I&PCL approves ₹100 crore aerospace, defence investment

Investment & Precision Castings Limited approved up to Rs 100 crore for aerospace, defence and energy projects while H1 FY 2026–27 revenue rose 26.3% to Rs 111.4 crore. I&PCL also disclosed new HAL superalloy aerospace and MKU aluminium defence programmes in the six months ended 30 September 2026.

What has I&PCL approved for aerospace, defence and energy?

I&PCL’s board has approved capital investment of up to Rs 100 crore for the development and execution of various aerospace, defence and energy projects. Chairman and Managing Director Piyush Tamboli said the approval is aimed at strengthening capabilities, expanding infrastructure and pursuing emerging opportunities in those sectors.

The presentation does not provide a project-wise allocation, spending schedule, funding source or expected capacity addition under the approval. The decision therefore sets an investment ceiling rather than recording completed spending. I&PCL reported capital expenditure of Rs 5.27 crore in H1 FY 2026–27, compared with Rs 23.23 crore in FY 2025–26.

The planned investment is linked to I&PCL’s existing Bhavnagar, Gujarat campus, which has annual net castings capacity of 3,060 tonnes. The three-plant site covers 43,331 square metres, including 25,487 square metres of covered area, and produces castings ranging from 8 grams to 330 kilograms.

Which HAL and MKU programmes has I&PCL disclosed?

I&PCL has disclosed a programme for vacuum-melted superalloy aerospace components for HAL, described as castings for mission-critical domestic programmes. The company lists nickel and cobalt superalloys among more than 500 alloy specifications, and says those alloys are vacuum melted for turbine hot sections and other critical applications.

I&PCL has also disclosed an aluminium defence-castings programme for MKU. The company says these castings will be heat treated on its drop-quench line, combining the casting programme with an in-house heat-treatment process. The presentation does not disclose contract value, order volume, delivery timing or revenue contribution for either programme.

The programmes were disclosed alongside a change in end-market mix. Aerospace and defence represented 11% of revenue in H1 FY 2026–27, up from 6% in FY 2025–26, while automotive fell to 62% from 64% and industrial, energy and general engineering declined to 27% from 30%.

I&PCL says industrial sales did not fall, despite their lower share, because aerospace and defence grew faster. The disclosed data measures revenue mix rather than absolute sales by segment, and I&PCL does not state aerospace and defence revenue in rupees for either period.

What approvals and processes support I&PCL’s new work?

I&PCL added Nadcap accreditation for heat treatment in H1 FY 2026–27, supplementing its existing Nadcap accreditation for non-destructive testing, or NDT. The company describes heat treatment as another audited special process brought in house, allowing it to quote for a broader range of work using installed capacity and approvals.

The company has 38 heat-treatment furnaces, digital radiography, fluorescent penetrant inspection, magnetic particle inspection and coordinate measuring machines. It also has more than 50 computer numerical control, or CNC, machines in house and more than 150 CNC machines at dedicated vendors. I&PCL says every part is inspected before dispatch, whether processed on campus or through a dedicated partner.

I&PCL also identifies hot isostatic pressing as a process that closes internal porosity and raises fatigue life. A lost-foam casting line is under installation and is intended to enable part geometries not cast today, although the presentation gives neither a commissioning date nor an investment amount for the line.

How did I&PCL perform in H1 FY 2026–27?

I&PCL reported revenue from operations of Rs 111.4 crore in H1 FY 2026–27, compared with Rs 88.2 crore in H1 FY 2025–26. Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 67.5% to Rs 24.1 crore, while profit after tax increased 107.2% to Rs 10.8 crore from Rs 5.2 crore.

EBITDA margin increased to 21.6% from 16.2%, a rise of 5.4 percentage points. I&PCL’s H1 profit after tax of Rs 10.8 crore was 92% of the Rs 11.8 crore reported for the full FY 2025–26. The presentation states that half-year figures are limited-review and unaudited, while full-year figures are audited.

In Q2 FY 2026–27, revenue was Rs 58 crore, compared with Rs 53.37 crore in Q1 FY 2026–27 and Rs 44.09 crore in Q2 FY 2025–26. Q2 EBITDA reached Rs 12.91 crore and profit after tax was Rs 5.80 crore, with EBITDA margin at 22.17%, versus 20.94% in the preceding quarter.

What should readers watch as I&PCL executes the approval?

Readers should watch whether I&PCL moves more nominated parts into monthly supply in the second half of FY 2026–27, which management identified as its focus. Management also said it would continue capability building through new technologies, automation and research and development, without disclosing revenue, margin or capacity targets for the Rs 100 crore approval.

Customer qualification timelines are among the risks identified by I&PCL for capability additions and new programmes. The presentation also cites demand and supply conditions, input costs, currency movements and regulatory changes as factors that could alter outcomes. In July 2026, CARE upgraded I&PCL’s long-term rating to CARE BBB, Stable, and its short-term rating to CARE A3+.

Conclusion

I&PCL’s approval of up to Rs 100 crore connects a prospective aerospace, defence and energy investment programme with newly disclosed HAL and MKU work and a wider in-house process base. The financial backdrop includes Rs 111.4 crore of H1 FY 2026–27 revenue, a 21.6% EBITDA margin and an aerospace and defence revenue share that increased by 5 percentage points from FY 2025–26.

The next disclosed execution marker is management’s effort to move nominated parts into monthly supply during the second half of FY 2026–27. Future disclosures will need to clarify the timing, funding, project allocation and capacity effect of the Rs 100 crore approval, since these details are not included in the presentation.