SIGMA ADVANCED SYSTEMS LIMITED Earnings Summary — Q1 FY2027
Sigma Advanced Systems (Formerly Megasoft) Pivot to Aerospace & Defense Gains Momentum with Major Acquisition Consolidation
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 5 consecutive quarters.
- Revenue of ₹374 Cr is 7083.9% higher year-on-year.
- Revenue has compounded at 629.6% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹24 Cr is 82.5% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 158.0% annualised across the period.
- Operating margin stands at 16.3% in Q1 FY2027.
- Operating margin expanded by 30707 bps year-on-year.
- PBT margin is 13.2%.
- Expense growth of 1439.0% remained below revenue growth of 7083.9%.
- Operating profit of ₹61 Cr is 502.2% higher year-on-year.
- Operating leverage continues to improve.
- 3 of the last 3 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 69/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Strong Uptrend | 374 | 323 | 146 | 18 | 5 | 57 | 19 | — | — | — |
| Expenses | Strong Uptrend | 313 | 268 | 139 | 17 | 20 | 40 | 19 | 2 | 2 | 1 |
| Operating Profit | Volatile | 61 | 55 | 7 | 1 | -15 | 16 | -0 | -2 | -2 | -1 |
| Operating Margin | Volatile | 16.3% | 17.1% | 4.6% | 5.8% | -290.8% | 29.1% | -2.2% | — | — | — |
| Other Income | Accelerating | 3 | 89 | 5 | 4 | 188 | 13 | 13 | 9 | 8 | 8 |
| Interest | Volatile | 8 | 11 | 5 | 0 | 4 | 5 | 5 | 4 | 4 | 5 |
| Depreciation | Volatile | 8 | 7 | 6 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Profit Before Tax | Volatile | 49 | 127 | 0 | 3 | 168 | 23 | 6 | 1 | 1 | 0 |
| Tax | Strong Uptrend | 11 | 2 | 1 | — | 31 | 5 | 1 | — | — | — |
| Net Profit | Volatile | 24 | 128 | -1 | 4 | 136 | 9 | 7 | -14 | -17 | -8 |
| Net Margin | Improving | 6.4% | 39.8% | -0.7% | 23.3% | 2618.0% | 15.3% | 38.5% | — | — | — |
Key Takeaways
- Revenue surged 7078% YoY to ₹374 Cr, reflecting the full-scale pivot into Aerospace and Defence and the consolidation of new entities.
- The company acquired a 51% stake in AS Strategic Private Limited during the quarter, further expanding its strategic defense portfolio.
- Net Profit declined significantly both YoY and QoQ, primarily due to the absence of massive one-time 'Other Income' (₹184 Cr from property sales) that inflated prior periods.
- Total expenses rose to ₹328.4 Cr, driven by high material costs (₹140.8 Cr) and employee benefits (₹87.6 Cr) as the company scales its manufacturing footprint.
- The legacy software business (formerly Megasoft) has been entirely superseded by the single Aerospace and Defense operating segment.
- The consolidation now includes 19 subsidiaries, including the Nasmyth Group and its UK-based aerospace operations.
- Operating margins compressed to 12.25% compared to the prior quarter, highlighting the integration costs of acquired assets.
Management Guidance
The company is focused on its transition to a Tier-1 integrated aerospace player. Management highlighted the strategic importance of the AS Strategic Private Limited acquisition and the ongoing integration of UK-based Nasmyth Group assets to capture global defense opportunities.
Sentiment Shift
Stable
While top-line growth is explosive due to the sectoral pivot and acquisitions, the bottom line is normalizing as non-core asset sale gains dissipate, leaving the focus on core operating efficiency.
Outlook
The company is undergoing a radical transformation with a high reliance on external acquisitions to build scale; focus remains on managing the high working capital requirements and debt associated with the Aerospace pivot.
From the Annual Report (Key Quotes)
“The Company is having only one segment i.e., Aerospace and Defence.”
“During the quarter ended 30th June 2026, the company acquired 51% stake in AS Strategic Private Limited.”
“The financial statements of the acquired entity have been consolidated from the date of obtaining control.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from SIGMA ADVANCED SYSTEMS LIMITED's latest quarterly filing and earnings call. For informational purposes only — not investment advice.