Captain Technocast Ltd Q2 FY26 – The Rajkot Foundry That Turned Molten Metal Into 93% Profit Growth, And Still Refuses To Pay Dividends

1.At a Glance

Captain Technocast Ltd, the Rajkot-based maker of high-precision investment castings, just pulled off a quarter that would make most midcaps blush. For Q2 FY26 (Sep 2025), the company clockedrevenue of ₹62.47 crore, up a whopping52.6% YoY, whilePAT jumped 92.5% YoY to ₹6.41 crore. Market cap sits around ₹444 crore, trading at ₹191 per share — a discount to its 52-week high of ₹322, but still at a sizzlingP/E of 39.9x.

It’s the classic Gujarati foundry fairy tale: start with hot furnaces, add some CNC machines, export to eight countries, and boom — 30% ROCE. Despite not paying a single rupee of dividend (ever), the promoters must be smiling becauseROE stands at 25%, and the company’s 5-year profit CAGR is a juicy35.7%.

The only problem? Even at a nine-times book value, this stock doesn’t seem to know the meaning of “cheap.” Maybe molten metal isn’t the only thing overheating here.

2.Introduction – From Rajkot with Alloyed Love

If you ever wondered how Rajkot became the unofficial “casting capital” of India, look no further thanCaptain Technocast Ltd (CTL). Born in 2010, raised in Gujarat’s industrial heat, and now traded on the BSE-SME platform, this company has grown from a backyard foundry to a precision-casting powerhouse exporting to the likes of Germany, Italy, and the US.

CTL’s business reads like a modern engineering romance — molten steel meets German spectrometers, CNC machines hum in sync, and investment castings turn into high-margin exports. The company’s customers range from industrial valve makers to pump manufacturers, general engineering firms, and even the occasional “super alloy” customer who probably speaks in periodic table codes.

Yet, amid all this glory, one irony stands tall — the company has consistently generated profits and positive cash flows but never bothered to share it with shareholders. No dividends, no buybacks, just molten reinvestment. Typical SME style: “Paise company mein lagane ke liye hain, shareholders ke liye nahi.”

Still, the momentum is undeniable. Withsales growth of 50% YoYandprofit growth of 93% YoY, CTL is clearly in its scaling era. The question is — can it sustain this molten pace without getting burned?

3.Business Model – WTF Do They Even Do?

Let’s simplify: Captain Technocast turns metal into money — literally.

The company specializes ininvestment casting, a process where wax molds are coated with ceramic, melted out, and replaced with molten metal to create intricate, high-precision components. Their materials list reads like a metallurgist’s dream: carbon steel, alloy steel, super alloy steel, and non-ferrous metals.

Primary business verticals:

• Investment Castings:The bread and butter — used in valves, pumps, and general industrial components.
• Machined Components:Thanks to an in-house CNC/VMC setup, CTL doesn’t just cast metal; it machines it into final, ready-to-use parts.
• Aluminium Pressure Die Castings:Managed by subsidiaryCaptain Metcast Pvt. Ltd., serving customers who prefer light metals over heavy headaches.
• Industrial Valves:ThroughX2 Valves Pvt. Ltd., CTL has moved downstream — manufacturing fully assembled industrial valves (ball and butterfly) in-house.

With70.9% of revenue from domestic marketsand29.1% from exports, CTL has diversified customer geography. And it’s not stopping — a new 14,000 sq. mt. facility underCaptain Castech Ltd.is in the works, pushing annual casting capacity toward1,800 MTby FY27.

You’ve got to hand it to them — they’ve built a vertically integrated, end-to-end foundry system. From raw metal to finished valve, Captain Technocast is literally casting its future — one alloy at a time.

4.Financials Overview

Let’s melt down the numbers from Q2 FY26 (Sep 2025):

Witty Auditor’s Commentary:The OPM hit a record15%, which is almost double what it was a few years ago. Clearly, the furnaces are working overtime, but this time, the profits didn’t evaporate. In SME terms, this is like going from a chai stall to a Starbucks franchise — same product, better margins.

Annualized EPS of ₹11.0 gives a forwardP/E of ~17x, which sounds fair