Defence Stock Hits 5% Upper Circuit After Bagging ₹100 Cr Order from Ministry of Defence

Synopsis: Sigma Advanced Systems hit a 5% upper circuit after securing a Rs 100 crore Ministry of Defence order spanning missile, naval, and airborne systems. The win strengthens revenue visibility and reinforces its defence electronics positioning. Despite a Q3 profit dip, strong revenue growth and long-term defence relationships support investor confidence.

The shares of this company, which specialises in the design, development, and production of cutting-edge defence and aerospace solutions, had its shares in momentum today after the company bagged a Rs 100 crore defence order for supply which covers Surface-to-Air Missile (SAM) systems, anti-tank and anti-radiation missile programmes, naval weapon systems, and more.

With a market cap of Rs 3,222 crore, the shares of Sigma Advanced System Ltd hit a 5% upper circuit in today’s trading session and reached a high of Rs 182.80. When compared to its previous day’s closing price of Rs 174.10, the shares are trading at a PE of 22.5 compared to its industry PE of 21.3. The shares have given a return of more than 1,800% over the last 5 years.

About the order 

The Rs 100 crore order bagged by Sigma Advanced Systems from the Ministry of Defence and its defence PSUs in the country is a positive development for the company in the high-reliability defence electronics market in India. The order is spread across various critical defence programmes in the areas of missile systems, naval systems, and airborne systems, which is an indication that the company has a diversified exposure to multiple strategic defence sectors.

The order, which covers Surface-to-Air Missile (SAM) systems, anti-tank and anti-radiation missile programmes, naval weapon systems, and rotary wing avionics, is an indication of the company’s ability to deliver control electronics, actuation systems, and precision guidance systems to its customers. The fact that the company has executed orders for key defence organisations like BDL, HAL, and DRDO labs is an indication of the company’s strong institutional ties.

Strategically, the move improves revenue visibility and cements Sigma’s position in the indigenisation and defence modernisation drive in India. With more than three decades of experience and in-house R&D, manufacturing, and testing facilities at its Hyderabad facility, the company seems poised to take advantage of the government’s continued interest in domestic defence manufacturing and advanced aerospace systems.

Financials

The revenue from operations for the company stood at Rs 145.7 crores in Q3 FY26 compared to Q3 FY25 revenue of Rs 18.99 crores, up by about 667 per cent YoY. However, the net loss stood at Rs 1 crore in Q3 FY26, down compared to the Rs 7.31 crore profit in Q3 FY25.

The list of clients of Sigma Advanced Systems emphasises its close ties with major defence and aerospace companies like BDL, BHEL, ECIL, L&T, and ISRO, which establish its credentials in critical defence and high-tech projects. The broad client base also helps it to establish itself as a reliable supplier in strategic defence projects.

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