1. At a Glance
International Combustion (India) Ltd (ICIL) is that rare Indian industrial veteran that has seen pre-Independence, post-Independence, LPG reforms, infra booms, busts, and still turns up to office. Market cap sits at ~₹133 crore with the stock hovering around ₹555, down ~21% over 3 months and ~25% over a year—Mr. Market clearly isn’t impressed right now. Trailing sales are ~₹294 crore, book value ~₹551, and the stock trades at ~1.0× book. ROCE ~11.6%, ROE ~10.1%, dividend yield ~0.72%. Sounds calm? Not so fast. The latest quarter delivered a PAT of -₹2.65 crore, EPS -₹11.09, and operating margin slipped into the red (-0.68%). This is a company that can do ₹20+ crore PAT in a good year—and then face-plant in a bad quarter. Curious already? Good. Let’s dig.
2. Introduction
Founded in 1936, ICIL manufactures heavy engineering equipment, gearboxes, geared motors, and dry-mix mortars. It serves cement, steel, fertilizer, mining, chemicals, and infrastructure—basically every industry that moves rocks, powders, or bulk stuff from point A to B with loud machines. The company operates plants in Nagpur, Kolkata, Aurangabad, and Ajmer, and has a bouquet of tie-ups with global names like Bauer, Allgaier, Mogensen, ABB Raymond (USA), and CAPA (Spain).
On paper, ICIL is a classic “India capex proxy.” In practice, it’s more like a capex mood ring—profits change color with cycles. FY24 was decent; FY25 was okay; Q3 FY26? Ouch. The order book stood at ~₹164.9 crore as of May ’23 with execution cycles of 6–12 months. Meanwhile, capacity expansion is ongoing in Aurangabad and Nagpur. The story is simple: solid engineering DNA, inconsistent margins, and a balance sheet that tries hard not to panic.
3. Business
Model — WTF Do They Even Do?
Think of ICIL as the backstage crew of Indian industry. You don’t see them, but without them, nothing moves.
- Heavy Engineering Division: Grinding mills, classifiers, crushers, dryers, conveyors—basically big metal beasts that chew raw material.
- Bauer Gear Motor: Industrial gearboxes and geared motors used across mills, packaging, water treatment, cranes, textiles—you name it.
- Mozer: Rotary dryers and coolers under license from Allgaier (Germany).
- Capa IC: Dry-mix mortars—tile grouts, waterproofing, ready-mix plaster—manufactured under license from CAPA (Spain).
Revenue split FY23: Mineral & material handling ~61%, gearboxes ~31%, building materials ~8%. Domestic market contributes ~97% of revenue; exports are a modest ~3%. Translation: India infra sneezes, ICIL catches a cold.
4. Financials Overview (Quarterly Reality Check)
Quarterly Comparison (₹ crore):
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 72.19 | 82.79 | 75.33 | -12.8% | -4.2% |
| EBITDA | -0.49 | 8.81 | 2.22 | NA | NA |
| PAT | -2.65 | 6.17 | 0.12 | -170.7% | NA |
| EPS (₹) | -11.09 | 25.81 | 0.50 | NA | NA |
Margins collapsed, costs didn’t cooperate, and depreciation + interest did their thing. Annualised EPS cannot be sensibly annualised from a loss quarter—so we stick to TTM EPS ~₹13.9 as reported.
Witty take: ICIL didn’t just miss the gym; it cancelled the
