| Established track record along with experienced management
Established in 2011, Rangsons Aerospace Private Limited (RAPL), a part of the NR Group, has built a strong presence in the aerospace and defence sector through its capabilities in engineering design, precision manufacturing, testing, and system integration. Over the years, the company has expanded its product portfolio from fluid distribution systems and thermal management solutions to advanced communication systems and defence subsystems, while also strengthening its global footprint through acquisitions and strategic overseas investments. The company is led by Mr. G. Pavan Ranga along with other members of the Ranga family, who possess extensive experience in engineering, manufacturing, and technology-driven businesses. Acuité believes that RAPL's established track record, strong customer relationships with leading global aerospace OEMs, and experienced management team will continue to support its growth trajectory, operational execution, and expansion initiatives over the medium term.
Improving scale of operations backed by healthy order book position
RAPL has witnessed a steady increase in scale of operations, with operating income increasing to Rs.189.36 crore in FY26 (Prov.) from Rs.119.51 crore in FY25 and Rs.64.02 crore in FY24, driven by a growing order book, increasing traction from global aerospace OEMs, and higher participation in domestic defence programmes. The company further benefits from a healthy unexecuted order book of Rs.3,456.2 crore as on March 2026, providing strong revenue visibility over the medium term. While profitability remained volatile due to upfront costs associated with prototype development and qualification cycles for new aerospace customers, milestone-based billing in defence projects, and the transition to Ind AS. However, the operating performance improved in FY26 with EBITDA recovered to Rs.25.66 crore (13.55%) in FY26 (Prov.), as against Rs. (4.50) crore (-3.77%) in FY25 and Rs.13.96 crore (21.80%) in FY24. Similarly, PAT improved to Rs.20.04 crore (10.58%) in FY26 (Prov.), from Rs.(5.42) crore (-4.54%) in FY25 and Rs.1.96 crore (3.06%) in FY24. Going forward, the company is expected to benefit from increasing execution of its order book and growing engagements with global aerospace and defence customers. Acuité believes that RAPL's established relationships with leading OEMs, strong order visibility, and improving operating scale will support sustained growth in revenues and profitability over the medium term.
Healthy financial risk profile
The financial risk profile of RAPL is healthy, characterized by a strengthened net worth, comfortable leverage, and improving debt protection metrics. The company’s net worth increased to Rs.336.58 crore in FY26 (Prov.) from Rs.286.61 crore in FY25, as against a negative net worth of Rs.(33.08) crore in FY24, supported by substantial equity infusion from private equity investors and recovery in profitability. Total debt stood at Rs.71.43 crore in FY26 (Prov.), comprising Rs.40.04 crore of long-term borrowings, Rs.1.62 crore of unsecured loans from financial institutions, and Rs.29.77 crore of short-term borrowings, as against Rs.55.77 crore in FY25 and Rs.122.17 crore in FY24. Consequently, the capital structure remained comfortable with gearing at 0.21x in FY26 (Prov.) and 0.19x in FY25, while TOL/TNW stood at 0.29x in FY26 (Prov.) against 0.25x in FY25. Debt protection metrics also improved, with the interest coverage ratio (ICR) increased to 4.88x in FY26 (Prov.) from 1.21x in FY25 and 1.98x in FY24, while the debt service coverage ratio (DSCR) improved to 3.09x from 0.73x in FY25 and 1.50x in FY24. Further, Debt/EBITDA improved to 2.20x in FY26 (Prov.), compared to 5.95x in FY25 and 8.57x in FY24, reflecting improved operating earnings and moderate debt levels. The financial flexibility of the company has been further strengthened by an additional equity infusion of Rs.170.03 crore received from PE investors in June 2026, which is expected to support the company’s planned overseas expansion, capacity augmentation, and growing working capital requirements while further improving its comfortable capital structure. Acuité believes that RAPL's financial risk profile is expected to remain healthy over the medium term, supported by its strengthened capital structure, healthy accrual generation, continued investor support, and improving scale of operations.
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| Intensive working capital operations:
The working capital operations of the company is intensive, as reflected in its gross current assets (GCA) of 370 days in FY26 (Prov.), compared to 456 days in FY25 and 376 days in FY24. The company’s working capital requirements are primarily driven by high inventory holdings and receivables, owing to the nature of the aerospace and defence industry, which requires significant upfront investment in inventory, manpower, and project execution before revenue realization. Inventory days stood at 152 days in FY26 (Prov.) as against 107 days in FY25 and 277 days in FY24, while debtor days remained elevated at 130 days in FY26 (Prov.), compared to 99 days in FY25 and 120 days in FY24. Creditor days stood at 99 days in FY26 (Prov.), as against 68 days in FY25 and 256 days in FY24. Consequently, the working capital cycle increased to 183 days in FY26 (Prov.) from 139 days in FY25 and 141 days in FY24, resulting in continued reliance on working capital borrowings, with average fund-based limit utilisation moderate at around 80.68% during the six months ended May 2026. Acuité believes that the working capital operations of the company are expected to remain intensive over the medium term, given customer-mandated inventory holding requirements, milestone-based billing in defence projects, and the long prototype and qualification cycle associated with new aerospace programmes, albeit supported by increasing scale of operations and execution of the healthy order book.
Customer concentration risk albeit reputed client base:
Rangsons Aerospace Private Limited (RAPL) has established relationships with reputed global aerospace OEMs and domestic defence organisations, supported by long-standing contracts, repeat business, stringent qualification requirements and high entry barriers inherent to the aerospace and defence industry. The company also benefits from a healthy order book and long-term master agreements, generally spanning 5-15 years, with contracts incorporating price-escalation provisions. However, customer concentration remains high, with the top three customers contributing around 67.37% of FY26 revenue. Consequently, the company's revenues and order inflows remain susceptible to customer-specific procurement plans, programme execution schedules and sourcing decisions of a limited number of key customers.
Susceptibility to changes in sourcing policies of key customers
Rangsons Aerospace Private Limited (RAPL) derives a portion of its revenues from defence-related organisations and strategic programmes involving customers such as HAL, ISRO, GTRE, the Indian Navy, and other government-linked entities. This renders the company’s defence business susceptible to changes in government procurement policies, defence spending priorities, programme approvals, and capital expenditure plans. However, the risk is partially mitigated by the Government of India’s continued focus on defence indigenisation through initiatives such as Atmanirbhar Bharat, Make in India, and the promotion of domestic sourcing under various defence procurement policies. Given its established presence in aerospace and defence engineering, proven execution capabilities, and relationships with key defence customers, RAPL is well positioned to benefit from the increasing emphasis on indigenous manufacturing and localisation in the defence sector.
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