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 clocked revenue of ₹62.47 crore, up a whopping 52.6% YoY, while PAT 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 sizzling P/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 because ROE stands at 25%, and the company’s 5-year profit CAGR is a juicy 35.7%.
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 than Captain 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. With sales growth of 50% YoY and profit 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 in investment 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 subsidiary Captain Metcast Pvt. Ltd., serving customers who prefer light metals over heavy headaches.
Industrial Valves: Through X2 Valves Pvt. Ltd., CTL has moved downstream — manufacturing fully assembled industrial valves (ball and butterfly) in-house.
With 70.9% of revenue from domestic markets and 29.1% from exports, CTL has diversified customer geography. And it’s not stopping — a new 14,000 sq. mt. facility under Captain Castech Ltd. is in the works, pushing annual casting capacity toward 1,800 MT by 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):
Metric
Latest Qtr (Sep 25)
YoY Qtr (Sep 24)
Prev Qtr (Mar 25)
YoY %
QoQ %
Revenue
₹62.47 Cr
₹40.94 Cr
₹51.03 Cr
52.6%
22.4%
EBITDA
₹9.37 Cr
₹5.11 Cr
₹7.05 Cr
83.3%
32.9%
PAT
₹6.41 Cr
₹3.33 Cr
₹4.98 Cr
92.5%
28.7%
EPS (₹)
2.76
1.63
2.03
69.3%
36.0%
Witty Auditor’s Commentary: The OPM hit a record 15%, 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 forward P/E of ~17x, which sounds fair — but the market’s still valuing it at 39.9x trailing, because hype apparently melts slower than metal.
5. Valuation Discussion – Fair Value Range Only
Let’s decode the molten math.
A. P/E Method
Current EPS (TTM): ₹4.79
Industry P/E: 34.9
CTL’s P/E: 39.9 Fair Value Range (based on peer average): = ₹4.79 × (30 to 40) = ₹144 to ₹192
B. EV/EBITDA Method
EV = ₹466 Cr
EBITDA (TTM) = ₹18.3 Cr → EV/EBITDA = 25.4x (high) Assuming fair multiple range 15–20x: Fair Value EV = ₹275–₹366 Cr Implied Market Cap = ₹255–₹340 Cr Per Share Fair Value ≈ ₹145–₹195
Disclaimer: This fair value range is for educational purposes only and is not investment advice. We’re auditors, not astrologers.
6. What’s Cooking – News, Triggers, Drama
H1FY26 Results (Nov 2025): Revenue ₹6,247.69 lakh, profit ₹486.55 lakh. Growth numbers that scream “foundry on fire.”
Bonus Issue (Mar 2025): 1:1 bonus issue approved. Everyone loves free shares more than free tea.
Acquisition Mania: Bought 15 lakh convertible warrants of Captain Polyplast Ltd — a corporate cousin.
Subsidiary Formation: Created X2 Valves Pvt. Ltd., a full-fledged valve manufacturing unit with 3,000-unit monthly capacity.
Corporate Guarantee Drama: Issued a ₹4 crore guarantee for the subsidiary. Family support level: Gujarati Business Edition.
CS Musical Chairs: Appointed Khushbu Kalpit Shah as new Company Secretary after a string of resignations.
In short: while the furnaces are stable, the boardroom’s been having its own temperature swings. But if the new expansion and valves venture scale well, CTL might just forge itself a place in India’s midcap league.
7. Balance Sheet – The Molten Ledger
Metric
Mar 2023
Mar 2024
Mar 2025
Sep 2025
Total Assets
₹44 Cr
₹62 Cr
₹95 Cr
₹95 Cr
Net Worth (Equity + Reserves)
₹20 Cr
₹43 Cr
₹47 Cr
₹47 Cr
Borrowings
₹10 Cr
₹9 Cr
₹23 Cr
₹23 Cr
Other Liabilities
₹15 Cr
₹11 Cr
₹25 Cr
₹25 Cr
Total Liabilities
₹44 Cr
₹62 Cr
₹95 Cr
₹95 Cr
Auditor’s 3 sarcastic notes:
Borrowings went from ₹9 Cr to ₹23 Cr — looks like expansion needs more molten cash than expected.
Reserves have melted slightly — bonus issue impact, not accounting scandal (we checked).
Total assets doubled in two years — but debtors better pay fast; steel
