Steel Stock Soars 18% After Robust Results and New Stock Target From Goldman Sachs

Synopsis: Riding on robust aerospace and defense demand, the company delivered a record FY26 performance with consolidated revenue surging nearly 96% YoY to Rs.603 crore, while Q4 profit after tax jumped 144% YoY to Rs.60 crore. Goldman Sachs retained its Buy rating and Rs.25,770 target price, citing strong contract visibility, improving performance from the acquired UK operations, and a sharp earnings acceleration expected over the coming years. 

A niche aerospace and defence manufacturer is entering a new growth phase as investments in advanced engineering capabilities, capacity expansion, and global partnerships begin to translate into stronger execution. Backed by rising demand from critical industries and improving international exposure, the company is positioning itself as a key player in India’s high-precision manufacturing ecosystem.

With a market capitalization of Rs.28,000, shares of PTC Industries were trading at Rs.19,140 per share on 1 June 2026; the stock went up by 18 percent from the previous day’s closing of Rs.16,190, and it is trading at an approximate PE of 276x.

FY26 Financial Performance

For FY26, consolidated revenue from operations grew 96 percent YoY to Rs.602.78 crore, compared to Rs.308.07 crore in FY25. The growth was not simply a volume story; it reflected a meaningful shift in the complexity and scale of orders being executed across the group, including the consolidation of Trac Precision Solutions and its subsidiaries into the group structure from December 2024. Profit after tax rose 66 percent YoY to Rs.101.56 crore, against Rs.61.02 crore in FY25. Basic EPS improved from Rs.41.37 to Rs.67.76 per share for the full year.

Q4 FY26 Snapshot

The fourth quarter was the strongest of the year. Consolidated revenue surged 85 percent YoY and 45 percent QoQ to Rs.225.47 crore, reflecting accelerating execution momentum as the company closed the year on a high. PAT for the quarter came in at Rs.59.91 crore, up 144 percent YoY and 227 percent sequentially, driven by strong operating leverage at the group level. EBITDA margins expanded sharply by 412 basis points YoY to 37.4 percent in Q4, underscoring the premium nature of the product mix and the operating efficiency gains being realized at scale. Basic EPS for the quarter stood at Rs. 39.96. 

Trac Integration and the Aerospace Angle

The December 2024 acquisition of Trac Holdings, a UK-based precision machining business serving global aerospace OEMs, has meaningfully changed the character of PTC’s consolidated financials. Trac brings long-duration contracts, direct relationships with global aerospace primes, and machining capabilities that complement PTC’s casting expertise.

The integration is progressing, with Trac’s performance showing tangible improvement, a development that Goldman Sachs specifically flagged as a key positive in its recent note. The subsidiary’s revenues for the year, audited separately, came in at approximately Rs.247 crore, contributing materially to the group’s consolidated topline. 

Building for the Long Cycle

PTC’s core domestic business at Aerolloy Technologies and the parent entity continues to deepen its position in titanium investment casting for aerospace and defense. New contracts are moving from qualification to production, a transition that typically takes years but, once achieved, locks in multi-year revenue streams at high margins. Capacity expansion in metals and castings is progressing in parallel, setting the foundation for volume scale once the qualification pipeline converts. The group’s capital work-in-progress stood at Rs.310.65 crore at year-end, reflecting the intensity of ongoing investment in manufacturing infrastructure.

Goldman Sachs Maintains Buy

Goldman Sachs retained its Buy rating on PTC Industries with a price target of Rs.25,770, against a CMP of Rs.19,140 at the time of the note, implying an upside of approximately 36%. percent. The brokerage acknowledged a 17 percent miss on Q4 EPS relative to estimates but remained constructive, citing better cash conversion, improved Trac performance, and strong earnings visibility through FY27 driven by existing contracts and ongoing capacity additions. The more significant thesis, however, is the steep earnings ramp that Goldman expects to materialize post-FY29 as new contracts currently in qualification reach full production and the group’s expanded manufacturing base operates at higher utilization.

Verdict

FY26 was a year of genuine scale-up for this group: revenues nearly doubled, margins expanded sharply, and the Trac acquisition added a new dimension to what was already a differentiated domestic business. The near-term execution story is intact, and the longer-term earnings trajectory, as Goldman Sachs frames it, has barely begun to play out. For investors with the patience to look past quarterly noise, the structural opportunity here remains compelling.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Steel Stock Soars 18% After Robust Results and New Stock Target From Goldman Sachs appeared first on Trade Brains.