Key Takeaways
- • Blackstone is in talks to invest $400-500 million in Bengaluru-based defence and avionics technology company Accord Software Systems Pvt Ltd (ASSPL), according to three people with direct knowledge of the matter.
- • The potential transaction would be a significant minority stake, with one source saying Blackstone is in talks to acquire 17-20%, and the stake could rise to as much as 49% depending on negotiations.
- • The 49% ceiling reflects India's foreign ownership cap for companies classified as indigenously designed, developed and manufactured (IDDM) suppliers of equipment to the government.
- • PwC India is reportedly advising Accord on the fundraise, and the primary capital is intended to fund diversification into new areas and global expansion.
- • Crisil reported Accord's FY25 turnover at about ₹234.52 crore and projected growth above 30% in FY26, with EBITDA margins expected at 30-35%.
Summary
Global private equity firm Blackstone is in talks to invest $400-500 million in Accord Software Systems Pvt Ltd (ASSPL), a Bengaluru-based defence and avionics technology company, according to three people with direct knowledge of the matter, as reported by Mint. The investment would be a significant minority stake, and one person said Blackstone is negotiating to acquire 17-20% of the company. That person also noted that the stake could go up to 49% depending on how talks progress. India caps foreign ownership at 49% for companies classified as indigenously designed, developed and manufactured (IDDM) that supply equipment to the government, which frames the upper bound of the potential deal.
Founded in 1991 by five engineers with experience in avionics and real-time embedded systems, Accord has moved from software development into a specialist in global navigation satellite systems (GNSS). The company designs, develops and manufactures GNSS-based products for defence and space programmes, including satellite navigation devices, specialised computer chips and electronic systems used by aircraft, satellites and military vehicles. It serves several defence and space establishments and public sector undertakings. According to a September 2025 credit rating note from Crisil, the company recorded turnover of around ₹234.52 crore in FY25 and was expected to grow by more than 30% in FY26. Crisil said growth was supported by order execution and high-margin products in Electronic Warfare Support Systems (EWSS) and GHNSS receiver products, and it expected EBITDA margins of 30-35% in fiscal 2026. Crisil also cited high entry barriers and a healthy order book as supports for the business risk profile.
According to a third person cited by Mint, PwC India is advising Accord on the fundraise. The source said the primary capital would help the company diversify into newer areas and expand its products on a global stage. Queries sent to PwC and Accord did not receive a response, and Blackstone declined to comment. The reported talks reflect growing private equity and venture capital interest in India's defence technology sector, driven by rising geopolitical tensions and government efforts to expand private-sector participation in defence manufacturing through initiatives such as iDEX, ADITI and Make in India. The government has also earmarked 25% of the defence research and development budget for the private sector to reduce import dependence. The transaction remains under negotiation and no terms have been finalised.
Founded in 1991 by five engineers with experience in avionics and real-time embedded systems, Accord has moved from software development into a specialist in global navigation satellite systems (GNSS). The company designs, develops and manufactures GNSS-based products for defence and space programmes, including satellite navigation devices, specialised computer chips and electronic systems used by aircraft, satellites and military vehicles. It serves several defence and space establishments and public sector undertakings. According to a September 2025 credit rating note from Crisil, the company recorded turnover of around ₹234.52 crore in FY25 and was expected to grow by more than 30% in FY26. Crisil said growth was supported by order execution and high-margin products in Electronic Warfare Support Systems (EWSS) and GHNSS receiver products, and it expected EBITDA margins of 30-35% in fiscal 2026. Crisil also cited high entry barriers and a healthy order book as supports for the business risk profile.
According to a third person cited by Mint, PwC India is advising Accord on the fundraise. The source said the primary capital would help the company diversify into newer areas and expand its products on a global stage. Queries sent to PwC and Accord did not receive a response, and Blackstone declined to comment. The reported talks reflect growing private equity and venture capital interest in India's defence technology sector, driven by rising geopolitical tensions and government efforts to expand private-sector participation in defence manufacturing through initiatives such as iDEX, ADITI and Make in India. The government has also earmarked 25% of the defence research and development budget for the private sector to reduce import dependence. The transaction remains under negotiation and no terms have been finalised.
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