1. At a Glance – Blink and You’ll Miss the Margin
Investment & Precision Castings Ltd (IPCL) is a ₹494 Cr market-cap foundry veteran quietly operating out of Bhavnagar since 1975, making things most of us will never see but absolutely depend on—precision castings for automobiles, defence, aerospace, medical implants, and anything else that needs metal to behave with monk-level discipline.
At a current price of ₹494, the stock is flirting with a P/E of ~48×, P/B of 5.15×, ROCE ~9.6%, and ROE ~6.8%—numbers that scream “priced like a future champion, performing like a disciplined mid-fielder.”
Q3 FY26 (Dec 2025) came in spicy on the surface: Revenue ₹47.36 Cr (+19.6% YoY) and PAT ₹2.79 Cr (+749% YoY). Before you pop champagne—remember last year’s base was limping. Operating margins improved to 16.8%, interest cost behaved, depreciation stayed boring, and tax went back to normal adult levels.
Debt stands at ₹75.7 Cr, debt-to-equity ~0.79, promoter holding ~52% (no pledge), exports ~10%, automobiles still rule the kingdom (~62% of FY23 sales).
So yes, numbers are improving—but is the stock already celebrating FY30? Keep reading.
2. Introduction – The Foundry That Refuses to Make Noise
IPCL is that student in class who always scores above average, never tops the list, never fails either—and somehow still gets a seat in the front row of the valuation classroom. Incorporated in 1975, the company has survived multiple auto cycles, capex droughts, metal price tantrums, and the occasional “why is inventory older than my scooter?” moment.
The business is straightforward: lost-wax investment casting, including vacuum castings, across ferrous, non-ferrous, nickel, cobalt, aluminium alloys—basically metallurgy with a PhD. Components go into Maruti, M&M, Tata Motors, Royal Enfield, and increasingly into defence and aerospace thanks to technical collaborations with partners in USA, Germany, and Japan.
But here’s the fun part: despite being in a “manufacturing + defence + aerospace” cocktail, IPCL’s return ratios are still single-digit. That’s not illegal, but at 48× earnings, it does raise an eyebrow. Or both.
So this story is not about hype. It’s about execution catching up with valuation—or valuation running ahead of execution. Which one wins? Let’s open
the ledger.
3. Business Model – WTF Do They Even Do?
Imagine molten metal going through yoga. That’s investment casting.
IPCL uses the lost-wax process to manufacture complex, thin-walled, pressure-tight components—the kind that regular casting methods mess up. The company doesn’t just pour metal and pray; it delivers fully machined, heat-treated, ready-to-use components.
What they actually sell:
- Automotive engine & EGR components
- Turbocharger parts
- Valves, pumps, compressors
- Defence & aerospace precision components
- Medical implants (vacuum castings—tiny but deadly serious)
Why customers stick around:
- Ability to handle multiple alloys
- Vacuum casting capability (only 15 MTPA, but high-value)
- OEM-approved vendor status (sticky relationships)
- ISO, TS, OHSAS certifications (auditors sleep well)
They also own two wind turbine generators in Bhavnagar—contributing ~1% of revenue. This is less “green energy pivot” and more “nice electricity bill discount.”
The catch?
This is still a capacity-constrained, working-capital-heavy business with long inventory cycles and modest pricing power. Which means growth comes from capex + utilisation + mix, not magic.
4. Financials Overview – The Quarter That Woke Everyone Up
Quarterly Comparison Table (₹ Cr)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 47.36 | 39.60 | 45.03 | +19.6% | +5.2% |
| EBITDA | 7.96 | 4.05 | 7.33 | +96.5% | +8.6% |
| PAT | 2.79 | 0.37 | 3.03 | +748.6% | -7.9% |
| EPS (₹) | 2.79 | 0.37 | 3.03 | +748.6% | -7.9% |
Commentary:
- EBITDA margin bounced back to ~16.8% after a weak FY25 stretch.
- Interest cost stayed flat (~₹1.48 Cr), depreciation predictable (~₹2.1 Cr).
- PAT QoQ dipped slightly because last quarter was unusually generous.
- YoY PAT growth looks meme-worthy because FY25 base was on life support.
EPS Annualisation (Quarterly Rule)
- Q3
