Rossell Techsys to expand production space in its existing Bengaluru facility

By Staff Report August 14, 2025 4:40 pm IST

Rossell Techsys Ltd. is a leading Indian aerospace and defence company specialising in high-reliability engineering and manufacturing services. Rossell Techsys Ltd. has announced a strategic expansion plan to support its growing order book and drive significant revenue and profitability growth in FY26. The announcement follows the company’s strongest-ever Q1 results for FY25-26, driven by high-volume orders and new customer acquisitions.

To meet the rising demand across key programmes, Rossell Techsys will add 15,000 sq. ft. of production space within its existing Bengaluru facility. The expansion, with a planned investment of ₹1.5 crore, is expected to be operational by Q3 FY26 (by December 2025).

In parallel, the company has launched second-shift operations and accelerated hiring across functions, significantly scaling throughput to convert orders into revenue faster.

“Over the past year, we’ve transformed pipeline momentum into executable orders and aligned our capacity to deliver,” said Rishab Gupta, Managing Director, Rossell Techsys Ltd. “With the new expansion, ramped-up operations, and the addition of higher-margin programmes, we expect a meaningful uplift in operating margins and the potential for multi-fold growth in profitability in FY26.”

Key Highlights

• New Production Space: 15,000 sq. ft. under development; capex of 1.5 crore; ready by Q3 FY26.
• Second-Shift Operations: Already deployed to accelerate throughput and lead time. 
• Workforce Growth: Scaled from 680 to 950 employees to support expanding execution needs.
• Strong Order Pipeline: A combination of confirmed orders and major new customer wins ensures multi-year revenue visibility.
• Strategic Qualification: Recently qualified by a leading global OEM for wire-harness programmes; production scaling underway in Q2 FY26.
• Satellite Programme Win: Secured a new order from a customer for satellite assemblies; production ramp-up expected from October 2025 following successful qualification by end-Q2 FY26.
• Fundraising Under Review: Management is evaluating a fundraising initiative to support growth and working capital requirements.
• Business Outlook: Rossell Techsys expects its expanded capacity and operational scaling to:
  – Reduce lead times and improve on-time delivery
  – Optimise fixed cost absorption and improve asset utilisation
  – Enable faster conversion of high-margin programmes into revenue

Given the scale, timing, and profitability profile of confirmed programmes, the company anticipates substantial year-on-year increase in revenue for FY26 and the potential for multi-fold profitability growth over FY25-26. They also expect a marked improvement in operating margins.