Industry Odisha Bureau, Oct 14: Blackstone is negotiating a minority investment in Accord Software Systems, sources say. The Bengaluru firm makes satellite navigation and defence electronics. The talks highlight rising private equity interest in Indian defence technology.
Blackstone is negotiating to invest $400–500 million in Bengaluru-based Accord Software Systems. The global private equity firm is seeking a significant minority stake. Three people with direct knowledge of the matter described the discussions.
No deal has been signed, and terms could still change. Blackstone declined to comment. Accord and its reported adviser, PwC India, did not respond to emailed queries.
Blackstone is discussing an initial stake of 17–20%, one person said. The holding could rise to 49%, depending on how talks progress. Neither the final stake nor any valuation has been disclosed.
The ceiling reflects foreign ownership rules linked to certain defence suppliers. The source cited a 49% cap for companies supplying IDDM equipment to government. IDDM stands for indigenously designed, developed and manufactured. That procurement category differs from India’s wider foreign investment framework.
Accord was founded in 1991 by five engineers. They brought experience in avionics and real-time embedded systems. The firm began as a software developer before moving into specialised hardware.
Today it focuses on global navigation satellite systems, or GNSS. It designs, develops and manufactures GNSS-based products for defence and space programmes. Decades of engineering depth can be hard for newcomers to replicate.
GNSS technology uses satellite signals to pinpoint location and support navigation. Accord’s portfolio includes navigation devices, specialised chips and electronic systems. These help aircraft, satellites and military vehicles find their position and move safely. It also supplies positioning and timing systems to defence and space organisations.
The company also works in electronic warfare support systems, known as EWSS. Such products demand strict reliability and lengthy qualification for defence use. Those requirements create high barriers to entry for competitors.
A September 2025 Crisil Ratings note put Accord’s FY25 turnover at about ₹234.52 crore. Crisil expected revenue to grow by more than 30% in FY26. It linked recent earnings growth to order execution and higher-margin EWSS and GNSS products.
The agency also projected an FY26 EBITDA margin of 30–35%. EBITDA margin measures operating profit before interest, tax, depreciation and amortisation. These were forecasts, not reported results. Crisil also cited a healthy order book and experienced promoters.
The fresh capital would help Accord diversify into newer areas, one person said. Taking its products to global markets is another aspiration. International defence sales, however, involve demanding certification and stiff competition.
PwC India is helping Accord with the fundraise, according to a third person. Advisers typically manage investor outreach, negotiations and financial evaluation.
The talks reflect rising private equity interest in Indian defence and aerospace. Geopolitical tensions are pushing countries to strengthen domestic defence capabilities. Companies with proven technology and institutional customers stand out to investors. Accord serves defence and space establishments and public sector undertakings.
The government has encouraged private participation through Make in India, iDEX and ADITI. It has also earmarked 25% of the defence R&D budget for the private sector.
Whether Blackstone completes the deal remains uncertain. Still, the talks show global capital moving towards India’s specialised defence technology.
