Investment & Precision Castings Ltd Management Discussions

Independent industry research places the global investment casting market at approximately $ 18-20 billion in 2025-26, with most leading forecasts converging on a steady CAGR in the 4.7-5.4% range through to 2032-34, taking the market towards $ 25-31 billion by the early-to-mid 2030s. Aerospace & defense remains the dominant end-use segment, commanding roughly 36-46% of global revenue, reflecting sustained fleet renewal programs and rising military procurement worldwide. Asia- Pacific has overtaken other regions as the largest and fastest- growing market (over 42% share), while North America retains the largest single-country base anchored by its aerospace and defense manufacturing ecosystem.

India is rapidly emerging as a preferred alternative supply base to China, with domestic demand further accelerated by the

Governments Make in India and defense indigenization mandates under DAP 2020. Indias investment casting industry is benefiting from a powerful confluence of policy, fiscal, and geopoliticaltailwinds. The FY 2025-26 defense capital allocation stands at approx. 1.48 lakh crore, with around 75% reserved for domestic procurement, funding major platforms such as Tejas Mk1A fighters, Prachand helicopters, and Project- 75(I) submarines - all of which require substantial volumes of precision-cast components. Indias defense export market, valued at 159 billion in FY23, is projected to grow at a CAGR of ~17% to reach 538 billion by FY30. Recent moves to ease FDI norms in defense (up to 74% via automatic route) are also expected to attract advanced manufacturing technology and joint-venture capital into the casting supply chain.

• Advanced multi-alloy casting capability (Steel, Al, Cu, Co, Ni)

• Dedicated aerospace & defense plant with U.S. OEM approval

• Comprehensive certifications (IATF AS9100D, defense sector)

• Diverse end-market exposure across 7+ industries

• Proven capability in high-complexity, tight-tolerance geometries

• Established track record with marquee domestic & export customers Capability to provide fully finished components owing to expertise in further processes like machining, heat treatment and surface treatment

• High capital intensity and elevated fixed-cost structure

• Sector concentration risk in top revenue contributors

• Recruitment & retention of skilled casting metallurgists

• Criticaltechnology for certain high-performance applications still maturing in India

• Aerospace & defense supply ecosystem (RM suppliers, surface treatment vendors) is nascent

• China+1 OEM sourcing strategy creating significant export opportunities

• Defense indigenization under DAP 2020 driving domestic demand surge

• Make in India policy support with PLI schemes and DPSUs procurement mandates

• Growing medical device manufacturing in India requiring precision castings

• AI/ML integration for simulation, yield optimization, and predictive maintenance

• Carbon credit monetization via renewable energy investments

• U.S. tariff impositions affecting export competitiveness

• Geopolitical disruptions (Europe-Russia conflict, Middle East tensions) impacting order pipelines

• Commodity price volatility in nickel, cobalt, copper, and aluminum

• Intensifying competition from low-cost global foundries

• Economic slowdown in key markets (Europe, North America) compressing OEM capex

• Technology disruption from additive manufacturing for low-volume, complex parts

The Government of India has issued multiple Positive Indigenisation Lists (PILs) covering hundreds of defense items that can no longer be imported, mandating domestic procurement. Investment castings constitute a significant subcomponent category within this list covering everything from aircraft structural castings to missile guidance system housings. Our defense-approved plant positions us to be a direct beneficiary of this structural policy shift.

The global investment casting industry continues on a stable, midsingle-digit growth path, underpinned by structural demand from aerospace fleet renewal and an accelerating energy transition. For India-based manufacturers, the most consequential near-term opportunity lies at the intersection of defense indigenization policy and the countrys growing position within Asia-Pacific - now the worlds largest regional market. Management views the current environment as broadly favourable, while remaining alert to tariff-related trade disruptions, input cost volatility, and the pace of domestic qualification and certification cycles that govern access to the highest-value aerospace and defense segments.

During the year under reporting IPCL has installed and commissioned 4 MW solar power plant at Ratanpar Village, Umrala, Gujarat for captive consumption. The commissioning of the solar power plant is expected to result in cost optimization and reduction in carbon emissions for the Company.

- IWI PLR - Jul 25 : I&PCL has entered into contract with PLR system Private limited for precision investment castings components for defense sector. This company has joint venture between the Adani Group and Israel Weapon Industries (IWI). Specializes in manufacturing small arms and related defense equipment. This company is known for producing weapons like the TAVOR Assault Rifle, X95 Assault Rifle, GALIL Sniper Rifle, NEGEV Light Machine Gun, and UZI Sub Machine Gun. These weapons are used by the Indian Armed Forces and Central Armed Police Forces.

- GTRE - Feb 26 : I&PCL has secured a significant supply order from Gas Turbine Research Establishment (GTRE DRDO), Ministry of Defence, Government of India for Supply of HP Turbine Component Super alloy Castings for a mission-critical defence application

- Appreciation by Mahindra for timely supply of component to achieve record breaking production levels in the Automotive Division.

- HAL Maharatna CPSE was awarded to IPCL in recognition of the outstanding contribution in the field of Indigenisation of Aerospace Materials and components

- IPCL is honored to receive the prestigious SIDM Champions Award in recognition of our outstanding contribution to indigenous manufacturing in the aerospace and Defence sectors.

- IPCL received Certificate of appreciation from Adani defence and aerospace for Outstanding Service, commitment and continuous support towards the successful completion and timely dispatch of the first lot of LMGs.

- IPCL received the "Award of Excellence" from Festo India (2026) for the DFPD localization project. As part of this project, IPCL manufactures function- critical components for DFPD actuators, used in valve automation and flow-control systems across process industries.

- IPCL is now MSME ZED Gold Certified! A step forward in our journey toward Zero Defect, Zero Effect manufacturing.