Investment & Precision Castings Ltd Q2 FY26 – Defence Orders, Solar Dreams & a P/E Higher Than the Melting Point of Steel
1. At a Glance
Investment & Precision Castings Ltd (IPCL) has spent the last 50 years turning molten metal into money — and sometimes, more debt. At ₹495 a share and a P/E of 66.3, this Bhavnagar-based foundry now trades like a tech unicorn despite selling castings that literally gather dust. The market cap sits at ₹495 crore, the ROE at a humble 6.78%, and yet, investors keep holding on tighter than carbon steel in a furnace. In Q2 FY26, IPCL clocked ₹45.03 crore in sales and ₹3.03 crore PAT — up a staggering 96.8% YoY — the kind of number that makes you wonder if iron filings just turned magnetic for money.
The OPM stands tall at 16.28%, signalling operational heat is under control, while the ROCE at 9.59% shows they’re still getting more out of their machines than their shareholders. Over the last three months, the stock is up 8.37%, probably thanks to some spicy announcements — a defence order from PLR Systems, a new 4 MW solar plant in Gujarat, and the commissioning of Defence Plant 3. Bhavnagar’s foundry boy is finally getting his moment in the defence limelight.
2. Introduction
If you ever needed proof that old-school manufacturing can flirt with glamour, look no further than Investment & Precision Castings Ltd. Born in 1975, when bell-bottoms ruled and castings were still hand-poured with muscle, IPCL has now turned into a precision engineering veteran supplying to auto majors, defence outfits, and even medical implant makers. From Maruti Suzuki to Mahindra, from Royal Enfield to Israel Weapon Industries — this company’s customer list reads like a mini United Nations of machinery.
Yet, for a company that literally melts metal, IPCL’s financial discipline can seem a bit, well… fluid. With a stock P/E of 66x, the market values it like it’s coding AI rather than casting alloys. The ₹7.47 crore PAT in FY25 looks healthy, but it still needs to scale faster than its furnace temperature if it wants to justify that premium.
And what’s this new solar obsession? Apparently, IPCL’s green energy ambitions are glowing brighter than its molten steel. The management plans a 4 MWp solar plant in Gujarat by FY26-end — expected to generate 70-75 lakh units annually. Somewhere in Bhavnagar, an engineer is probably whispering, “Yeh lohā bhi eco-friendly ho gaya.”
3. Business Model – WTF Do They Even Do?
In one sentence: IPCL melts metal, moulds it, machines it, and sells it to industries that keep the world running. The fancy term is “investment casting,” but think of it as 3D printing with fire, wax, and patience.
The company’s manufacturing setup in Bhavnagar has a 3,000 MTPA capacity — of which 15 MTPA is for vacuum castings used in aerospace and medical implants. It’s like having a Tata Nano factory that also builds stealth fighter parts.
Their client base is industrial royalty: Maruti Suzuki, Mahindra & Mahindra, Tata Motors, Royal Enfield, and now defence suppliers like PLR Systems. Basically, if it has an engine, gear, pump, or weapon barrel — there’s a good chance IPCL’s metal is inside it.
The product portfolio spans everything from carbon steel to cobalt alloys. They can cast up to 200 kg per piece — from tiny components to beast-size turbine blades. Their diversification is no joke either — from automotive (62% of FY23 sales) to general engineering (21%), farm equipment (11%), and even defence (2%).
Add to that a wind power generation arm (1% of revenue) — because apparently, when they’re not melting iron, they like spinning turbines for kicks.
4. Financials Overview
Let’s turn up the heat and see how Q2 FY26 looks compared to previous quarters and last year.
Metric
Latest Qtr (Sep’25)
YoY Qtr (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue
₹45.03 Cr
₹41.90 Cr
₹44.90 Cr
7.47%
0.29%
EBITDA
₹7.33 Cr
₹5.54 Cr
₹6.40 Cr
32.2%
14.5%
PAT
₹3.03 Cr
₹1.54 Cr
₹2.17 Cr
96.8%
39.6%
EPS (₹)
3.03
1.54
2.17
96.8%
39.6%
Annualised EPS = 3.03 × 4 = ₹12.12
So at a CMP of ₹495, that’s a forward P/E of ~40.8x, still richer than molten nickel.
Commentary: YoY, the company nearly doubled its profit — clearly, the furnaces were running hotter this year. QoQ growth at 39% PAT shows steady improvement post-summer slump (when power cuts probably outperformed their windmills). Operating margins recovered nicely to 16.28%, signaling cost discipline and better product mix.
5. Valuation Discussion – Fair Value Range
Let’s use three lenses to view this fiery foundry:
