Defence stock jumps after receiving ₹11.33 Cr order from Rafael Advanced Defence Systems

Synopsis:- Shares reacted to a  Rs 11.33 crore defence order, gaining ~1.3%.  As of Q2FY26, the company’s order book stood at Rs 2,600 crore. Operating margins slipped to -6.6%, even as diversification into railways and strong global clients support long-term prospects.

The shares of the electronic systems manufacturer gained up to 1.3 percent in today’s trading session after the company received purchase orders from Rafael Advanced Defence Systems Limited, Israel worth Rs 11.33 crore.

With a market capitalisation of Rs 2,132.49 crore, the shares of DCX Systems Ltd were trading at Rs 191.45 per share, decreasing around 1.47 percent as compared to the previous closing price of Rs 194.30 apiece. The shares have plummeted 49 percent over the last one year & 35 percent in the last six months.

Significant order

According to the company filing, DCX Systems Ltd received a  Rs 11.33 crore purchase order in the normal course of business for the manufacture and supply of cable and wire harness assemblies from Rafael Advanced Defence Systems Limited.

Financial & other Highlights

The company’s Q2FY26 performance remained weak, with revenue slipping 2% YoY to  Rs 192.85 crore from  Rs 195.62 crore. Profitability deteriorated sharply, as a  Rs 5.22 crore profit in Q2FY25 swung to a  Rs 9.04 crore loss, highlighting significant margin pressure and operational stress.

DCX Systems Ltd has seen sharp volatility in operating performance over the last one year. Operating profit swung from a loss of  Rs 3.8 crore in Sep 2024 to a peak profit of  Rs 10.22 crore in Mar 2025, before slipping to a loss of  Rs 12.81 crore in Sep 2025. Correspondingly, OPM deteriorated from 1.86% to -6.64%, reflecting rising cost pressures and weak operating leverage.

DCX received purchase orders exceeding  Rs 50 crore from both domestic and international customers, supporting healthy order inflows. The company’s consolidated order book stood strong at around  Rs 2,600 crore as of September 30, 2025, providing long-term revenue visibility.

DCX Systems Ltd is tapping the railways opportunity through its JV, NIART Systems, with ELTA Systems. The partnership combines ELTA’s advanced radar and optics with DCX’s manufacturing strength to develop obstacle detection solutions, offering nearly double track visibility and targeting domestic railways as well as export markets, creating a differentiated technology-led growth avenue.

DCX Systems Ltd is supported by a strong and diversified customer base that includes global defence and aerospace leaders such as Lockheed Martin, Rafael Advanced Defense Systems, Elbit Systems, and Larsen & Toubro. Close collaboration enables timely execution, just-in-time inventory, quality improvements, and shared testing costs, enhancing operational efficiency and customer stickiness.

DCX Systems Ltd is a leading Indian defence and aerospace electronics manufacturer, specialising in system integration, cables, and electronic assemblies. The company serves global OEMs and domestic defence majors, leveraging strong engineering capabilities, long-term customer relationships, and export-led operations to support India’s growing defence manufacturing ecosystem.

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