Synopsis:- Reporting its first audited annual results after completing a corporate merger, acquiring UK aerospace manufacturer Nasmyth Group, and booking a Rs.184.64 crore property sale gain, Sigma Advanced Systems (formerly Megasoft Limited) has posted consolidated FY26 PAT of Rs.268 crore a headline that requires significant stripping of one-time items before it speaks to the underlying defence business, where standalone revenue grew 47 percent to Rs.157.64 crore and represents the most comparable signal of operational progress.
A dual-listed aerospace and defence company came into focus after reporting its first set of audited annual results under a new name, following a year that compressed a corporate merger, a major overseas acquisition, a property divestiture, and a subsidiary exit into a single financial year. The consolidated numbers carry large headline figures; year-on-year comparisons are, by the company’s own admission, not meaningful.
With a market capitalisation of Rs. 6,791.4 crore, the shares of Sigma Advanced Systems Limited were trading at Rs. 385.35 per share as of May 22, 2026, up 5 percent from its previous closing price of Rs. 367 apiece. It is trading at a P/E of 24.7.
Four structural events define the FY26 results and must be understood before reading a single financial figure. The National Company Law Tribunal, Chennai, approved the merger of Sigma Advanced Systems Private Limited into the erstwhile Megasoft Limited in December 2025, with an appointed date of April 1, 2024. The company simultaneously renamed itself Sigma Advanced Systems Limited, and the merger triggered a full restatement of FY25 comparative figures making any prior-period comparison technically comparable only to the restated numbers now on record.
In November 2025, through its wholly owned UK subsidiary, the company acquired 100 percent of Nasmyth Group Limited, a UK-based precision aerospace engineering group with 22 subsidiaries that manufactures components for defence and aerospace OEMs. Nasmyth’s financials are consolidated from November 1, 2025, meaning only five months of revenues and costs appear in FY26. The full annual contribution will begin reflecting from FY27.
The company also sold a large parcel of landed property in April 2025, recording a pre-tax profit of Rs.184.64 crore on the transaction in the standalone accounts. During the year, it separately divested its entire stake in Extrovis AG, generating an estimated gain of approximately Rs.76.89 crore at the consolidated level.
FY26 Financial Performance
On a consolidated basis, revenue from operations reached Rs.491.88 crore in FY26, against a restated Rs.107.36 crore in FY25, a figure rendered non-comparable by the Nasmyth partial consolidation. Consolidated PAT came in at Rs.268.04 crore, against a restated loss of Rs.13.98 crore. The bulk of the PAT is attributable to the property sale gain and Extrovis divestiture proceeds rather than operating performance. Exceptional items of Rs.10.50 crore were charged during the year, likely relating to merger and acquisition costs.
The standalone results offer a more comparable read of the India defence and aerospace business. Standalone revenue from operations grew 46.8 percent to Rs.157.64 crore from the restated Rs.107.36 crore. Standalone PAT was Rs.200.63 crore but Rs.184.64 crore of that came from the property sale. Strip out the property gain, and the India business generated a PAT in the range of Rs.25-35 crore depending on tax treatment assumptions, broadly in line with the FY25 base and reflective of a business still building revenue density. The more meaningful data point is Q4 FY26 standalone revenue of Rs.105.70 crore, up from Rs.56.73 crore in Q4 FY25 suggesting the Indian operations entered FY27 with accelerating execution.
Consolidated EPS for FY26 stood at Rs.15.21 on the expanded equity base of Rs.176.24 crore face value (17.62 crore shares), against a loss of Rs.0.79 per share in the restated FY25. The acquisition of Nasmyth cost approximately Rs.197 crore net of cash acquired, funded through new borrowings at the consolidated level; non-current borrowings rose from Rs.128.74 crore to Rs.293.71 crore accordingly.
Promoter Holding and Governance
Promoter holding surged from 35.07 percent as at March 2025 to 71.22 percent as at March 2026 the largest single-quarter shift in the company’s publicly available shareholding history. This is a direct consequence of the merger: new shares were issued to the promoters of Sigma Advanced Systems Private Limited as merger consideration, nearly doubling their stake. A promoter holding of over 70 percent substantially reduces the risk of dilutive equity actions and places more of the long-term outcome squarely with the founding group.
Two governance observations, however, require disclosure. The board noted in the filing that the company paid a regulatory fine for failing to maintain the minimum board composition of six directors as required under SEBI LODR Regulation 17 for the quarter ended December 31, 2025 a lapse during the busy merger execution period. The board was directed to ensure compliance going forward. Additionally, the incumbent Company Secretary resigned on May 24, with a replacement appointed on May 25, the same day the board approved the audited results.
Business Overview
Sigma Advanced Systems Limited, incorporated in 1999 and formerly known as Megasoft Limited, is an aerospace and defence company listed on the BSE (532408) and NSE (SIGMAADV), with its corporate office in Hyderabad. Following the completion of FY26 merger and acquisition activity, the group now spans Indian defence manufacturing including munitions and aerospace systems and UK-based precision aerospace engineering through Nasmyth Group. An associate investment in Indrajaal Drone Defence India Private Limited adds a drone defence dimension to the portfolio.
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