Sigma Advanced Systems Sri City plant starts output 2026

Production begins at Sri City, eight months after groundbreaking

Sigma Advanced Systems has begun production at its new aerospace manufacturing facility in Sri City, Andhra Pradesh. The company said it moved from groundbreaking to active operations in eight months, marking a fast transition for a project positioned as central to its global manufacturing plans. Co-CEO Sunil Kalidindi said the Sri City site is a key part of Sigma’s global manufacturing strategy and that the company is targeting double-digit EBITDA growth. The unit has started with a defined first phase, rather than waiting for the entire campus to be completed. The development is material for investors tracking Sigma’s effort to expand aerospace manufacturing capacity in India while retaining an operational base in the UK.

What the first batch tells investors about readiness

The company said the first batch of precision-machined aerospace components has been manufactured at Sri City and shipped to Sigma UK for final verification. This approach indicates that the Indian site is being integrated into existing qualification and quality workflows, especially important for aerospace programmes with tight process controls. It also highlights that early production is being validated within the group’s UK ecosystem before broader scale-up. Sigma has linked the facility to its objective of progressively bringing a larger part of the aerospace manufacturing value chain into India.

Scale of the first phase and the larger campus plan

The initial phase involves a 75,000 sq ft operational area within a larger 500,000 sq ft campus. Sigma said the remaining campus is expected to become operational in the next 12 months, which is expected to add further aerospace-critical processes. The staged roll-out matters because the company has also indicated that, once fully operational, around 70% of the manufacturing process is expected to be undertaken in India.

Capacity today, and what changes after expansion

The Sri City facility currently offers 100,000 annual machining hours (AMH) of capacity. Future capacity is indicated at nearly 300,000 AMH, implying a meaningful step-up as the campus is built out and additional processes come online. Sigma has also described the India operation as being designed to replicate the manufacturing capabilities of its UK subsidiaries, Nasmyth and Bromford. That replication goal frames Sri City not as a small auxiliary plant, but as a site intended to perform comparable work to established UK assets.

Links to the UK footprint: Nasmyth and Bromford

Sigma has positioned the Sri City operation as part of a broader multi-site aerospace manufacturing footprint across India and the UK. The company’s UK assets include Nasmyth and Bromford, and the Sri City plant is described as replicating these capabilities. Sigma has also disclosed corporate actions in this direction, including acquiring a 100% stake in Bromford, and a press note referencing the acquisition of UK-based Bromford Precision Solutions for INR 153 crores. For customers, such a setup can enable process allocation across sites while maintaining validation and oversight in mature facilities.

Customer qualification and Rolls-Royce source-change process

Sigma said it has completed the initial stages of the source-change approval process with Rolls-Royce Aerospace. Separately, the company has stated that after securing the AS9100D aerospace quality certification, the facility has begun manufacturing precision-engineered components for Rolls-Royce aerospace programmes. These points are operationally important because aerospace supply chains often require structured source-change approvals and recognised certifications before volumes can be ramped.

Key facility metrics at a glance

Financial context: revenue mix, order flows, and margin focus

Sigma operates in aerospace and defence manufacturing, supplying global customers, and has disclosed that 85% of revenue comes from international markets. The orderbook mix is described as 90% defence and 10% commercial, with long-term contracts running up to 8 years. In July 2026, the defence arm secured an export order of USD 104.9 million, described as about INR 1,013 crore, for 147,000 units of 155mm base bleed artillery shell bodies to a North American customer, to be delivered over 6 to 12 months. Sigma also disclosed it bagged INR 155 crore orders in consortium with Indrajaal.

On reported financials, FY26 revenue stood at Rs 491.88 crore, with net profit of Rs 268.04 crore. Another disclosure cited revenue from operations at ₹492 crore for FY2026 and net profit of ₹268 crore, broadly consistent with the FY26 figures stated. The company also reported a net profit of ₹128 crore for Q4 FY26, with revenue from operations at ₹323 crore. It said materials at 43% of revenue and employee costs at 29.4% were the largest operating costs, framing why management is emphasising cost structure and site mix.

Margin targets linked to shifting manufacturing into India

Sigma has linked Sri City to margin improvement efforts, stating that manufacturing is being shifted from the UK to a new Sri City facility in India to expand margins. Management projections cited a 2-4% EBITDA margin improvement by the end of FY27, with an additional 4-6% expected by FY28, driven by shifting manufacturing to lower-cost domestic locations. The company has also highlighted that operational readiness of the Sri City facility was expected in Q3FY27, while it separately stated that production has begun. Investors will likely focus on the cadence of qualification approvals, process additions as the campus expands, and evidence of manufacturing transfer translating into the stated margin trajectory.

Stock snapshot, corporate schedule, and ownership data points

Sigma Advanced Systems Limited is listed on NSE and BSE under the symbol SIGMAADV. Market data in the provided details showed a market cap of ₹ 13,985 Cr and a current price of ₹ 740, while another price point listed was 777.00 with a change of +37.00. The company has scheduled its 26th Annual General Meeting for September 30, 2026.

A shareholding snapshot in the provided data included named holders such as Srinivasa Raju at 46.31% (8,16,17,788 shares; valuation shown as 534 M ₹), iLabs Hyderabad Technology Centre Pvt Ltd at 14.68% (2,58,73,115 shares; 169 M ₹), and Hillpark Event Management LLP at 5.814% (1,02,46,966 shares; 67 M ₹). Another row referenced Bank of India Investment Managers Pvt Ltd at 0.8176% (14,40,921 shares; 9 M ₹).

What to watch over the next 12 months

The next operational milestone is the remaining campus becoming operational over the next 12 months, which Sigma said will add further aerospace-critical processes. Progress in the Rolls-Royce source-change approval process and ongoing verification of shipped batches through Sigma UK will be closely watched because these can govern volume ramp-up. Investors may also monitor whether the company’s stated intent to bring more of the aerospace value chain into India translates into sustained machining-hour utilisation and measurable cost outcomes. With an export-heavy revenue mix and a defence-weighted orderbook, execution on deliveries, approvals, and process stability is likely to remain central to quarterly monitoring.

Conclusion

Sigma Advanced Systems has started production at Sri City with an initial 75,000 sq ft operational area and 100,000 AMH capacity, while planning to build toward nearly 300,000 AMH within a 500,000 sq ft campus. The company has shipped initial precision-machined aerospace components to Sigma UK for final verification and has cited progress on Rolls-Royce approval steps alongside AS9100D certification. The next 12 months are expected to focus on bringing the rest of the campus online and adding more aerospace-critical processes, alongside tracking the margin improvement targets linked to shifting manufacturing into India.