower costs, improve competitiveness, and support EBITDA margin expansion over the coming quarters.
Focus on Long-Term Revenue Growth
Founded in 1988 and based in Leicestershire, UK, Bromford is an operationally profitable company with long-term customer contracts. Sigma aims to accelerate revenue growth by strengthening relationships with leading OEMs, expanding long-term supply agreements, and leveraging Bromford’s established position in the global aerospace supply chain. Bromford’s existing management team will continue to oversee daily operations after the acquisition.
Here’s Why It Matters.
Sigma’s acquisition of UK-based Bromford Precision Solutions significantly strengthens its position in the global aerospace industry by adding advanced manufacturing capabilities for critical aeroengine components. Since Bromford is an established supplier within the Rolls-Royce ecosystem, the deal enhances Sigma’s credibility, expands its international customer base, and provides access to long-term aerospace programs.
The acquisition also supports Sigma’s long-term growth strategy through operational synergies. By investing in automation and shifting the production of select components to India, the company aims to improve cost efficiency and margins. Combined with Bromford’s long-standing customer relationships and profitable operations, the acquisition could help drive sustainable revenue growth and strengthen Sigma’s global aerospace manufacturing platform.
Financials & Others
The company’s revenue rose by 469 percent from Rs. 57 crores in Q4FY25 to Rs. 323 crores in Q4FY26. Meanwhile, Net profit rose by 1,401 percent from Rs. 9 crores to Rs. 128 crores during the same period.
Sigma Advanced Systems has delivered strong financial performance, with an impressive ROCE of 60.8% and ROE of 90.6%, reflecting efficient capital utilisation and robust shareholder returns. The company has also achieved an exceptional 172% CAGR in profit growth over the last five years.
The company maintains a 3-year average ROE of 35.8%, highlighting a consistent track record of profitability. It has a debt-to-equity ratio of 0.71, indicating moderate leverage, while its PEG ratio of 0.16 suggests an attractive valuation relative to its earnings growth. Another positive indicator is the 36.2% increase in promoter holding during the last quarter, which may reflect increased promoter confidence in the company’s long-term growth prospects.
Sigma Advanced Systems is a global aerospace and defence engineering company with over 30 years of industry experience. The company operates a dual manufacturing footprint across India and the UK, with more than 300,000 sq. ft. of manufacturing facilities across eight locations and a workforce of over 700 highly skilled employees.
It serves both the defence and aerospace sectors, offering products such as drones and counter-drone systems, missile guidance systems, radars, avionics, aero-engine components, and critical aerostructures. The company exports to more than 10 international markets, with over 90% of its order book coming from global customers, supported by long-term contracts of up to eight years and strong in-house R&D capabilities.
Sigma Advanced Systems derives around 50% of its revenue from missile systems, making it its largest business segment. Avionics contributes approximately 25%, followed by naval systems at 15%, while the remaining 10% comes from other defence and aerospace products and solutions.
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