PTC Industries Ltd
NSE: PTCIL · BSE: 539006 · ISIN-listed equity, face value ₹10 · Aerospace & Defence — titanium/superalloy materials, precision castings, forgings, machining · Not to be confused with PTC India Ltd (power trading)
FY26 Revenue from ops
₹602.8 Cr
+95.7% YoY · total income ₹643.3 Cr [Fact]
FY26 PAT
₹101.6 Cr
+66.4% YoY · EPS ₹67.76 [Fact]
FY26 EBITDA margin
22.2%
core ex other income, ₹134 Cr on Screener basis (₹131.8 Cr / 21.9% on company total-income basis: 172.3 − OI 40.5) [Est.]; company-reported 26.8% incl. other income [Fact]
FY26 RoE / RoCE
7.0% / 8.0%
company definitions (placement doc) [Fact]
Market data
| Item | Value |
|---|---|
| CMP (NSE) | ₹25,339 — Screener.in, 12 Oct 2026, 12:40 pm IST (+3.23% on day) [Fact] |
| Shares outstanding (post-QIP) | 1,58,47,249 (pre-QIP 1,49,92,549 + 8,54,700 QIP shares allotted 9 Oct 2026) [Fact] |
| Market cap (post-QIP) | ₹40,156 Cr [Est.] (Screener shows ₹37,989 Cr on pre-QIP count) |
| 52-week high / low | ₹25,498 / ₹14,499 (Screener) [Fact] |
| TTM P/E | ~320x on post-QIP shares [Est.] (Screener 302x on pre-QIP count) |
| P/B | ~12.0x on post-issue book ₹3,337 Cr [Est.] (Screener 24.5x on Mar-26 book) |
| EV / TTM core EBITDA | ~224x [Est.] · EV/TTM sales ~55x [Est.] |
| Dividend | Nil — no dividend paid in any year shown (FY13–FY26) [Fact] |
| QIP (Oct 2026) | ₹1,799.99 Cr at ₹21,060/share (floor ₹22,150; 4.9% discount) [Fact] |
| Listing | BSE (moved listing to BSE in 2015; earlier OTCEI 1994); NSE listing 2023 [Fact] |
| Index membership | Not verified — not found in sources accessed |
Company overview
| Item | Detail |
|---|---|
| Incorporated | 20 Mar 1963 as Precision Tools & Castings Pvt Ltd; renamed PTC Industries Ltd on 22 Jan 1999 [Fact] |
| Founder | Late Shri Satish Chandra Agarwal (India’s first investment-casting foundry, 1963) [Fact] |
| HQ / Regd office | Advanced Manufacturing & Technology Centre (AMTC), NH-25A, Sarai Sahjadi, Bani, Lucknow 226401, UP |
| Promoter / CMD | Sachin Agarwal (on Board since 1998; MBA Univ. of Tulsa, MSc Finance Boston College); promoter group 59.72% pre-QIP → 56.46% post-QIP [Fact] |
| Key subsidiaries | Aerolloy Technologies Ltd (100%, India) · Trac Holdings Ltd → Trac Precision Solutions Ltd (100%, Crewe, UK) [Fact] |
| Facilities | AMTC Lucknow · Mehsana (Gujarat) · SMTC, UP Defence Corridor, Lucknow (Aerolloy) · Crewe, UK (Trac) [Fact] |
| Employees | 720 permanent (incl. 145 trainees) at standalone level, 31 Mar 2026; group headcount not disclosed [Fact] |
| Auditor | S. N. Dhawan & Co LLP (appointed at 60th AGM, 2023, for 5 yrs); FY26 report unqualified [Fact] |
| Credit rating | ICRA A (Stable) / A1 — upgraded 27 Mar 2026 [Fact] |
| Sector | Aerospace & defence materials and components; legacy industrial castings |
What the company does — in plain English
PTC Industries is a 63-year-old Lucknow foundry that is turning itself into India’s only vertically integrated titanium and nickel-superalloy house. The legacy business (standalone PTC, about ₹290 Cr revenue in FY26) makes investment castings — pump casings, valves, impellers, marine and defence parts — mostly for export. The growth business sits in the wholly owned subsidiary Aerolloy Technologies, which since 2025 operates vacuum arc remelting (VAR), vacuum induction melting (VIM) and plasma arc melting (PAM) furnaces and a 4,500/5,100-tonne open-die forging press at the Strategic Materials Technology Complex (SMTC) in the Lucknow node of the UP Defence Industrial Corridor; an electron-beam cold-hearth remelting (EBCHR) furnace and rolling mills are still being commissioned. Aerolloy melts titanium sponge and scrap into aerospace-grade ingots and turns them into castings, forgings and (soon) plates and sheets for Airbus, Safran, Honeywell, Dassault, BAE Systems, Blue Origin, BrahMos, DRDO and ISRO. A December 2024 UK acquisition, Trac Precision Solutions, adds machining of hot-section turbine blades and vanes for Rolls-Royce, Safran, GE and Siemens programmes. [Fact]
Quick verdict scorecard
Business
Strong
Management
Medium
Financial
Weak
Valuation
Expensive
Overall
Neutral
Bottom line
A rare, hard-to-replicate strategic-materials platform with credible global customer validation, priced at ~320x trailing earnings and ~62x the only published FY28 broker estimate (after re-basing for the new shares), with operating cash flow negative in two of the last five years (FY24, FY26) and cumulatively negative (−₹79 Cr) over FY22–FY26. The business is real; the price already assumes the execution. [Analyst View]Data freshness: price/market data Screener.in 12 Oct 2026 (12:40 pm IST); financials to Q1 FY27 (quarter ended 30 Jun 2026); QIP placement document dated 9 Oct 2026; QIP allotment corrigendum 10 Oct 2026. All ₹ Cr unless stated. Fiscal year ends 31 March.
Analyst Notes
The editorial read before the data. First-person, opinionated, numerate. [Analyst View]
What just happened. FY26 was the year the SMTC stopped being a slide and started being a plant. Consolidated revenue roughly doubled to ₹603 Cr and PAT rose 66% to ₹102 Cr, but look at where it came from: Trac (bought for ₹181 Cr in Dec 2024) contributed about ₹247 Cr of total income (pre inter-company elimination) at only ~6% EBITDA, Aerolloy tripled to ₹190 Cr of total income at a 47% EBITDA margin and ₹68 Cr of PAT, and the legacy standalone business actually shrank its PAT by 6% to ₹33 Cr. Q4 FY26 was spectacular (company-reported EBITDA margin 35.6%, PAT ₹60 Cr); Q1 FY27 normalised (27.5%, PAT ₹29 Cr) as Aerolloy’s total income fell ~25% QoQ from ~₹99 Cr to ₹74 Cr. The inflection is genuine but lumpy — development and first-article orders are being billed in bunches.
What the market is pricing. At ₹25,339 the company is worth ~₹40,150 Cr on the post-QIP share count — about 320x trailing PAT, ~58x trailing revenue and ~12x post-QIP book. The stock trades above the ₹21,060 QIP price fixed on 9 Oct 2026 and above ICICI Securities’ ₹21,500 target (2 Jun 2026; 50x FY28E EPS). Re-basing I-Sec’s FY28E PAT of ₹645 Cr to 1.585 Cr shares gives EPS of ~₹407, so the stock is already at ~62x a two-year-forward estimate that itself assumes revenue more than triples from FY26 to ₹2,187 Cr. The market is paying today for FY29–FY31 earnings from Airbus, Safran LEAP, Honeywell and Blue Origin programmes that are mostly still in qualification.
Why the business deserves a premium. The moat is real: aerospace titanium and superalloy castings need multi-year customer qualification, NADCAP special-process approvals and CEMILAC airworthiness clearances; very few companies outside the US, France, Russia and China can melt aerospace-grade titanium. PTC now holds VAR, VIM, PAM and a large open-die press on one site, has LTAs with Dassault (Rafale/Falcon, Jan 2024), Safran (seven LEAP-1A/1B castings, Mar 2025), Honeywell (2025) and Airbus (A320neo/A330neo/A350, Aug 2026), and is moving into sub-systems (BrahMos airframe system, ARDE titanium cradle). The Q1 FY27 Aerolloy EBITDA margin of 45% shows what qualified product earns. Global titanium supply is concentrated in China and Russia, and Western primes want alternatives — a structural tailwind.
What tempers the enthusiasm (1): cash. Reported profits have not turned into cash. Cumulative PAT FY22–FY26 was ~₹244 Cr; cumulative operating cash flow was negative ~₹79 Cr, and free cash flow was about −₹827 Cr. FY26 CFO was −₹69 Cr as receivables jumped ₹127 Cr and inventory ₹91 Cr; Screener’s cash conversion cycle is ~970 days. Management explains this as qualification-phase WIP (ingots, forgings and castings awaiting first-article approval), which is plausible for a melt-to-part business — but it means the company has funded itself almost entirely with shareholders’ money: about ₹2,910 Cr of equity raised since 2022 against ₹244 Cr of cumulative profit. Other income (mostly interest on QIP cash plus a ₹19 Cr FX gain) was ~30–32% of FY26 PBT (Screener ₹38 Cr vs company ₹40.5 Cr other income); the new ₹1,769 Cr of net proceeds will again inflate reported PAT through treasury income until deployed.
What tempers the enthusiasm (2): capital allocation and timelines. Of the October 2026 QIP’s ₹1,769 Cr net proceeds, ₹621 Cr is earmarked for “unidentified acquisitions” and ₹437 Cr for general corporate purposes — 60% with no named use. The EBCHR furnace was bought in August 2022 (second-hand, 5,000 tpa) and is still “under commissioning” in the October 2026 placement document; the hot rolling mill bought in August 2024 is still being installed; I-Sec had expected EBCHR in Q1 FY27. The original 2022 plan spoke of ~₹125 Cr over two years for Phase 1; actual group capex was ~₹117 Cr (FY24), ₹190 Cr (FY25) and ₹317 Cr (FY26), with another ₹499 Cr for Aerolloy and ₹146 Cr for Trac now planned. ICRA’s March 2026 note described a ~₹500 Cr FY26–28 capex funded by debt and accruals; its April 2026 Aerolloy rationale put the SMTC project at ~₹700 Cr, ~₹400 Cr already spent, ~₹300 Cr left to spend over FY27–28; the project funded partly by ~₹300 Cr of debt and partly by accruals/liquidity. Six months later the QIP earmarks ₹480 Cr (of a ₹499 Cr Aerolloy expansion) — more than the ~₹300 Cr ICRA understood to be outstanding — and shifts the funding from debt to equity. Whether this is the same programme re-funded, an enlarged scope, or both is not disclosed. [Analyst View]
How I would frame it. This is a high-quality, strategically important franchise in the middle of a capital-heavy build, owned by a promoter family that has executed ambitious technical projects but repeatedly chosen dilution at rising prices over balance-sheet discipline. The investment case is binary on qualification conversion: if Airbus/Safran/Honeywell parts move to serial production on schedule and EBCHR delivers cheap recycled titanium, FY29+ earnings could justify much of today’s value; if qualification slips 12–24 months (common in aerospace), the multiple has no support from current cash flows. I would want evidence of (a) positive operating cash flow for two consecutive half-years, (b) EBCHR and rolling-mill commissioning, (c) a disclosed order book, and (d) a named use for the ₹621 Cr acquisition kitty before paying ~62x two-year-forward earnings.
Read the rest of the report with these in mind
- Aerolloy margins (45% EBITDA in Q1 FY27) and its quarterly run-rate (₹74–99 Cr) are the single best leading indicator.
- Watch receivables + WIP vs revenue; cash conversion is the weakest link.
- Separate core EBITDA from “EBITDA incl. other income” — the company headline uses the latter.
- Track the share count: 52.4 lakh (Mar-22) → 158.5 lakh (Oct-26), 3.0x.
- Raheja Leasing suit (₹94.7 Cr damages claim over the 2022 rights issue) is the only material civil litigation.
Business Deep-Dive
Products, processes, facilities, certifications, customers, IP. Sources: QIP placement document (9 Oct 2026), FY26 annual report, company press releases. [Fact] unless marked.
Product verticals
| Vertical | Key products | Principal processes | End uses | Entity |
|---|---|---|---|---|
| Industrial castings | Pump casings, valves/valve bodies, impellers, flow-control housings in stainless, duplex, super-duplex, NAB and high alloys | Air-melt investment casting; RapidCast™, Replicast® (licensed), PrintCast™ | Oil & gas, LNG, marine, petrochemical, pulp & paper, power, defence | PTC standalone (AMTC, Mehsana) |
| Aerospace castings | Titanium & superalloy precision investment castings; equiaxed, directionally solidified (DS) and single-crystal (SX) airfoils (blades, buckets, vanes) | Vacuum investment casting; titanium casting with ceramic shelling; HIP; vacuum heat treatment | Aero-engines, airframes, defence, space, industrial gas turbines | Aerolloy (SMTC) + AMTC development base |
| Strategic materials & metal products | Titanium alloy ingots; Ni/Co superalloy ingots; cast sticks; billets, bars, rods, plates, sheets | VAR, PAM, VIM; EBCHR (under commissioning); rolling mills (under installation) | Aerospace, defence, space (e.g. VSSC/ISRO Ti-6Al-4V ingots) | Aerolloy (SMTC) |
| Forgings | Open-die forgings in titanium and superalloys | 4,500/5,100-tonne Intelligent Open Die Forging System (production from Mar 2026) | Aero-engines, defence, space, IGT | Aerolloy (SMTC) |
| Precision machining & finishing | Machined castings; HP/LP turbine blades, nozzle guide vanes, heat shields, seal segments | 5-axis machining, 5-/3-axis CNC grinding, EDM, fast/deep-hole drilling, dissimilar-metal TIG welding, airflow/waterflow testing | Aero-engines, IGT, defence | Trac (Crewe, UK); CNC shops in India |
| Systems & sub-systems (new) | BrahMos strategic metallic airframe system & integration (Jul 2026); ARDE titanium cradle for 105 mm Light Tank (design-led); Gun Factory Kanpur artillery components | Integration, joining, fluid-system, control assemblies | Strategic missiles, land systems | PTC standalone |
How it is made — the “PTC ONE: From Melt to Mission” route
InputsTitanium sponge, Ti scrap, Ni/Co master alloys, ferro-alloys, ceramics
→
MeltVAR (1,500 tpa, bought 2021), PAM (~600 tpa), VIM; EBCHR 5,000 tpa pending
→
FormOpen-die forging 4,500/5,100 t; rolling mills (plates/sheets) pending; investment casting
→
ProcessHIP, vacuum heat-treat, chem-milling, NDT (NADCAP)
→
Finish5-axis machining; Trac UK hot-section finishing
→
CustomerOEM primes, DRDO labs, DPSUs, ISRO, space launch
Investment-casting stages: engineering & simulation → wax/foam/3D-printed patterns → robotic ceramic shell building → de-wax → melting & pouring (titanium under vacuum/inert gas; airfoils with controlled solidification for equiaxed/DS/SX structures) → knockout & fettling → heat treatment/HIP → NDT, metallurgical and mechanical testing → multi-axis CNC machining. Titanium casting operations began in 2015 — the first titanium investment castings made in India (D&B report commissioned by the company).
Facilities
| Facility | Entity | Area (sq m) | Activities | Key equipment / status |
|---|---|---|---|---|
| AMTC, Lucknow (HQ) | PTC | 65,758 | Medium-to-large high-integrity investment castings (industrial, defence); development base for Ti/superalloy castings; R&D (DSIR-recognised); NABL lab | Robotic shell-coating, HIP, air-melt furnaces, 3D printing, CNC; 700 kW rooftop solar |
| Mehsana, Gujarat | PTC | 74,588 (17-acre campus) | Small-to-medium investment castings & machined parts for oil & gas, LNG, marine, petrochem, pulp & paper | Robotic shelling, air melting, CNC; expansion announced FY26 (+50,000 sq ft shop floor, “multiple times” capacity) |
| SMTC, UP Defence Industrial Corridor, Lucknow node (~50 acres next to BrahMos facility) | Aerolloy | 200,000 | Ti & superalloy ingots, billets, bars, rods, sheets, plates; cast sticks; aerospace castings; forgings; powder metallurgy (planned) | VAR (commissioned; VAR-400 for large castings Sep 2025), VIM (Sep 2025), PAM (installed Jan 2026, ~600 tpa), 4,500/5,100 t open-die press (production Mar 2026); EBCHR under commissioning; rolling/plate mills under installation |
| Crewe, Cheshire, UK | Trac | 3,716 | Precision machining & finishing of Ti/superalloy castings, complex airfoils, IGT parts | 5-/3-axis grinding, Sodick EDM, Makino G7 (2nd unit installed Q4 FY26), Makino deep-hole drilling (ordered), Modula storage |
Plant inauguration: Titanium & Superalloy Materials Plant inaugurated 11 May 2025 by Raksha Mantri Rajnath Singh and UP CM Yogi Adityanath; “Lokarpan” (dedication) 18 Oct 2025, when the GTRE single-crystal blade order was announced. First titanium ingot produced in-house without foreign expert supervision during FY26. [Fact]
Second-hand melt shop
Equipment provenance matters for both cost and risk: the VAR (agreement 25 Mar 2021, 1,500 tpa, up to 1 m dia / 12 t ingots) and EBCHR (agreement 6 Jul 2022, 5,000 tpa, ingots/slabs up to 12 t) were purchased as existing plant, with decommissioning, dismantling and re-installation by the original German OEM; the PAM was bought under a separate equipment purchase agreement (30 Jan 2023, origin not stated); the hot rolling mill (Aug 2024) was acquired from the USA. Management claimed in 2022 these were bought at “a fraction of original cost”, enabling a 10–15x revenue/asset multiple at full capacity. [Fact] Re-commissioning used vacuum-melt equipment has taken longer than first guided. [Analyst View]Capacities (disclosed)
| Asset | Capacity | Status (Oct 2026) | Source |
|---|---|---|---|
| VAR furnace (titanium ingots) | 1,500 tpa | Operating | 2022 press release; placement doc |
| EBCHR furnace (Ti scrap recycling) | 5,000 tpa (claimed >15% of global EB/PAM recycled Ti) | Under commissioning (acquired Aug 2022) | 2022 press release; placement doc |
| PAM furnace | ~600 tpa | Installed Jan 2026; “entered production” FY26 | Jan 2026 press release; AR FY26 |
| Total Ti ingot capacity post-EBCHR | ~6,500 tpa (I-Sec estimate incl. VAR) | — | ICICI Securities, 2 Jun 2026 [Est.] |
| Open-die forging press | 4,500/5,100 t | Production from Mar 2026 | Q4 FY26 presentation |
| RapidCast™ casting size | up to 6,000 kg per piece | Operating | Placement doc |
| Capacity utilisation | Not disclosed | — | Searched placement doc, AR FY26 |
Certifications & approvals
| Certification | Scope | Issuer | Entity |
|---|---|---|---|
| ISO 9001:2015 | QMS | TÜV NORD | PTC, Aerolloy |
| EN 9100:2018 / AS9100D | As-cast and machined investment castings in air & vacuum melt for steel, Ti, superalloys; multi-site incl. SMTC | TÜV NORD | Aerolloy |
| NADCAP | Heat treating/HIP, NDT, welding (all with merit), chemical processing | PRI | Aerolloy |
| ISO 14001 / ISO 45001 | Environment / OH&S (Mehsana certified in FY26) | TÜV NORD | PTC, Aerolloy |
| ISO/IEC 27001:2022 | Information security, Lucknow | SGS | PTC |
| ISO/IEC 17025:2017 | Testing lab at AMTC | NABL | PTC |
| PED 2014/68/EU; AD 2000-Merkblatt W0 | Material manufacturer approval | TÜV NORD | PTC, Aerolloy |
| NORSOK M-650 | Materials manufacturer qualification (oil & gas) | TÜV NORD | Aerolloy |
| ABS, Lloyd’s Register, Bureau Veritas | Marine castings approvals | Class societies | PTC |
| CEMILAC Letter of Approval (7 May 2025) | Military airworthiness — Ti-6Al-4V rear fin root fittings for AMCA (Advanced Medium Combat Aircraft) | CEMILAC, DRDO | PTC |
| DSIR R&D recognition; DGAQA registration | In-house R&D unit; defence QA | DSIR; DGAQA | PTC |
USP and moat
- Integration under one roof: melting (VAR/VIM/PAM, EBCHR pending) + casting + forging + machining (Trac) — management claims Aerolloy is “one of only two companies in the world” able to make large investment castings in both titanium and superalloys after the VAR-400 commissioning (Sep 2025). [Fact] (company claim)
- Qualification barriers: multi-year customer qualification cycles; NADCAP and CEMILAC approvals; “once a capability is qualified, additional parts are more incremental” (placement doc). [Fact]
- Firsts in India: titanium investment castings (2015); robotic shell-coating (2007); first Indian company entrusted with post-cast operations on single-crystal ready-to-fit turbine blades (GTRE, Oct 2025); only Indian supplier of Ti/superalloy cast parts to Safran LEAP (Mar 2025). [Fact] (company/D&B claims)
- Proprietary processes: RapidCast™ (DST-supported, up to 6 t castings without tooling), PrintCast™, ForgeCAST™, TiCast; Replicast® licensed. GreenTitanium™ recycling route planned on EBCHR. [Fact]
- Policy alignment: PLI 1.2 (specialty steel — Ti alloys & superalloys) MoUs signed Feb 2026; Positive Indigenisation Lists; DIC location. [Fact]
Key customers (named in company disclosures)
| Customer | Programme / product | Date | Status |
|---|---|---|---|
| Airbus | Fully machined ready-to-fit Ti castings — A320neo, A330neo, A350 | Agreement 6 Aug 2026 | Development → qualification → serial supply (value not disclosed) |
| Safran Aircraft Engines | Seven cast Ti/superalloy components for CFM LEAP-1A/1B | LTA order 28 Mar 2025 | Serial-production progress cited in AR FY26; earlier MoUs 2021–25 incl. military engines |
| Honeywell Aerospace Technologies | Ti & superalloy castings incl. aero-engine parts; dedicated capacity | LTA FY26 (2025) | Value not disclosed |
| Dassault Aviation | Full range of Ti cast parts — Rafale & Falcon | LTPA 17 Jan 2024 | Supply from 2024 |
| BAE Systems | Ti castings for M777 ULH (spade trails, blades; saddle/cradle/lower carriage plan) | Agreement Oct 2022; production order 27 Sep 2024 | Serial production |
| Blue Origin | Large Ni-superalloy LOX housings/manifolds for BE-4 (New Glenn) | Order Jan 2026* | Development & supply |
| BrahMos Aerospace | (i) Critical Ti castings ₹110 Cr over 24 months; (ii) strategic metallic airframe system & integration | (i) 21 Aug 2025; (ii) 17 Jul 2026 | (ii) value not disclosed |
| GTRE (DRDO) | Post-cast ops for single-crystal ready-to-fit turbine blades | Oct 2025 | Development |
| VSSC (ISRO) | Conversion of ~40 t Grade-1 sponge into double-VAR Ti-6Al-4V ingots | FY26 (Q3) | Order |
| ARDE (DRDO) | Design & development of Ti cradle for 105 mm Indian Light Tank | FY27 Q1 | First design-led order |
| Gun Factory Kanpur | Development order, two major artillery gun components | FY27 Q1 | Development |
| Israel Aerospace Industries | Ti cast aerospace components | Approval 2023; order 2024 | Supply |
| Elbit, Kongsberg, Westad, Siemens Energy | Qualifications / progress to serial production (standalone) | FY26 AR | Ongoing |
| Trac customers: Rolls-Royce, Safran, GE, Siemens; Coolbrook | Hot-section airfoils; Coolbrook RDH components (27,000 parts/yr at full rate; >£10m p.a. expected) | Trac acq. Dec 2024; Coolbrook 2 Oct 2025 | Production |
| HAL, MoD, Rolls-Royce Marine (legacy), MIDHANI, BDL, Kineco | Legacy defence/marine castings; MoUs (BDL JV for propulsion/guided bombs/aero-engines; Kineco structures) | Various | MoUs not binding |
*Blue Origin press release is dated “January 09, 2025” but is filed under 2026, references the Sep-2025 VIM commissioning and is reported in Q3 FY26 results — we treat the date as 9 Jan 2026 (typo in release). Rolls-Royce: relationship is via Trac’s hot-section work and the legacy Rolls-Royce Marine castings business (Total Cost Leadership Award) — no Aerolloy aero-engine contract with Rolls-Royce has been announced. [Analyst View]
Distribution, exports, IP
- Direct sales only — no dealers or distributors; international BD led by Stephane Brans (Head of International Sales); Trac gives proximity to European OEMs. [Fact]
- Exports: 81.8% of FY26 sale of products (EU 30.0%, UK 16.6%, US 11.1%, Norway 7.1%, RoW 16.3%); India share rose to 33.0% in Q1 FY27 (from 11.6% in Q1 FY26) on defence/space orders. See Supply Chain tab. [Fact]
- Contracts: POs against RFQs, LTAs and development contracts; where feasible phased volumes, price indexation/raw-material pass-through, advances and milestone billing; export credit insurance used. [Fact]
- IP: trademarks and proprietary/licensed processes; no patent count disclosed. CTO James Michael Collins (holds patents in investment casting and vacuum melting per AR). R&D team 45 professionals (30 Jun 2026). [Fact]
- Awards: Raksha Mantri Excellence Award (2022), National Award for R&D in Industry (2006), TIME/Statista India Top-100 fastest growing (2026), FT/Statista Asia-Pacific high-growth (2026), Hurun India 500 (2025), Indo-French Cooperation of the Year 2025 (Aerolloy). [Fact]
Segment Analysis
The group reports a single Ind AS 108 segment (“manufacturing and selling of metal components for critical and super-critical applications”). Management describes three operating groups — Castings, Metals, Machining — but discloses numbers only by legal entity. We therefore use an entity bridge. [Fact]
Management’s three groups (qualitative)
| Group | What it is | Customers | Entity |
|---|---|---|---|
| Castings Group | Air-melt industrial/defence castings; Ti & superalloy aerospace castings; equiaxed/DS/SX airfoils | Global OEMs, oil & gas, marine, defence | PTC standalone + Aerolloy |
| Metals Group | Ti & superalloy ingots/billets via VAR, PAM, (EBCHR); extending to open-die forging and rolling | Aerospace, defence, space (ISRO), internal feedstock | Aerolloy |
| Machining Group | Precision machining & finishing; ready-to-fit components; hot-section airfoils | Aero-engine and IGT OEMs | Trac (UK) + India CNC |
Entity bridge — FY26 (₹ Cr)
| Entity | Total income | YoY | EBITDA (incl. OI) | EBITDA % | PAT | Comment |
|---|---|---|---|---|---|---|
| PTC standalone (legacy) | 326.9 | +18.0% | 67.6 | 20.7% | 33.0 (−6.0%) | Revenue from ops ₹289.8 Cr (+19.4%); margins compressed by qualification costs |
| Aerolloy Technologies | 190.4 | +219.8% | 89.5 | 47.0% | 68.0 (+194.6%) | Revenue >₹175 Cr (+~210%); profit engine |
| Trac Precision (UK) | 247.0 | first full year | 15.5 | 6.3% | ~0.6 [Est.] | PAT not disclosed; residual after elimination |
| Sum of entities | 764.3 | 172.6 | ||||
| Inter-company eliminations / consolidation adj. | ~(121.0) [Est.] | ~(0.3) [Est.] | Aerolloy supplies material/castings to PTC and vice versa | |||
| Consolidated | 643.3 | +88.0% | 172.3 | 26.8% | 101.6 (+66.4%) | Core EBITDA ex-OI ₹134 Cr (22.2% of revenue) |
Entity bridge — Q1 FY27 vs Q1 FY26 (₹ Cr)
| Entity | Q1 FY27 income | Q1 FY26 income | YoY | Q1 FY27 EBITDA | EBITDA % | Q1 FY27 PAT |
|---|---|---|---|---|---|---|
| Aerolloy | 74.3 | 13.1 | +466% | 33.4 | 45.0% | 22.1 (+323%) |
| Trac (UK) | 71.4 | n/d | — | 6.1 | 8.5% | n/d |
| Standalone + eliminations (residual) | ~51.4 [Est.] | ~94.6 (incl. Trac) [Est.] | — | ~14.7 [Est.] | ~29% [Est.] | ~7.1 [Est.] |
| Consolidated | 197.1 | 107.7 | +83.0% | 54.2 | 27.5% | 29.2 (+466%) |
Residual = consolidated minus disclosed subsidiary figures; includes inter-company eliminations, so it understates true standalone revenue. Q1 FY26 Trac figures were not separately disclosed. [Est.]
Aerolloy — quarterly trajectory (₹ Cr, derived from cumulative disclosures)
Q2 = H1 (42.1) − Q1 (13.1); Q3 = 9M (91.3) − H1; Q4 = FY (190.4) − 9M. EBITDA: Q1 8.07, Q2 13.5, Q3 14.3, Q4 53.6, Q1FY27 33.4. Derived from company press releases. [Est.]
Trac Precision — trajectory
| Period | Total income (₹ Cr) | EBITDA (₹ Cr) | Margin | Note |
|---|---|---|---|---|
| Pre-acquisition FY (UK) | £24.8m revenue | n/d | — | Per Dec-2024 acquisition release |
| FY25 (Dec-24 to Mar-25, ~4 months) | n/d | n/d | — | Consolidated from Dec 2024 |
| 9M FY26 | 167.2 | n/d | — | Q3 FY26 press release |
| Q4 FY26 | ~79.8 [Est.] | n/d | — | I-Sec: “TARC losses receded” |
| FY26 | 247.0 | 15.5 | 6.3% | Q4 FY26 presentation |
| Q1 FY27 | 71.4 | 6.1 | 8.5% | Q1 FY27 presentation |
Revenue mix by geography (sale of products, ₹ Cr)
| Region | FY24 | FY25 | FY26 | Q1 FY26 | Q1 FY27 |
|---|---|---|---|---|---|
| India | 40.2 (16.0%) | 43.7 (14.4%) | 108.7 (18.2%) | 11.3 (11.6%) | 63.3 (33.0%) |
| European Union | 97.1 (37.8%) | 95.0 (30.8%) | 180.8 (30.0%) | 37.2 (38.3%) | 36.5 (19.0%) |
| United Kingdom | 8.3 (3.2%) | 27.8 (9.0%) | 100.1 (16.6%) | 9.6 (9.9%) | 34.8 (18.2%) |
| United States | 32.7 (12.7%) | 34.4 (11.2%) | 67.1 (11.1%) | 2.3 (2.4%) | 7.4 (3.8%) |
| Norway | 48.3 (18.8%) | 71.5 (23.2%) | 42.5 (7.1%) | 10.9 (11.3%) | 5.6 (2.9%) |
| UAE | 2.4 (0.9%) | 4.0 (1.3%) | 1.1 (0.2%) | 0.3 (0.3%) | 0.6 (0.3%) |
| Rest of world | 22.6 (8.8%) | 26.9 (8.7%) | 98.0 (16.3%) | 25.6 (26.3%) | 43.7 (22.8%) |
| Exports (outside India) | 211.4 (84.0%) | 259.7 (85.6%) | 489.6 (81.8%) | 85.9 (88.4%) | 128.5 (67.0%) |
% = share of revenue from operations as presented in placement document (table re-assembled from PDF; % basis per document). Note: regional % columns are on a mixed basis (some on revenue from operations, India/export totals on sale of products), so FY24/FY26 regional %s do not sum exactly. FY26 export total corrected in review to the sum of regions (₹489.6 Cr; = 81.8% of ₹598.3 Cr sale of products). [Fact]
Fastest grower and segment under pressure
Fastest grower
Aerolloy — FY26 total income +220%, Q1 FY27 +466% YoY, EBITDA margin 45–47%. Drivers: first full year of primary metals (VAR/VIM/PAM), Ti castings ramp for Dassault/Safran/BAE/IAI, development billings (BrahMos, GTRE, Blue Origin), domestic defence and ISRO. Management focus: SMTC commissioning (EBCHR, rolling), qualifications for Airbus/Honeywell/Safran, PLI 1.2. [Fact]Under pressure
PTC standalone — FY26 EBITDA −6.9%, PAT −6.0% despite revenue +19.4%; operating margin fell from 22.8% to 16.9%, RoE 3.5%. Cause (per AR): material cost +40.9% and employee cost +24.3% from qualifying/stabilising new programmes. Trac — ~6% EBITDA on ₹247 Cr; capital-hungry (₹146 Cr expansion planned, ₹71 Cr from QIP). [Fact]Financials: Profit & Loss
Consolidated, ₹ Cr. Annual and quarterly lines from Screener.in (consolidated) cross-checked to company filings and the QIP placement document. “Operating profit” = revenue less operating expenses, i.e. excluding other income; the company’s headline “EBITDA” includes other income. [Fact]
Five-year P&L
| ₹ Cr | FY22 | FY23 | FY24 | FY25 | FY26 | TTM (Jun-26) |
|---|---|---|---|---|---|---|
| Revenue from operations | 179 | 219 | 257 | 308 | 603 | 697 |
| YoY growth | 9.8% | 22.3% | 17.4% | 19.9% | 95.7% | ~95% (TTM) |
| Gross margin (net material cost basis) | n/d | n/d | n/d | 82.7% | 82.4% | — |
| Operating expenses | 137 | 161 | 184 | 233 | 468 | 526 |
| Core EBITDA (ex other income) | 42 | 59 | 73 | 75 | 134 | 172 |
| Core EBITDA margin | 23.5% | 26.9% | 28.4% | 24.4% | 22.2% | 24.7% |
| Other income | 5 | 7 | 13 | 33 | 38 | 35 |
| Company-reported EBITDA (incl. OI) | n/d | n/d | 86.0 | 109.4 | 172.3 | 207.1 [Est.] |
| margin on total income | — | — | 31.8% | 32.0% | 26.8% | ~28% |
| Depreciation | 15 | 17 | 17 | 21 | 37 | 42 |
| EBIT (PBT + interest) | 32 | 50 | 69 | 87 | 136 | 166 |
| EBIT margin | 17.9% | 22.8% | 26.8% | 28.2% | 22.6% | 23.8% |
| Interest | 15 | 16 | 15 | 9 | 9 | 11 |
| PBT | 17 | 34 | 54 | 78 | 127 | 155 |
| PBT margin | 9.5% | 15.5% | 21.0% | 25.3% | 21.1% | 22.2% |
| Tax rate | 25% | 23% | 22% | 22% | 20% | — |
| PAT | 13 | 26 | 42 | 61 | 102 | 126 |
| PAT margin | 7.3% | 11.9% | 16.3% | 19.8% | 16.9% | 18.1% |
| EPS (₹, as reported) | 9.78 | 19.29 | 29.24 | 40.72 | 67.74 | 83.78 |
| Other income as % of PBT | 29% | 21% | 24% | 42% | 30% | 23% |
FY21 for reference: revenue ₹163 Cr, PAT ₹4 Cr. 5-yr revenue CAGR 30%, 3-yr 40%; 5-yr PAT CAGR 102% (Screener). Margins computed on revenue from operations. TTM company-basis EBITDA = FY26 172.3 − Q1FY26 19.4 + Q1FY27 54.2. [Est.]
Quarterly P&L — last nine quarters
| ₹ Cr | Jun-24 | Sep-24 | Dec-24 | Mar-25 | Jun-25 | Sep-25 | Dec-25 | Mar-26 | Jun-26 |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 47 | 72 | 67 | 122 | 97 | 125 | 156 | 225 | 192 |
| YoY | −35% | +24% | +22% | +69% | +106% | +74% | +133% | +84% | +98% |
| QoQ | −35% | +53% | −7% | +82% | −20% | +29% | +25% | +44% | −15% |
| Core EBITDA | 10 | 21 | 15 | 29 | 9 | 26 | 25 | 73 | 49 |
| Core EBITDA % | 21% | 29% | 23% | 24% | 9% | 21% | 16% | 32% | 25% |
| Other income | 4 | 8 | 10 | 11 | 11 | 8 | 10 | 12 | 5 |
| Company EBITDA (incl. OI) | n/d | n/d | n/d | 40.6 | 19.4 | 33.9 [Est.] | 34.6 [Est.] | 84.4 | 54.2 |
| Interest | 3 | 3 | 1 | 1 | 2 | 2 | 3 | 2 | 4 |
| Depreciation | 4 | 4 | 5 | 8 | 9 | 9 | 9 | 10 | 14 |
| PBT | 6 | 22 | 19 | 31 | 9 | 23 | 23 | 72 | 37 |
| Tax % | 23% | 21% | 24% | 21% | 43% | 21% | 18% | 17% | 21% |
| PAT | 5 | 17 | 14 | 25 | 5 | 18 | 18 | 60 | 29 |
| PAT YoY | — | — | — | +67% | +2% | +6% | +29% | +144% | +466% |
| EPS (₹) | 3.39 | 11.56 | 9.50 | 16.40 | 3.44 | 12.11 | 12.24 | 39.96 | 19.47 |
Jun-24 YoY vs Jun-23 revenue ₹72 Cr. Q2/Q3 FY26 company EBITDA derived: H1 53.3 − Q1 19.4; 9M 87.9 − H1 53.3. I-Sec reports Q4 FY26 core EBITDA ₹72.6 Cr (32.2%) vs company 35.6% incl. OI — same gap. [Est.]
Growth decomposition
| Driver | FY26 evidence | Type |
|---|---|---|
| Trac acquisition (Dec 2024) | ~₹247 Cr total income in FY26 (first full year) vs ~4 months in FY25 (not separately disclosed) | Inorganic |
| Aerolloy ramp | Total income ₹59.5 Cr (FY25) → ₹190.4 Cr (FY26); first full year of primary metals; Ti castings | Organic — volume + new products |
| Standalone | Revenue +19.4% to ₹289.8 Cr; new qualifications (Siemens Energy, Elbit, Kongsberg, Westad, Safran, Honeywell) | Organic |
| Price vs volume | Not disclosed. Contracts allow raw-material pass-through/indexation where feasible | — |
Organic vs inorganic
Roughly 40% of FY26 consolidated revenue came from the Trac acquisition (~₹247 Cr of total income vs ₹603 Cr revenue), so “revenue doubled” overstates organic growth. Organic growth (Aerolloy + standalone) is still strong, but closer to ~45–55% [Est.]. Q1 FY27 vs Q1 FY26 is like-for-like on perimeter (Trac consolidated in both), so the +98% YoY is largely organic — Aerolloy alone added ~₹61 Cr of income. [Analyst View]One-time and non-core items
- FY26 other income ₹40.5 Cr incl. net FX gain ₹19.0 Cr and bank interest ₹20.1 Cr (FY25: interest ₹26.5 Cr on QIP cash, FX ₹6.2 Cr). [Fact]
- FY25 exceptional item: −₹0.94 Cr. FY26: nil. [Fact]
- Q1 FY26 tax rate of 43% depressed PAT to ₹5.2 Cr — flatters the “+466% YoY” Q1 FY27 headline. [Fact]
- Q1 FY27 “processing and work charges” jumped to ₹18.1 Cr from ₹2.7 Cr — new-product development spend. ESOP cost ₹1.07 Cr (vs ₹0.16 Cr). [Fact]
- Interest on the Oct-2026 QIP cash (₹1,769 Cr) will add treasury income in H2 FY27–FY28 until deployed — strip this out when judging operating earnings. [Analyst View]
Earnings quality — are profits backed by cash?
| ₹ Cr | FY22 | FY23 | FY24 | FY25 | FY26 | 5-yr total | Q1 FY27 |
|---|---|---|---|---|---|---|---|
| PAT | 13 | 26 | 42 | 61 | 102 | 244 | 29 |
| Cash from operations (CFO) | 25 | 47 | −96 | 14 | −69 | −79 | 44 |
| CFO / PAT | 1.9x | 1.8x | −2.3x | 0.2x | −0.7x | −0.3x | 1.5x |
| CFO / core EBITDA | 60% | 80% | −132% | 19% | −51% | — | 90% |
Divergence flag
Over FY22–FY26 the group reported ₹244 Cr of PAT and negative ₹79 Cr of operating cash flow. FY26 alone: operating profit before WC changes ₹137.2 Cr, then receivables +₹127.2 Cr, inventory +₹90.8 Cr, other assets +₹19.9 Cr → CFO −₹68.7 Cr. FY24 CFO (−₹96.3 Cr) was driven by a ₹106.3 Cr increase in other financial assets. Q1 FY27 turned positive (+₹44.2 Cr) on a ₹32 Cr fall in receivables. Management calls FY27 reversal “a priority”. Two consecutive positive half-years would be the first real proof that WIP is converting. [Fact]Financials: Balance Sheet, Cash Flow & Ratios
Consolidated, ₹ Cr. Screener (aligned to FY22–FY26), FY26 annual report, QIP placement document (30 Jun 2026 and post-issue). [Fact]
Balance sheet summary
| ₹ Cr | FY22 | FY23 | FY24 | FY25 | FY26 | 30-Jun-26 | Post-QIP (pro forma) |
|---|---|---|---|---|---|---|---|
| Share capital | 5 | 13 | 14 | 15 | 15 | 15.0 | 15.8 |
| Reserves | 163 | 293 | 631 | 1,372 | 1,492 | 1,522.4 | 3,321.6 [Est.] |
| Net worth | 168 | 306 | 645 | 1,387 | 1,507 | 1,537.4 | 3,337.4 |
| Borrowings | 196 | 177 | 182 | 61 | 261 | 274.0 | ~195 after ₹79 Cr repayment [Est.] |
| Other liabilities | 61 | 70 | 68 | 136 | 188 | n/d | — |
| Total assets | 426 | 553 | 896 | 1,584 | 1,956 | n/d | — |
| Net fixed assets (incl. intangibles, goodwill) | 237 | 228 | 233 | 449 | 644 | n/d | — |
| of which goodwill (Trac) | — | — | — | 63.1 | 63.1 | 63.1 | — |
| Capital WIP | 23 | 67 | 159 | 185 | 311 | n/d | — |
| Inventory | n/d | n/d | n/d | 208.2 | 299.0 | ~239 (WIP+FG only) [Est.] | — |
| of which WIP | n/d | n/d | 36.1 | 125.4 | 222.2 | 235.8 | — |
| Trade receivables | n/d | n/d | n/d | 143.8 | 273.9 | ~242 [Est.] | — |
| Cash & bank balances | n/d | n/d | n/d | 381.8 | 136.6 | ~181 [Est.] | ~1,950 [Est.] |
| Debt / equity (company) | — | — | 0.28 | 0.04 | 0.17 | 0.18 | 0.08 |
FY24 WIP from FY25 opening (₹36.1 Cr). 30-Jun-26 receivables estimated from FY26 + Q1 decrease of ₹32 Cr; cash estimated from FY26 + Q1 net cash change and other-bank-balance movement. Post-QIP net worth from placement-document capitalisation statement (gross of issue expenses ~₹31 Cr). [Est.]
Cash flow (five years)
| ₹ Cr | FY22 | FY23 | FY24 | FY25 | FY26 | Q1 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|
| CFO | 25 | 47 | −96 | 14 | −69 | −35 | 44 |
| Capex (PPE incl. capital advances) | ~28 [Est.] | ~96 [Est.] | 116.5 | 190.0 | 317.3 | 81.4 | 87.6 |
| Free cash flow (CFO − capex) | −3 | −49 | −213 | −176 | −386 | −116 | −43 |
| CFI (total) | −28 | −116 | −60 | −502 | −271 | −85 | −47 |
| CFF | 3 | 74 | 284 | 544 | 185 | 38 | 10 |
| of which equity raised (net) | n/d | n/d | 295.6 | 676.4 | 0.3 | 0.0 | 0.0 |
| Net change in cash | −1 | 6 | 127 | 55 | −155 | −81 | 7 |
| FCF yield on current mkt cap | — | — | — | — | −1.0% | — | — |
FY25 CFI includes ₹170.1 Cr “investments made” (Trac acquisition; standalone cost ₹181.2 Cr) and ₹168.8 Cr placed in bank deposits. Cumulative FY22–FY26 FCF ≈ −₹827 Cr, funded by ~₹1,110 Cr of equity raised FY23–FY25 and net debt. [Fact]/[Est.]
Working capital
| Days | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Debtor days | 125 | 109 | 158 | 170 | 166 |
| Inventory days (on COGS, Screener) | 541 | 521 | 440 | 1,423 | 1,030 |
| Payable days | 156 | 141 | 91 | 333 | 225 |
| Cash conversion cycle | 510 | 490 | 507 | 1,261 | 970 |
| Working-capital days (on sales) | 24 | 72 | 163 | 381 | 302 |
Company’s own Aerolloy working-capital assumptions (placement doc): FY26 inventory 238 days, receivables 132 days, other current assets 305 days (mostly unutilised input tax credit on imported plant and materials), payables only 28 days (sponge and master alloys imported against advance/LC). ICRA: working-capital intensity 75.6% (FY24) and 117.1% (FY25). Standalone debtor turnover 2.44x, inventory turnover 2.85x (FY26). [Fact]
Capex: history, plan and funding
| Item | Amount | Source / status |
|---|---|---|
| 2022 plan (VAR + EBCHR Phase 1) | ~₹125 Cr over 2 years | Aug 2022 press release; to be funded by accruals, equity, debt incl. rights issue |
| Actual group capex FY24 / FY25 / FY26 | ₹116.5 / ₹190.0 / ₹317.3 Cr | Placement doc cash flows |
| Capex Q1 FY27 | ₹87.6 Cr | Placement doc |
| ICRA view of programme | ~₹500 Cr FY26–FY28, debt + accruals + liquidity | ICRA, 27 Mar 2026 |
| ICRA view — Aerolloy SMTC project | ~₹700 Cr total; ~₹400 Cr already incurred; balance over FY27–FY28; ~₹300 Cr debt-funded, rest accruals/liquidity | ICRA Aerolloy rationale, 24 Apr 2026 |
| Capital commitments (unexecuted contracts) | ₹147.4 Cr | 30 Jun 2026 |
| QIP-funded: Aerolloy expansion (Lucknow) | ₹499.3 Cr total (P&M ₹408.8 Cr; pre-op ₹40.9 Cr; contingency ₹49.6 Cr); ₹480 Cr from QIP | Chartered engineer certificate 9 Oct 2026; not appraised |
| QIP-funded: Trac expansion (UK) | ₹146.3 Cr total (P&M ₹134.2 Cr); ₹71 Cr from QIP | Same |
| Asset turnover (sales / net fixed assets + CWIP) | FY24 0.66x · FY25 0.48x · FY26 0.63x [Est.] | Low — capacity built ahead of revenue |
| Maintenance vs growth capex | Not disclosed; overwhelmingly growth capex [Analyst View] | — |
Capex credibility check
The capex story has been under-scoped and late: a ~₹125 Cr two-year plan in 2022 became ~₹624 Cr of capex in FY24–FY26 alone, plus another ~₹645 Cr now planned. The EBCHR (acquired Aug 2022) and rolling mill (acquired Aug 2024) were still not commissioned in Oct 2026. ICRA (Mar 2026) understood a ~₹500 Cr FY26–28 programme funded by debt and accruals; ICRA’s Aerolloy rationale (24 Apr 2026) described a ~₹700 Cr project with ~₹400 Cr already incurred and ~₹300 Cr of debt funding. The QIP now earmarks ₹551 Cr of equity for subsidiary capex (₹480 Cr Aerolloy, ₹71 Cr Trac); the Aerolloy portion alone exceeds the ~₹300 Cr ICRA saw as remaining. Investors should ask how much is re-funding of the existing programme versus new scope. [Analyst View]Debt structure, coverage and rating
| Item | Detail |
|---|---|
| Total borrowings 30-Jun-26 | ₹274.0 Cr: current secured ₹71.7 Cr; current unsecured (bill discounting, lease) ₹14.5 Cr; non-current secured ₹184.5 Cr; non-current unsecured ₹3.4 Cr [Fact] |
| Standalone borrowings 16-Sep-26 | ₹80.5 Cr; ₹79.0 Cr to be repaid from QIP in FY27 [Fact] |
| Interest coverage (EBIT / interest, company) | FY24 5.2x · FY25 13.5x · FY26 39.0x · Q1 FY27 13.6x (company definition, placement doc) [Fact]. Caution: these do not reconcile with this report’s P&L (EBIT/interest ≈ 4.6x FY24, ~9.7x FY25, ~15x FY26) or with ICRA’s calculation (4.8x FY24, 8.6x FY25, 9.5x 9M FY26). Treat 39.0x as unverified. [Est.] |
| Finance cost trend | Q1 FY27 ₹3.6 Cr vs ₹1.7 Cr (term-loan interest ₹1.5 Cr vs ₹0.1 Cr as capex loans capitalise) [Fact] |
| Lenders (PTC standalone) | ICRA-rated facilities ₹355 Cr (LT term loan ₹10 Cr, LT fund-based ₹130 Cr, ST non-fund-based ₹215 Cr). Lender-wise (ICRA, as of 19 Mar 2026): State Bank of India — term loan ₹10 Cr, cash credit ₹40 Cr, non-fund ₹47.5 Cr; HDFC Bank — CC ₹30 Cr; YES Bank — CC ₹25 Cr, non-fund ₹23 Cr; Axis Bank — CC ₹25 Cr, non-fund ₹25 Cr; Punjab National Bank — CC ₹5 Cr, non-fund ₹17.5 Cr; ICICI Bank — overdraft ₹5 Cr, standby LC ₹70.6 Cr; proposed ₹31.4 Cr (total ₹355 Cr). Term loan coupon 8.45%, maturity Sep 2033 [Fact] |
| Aerolloy facilities (ICRA, 24 Apr 2026) | [ICRA]A (Stable)/A1 on ₹492 Cr: term loans ₹330 Cr (TL1 ₹60 Cr @ 8.10% and TL2 ₹80 Cr @ 8.00%, both Sep 2025–Mar 2035; TL3 ₹40 Cr @ 8.20%, Jul 2022–Mar 2032; ₹150 Cr proposed), cash credit ₹50 Cr, ST non-fund ₹112 Cr. Aerolloy’s individual lenders not named in sources accessed. ICRA takes a consolidated PTC + Aerolloy view [Fact] |
| Borrowing limit | Raised from ₹350 Cr to ₹600 Cr (s.180) by special resolution, EGM 1 Aug 2026; s.186 loans/investments/guarantees limit raised to ₹2,000 Cr (₹1,198.82 Cr outstanding at 31 Mar 2026, mostly to wholly owned subsidiaries) [Fact] |
| Contingent | Bank guarantees ₹87.5 Cr; disputed GST ₹0.17 Cr; corporate guarantees for subsidiaries’ loans [Fact] |
| Ratings | ICRA A (Stable)/A1, upgraded 27 Mar 2026 from A−(Stable)/A2+; Aerolloy ICRA A (Stable)/A1 assigned 24 Apr 2026; earlier CARE BBB+ (Stable)/A2 and Infomerics IVR BBB+ (Stable)/A2 (both since withdrawn at the company’s request — Infomerics Sep 2024, CARE May 2025). Downgrade trigger: DSCR <2.0x sustained [Fact] |
| Covenant breaches / restructuring | None disclosed [Fact] |
Equity dilution & share-count history
| Date | Event | Shares issued | Price (₹) | ₹ Cr raised | Shares after |
|---|---|---|---|---|---|
| Dec 1994 | OTCEI listing | 5,50,000 | 50 | 2.8 | 35,50,000 |
| Dec 1998 | Amalgamation of Sunika Alloys Pvt Ltd & Ashman Tools Engineers Pvt Ltd | 6,41,250 | — | — | 41,91,250 |
| Apr / Nov 2014 | Conversion of 4,00,000 CCDs | 10,47,813 | 381.75 | 40.0 | 52,39,063 |
| 23 Aug 2022 | Rights issue 3:2 | 78,58,594 | 10 | 7.9 | 1,30,97,657 |
| 7 Dec 2022 | Preferential issue | 2,84,600 | 2,349 | 66.9 | 1,33,82,257 |
| 19 Jul 2023 | Preferential issue | 1,80,000 | 2,500 | 45.0 | 1,35,62,257 |
| 15 Dec 2023 | ESOP 2019 | 13,031 | 402 | 0.5 | 1,35,75,288 |
| 4 Jan 2024 | Warrant conversion (warrants issued 7 Dec 2022) | 6,30,170 | 2,349 | 148.0 | 1,42,05,458 |
| 15 Feb 2024 | Preferential issue | 2,35,415 | 6,000 | 141.2 | 1,44,40,873 |
| 3 Sep 2024 | QIP | 5,30,315 | 13,199.70 | 700.0 | 1,49,71,188 |
| 23 Nov 2024 | ESOP 2019 | 12,938 | 402 | 0.5 | 1,49,84,126 |
| 13 Nov 2025 | ESOP 2019 | 8,423 | 402 | 0.3 | 1,49,92,549 |
| 9 Oct 2026 | QIP | 8,54,700 | 21,060 | 1,800.0 | 1,58,47,249 |
| Since Aug 2022 | 1,06,08,186 | ~2,910 | 3.02x share count vs Mar-22 |
ESOP overhang: 59,377 options outstanding under PTC-ESOS 2019 at ₹402 (0.37% of post-QIP equity); 4,701 vested-unexercised. No warrants, preference shares or convertibles outstanding. A new ESOP grant was approved by the NRC in Q4 FY26. Money raised since 2022 (~₹2,910 Cr) is ~12x cumulative FY22–FY26 PAT (₹244 Cr). Note the Aug-2022 rights issue at ₹10 (3:2) is the subject of the Raheja Leasing suit (Governance tab). [Fact]/[Est.]
Key balance-sheet risks
- WIP-heavy inventory (₹222 Cr WIP at Mar-26, ₹236 Cr at Jun-26) tied to qualification programmes — write-down risk if parts fail first-article or programmes are re-specified. [Analyst View]
- Receivables nearly doubled in FY26 (₹274 Cr) because sales bunched in Q4; ECL provision only ₹0.23 Cr. [Fact]
- Goodwill ₹63 Cr on Trac, a ~6% EBITDA business — impairment test sensitivity. [Analyst View]
- Unutilised input tax credit on imported plant (305 days of Aerolloy revenue as other current assets). [Fact]
- Post-QIP the balance sheet is net cash (~₹1,750 Cr+) — solvency is not the issue; return on capital is. RoE 7.0% (FY26). [Est.]
Management, Promoters & Governance
Placement document (Oct 2026), FY26 annual report, shareholding filings, Screener. [Fact] unless marked.
Promoter & key management
| Name | Role | Background |
|---|---|---|
| Sachin Agarwal (b. 1972) | Chairman & MD since 1998 Board entry; also CMD of Aerolloy and Chairman of Trac Precision; re-appointed 5 yrs from 1 Oct 2025 | MBA (Operations), University of Tulsa; MSc Finance, Boston College. 28 yrs with company. Member, CII National Council; past Chairman SIDM UP chapter; Chairman SIDM Aerospace Committee. Holds 19.05% directly (plus Sachin Agarwal HUF). Belongs to the founding Agarwal family (founder: late Satish Chandra Agarwal); exact relationship not stated in filings reviewed |
| Smita Agarwal (b. 1976) | Whole-time Director & CFO (Board since Jun 2019; with company since 2014) | Chartered Accountant; ex-PwC, Coopers & Lybrand London; DISA (ICAI). Spouse of Sachin Agarwal. Leads finance, IR, IT, HR |
| Priya Ranjan Agarwal (b. 1958) | Whole-time Director (Marketing), Board since 1992 | Mechanical engineer; 33 yrs; domestic defence relationships (DRDO labs, DPSUs, BrahMos). Holds 6.59% |
| Alok Agarwal (b. 1962) | Whole-time Director (Technical & Quality), Board since 1994 | B.Tech, IIT Kanpur; 32 yrs; production, quality, NADCAP/AS9100. Holds 3.64% |
| James Michael Collins | Chief Technology Officer (senior management) | 9+ yrs with company; patents in investment casting & vacuum melting; holds 5,153 shares |
| Frederic Oudelet | SVP Castings Engineering (joined 2024) | Joined Aerolloy in 2024 as VP Engineering (Castings); now SVP; >2 yrs |
| Stephane Brans | Head of International Sales | >3 yrs with company |
| Baljinder Singh Koura | VP Operations, Aerospace Castings, Aerolloy (appointed FY26) | Aerospace operations |
| Liam Bevington | Managing Director, Trac Precision Solutions (UK) | Trac leadership retained post-acquisition |
| Pragati Gupta Agrawal | Company Secretary & Compliance Officer | 5 yrs |
Board of directors (8: 1 MD, 3 WTDs, 4 independent)
| Director | Category | Appointed | Other directorships | Note |
|---|---|---|---|---|
| Sachin Agarwal | Promoter, CMD | 18 Jun 1998 | 11 | Chairs Banking, Project Monitoring & Environment, and Listing committees |
| Priya Ranjan Agarwal | Promoter group, WTD | 28 Dec 1992 | 3 | |
| Alok Agarwal | Promoter group, WTD | 27 Jul 1994 | 2 | Risk Management Committee member |
| Smita Agarwal | Promoter group, WTD & CFO | 1 Jun 2019 | 6 | Spouse of CMD |
| Vishal Mehrotra | Independent | 10 Aug 2019 (5-yr term from 9 Aug 2024) | Nil | Chairs NRC |
| Prashuka Jain | Independent (woman) | 5 Sep 2022 | Nil | Chairs a board committee (per AR) |
| Kamesh Gupta | Independent (Bengaluru) | 1 Oct 2024 | 1 | |
| Rakesh Shukla | Independent; retired senior banker | 20 Feb 2025 | Nil |
Remuneration
| ₹ lakh | FY24 | FY25 | FY26 | Apr–Aug 2026 | Note |
|---|---|---|---|---|---|
| Sachin Agarwal (CMD) | n/d | 333.0 | 492.5 (+47.9%) | 214.0 | Incl. 3% commission on consolidated profits; 188.7x median employee pay; 14.9% of standalone PAT |
| Priya Ranjan Agarwal | n/d | 78.4 | 107.3 | n/d | Incl. 0.6% commission on domestic defence sales realised |
| Alok Agarwal | n/d | n/d | 46.4 | n/d | |
| Smita Agarwal | n/d | 41.1 | 46.3 | n/d | |
| Total KMP compensation (standalone) | n/d | 557.7 | 705.2 | — | |
| Independent directors’ sitting fees | tiny | ~8 | ~11 | ~6 | ₹1.4–3.5 lakh each per year |
Shareholding pattern
| % | Jun-25 | Sep-25 | Dec-25 | Mar-26 | Jun-26 | Post-QIP (Oct-26) |
|---|---|---|---|---|---|---|
| Promoter & group | 59.75 | 59.75 | 59.72 | 59.72 | 59.72 | 56.46 |
| FIIs | 3.39 | 3.41 | 3.86 | 3.95 | 3.95 | n/d |
| DIIs | 7.73 | 8.51 | 8.45 | 9.21 | 9.35 | n/d |
| Institutions total | 11.12 | 11.92 | 12.31 | 13.16 | 13.30 | 18.43 |
| Public & others | 29.14 | 28.32 | 27.98 | 27.12 | 26.98 | 25.11 |
| No. of shareholders | 22,707 | 22,554 | 23,826 | 23,581 | 26,540 | — |
| Holder | Shares | % pre-QIP | Type |
|---|---|---|---|
| Sachin Agarwal | 28,55,491 | 19.05 | Promoter |
| Mapple Commerce Pvt Ltd | 15,99,985 | 10.67 | Promoter group co. |
| Nirala Merchants Pvt Ltd | 11,77,818 | 7.86 | Promoter group co. |
| Priya Ranjan Agarwal | 9,87,914 | 6.59 | Promoter group |
| Satish Chandra Agarwal HUF | 6,70,297 | 4.47 | Promoter group |
| Alok Agarwal | 5,45,799 | 3.64 | Promoter group |
| Viven Advisory Services Pvt Ltd | 4,33,325 | 2.89 | Promoter group co. |
| Smita Agarwal | 3,35,276 | 2.24 | Promoter group |
| Anshoo Agarwal | 1,85,041 | 1.23 | Promoter group |
| Motilal Oswal (MF schemes) | 5,74,338 | 3.83 | DII |
| Vikas … (name truncated in filing extract) | 3,85,346 | 2.57 | Public >1% |
| Mona Russell | 3,48,983 | 2.33 | Public >1% |
| HSBC Mutual Fund | 1,62,934 | 1.09 | DII |
| Pankaj Prasoon | 1,62,000 | 1.08 | Public >1% |
| Mukul Mahavir (Agrawal) | 1,60,000 | 1.07 | Public >1% |
Largest Oct-2026 QIP allottees (% of post-issue capital): SmallCap World Fund (Capital Group) 1.04%, HSBC Small Cap Fund 0.76%, Fidelity Blue Chip Growth 0.62%, Fidelity India Focus 0.40%, plus Fidelity EM funds, BNP Paribas ODI, ADIA (Monsoon), Tata AIA, Motilal Oswal, ITI, HDFC Defence/Manufacturing, Trust MF, Union, Bandhan, Susquehanna and others (>40 allottees). Promoters did not participate. [Fact]
Pledge, insider and SAST activity
- Pledge/encumbrance: 6,000 shares held by Kanchan Agarwal (promoter group) encumbered — 0.04% of equity. No other promoter pledge. [Fact]
- Promoter-group shares fell from 90,90,580 (Mar-24) to 89,53,441 (Mar-25) — a 1,37,139-share decline that reconciles exactly to (a) reclassification of Bina Agrawal, Kiran Arun Prasad and Arun Jwala Prasad (1,30,860 shares) from promoter group to public, approved by the exchanges on 2 Aug 2024, plus (b) a 6,000-share reduction in Alok Agarwal’s holding and (c) 279 shares in another family holding. Precision Overseas Pvt Ltd held nil in both years. No change in FY26. [Fact] (FY25 and FY26 annual reports, promoter-holding notes)
- Promoter holding fell 67.93% (Mar-23) → 56.46% (post-QIP) almost entirely through primary issuance. [Fact]
- Insider-trading (PIT) disclosures for the last 12 months: not retrieved — data gap. Promoters did not participate in the Oct-2026 QIP. [Fact]
Related-party transactions (standalone, FY26)
| Counterparty | Nature | FY26 (₹ lakh) | FY25 (₹ lakh) |
|---|---|---|---|
| Aerolloy Technologies | Equity investment via rights (21,69,500 sh @ ₹1,000; 2,67,107 sh @ ₹2,490) | 28,346 | 21,990 (investment made, as disclosed) |
| Trac Holdings | Unsecured loan GBP 0.6m @ 6.5% | 725 | — |
| KMP | Managerial remuneration | 725 (comp. 705) | 424–558 |
| Relatives of KMP | Rent paid; salaries | ~9 rent; ~48 salary | ~9; ~50 |
| Investment at cost in Aerolloy (cumulative) | — | 69,206 | 40,857 |
RPT table in AR is poorly formatted in the PDF; amounts shown are as best reconstructed. All RPTs stated to be at arm’s length. Corporate guarantees given for subsidiaries’ loans. [Fact]/[Est.]
Subsidiaries & group structure
| Entity | Holding | Business | Contribution | Status |
|---|---|---|---|---|
| Aerolloy Technologies Ltd (inc. 17 Feb 2020) | 100% direct | Ti & superalloy materials, aerospace castings, forgings — SMTC Lucknow | FY26 income ₹190.4 Cr, PAT ₹68.0 Cr (~67% of group PAT) | Core growth engine; ICRA A/A1 |
| Trac Holdings Ltd (UK) | 100% direct (acquired Dec 2024 for ₹181.2 Cr; UK NSIA clearance) | Holding company, no operations | — | Goodwill ₹63.1 Cr consolidated |
| Trac Group Ltd; BROOMCO (4266) Ltd (UK) | Step-down | Dormant intermediate holding cos. | — | No business activity |
| Trac Precision Solutions Ltd (Crewe, UK) | Step-down 100% | Precision machining of hot-section turbine parts | FY26 income ₹247 Cr, EBITDA ₹15.5 Cr | Low margin; expanding (₹146 Cr plan) |
| Advanced Materials (Defence) Testing Foundation | Associate / JV, 20% (27,320 sh, ₹2.73 Cr; equity-accounted per ICRA) | MoD DTIS SPV for materials testing, Lucknow node | — | Government-led SPV |
Acquisitions
Acquisition track record: (1) Trac (Dec 2024, ₹181 Cr for a £24.8m-revenue business ≈ 0.7x sales) — strategically coherent (casting-to-finished-part), financially still marginal (~6–8.5% EBITDA). (2) Used VAR (2021), EBCHR (2022) and PAM (2023) furnaces and a US hot rolling mill (2024) — cheap entry, slow commissioning. (3) 1998 amalgamation of Sunika Alloys and Ashman Tools Engineers. No “Alloy Cast” acquisition was found in the placement document’s acquisition table, AR or press releases; a 2023 MoU with Nasmyth (UK) is a supply-chain MoU, not an acquisition. ₹621 Cr of QIP money is reserved for unidentified acquisitions. [Fact]Auditor, litigation, regulatory
| Item | Detail |
|---|---|
| Statutory auditor | S. N. Dhawan & Co LLP (FRN 000050N/N500045), appointed at 60th AGM (2023) for 5 years to 65th AGM. No qualification, reservation or adverse remark in FY26 or prior five years (per placement doc). Cost auditor: Aman Malviya & Associates |
| Raheja Leasing & Investment Pvt Ltd v. PTC & directors (Bombay HC) | Alleges non-receipt of notice of the 2022 rights issue; seeks transfer of 64,800 shares at par or damages of ~₹94.7 Cr against the company and present/former directors. PTC has applied for rejection of plaint and challenged jurisdiction; pending. Aggregate litigation against company ₹97.5 Cr (incl. tax) |
| Stamp duty demand | ₹13.1 lakh + interest (Lucknow, lease deed); restoration application filed |
| Tax | 4 tax proceedings against company (amounts within the ₹97.5 Cr aggregate); disputed GST ₹16.6 lakh |
| Historic filings | RoC returns of allotment for 1963–1998 not traceable; reliance on PCS search report (risk factor). Placement doc also flags possible delayed/erroneous ROC filings |
| SEBI / MCA actions, wilful default, fugitive status | None disclosed |
Governance red flags & mitigants
- Family-heavy board: 4 of 8 directors are promoter group; CFO is the CMD’s spouse. Mitigant: four independents incl. a retired banker; Big-firm-alumna CFO. [Analyst View]
- Serial dilution at rising prices (7 primary issues since 2022) and 35% of the latest QIP for unidentified acquisitions. [Analyst View]
- CMD pay linked to consolidated profit (3% commission), up 48% in FY26 while standalone PAT fell 6%. [Fact]
- Promotional disclosure style: “landmark” announcements without contract values (Airbus, Honeywell, BrahMos sub-system); headline EBITDA includes other income. [Analyst View]
- Positives: unqualified audits, minimal pledge, ICRA upgrade, CRISIL as QIP monitoring agency, quarterly monitoring-agency reports on prior QIP. [Fact]
Supply Chain
Upstream dependencies and downstream customers. Placement document (Oct 2026), FY26 AR, ICRA (Mar 2026), press releases. [Fact] unless marked.
Value chain map
Ore & spongeIlmenite/rutile → titanium sponge (Japan, Kazakhstan, Russia, China, US; Saudi AMIC-TOHO). India has 3rd-largest Ti ore reserves but no aerospace-grade sponge
→
Alloying inputsNi & Co master alloys, superalloy feedstock, ferro-alloys; Ti scrap (recycling via PAM/EBCHR)
→
PTC / Aerolloy melt & formVAR/VIM/PAM ingots → forgings, castings, (plates/sheets)
→
FinishMachining, HIP, NDT, Trac hot-section finishing
→
Tier-1 / OEMSafran (LEAP), Honeywell, Airbus, Dassault, BAE, Blue Origin, BrahMos, DRDO labs, ISRO, Siemens Energy
→
End userAirlines (IndiGo, Air India), Indian Armed Forces, space launch, power utilities, oil & gas
↑ Upstream — what PTC Industries depends on
| Input | Use | Source / dependence | Risk |
|---|---|---|---|
| Titanium sponge (incl. Grade 1) | Feedstock for VAR/PAM ingots, Ti castings | Largely imported against advance payment or LCs; global aerospace-grade sponge made only in a handful of countries (US, Russia, Kazakhstan, Japan per company); MoU with AMIC TOHO Titanium Metal Co. (Saudi Arabia); proposed Odisha sponge plant (MoU 30 Jan 2025) | High — geopolitical, export controls; payable days only ~28 |
| Titanium scrap / revert | EBCHR / PAM recycling (GreenTitanium™) | Internal returns + purchased scrap; EBCHR still commissioning | Medium — scrap quality/traceability |
| Nickel & cobalt master alloys, superalloy feedstock | VIM superalloy ingots, airfoil castings | Imported; LME-linked prices; cobalt concentration (DRC/China) | Medium–High |
| Stainless, duplex, NAB, ferro-alloys, steel scrap | Industrial air-melt castings | Domestic + imports; dynamic pricing pass-through (ICRA) | Low–Medium |
| Ceramic slurries, refractory sand, wax | Investment-casting shells and patterns | Specialist suppliers (not named) | Low |
| Capital equipment | Existing VAR/EBCHR plant re-installed by German OEM; PAM (purchase agreement 2023); US hot rolling mill; Makino, Sodick (Japan) machine tools at Trac | Single-OEM dependence for re-commissioning and spares | Medium — commissioning delays observed |
| Power, fuel, water | Vacuum melting is energy-intensive | Grid + 700 kW rooftop solar + 0.75 MW wind (Kutch); 20 MW solar planned | Medium — Q1 FY27 power & fuel ₹10.3 Cr (+60% YoY) |
| Licensed technology | Replicast® process licensed from third party | Licence dependence | Low |
| Supplier concentration | FY24 | FY25 | FY26 | Q1 FY26 | Q1 FY27 |
|---|---|---|---|---|---|
| Top-5 suppliers, % of revenue | 12.6% | 18.5% | 12.4% | 18.8% | 11.9% |
| Top-10 suppliers, % of revenue | 17.1% | 25.1% | 16.2% | 23.0% | 15.9% |
| Cost of materials consumed, % of revenue | 22.1% | 28.9% | 56.8% | 42.1% | 39.6% |
| Net material cost (after inventory change), % revenue | n/d | 17.3% | 17.6% | n/d | ~14% [Est.] |
~38 raw-material suppliers (30 Jun 2026). Gross material consumption quadrupled in FY26 as Aerolloy began melting sponge into ingots, but most of it sat in WIP (₹236.7 Cr inventory build), so net material cost stayed ~17.6% of revenue. Pass-through: contracts provide indexation/pass-through “where feasible”; ICRA notes a “dynamic pricing strategy”. Mitigants: multi-vendor sourcing, contingency stock, backward integration (VAR/PAM/EBCHR), sponge MoUs. [Fact]
↓ Downstream — who depends on PTC Industries
| Customer concentration | FY24 | FY25 | FY26 | Q1 FY26 | Q1 FY27 |
|---|---|---|---|---|---|
| Top-5 customer groups, % of revenue | 67.6% | 60.4% | 57.7% | 69.4% | 63.3% |
| Top-10 customer groups, % of revenue | 85.1% | 82.9% | 85.2% | 89.0% | 83.6% |
| Exports, % of sale of products | 84.0% | 85.6% | 81.8% | 88.4% | 67.0% |
| End market | Customers (named) | End products containing PTC output | Stickiness / tenor |
|---|---|---|---|
| Commercial aero-engines | Safran Aircraft Engines (CFM LEAP-1A/1B), Honeywell; via Trac: Rolls-Royce, Safran, GE | LEAP engines on A320neo/737 MAX; turbine blades, vanes, frames | LTAs; multi-year qualification → very sticky once qualified |
| Commercial airframes | Airbus (A320neo/A330neo/A350), Dassault Falcon | Ti structural castings, ready-to-fit | Development → qualification → serial; contract value n/d |
| Military aircraft | Dassault (Rafale), IAI, HAL, ADA/AMCA (CEMILAC approval), GTRE (Kaveri-class engine blades) | Airframe fittings, engine parts, SX blades | Programme-life |
| Land & strategic defence | BAE Systems (M777), BrahMos Aerospace, ARDE, Gun Factory Kanpur, Elbit, Kongsberg, BDL (MoU) | Howitzer structures, missile airframe system, tank cradle, artillery | Programme-life; development orders first |
| Space | Blue Origin (BE-4/New Glenn), ISRO-VSSC | LOX housings/manifolds; Ti-6Al-4V ingots | Development & supply |
| Energy & industrial | Siemens Energy, Westad, oil & gas/LNG/marine OEMs (Norway, EU), Coolbrook (via Trac) | IGT airfoils, valves, pumps, propellers, RDH heaters | POs + LTAs; Coolbrook >£10m p.a. at full rate |
Design-win dynamics: new business starts with an RFQ or development order → part/process/material qualification (“a few months to several years”) → low-rate initial production → serial supply; once a process is qualified, additional parts qualify incrementally. Single-source positions on qualified parts are hard to displace, but customers can dual-source or in-source. [Fact]
Where pricing power sits
Upstream: sponge producers hold pricing power (few qualified sources, geopolitics); PTC is a small buyer paying in advance. Downstream: the primes (Airbus, Safran, Honeywell, Rolls-Royce) hold it during qualification and at contract award; after qualification the balance shifts towards the qualified supplier because re-qualifying an alternative takes years. PTC’s 45% Aerolloy EBITDA margin suggests it is earning a scarcity premium on niche Ti/superalloy parts today; long-term agreements usually carry annual price-down clauses (not disclosed for PTC). Backward integration (EBCHR recycling, Odisha sponge) is the lever to protect margin from sponge price shocks. [Analyst View]
Competitive Position
Peer data: Screener.in consolidated pages fetched 12 Oct 2026 (FY26 annual, price-based ratios at that date). EV/EBITDA for peers not retrieved — shown as NA rather than estimated.
Market position
In India, PTC/Aerolloy is the only private company combining aerospace-grade titanium melting (VAR/PAM, EBCHR pending), superalloy VIM, large titanium and superalloy investment castings, open-die forging and an overseas hot-section machining arm. The state-owned MIDHANI (Mishra Dhatu Nigam) is the closest materials peer (titanium, superalloys, special steels) but is a mill-products producer, not a precision caster. Component makers such as Azad Engineering (aero/energy turbine airfoils), MTAR (precision assemblies for space/nuclear/clean energy), Paras Defence (optics/electronics) and Bharat Forge (forgings, artillery, aero-structures via Kalyani Strategic Systems) overlap at parts of the chain. Globally, PTC competes with PCC (Precision Castparts, Berkshire Hathaway), Howmet Aerospace, Consolidated Precision Products, Doncasters, ATI, Carpenter and VSMPO-AVISMA — incumbents with decades of qualifications and far larger scale. No market-share data is published. [Fact]/[Analyst View]
Peer comparison
| Company | Mkt cap (₹ Cr) | FY26 revenue | 3-yr sales CAGR | OPM FY26 | PAT margin | RoE | P/E (TTM) | EV/EBITDA | Mcap / sales | Moat |
|---|---|---|---|---|---|---|---|---|---|---|
| PTC Industries | 40,156* | 603 | 40% | 22% | 16.9% | 7.2% | ~320x* | ~224x [Est.] | 66.6x | Integrated Ti/superalloy melt-to-part; qualifications |
| Azad Engineering | 19,475 | 603 | 34% | 37% | 22.2% | 9.1% | 140x | NA | 32.3x | Turbine airfoils / energy & aero components [Analyst View] |
| MTAR Technologies | 23,854 | 876 | 15% | 20% | 10.7% | 12.4% | 175x | NA | 27.2x | Precision assemblies (space, nuclear, clean energy) [Analyst View] |
| Mishra Dhatu Nigam (MIDHANI) | 8,215 | 1,209 | 12% | 20% | 10.8% | 8.9% | 61x | NA | 6.8x | PSU superalloys/Ti mill products; captive defence |
| Paras Defence & Space | 10,482 | 477 | 29% | 26% | 18.7% | 12.4% | 113x | NA | 22.0x | Defence optics & electronics |
| Bharat Forge | 88,852 | 16,812 | 9% | 17% | 6.5% | 12.0% | 88x | NA | 5.3x | Forging scale; defence & aero via KSSL |
| Data Patterns | NA | NA | NA | NA | NA | NA | NA | NA | NA | Defence electronics (data not retrieved) |
*PTC on post-QIP share count at ₹25,339 (Screener shows ₹37,989 Cr / 302x on pre-QIP count). Peer prices as fetched 12 Oct 2026. Mcap/sales computed on FY26 revenue. [Est.]
Strengths and weaknesses vs each peer
| Peer | PTC stronger on | PTC weaker on |
|---|---|---|
| Azad Engineering | Owns melting (material security), castings and titanium; space/defence breadth | Azad has higher margins (37%), better RoE, cleaner cash conversion, larger qualified aero-engine order book with disclosed values |
| MTAR | Materials know-how; aerospace primes as customers | MTAR has larger revenue base, higher RoE, established nuclear/space franchises |
| MIDHANI | Precision casting, forging and machining downstream; private-sector agility; export customers | MIDHANI has decades of defence qualifications, larger melt capacity, lower valuation (6.8x sales) |
| Paras | Hard-metal and materials depth | Different niche; Paras more cash-generative relative to size |
| Bharat Forge | Titanium/superalloy materials and investment casting | Massive scale, balance sheet, defence order book, cheaper valuation |
| Global incumbents (PCC, Howmet, CPP, Doncasters) | India cost base; “China+1/Russia-free” titanium; government support | Scale, decades of part numbers, single-crystal production heritage, pricing power |
Industry structure, barriers and Porter’s Five Forces
| Force | Assessment | Rating |
|---|---|---|
| Threat of new entrants | Very low: multi-year qualifications, NADCAP/AS9100/CEMILAC, vacuum-melt capex, metallurgical know-how, customer audits | Low |
| Supplier power | High for sponge and Ni/Co (concentrated, geopolitical); mitigated by recycling and MoUs | High |
| Buyer power | High pre-qualification (few large primes, price-downs); falls after qualification | Medium–High |
| Threat of substitutes | Forgings/additive manufacturing/composites can substitute castings on some parts; PTC hedges with forging, powder metallurgy | Medium |
| Rivalry | Global oligopoly in aero castings/airfoils; supply-constrained post-COVID, especially for large structural Ti and SX airfoils | Medium |
Moat durability is high once parts are qualified, but PTC’s moat today is mostly prospective: most of the headline programmes (Airbus, Honeywell, Blue Origin, GTRE) are in development or qualification. The industry is consolidated globally and supply-short in large Ti structural castings and hot-section airfoils, which gives a new, credible entrant room to win share — the key question is how fast. [Analyst View]
Risks & Red Flags
Comprehensive register. Severity is our assessment. [Analyst View]
| Risk | Category | Severity | Explanation | Mitigant |
|---|---|---|---|---|
| Valuation de-rating | Financial / Market | High | ~320x TTM P/E, ~12x P/B, ~62x re-based FY28E broker EPS; CMP above QIP price and only published target. Any qualification delay or quarterly miss could compress the multiple sharply | Strong institutional demand in QIP (Capital Group, Fidelity, HSBC, ADIA); scarcity of listed Ti plays |
| Negative / weak operating cash flow | Financial | High | CFO negative in FY24 and FY26; 5-yr cumulative CFO −₹79 Cr vs PAT ₹244 Cr; CCC ~970 days (Screener) | Q1 FY27 CFO +₹44 Cr; management targeting WC reversal in FY27 |
| Qualification & programme timing | Execution | High | Airbus, Honeywell, Blue Origin, GTRE are development/qualification stage; aerospace qualifications often slip 12–24 months; revenue lumpy (Aerolloy −25% QoQ in Q1 FY27) | Multiple programmes across civil, defence, space diversify timing |
| Commissioning delays (EBCHR, rolling mills) | Execution | High | EBCHR bought Aug 2022, still commissioning Oct 2026; rolling mill bought Aug 2024 still installing; EBCHR is re-installed existing plant | OEM support; VAR/VIM/PAM/forge already running |
| Equity dilution / capital allocation | Governance | High | Share count 3.0x since Mar-22; ₹621 Cr of QIP for unidentified acquisitions, ₹437 Cr GCP | CRISIL monitoring agency; 25% GCP cap |
| Customer concentration | Business | Medium | Top-10 customer groups 83–89% of revenue; top-5 57–69% | Long-term agreements; growing roster of primes |
| Raw-material supply (Ti sponge, Ni/Co) | Business / Macro | Medium | Imported, geopolitically concentrated; paid in advance/LC | EBCHR recycling, AMIC-TOHO MoU, Odisha sponge MoU, pass-through clauses |
| Trac integration & low margin | Execution | Medium | ~6–8.5% EBITDA; UK wage inflation; ₹146 Cr capex planned; goodwill ₹63 Cr | Coolbrook contract; Rolls/Safran/GE/Siemens base |
| Standalone margin erosion | Business | Medium | Standalone PAT −6% in FY26; RoE 3.5%; operating margin 22.8% → 16.9% | Management says it is qualification-phase cost; Aerolloy material to replace imports |
| Inventory obsolescence / write-downs | Financial | Medium | ₹236 Cr WIP tied to programmes in qualification; specialised parts not redeployable | Customer advances, milestone billing |
| Other-income dependence | Financial | Medium | Other income 30–42% of PBT in FY25–FY26 (interest on QIP cash, FX gains); will recur on new QIP cash | Falls as cash is deployed |
| Export / FX / trade policy | Macro | Medium | ~82% exports in FY26; INR/EUR/GBP/USD exposure; US tariffs; export controls on defence items | Forward contracts; diversification to India (33% in Q1 FY27) |
| Defence budget / procurement timing | Regulatory / Macro | Medium | Domestic orders (BrahMos, DRDO, ISRO) depend on budgets and DAP processes | Record capital budget FY27; 75% domestic reservation |
| Litigation — Raheja Leasing | Governance / Legal | Low | ₹94.7 Cr damages claim (or 64,800 shares at par) re 2022 rights issue, against company and directors | Company seeks rejection of plaint; jurisdiction challenged |
| Key-person dependence | Governance | Medium | Strategy, customer relationships and capital raising centred on Sachin Agarwal | Professional CTO/engineering hires (Collins, Oudelet, Koura); Trac MD |
| Family-controlled board / related parties | Governance | Low | 4 of 8 directors promoter group; CMD’s spouse is CFO; CMD commission 3% of consolidated profit | 4 independents; unqualified audits; minimal pledge |
| Historic corporate records | Governance / Regulatory | Low | Allotment filings 1963–1998 untraceable; possible delayed ROC filings | PCS search report |
| Workplace safety / environment | ESG | Medium | Molten metal, vacuum furnaces, hazardous chemicals; energy-intensive | ISO 14001/45001; ZLD; renewables; 20 MW solar planned |
| Technology obsolescence / substitution | Business | Low | Additive manufacturing or forgings substituting castings | Investments in powder metallurgy, forging, PrintCast |
| Talent scarcity | Execution | Medium | Aerospace metallurgy skills scarce; employee cost 25% of revenue in FY26 | STrIDE Academy, GET programme, foreign hires |
| Credit / counterparty | Financial | Low | Receivables ₹274 Cr; ECL only ₹0.23 Cr | Blue-chip primes, DPSUs, export credit insurance |
| Corporate guarantees to subsidiaries | Financial | Low | Parent guarantees for subsidiaries’ loans | Net cash post-QIP |
Red-flag summary
- Profits not converting to cash (5-yr CFO negative).
- Serial equity issuance; 60% of new QIP without a named use.
- Capex plans repeatedly upsized and delayed.
- Headline “EBITDA” includes other income; “landmark” orders without values; no order-book disclosure.
- CMP above the QIP price set days earlier and above the sole published target.
Concall Highlights & Guidance
Earnings calls/analyst meets were held (Screener lists transcripts for Aug 2025, Nov 2025, Feb 2026, Jun 2026 and Aug 2026), but the transcript files were behind a login and not retrievable in this session; the exchange API was blocked and the web-search budget was exhausted. This tab is therefore built from the company’s results presentations, press releases, the FY26 annual report’s MD&A, ICRA’s March 2026 rationale (which reflects management discussions) and ICICI Securities’ 2 Jun 2026 post-call note. Treat quotes as from written releases unless stated. QC re-check (12 Oct 2026): the company’s investor-relations compliance page hosts no call transcripts or audio (only analyst-meet intimations), and Screener exposes a transcript link only for the Jun-2023 call; no FY26–FY27 transcript could be obtained, so no call commentary has been added.
Quarter by quarter
| Quarter (date) | Key numbers | Highlights / management words | Tone |
|---|---|---|---|
| Q1 FY26 (Aug 2025) | Total income ₹107.7 Cr (+>100%); EBITDA ₹19.4 Cr (18.0%); PAT ₹5.2 Cr; Aerolloy EBITDA ₹8.1 Cr (from ₹2.8 Cr) | “We remain on track to achieve our budgeted revenue and EBITDA margin targets for the year.” Safran MoU on military engines; SMTC inaugurated 11 May 2025 | Confident |
| Q2 FY26 (Nov 2025) | H1 total income ₹240.5 Cr (+83%); EBITDA ₹53.3 Cr (+23%); Aerolloy H1 ₹42.1 Cr, 51.3% EBITDA | “EBITDA margins were temporarily impacted by the consolidation of Trac … we see this as a short-term effect.” BrahMos ₹110 Cr order (24 months); GTRE SX blades; Coolbrook; VIM & VAR-400 commissioned; Lokarpan 18 Oct 2025 | Confident, defensive on margin |
| Q3 FY26 (Feb 2026) | 9M total income ₹406.0 Cr; EBITDA ₹87.9 Cr (+27.7%); Aerolloy 9M ₹91.3 Cr (39.3%); Trac 9M ₹167.2 Cr | Blue Origin BE-4 order; Honeywell LTA; VSSC double-VAR ingots; PLI 1.2 MoUs; PAM installed. Positioned as “uniquely placed” for mission-critical materials | Promotional |
| Q4 FY26 (2–3 Jun 2026) | Q4 total income ₹237.3 Cr (+77%); EBITDA ₹84.4 Cr (35.6%); PAT ₹59.9 Cr (+144%). FY26 PAT ₹101.6 Cr | “FY26 has been a defining year … we moved from capability creation to scaled execution.” Forging press trials done; second Makino G7 at Trac; TITANIUM Europe 2026; ICRA upgrade. I-Sec post-call: EBCHR to commission in Q1 FY27; approval/order-building phase for ~2 years, “exponential” execution from FY29 | Very confident |
| Q1 FY27 (14 Aug 2026; analyst meet 31 Aug 2026) | Total income ₹197.1 Cr (+83%); EBITDA ₹54.2 Cr (27.5%); PAT ₹29.2 Cr (+466%); Aerolloy ₹74.3 Cr (45%); Trac ₹71.4 Cr | “As these capabilities mature and programmes progress through qualification, industrialisation and scale-up, our focus remains on disciplined execution and sustainable growth.” Airbus agreement; BrahMos sub-system; ARDE; Gun Factory Kanpur; MoD visit | Confident but more measured |
| Pre-QIP investor meetings (Q2 FY27) | — | One-on-ones disclosed with Capital Group, Fidelity Management & Research, HSBC, SBI MF, ICICI Prudential, Union MF, Aditya Birla Sun Life, Axis AMC — several became QIP allottees | — |
Guidance vs outcome — credibility check
| Guidance / expectation | Given | Outcome | Verdict |
|---|---|---|---|
| VAR + EBCHR Phase-1: ~₹125 Cr over 2 years; world’s largest single-site Ti recycling | Aug 2022 | Group capex ~₹624 Cr FY24–26; EBCHR still “under commissioning” Oct 2026 | Missed (cost and time) |
| Dassault: Aerolloy to produce full range of Rafale/Falcon Ti castings “from 2024 onwards” | Jan 2024 | Supply ongoing; volumes not disclosed | Unverifiable |
| “On track for budgeted revenue and EBITDA margin targets” | Aug 2025 | Revenue +96%; company EBITDA margin 26.8% vs 32.0% in FY25 (core 22.2% vs 24.4%) | Mixed (budget never disclosed) |
| Trac margin dilution “short-term” | Nov 2025 | Trac EBITDA 6.3% FY26, 8.5% Q1 FY27 | Partially delivered |
| Revenue to more than double over FY26–27 from ₹308 Cr; OPM 20–22% by FY27 (ICRA, based on management inputs) | Mar 2026 | FY26 revenue ₹603 Cr; Q1 FY27 core OPM 25% | Ahead |
| EBCHR commissioning Q1 FY27; EBCHR + rolling mill in H1 FY27 (I-Sec) | Jun 2026 | Still commissioning/installing per 9 Oct 2026 placement document | Slipping |
| Working-capital reversal “a priority for FY27” | AR FY26 (Jul 2026) | Q1 FY27 CFO +₹44 Cr (receivables −₹32 Cr) | Early positive |
Recurring themes, analyst concerns and contradictions
- Themes: “PTC ONE — From Melt to Mission”; parity/Aatmanirbhar Bharat; integration; qualification → serial production; operating leverage at Aerolloy.
- Concerns raised by analysts/agencies (from I-Sec and ICRA): delay in commissioning and ramp-up of new capacity; lengthy and expensive product development/approvals; working-capital intensity (117% in FY25); execution of the largest capacity programme in the company’s history.
- Contradiction 1: ICRA (Mar 2026) was told the ~₹500 Cr capex would be funded by debt, accruals and existing liquidity, and (Apr 2026, Aerolloy) that the ~₹700 Cr SMTC project had ~₹300 Cr left to spend, the project being partly debt-funded (~₹300 Cr debt); six months later ₹551 Cr of QIP equity is earmarked for subsidiary capex (₹480 Cr for Aerolloy alone) plus ₹621 Cr for unidentified acquisitions. The gap between ~₹300 Cr remaining and ₹480–499 Cr now earmarked is unexplained. [Analyst View]
- Contradiction 2: Headline “EBITDA margin expansion of 954 bps” in Q1 FY27 includes other income; Q1 FY27 core margin (25%) is below Q4 FY26 (32%). [Analyst View]
- No order-book number is given in any presentation despite repeated reference to “order book” and “multi-year visibility”. [Fact]
- Tone trajectory: from promotional (“landmark”, “historic”) in FY26 to slightly more measured (“disciplined execution”, “qualification, industrialisation and scale-up”) in Q1 FY27. [Analyst View]
Growth, Outlook & Valuation
Order visibility, expansion, catalysts, estimates and valuation. Valuation on post-QIP share count (1,58,47,249) at ₹25,339 unless stated.
Order book & revenue visibility
Data gap
No order-book figure is disclosed in the FY26 annual report, results presentations, ICRA rationale or the QIP placement document (searched). ICRA refers to a “healthy order book, including some key long-term contracts”; I-Sec says the next two years are an “order build-up phase”. Book-to-bill and % contracted revenue: not available. [Fact]| Order / agreement | Customer | Date | Value | Tenor / stage |
|---|---|---|---|---|
| Critical titanium castings | BrahMos Aerospace | 21 Aug 2025 | ₹110 Cr (“100+ crore”) | 24 months |
| Strategic metallic airframe system & integration | BrahMos Aerospace | 17 Jul 2026 | Not disclosed | Development, integration, supply |
| Ti castings A320neo/A330neo/A350 | Airbus | 6 Aug 2026 | Not disclosed | Development → qualification → serial |
| LEAP-1A/1B cast components (7 parts) | Safran Aircraft Engines | 28 Mar 2025 | Not disclosed | Long-term PO |
| Ti & superalloy castings LTA | Honeywell Aerospace | 2025 (FY26) | Not disclosed | Long-term; dedicated capacity |
| BE-4 LOX housings/manifolds | Blue Origin | Jan 2026 | Not disclosed | Development & supply |
| SX ready-to-fit blades post-cast ops | GTRE (DRDO) | Oct 2025 | Not disclosed | Development |
| Double-VAR Ti-6Al-4V ingots (~40 t sponge conversion) | VSSC (ISRO) | FY26 Q3 | Not disclosed | Order |
| M777 Ti castings production order | BAE Systems | 27 Sep 2024 | Not disclosed | Serial |
| Rafale/Falcon Ti castings LTPA | Dassault Aviation | 17 Jan 2024 | Not disclosed | Multi-year |
| RDH components (27,000 parts/yr at full rate) | Coolbrook (via Trac) | 2 Oct 2025 | >£10m p.a. expected at full production | Phase 2 pending |
| Ti cradle (105 mm light tank); artillery components | ARDE; Gun Factory Kanpur | Jul–Aug 2026 | Not disclosed | Design & development |
Expansion plans
| Project | Spend | Timeline | Status |
|---|---|---|---|
| EBCHR 5,000 tpa Ti recycling (GreenTitanium™) | Within SMTC programme | Was Q1 FY27 (I-Sec) | Under commissioning |
| Rolling / plate mills (plates, sheets, rods, bars) | Within SMTC programme | H1 FY27 (I-Sec) | Under installation |
| Aerolloy facility expansion (P&M) | ₹499.3 Cr (₹480 Cr from QIP) | FY27–FY28 | Quotations only; not appraised |
| Trac UK expansion (EDM, grinding, brazing, coating, inspection) | ₹146.3 Cr (₹71 Cr from QIP) | FY27–FY28 | In progress |
| Mehsana expansion (+50,000 sq ft, robotics, automated fettling) | Not disclosed | “Next few years” | Commenced FY26 |
| Titanium sponge plant, Odisha | Not disclosed | MoU 30 Jan 2025 | Intent only |
| Powder metallurgy / additive manufacturing at SMTC | Not disclosed | — | Planned |
| BDL JV (propulsion, guided bombs, aero-engines) | Not disclosed | MoU | Subject to approvals |
| 20 MW solar plant | Not disclosed | — | Planned |
Catalysts
Next 12 months
- EBCHR and rolling-mill commissioning announcements
- Q2/Q3 FY27 results: Aerolloy run-rate vs Q4 FY26 peak; CFO sign
- Deployment of ₹621 Cr acquisition kitty (target identity, price)
- Airbus first-article / qualification milestones; Safran LEAP rate
- PLI 1.2 incentive accrual on incremental Ti/superalloy sales
- Further BrahMos, DRDO, ISRO orders; AMCA programme progress
- Index inclusion potential given ~₹40,000 Cr market cap (not verified)
3–5 year drivers
- Global titanium supply realignment away from Russia/China
- Indian airline backlog (IndiGo ~1,000 undelivered aircraft; Air India 737 MAX book), >2,000 LEAP engines on order by Indian airlines
- Defence capital budget growth; 75% domestic procurement reservation; Positive Indigenisation Lists
- Space launch cadence (Blue Origin, ISRO); IGT demand from AI data-centre power
- Integration to ready-to-fit parts and sub-systems (higher value per kg)
Estimates — the only published broker model
| ICICI Securities (2 Jun 2026; BUY, TP ₹21,500) | FY25A | FY26A | FY27E | FY28E |
|---|---|---|---|---|
| Revenue (₹ Cr) | 308 | 603 | 1,054 | 2,187 |
| EBITDA (₹ Cr, core) | 75 | 132 | 347 | 841 |
| EBITDA margin | 24.4% | 21.9% | 32.9% | 38.4% |
| PAT (₹ Cr) | 61 | 102 | 260 | 645 |
| EPS as published (1.499 Cr shares) | 40.7 | 67.8 | 173.6 | 430.5 |
| EPS re-based to 1.585 Cr shares [Est.] | — | 64.1 | 164.2 | 407.0 |
| P/E at ₹25,339 on re-based EPS [Est.] | — | 395x | 154x | 62x |
Management gives no numeric revenue/margin guidance. Consensus (multiple brokers) not available in sources accessed. I-Sec TP = 50x FY28E EPS; CMP is 18% above it. Re-basing ignores interest income on the new QIP cash, which would add to FY27–28 PAT. [Fact]/[Est.]
Valuation vs history and peers
| Metric | Current | FY26 (avg price) | FY25 (avg price) | FY24 (avg price) | 3-yr avg |
|---|---|---|---|---|---|
| P/E (on that year’s EPS) | ~320x TTM (post-QIP) | 236x | 303x | 203x | ~247x [Est.] |
| P/B | ~12.0x (post-QIP book) | ~15.9x | n/d | n/d | — |
| EV / core EBITDA (TTM) | ~224x | — | — | — | — |
| EV / sales (TTM) | ~55x | — | — | — | — |
| Dividend yield | 0% | 0% | 0% | 0% | — |
Average NSE closing prices: FY24 ₹5,941, FY25 ₹12,337, FY26 ₹15,972 (placement document). EV ≈ mcap ₹40,156 Cr + debt ₹274 Cr − cash ~₹1,950 Cr (incl. net QIP proceeds) ≈ ₹38,480 Cr. Peer P/E range 61–175x (MIDHANI to MTAR); PTC trades at ~2x the most expensive peer. No buybacks ever. [Est.]
Scenario framework (12–18 months) — our view
| Scenario | Assumption | FY28E PAT | Multiple | Implied equity value | Per share |
|---|---|---|---|---|---|
| Bull | Qualifications on time; EBCHR live; I-Sec FY28E achieved | ₹645 Cr | 70x + net cash ~₹1,500 Cr | ~₹46,650 Cr | ~₹29,400 |
| Base | ~1-year slip in programme ramp; Aerolloy margins hold ~40% | ₹450 Cr | 60x + net cash | ~₹28,500 Cr | ~₹18,000 |
| Bear | Multi-year qualification delays; WC stays heavy; de-rating | ₹250 Cr | 45x + net cash | ~₹12,750 Cr | ~₹8,050 |
Illustrative, not a recommendation. Net cash assumes most QIP cash still on balance sheet in 2027–28 less capex. Probability-weighted (25/50/25) ≈ ₹18,400/share, ~27% below CMP. [Analyst View]
Final Verdict
Scores consistent with the Snapshot tab. [Analyst View]
Business Quality
Strong
Management Quality
Medium
Financial Quality
Weak
Valuation
Expensive
Overall View
Neutral
| Dimension | Why |
|---|---|
| Business — Strong | Only integrated Ti/superalloy melt-cast-forge-machine platform in India; LTAs with Safran, Honeywell, Dassault, Airbus; NADCAP/AS9100/CEMILAC; Aerolloy 45–47% EBITDA |
| Management — Medium | Visionary and technically capable; delivered SMTC and global customer wins. But repeated dilution, upsized/late capex, 60% of QIP without named use, promotional disclosures, family-dominated board |
| Financial — Weak | RoE 7%, RoCE 8%; CFO negative in 2 of last 3 years; CCC ~970 days; other income 30–42% of PBT; standalone profits falling |
| Valuation — Expensive | ~320x TTM, ~154x/62x re-based FY27E/FY28E; ~12x book; above QIP price and sole target |
| Overall — Neutral | Own-the-business, not-at-this-price: positive on franchise, negative on entry point; revisit on cash-flow proof or a 30–40% lower price |
Bull case
- Airbus, Safran LEAP, Honeywell and Blue Origin move to serial production in FY28–29; Aerolloy becomes a ₹1,500 Cr+ revenue, 40% margin business.
- EBCHR recycling gives a structural cost advantage in Ti ingots and plates; PLI 1.2 incentives add to margins.
- Defence sub-systems (BrahMos, ARDE, artillery) lift value per order; Indian strategic scarcity sustains a premium multiple.
Bear case
- Qualification slips 1–2 years; WIP and receivables keep CFO negative; EPS growth disappoints vs ~62x FY28E.
- Acquisition kitty deployed into a low-return asset (Trac-like margins); further dilution.
- Commissioning problems with the re-installed EBCHR and the rolling mills; Ti sponge supply shock squeezes margins.
Base case (12–18 m)
Revenue grows 50–70% in FY27 on Aerolloy and Trac, but quarterly lumpiness persists; EBCHR commissions late FY27; QIP interest income props PAT; CFO turns modestly positive. Earnings rise but the multiple compresses toward 150–200x FY27 EPS — implying flat-to-lower stock returns from ₹25,339. [Analyst View]
Five things to remember
- Aerolloy is the profit engine (~67% of FY26 PAT); the legacy standalone business is shrinking in profit.
- ~40% of FY26 revenue came from the Trac acquisition, a ~6% EBITDA business.
- Five-year cumulative CFO is negative (−₹79 Cr) against ₹244 Cr of PAT; FCF ≈ −₹827 Cr.
- Share count has tripled since 2022; ~₹2,910 Cr raised, ₹621 Cr of the latest QIP is for unidentified acquisitions.
- At ₹25,339 the stock trades ~320x TTM, above its own QIP price (₹21,060) and the only published target (₹21,500).
Five questions to ask before investing
- What is the contracted order book and expected revenue from Airbus, Safran, Honeywell and Blue Origin by year, and when does each part reach serial production?
- When exactly will EBCHR and the rolling mills be commissioned, and what were the cumulative costs vs the 2022 plan?
- What is the ₹621 Cr acquisition kitty for — sector, geography, size, return hurdle — and why is SMTC capex that ICRA (Mar/Apr 2026) expected to be partly debt-funded (~₹300 Cr of debt), with ~₹300 Cr left to spend, now allotted ₹480 Cr of QIP equity?
- How much of the ₹236 Cr WIP is tied to parts not yet qualified, and what is the write-down policy?
- What are Trac’s standalone PAT and margin path, and is the ₹63 Cr goodwill at risk?
PTC Industries is building something genuinely scarce — an Indian titanium and superalloy champion with real customer validation. But reported profits are not yet cash, the company keeps raising equity, and at ~320x trailing earnings the market has already paid for FY29-30. We are Neutral: accumulate only on proof of cash conversion and commissioning, or a materially lower price.
Sources
All URLs accessed 12 Oct 2026. Primary documents downloaded and text-extracted locally. Links open externally; the report itself makes no network requests.
Filings, offer documents, annual reports
- QIP Placement Document, 9 Oct 2026 (business, risk factors, MD&A, capital structure, use of proceeds, legal proceedings, allottees) — https://www.ptcil.com/PDF/Investors/QIP26/Placement-Document.pdf (accessed 12 Oct 2026)
- QIP Preliminary Placement Document (Project Aspire) — https://www.ptcil.com/PDF/Investors/QIP26/Project-Aspire-Consolidated-PPD.pdf (accessed 12 Oct 2026)
- Corrigendum to QIP allotment outcome, 10 Oct 2026 — https://www.ptcil.com/PDF/Investors/stock-exchange-compliances/2026-27/Q3/Corrigendum-to-QIP-Allotment-Outcome.pdf (accessed 12 Oct 2026)
- QIP issue close outcome (NSE) — https://nsearchives.nseindia.com/corporate/PTCINDUSTRIES_09102026224832_Stock_Intimation_Docket_Issue_close_outcome.pdf (accessed 12 Oct 2026)
- 63rd Annual Report FY2025-26 — https://www.ptcil.com/PDF/Investors/annual-reports/63rdAnnualReport.pdf (accessed 12 Oct 2026)
- Revised EGM Notice (QIP approval, borrowing limits), EGM 1 Aug 2026 — https://www.ptcil.com/PDF/Investors/investor-information/2025-26/Revised-EGM-Notice.pdf (accessed 12 Oct 2026)
- Q1 FY27 board meeting outcome / results, 14 Aug 2026 — https://www.ptcil.com/PDF/Investors/financial-results/2026-27/Exchange-Board-Meeting-Outcome-14082026.pdf (accessed 12 Oct 2026)
- Q4 FY26 audited results — https://www.ptcil.com/PDF/Investors/financial-results/2024-25/Quarter-4-Financial-Results-for-the-year-2025-26.pdf (accessed 12 Oct 2026)
- Special purpose condensed interim consolidated financial information (30 Jun 2026) — https://www.ptcil.com/PDF/Investors/financial-results/2026-27/Special-Purpose-Condensed-Interim-Consolidated-Financial-Information.pdf (accessed 12 Oct 2026)
- Shareholding pattern Jun-2026 — https://www.ptcil.com/PDF/Investors/stock-exchange-compliances/2026-27/Q2/Shareholding-Pattern.pdf (accessed 12 Oct 2026)
- Monitoring agency report (prior QIP) — https://www.ptcil.com/PDF/Investors/stock-exchange-compliances/2026-27/Q2/Monitoring-Agency-Report.pdf (accessed 12 Oct 2026)
- Stock exchange compliance index (investor meets, SHP, governance) — https://www.ptcil.com/Investors/StockExchangeCompliances (accessed 12 Oct 2026)
- Subsidiary financials index (Aerolloy, Trac) — https://www.ptcil.com/Investors/SubsidiariesFinancials (accessed 12 Oct 2026)
Investor presentations & press releases
- Q1 FY27 results presentation (Aug 2026) — https://www.ptcil.com/PDF/Investors/investor-presentations/2026-27/Investor-Presentation-Q1FY27.pdf (accessed 12 Oct 2026)
- Q4 & FY26 results presentation (May/Jun 2026) — https://www.ptcil.com/PDF/Investors/investor-presentations/2025-26/Investor-Presentation-Q4FY26.pdf (accessed 12 Oct 2026)
- Press release index (all orders, commissioning, results 2022–2026) — https://www.ptcil.com/Investors/PressReleases (accessed 12 Oct 2026)
- Q1 FY27 press release — https://www.ptcil.com/PDF/Investors/press-releases/2026/PTC-Industries-Reports-Strong-Q1FY27-Performance-Strengthens-Global-Aerospace-and-Strategic%20Defence-Manufacturing-Platform.pdf (accessed 12 Oct 2026)
- Airbus agreement (6 Aug 2026) — https://www.ptcil.com/PDF/Investors/press-releases/2026/Aerolloy-Technologies-Signs-Landmark-Agreement-with-Airbus-for-Titanium-Castings-for-A320neo-A330neo-and-A350-Programmes.pdf (accessed 12 Oct 2026)
- BrahMos sub-system order (17 Jul 2026) — https://www.ptcil.com/PDF/Investors/press-releases/2026/PTC-Industries-Secures-Landmark-Order-from-BrahMos-Aerospace-for-a%20Strategic-Major-Metallic-Airframe-System-its-Integration.pdf (accessed 12 Oct 2026)
- Safran LEAP order (28 Mar 2025) — https://www.ptcil.com/PDF/Investors/press-releases/2025/PTCIL_Safran_Order_2025.pdf (accessed 12 Oct 2026)
- Trac acquisition completion (19 Dec 2024) — https://www.ptcil.com/PDF/Investors/press-releases/2024/PTC-Industries-Completes-Landmark-Acquisition-of-Trac-Precision-Solutions-Following-UK%20Regulatory-Approval.pdf (accessed 12 Oct 2026)
- EBCHR acquisition (19 Aug 2022) — https://www.ptcil.com/PDF/Investors/press-releases/ptc-industries-announces-the-acquisition.pdf (accessed 12 Oct 2026)
- Dassault LTPA (17 Jan 2024) — https://www.ptcil.com/PDF/Investors/press-releases/Aerolloy-Technologies-signs-Long-Term-Purchase-Agreement-with-Dassault-Aviation-for-supply-of-full-range-of-Titanium-Cast-parts-for-the-Rafale-Multirole-fighter-aircraft.pdf (accessed 12 Oct 2026)
- BAE M777 production order (27 Sep 2024) — https://www.ptcil.com/PDF/Investors/press-releases/2024/PTC-Industries-Receives-Major-Production-Order-from-BAE-Systems-for-Supply-of-Titanium-Castings-for-M777-Ultra-Lightweight-Howitzer.pdf (accessed 12 Oct 2026)
- Coolbrook project (2 Oct 2025) — https://www.ptcil.com/PDF/Investors/press-releases/2026/Trac-Precision-Solutions-Secures-Multi-Million-Pound-Project-with-Coolbrook-to-Drive-Clean-Tech-Innovation.pdf (accessed 12 Oct 2026)
Ratings, broker research
- ICRA rating rationale, Aerolloy Technologies Ltd, 24 Apr 2026 (facilities ₹492 Cr; ~₹700 Cr project) — https://www.icra.in/Rating/GetRationalReportFilePdf?id=142618 (accessed 12 Oct 2026, QC review)
- ICRA lender-wise bank facilities, PTC Industries Ltd — https://www.icra.in/Rating/BankFacilities?CompanyId=30341 (accessed 12 Oct 2026, QC review)
- ICRA rating rationale, PTC Industries Ltd, 27 Mar 2026 — https://www.icra.in/Rating/ShowRationalReportFilePdf/141945 (accessed 12 Oct 2026, QC review)
- ICRA rating rationale & upgrade letter, 27 Mar 2026 — https://www.ptcil.com/PDF/Investors/investor-information/2025-26/Credit-Rating-2026.pdf (accessed 12 Oct 2026)
- ICICI Securities, Q4 FY26 results update, 2 Jun 2026 (BUY, TP ₹21,500) — https://bsmedia.business-standard.com/_media/bs/data/market-reports/equity-brokertips/2026-06/17803785450.91677700.pdf (accessed 12 Oct 2026)
Financial databases
- Screener.in — PTC Industries consolidated (price, P&L, BS, CF, ratios, shareholding) — https://www.screener.in/company/PTCIL/consolidated/ (accessed 12 Oct 2026)
- Screener.in — peers: MIDHANI, Azad Engineering, MTAR, Paras Defence, Bharat Forge — https://www.screener.in/company/AZAD/consolidated/ (accessed 12 Oct 2026)
- BSE scrip page 539006 (presentations linked via Screener) — https://www.bseindia.com/stock-share-price/ptc-industries-ltd/PTCIL/539006/ (accessed 12 Oct 2026)
News & secondary
- Multibagg — Q1 FY27 Aerolloy/Airbus summary — https://www.multibagg.ai/market-pulse/articles/ptc-q1fy27-98357 (accessed 12 Oct 2026)
- Multibagg — QIP ₹1,800 Cr and use of funds — https://www.multibagg.ai/market-pulse/articles/ptc-industries-qip-1800-crore-cmv1ci6yp000z39qp6tv9jben (accessed 12 Oct 2026)
- Angel One — QIP launch and price reaction — https://www.angelone.in/news/stocks/ptc-industries-share-price-surges-over-3-as-it-launches-qip-to-raise-up-to-1-800-crore (accessed 12 Oct 2026)
- ScanX — QIP floor price ₹22,150 — https://scanx.trade/stock-market-news/ipo/ptc-industries-sets-22-150-floor-price-qip-launch-october-6/52852388 (accessed 12 Oct 2026)
- Sahi — Q4 FY26 results — https://www.sahi.com/news/ptc-industries-reports-143-jump-in-q4-profit-to-59-9-cr-margins-expand-862-bps-2180-PE1_COR (accessed 12 Oct 2026)
Searched but not available (data gaps)
- Earnings-call transcripts (Aug 2025–Aug 2026): listed on Screener but login-gated; BSE announcements API blocked; web-search budget exhausted mid-session.
- Order-book value: not disclosed in AR, presentations, ICRA or placement document.
- Aerolloy lender names (PTC standalone lenders now added from ICRA); full QIP objects-of-issue table (named objects ₹480 + ₹71 + ₹79 + ₹621 + ₹437 Cr = ₹1,688 Cr vs net proceeds ₹1,769 Cr — ~₹81 Cr not itemised in this report; EGM notice gives no amounts); SAST/PIT disclosures; consensus estimates beyond I-Sec; capacity utilisation; Trac standalone PAT; Data Patterns peer data; index membership.
- “Alloy Cast” acquisition: no such transaction found in placement-document acquisition table, AR FY26 or 70 press releases (2018–2026).