Sigma Advanced Systems Bags ₹1,013 Crore Export Order for Artillery Shells

Hyderabad-Based Defence Firm Wins $104.9 Million Contract from North American Customer

Sigma Advanced Systems Ltd has secured a $104.9 million (approximately ₹1,013 crore) export order from a North American customer for the manufacture and supply of 147,000 next-generation 155 mm base bleed artillery shell bodies, marking one of the company’s largest international defence contracts to date.

According to an exchange filing on Monday, the Hyderabad-based defence manufacturer will execute the order over the next six to 12 months. The contract represents a significant milestone in Sigma’s expansion into advanced artillery ammunition and is expected to enhance both its revenue growth and profitability.

The order also strengthens the company’s position as a global defence exporter at a time when international demand for ammunition continues to rise amid geopolitical tensions.

Major Step into Advanced Artillery Manufacturing

Sigma Advanced Systems said the latest contract builds on its earlier successes in manufacturing 155 mm fuzes and M107 artillery shell bodies.

With the new order, the company is moving into the production of base bleed artillery shells, a more advanced category of ammunition designed to improve the range and effectiveness of conventional artillery systems.

Management believes the programme will be margin-accretive, contributing positively to the company’s earnings before interest, taxes, depreciation and amortisation (EBITDA), while reinforcing its reputation as a reliable global supplier.

The contract also demonstrates growing confidence among international customers in India’s expanding defence manufacturing capabilities.

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What Are Base Bleed Artillery Shells?

Base bleed technology is designed to solve one of the key limitations of conventional artillery ammunition aerodynamic drag created behind a projectile during flight.

A base bleed shell contains a gas generating unit at the rear of the projectile. As the shell travels through the air, this unit burns and fills the low-pressure area behind it, reducing drag and allowing the projectile to travel farther.

Manufacturers estimate that base bleed rounds can increase firing range by 15% to 30% compared with standard artillery shells.

Importantly, these rounds remain compatible with existing 155 mm howitzers, enabling armed forces to improve battlefield performance without replacing their current artillery systems.

This makes base bleed ammunition a cost-effective solution for extending the operational reach of existing military assets.

Global Demand Continues to Rise

International demand for artillery ammunition has increased significantly over the past few years.

Ongoing conflicts in Ukraine and West Asia have placed enormous pressure on ammunition inventories across NATO member states and allied nations.

Governments are responding by expanding procurement programmes and increasing investment in defence manufacturing to replenish stockpiles and strengthen military readiness.

As a result, manufacturers capable of producing advanced artillery systems and ammunition have witnessed a sharp rise in export opportunities.

Sigma’s latest order reflects this broader trend and positions the company to benefit from sustained global demand.

Management Highlights Strategic Importance

Commenting on the development, Sunil Kalidindi, Chief Executive Officer and Executive Director of Sigma Advanced Systems, said defence manufacturing is built on trust, consistent execution, product quality, and the ability to deliver complex programmes at scale.

He noted that securing such a significant international contract demonstrates the confidence global customers have in Sigma’s manufacturing capabilities.

Kalidindi added that the company aims to become a long-term strategic partner for leading defence organisations across international markets.

According to the company, successful execution of the programme could strengthen its credentials as an export-qualified supplier and improve its ability to secure additional overseas contracts in the future.

Strengthening India’s Defence Export Ambitions

The contract also aligns with India’s broader objective of becoming a global defence manufacturing hub.

Indian defence companies have increasingly secured international orders across aerospace, missiles, ammunition, naval systems, and military electronics, supported by government initiatives promoting indigenous manufacturing and exports.

Large export wins such as Sigma’s demonstrate the growing competitiveness of Indian defence firms in supplying advanced military equipment to global customers.

With defence exports continuing to reach new highs, companies capable of delivering high-quality, cost-effective products are expected to play an increasingly important role in international supply chains.

Outlook

Sigma Advanced Systems’ ₹1,013 crore export order represents a significant milestone in the company’s growth journey and reinforces its presence in the global defence manufacturing sector.

The successful execution of the contract is expected to improve financial performance, enhance operating margins, and strengthen relationships with international defence customers.

As geopolitical tensions continue to drive demand for advanced artillery ammunition, Sigma appears well positioned to capitalise on expanding export opportunities while contributing to India’s ambition of becoming a leading global defence exporter.