Industrial & Prudential Investment Company Ltd Q2 FY26 – The 112-Year-Old Investor That Outsmarts Half of Dalal Street by Doing Nothing
1. At a Glance
If Warren Buffett ever reincarnates in India, he might come back as Industrial & Prudential Investment Company Ltd (IPICL) — a company that’s been sitting quietly since 1913, making money by… well, owning other people who make money. As of Q2 FY26, the company trades at ₹6,111 per share, down 13.9% over the last 3 months but still strutting with a market cap of ₹1,024 crore.
Its P/E ratio sits at 16.7, half the industry average (31.5), and the ROE and ROCE are around 7.6%—which is low if you’re comparing to a startup, but positively aristocratic if you’ve been compounding since before Independence.
The September 2025 quarter saw Sales at ₹1.77 crore (down 53.8% YoY) and Net Profit at ₹16.7 crore (down 8.3% YoY). In other words, they sold less, earned more, and shrugged. It’s the kind of quarter where Excel formulas go “divide by chill.”
And because this company’s balance sheet is cleaner than your grandmother’s temple floor—zero debt, ₹837 crore in reserves, and an Operating Profit Margin (OPM) of 85%—it’s basically the “Tata of patience.”
2. Introduction
Welcome to the story of a company that’s been compounding quietly while most of us were busy checking “What is SIP?” on Google.
Industrial & Prudential Investment Company Ltd (IPICL) is a Non-Deposit Taking NBFC, a fancy way of saying: “We don’t borrow, we just invest our own money.” Incorporated in 1913, this firm is older than the Indian Income Tax Act and yet manages to look more relevant than half of Dalal Street fintechs.
Its entire business model could be summarized as:
“Buy good companies. Don’t panic. Collect dividends. Repeat for 112 years.”
IPICL is controlled by Paharpur Cooling Towers Limited, and its crown jewel investment is a 21.55% stake in KSB India Ltd, a major industrial pump manufacturer. Basically, IPICL is that rich relative who doesn’t run a business anymore—just holds equity in those who do.
Despite its understated presence, the company has grown PAT by 17% CAGR over 3 years and 24% CAGR over 5 years, proving that even a boring portfolio can outperform if you have discipline and a century of compounding behind you.
So while retail investors panic-sell because “Nifty down 0.2% 😭,” IPICL simply goes for a long nap and wakes up richer.
3. Business Model – WTF Do They Even Do?
Imagine a bank that doesn’t take deposits, doesn’t lend much, and doesn’t chase customers. Welcome to IPICL—a Non-Systemically Important NBFC that invests primarily in equity shares, mutual funds, and associates.
Their investment portfolio (FY23) looked like this:
54% in equity instruments (the grown-up stuff)
31% in associate companies (mainly KSB Ltd)
15% in mutual funds (the diversification garnish)
And what about revenue? It’s a diversified buffet of passive income:
62% from dividend income,
22% from fair value gains,
6% from derivatives, and
8% from bill discounting and processing charges.
If you think about it, IPICL makes money off other people making money, charges some interest here and there, and occasionally books a fair-value gain when the markets behave. It’s the ultimate “money makes money” business—basically, the Mukesh Ambani of holding companies.
And yes, it’s technically an NBFC, but it’s not chasing EMIs or recovery agents. It’s chasing compounding.
4. Financials Overview
Let’s look at the Q2 FY26 scorecard:
Source table
Metric
Latest Qtr (Sep’25)
YoY Qtr (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue
₹1.77 Cr
₹3.83 Cr
₹3.00 Cr
-53.8%
-41.0%
EBITDA
₹1.56 Cr
₹3.60 Cr
₹2.73 Cr
-56.6%
-42.9%
PAT
₹16.7 Cr
₹18.2 Cr
₹14.0 Cr
-8.3%
+19.3%
EPS (₹)
₹99.71
₹108.72
₹82.11
-8.3%
+21.5%
Annualised EPS: ₹99.71 × 4 = ₹398.8 → giving a P/E of 15.3×, quite fair for an NBFC that doesn’t gamble.
Commentary: Sales fell, but profits didn’t flinch. That’s what happens when your business model depends more on dividends and fair-value gains than on selling actual products. IPICL’s OPM of 89% basically means its Excel sheet has more profit than revenue.
5. Valuation Discussion – Fair Value Range Only
Let’s sanity check where IPICL stands:
A. P/E Based Valuation
Current EPS (TTM): ₹366
Industry P/E: 31.5
Company P/E: 16.7
👉 If re-rated to sector average: ₹366 × 31.5 = ₹11,529 per share 👉 Conservative valuation (20×): ₹366 × 20 = ₹7,320
