Sigma Advanced Systems shares surged 5% to ₹727.30 on Wednesday, reaching a new 52-week high, after the company announced securing a £125 million (approximately ₹1,600 crore) long-term contract with Rolls-Royce through its recently acquired UK subsidiary, Bromford Precision Solutions. According to CNBC TV18, this builds directly on the recently secured £300 million (approximately ₹3,800 crore) Rolls-Royce long-term agreement, demonstrating the immediate strategic value of the acquisition and expanding the Group's long-term relationship with one of the world's leading aerospace OEMs. The agreement broadens the group's product offering, manufacturing capability and content across critical aerospace programmes, as reported by CNBC TV18.
The agreement adds highly complementary manufacturing capabilities in aero engine rings and casings, and advanced precision manufacturing. Under the agreement, Bromford will manufacture aero engine rings, casings, lock plates and other critical engine structures at Sigma's India and UK manufacturing facilities. This creates a more comprehensive dual-source solution as directed by Rolls-Royce, enabling the company to supply a broader portfolio of complex engine components. The collaboration enhances India's precision engineering and defence-aerospace manufacturing base, as highlighted by The Economic Times. Bromford, which has been specializing in complex aero-engine rings and precision-machined structures since 1988, already holds approvals from Rolls-Royce and Siemens. Its Leicester facility features capabilities including multi-axis machining and manufacture of rings and casings up to one metre in diameter.
The new contract builds on the £300 million (approximately ₹3,800 crore), seven-year Rolls-Royce agreement secured in April 2026, taking the combined value of the two recently announced agreements to approximately ₹4,250 crore (₹5,400 crore). As reported by Business Standard, this agreement highlights the strategic rationale behind Sigma's acquisition of Bromford. By adding complementary products, specialist manufacturing expertise and long-standing OEM approvals, Bromford immediately expands Sigma's addressable opportunity with existing customers while accelerating the Group's progression towards higher-value, programme-level aerospace partnerships. Together, the agreements significantly strengthen Sigma's position within Rolls-Royce's UK supply chain while increasing long-term revenue visibility.
Sigma's shares have demonstrated remarkable performance, rallying 5% to ₹727.30 on Wednesday following the contract announcement, reaching a new 52-week high. As reported by CNBC TV18, the stock has gained 4,684.87% over five years, significantly outperforming the benchmark Nifty 50 which gained only 45.86% during the same period. During the June quarter, Sigma reported consolidated revenue of ₹374 crore, up 16% from ₹323 crore in the March quarter. Operational EBITDA increased 11% sequentially to ₹61 crore, with operating EBITDA margin at 16%, while profit after tax stood at ₹38 crore during the quarter. From segment-wise performance, aerospace contributed ₹229 crore to Q1FY27 revenue, while defence exports and domestic defence contributed ₹104 crore and ₹41 crore respectively.
Sigma's growing order book provides strong visibility for future growth, with the company securing over ₹8,000 crore in orders, with more than 90% coming from international markets and contracts extending beyond seven years. The company has expanded its defence business significantly, securing around ₹155 crore in orders for Indrajaal Ranger, its anti-drone patrol vehicle, including a ₹145 crore border-security order. Sigma has grown through strategic acquisitions including Bromford, Nasmyth and AS Strategic, while its investment in Indrajaal has widened its exposure to defence technology. The combination of large international order book, long-term aerospace contracts and growing defence business has strengthened Sigma's growth outlook and shifted its profile from a domestic defence supplier towards a broader global aerospace and defence player.
