PTC Industries seeks to leverage global titanium shortages amid Russia sanctions
India’s PTC Industries is looking to capitalise on global titanium supply disruptions caused by sanctions on Russia, the world’s largest titanium producer, according to market analysts tracking the defense manufacturing sector.
“Every player in titanium recycling or titanium manufacturing is going to have a bigger advantage due to export restrictions on Russia. This is going to have a larger impact on the entire supply chain of titanium across the globe,” said Kranthi Bathini, Director, Equity Strategy at WealthMills Securities.
The Lucknow-based company recently commissioned India’s first private sector Vacuum Arc Remelting (VAR) furnace with a 1,500-tonne annual capacity for producing aerospace-grade titanium alloy ingots. The facility can manufacture ingots up to 1,000 mm in diameter and weigh up to 10 tonnes. PTC Industries, which makes a wide range of materials and specialises in titanium castings, titanium ingot and titanium powders, has been exporting over three-quarters of its products for more than 30 years to countries all over Europe, North America, as well as other countries in Asia and South America
Buy ratings from ICICI Sec
ICICI Securities has a buy rating on PTC Industries and a target price of ₹20,070. It cites the strategic importance of reducing India’s dependency on titanium alloy imports for jet engines and airframes. The stock currently trades at 45.3x FY27E earnings per share.
“We are still at a scratching stage in this space. What this company is doing is developing capabilities. In terms of aviation manufacturing, we are still at high school level when compared to post-graduation,” Bathini said, highlighting the growth potential in India’s aerospace manufacturing sector.
The development comes as India pushes for defence indigenisation. PTC Industries’ Chief Technology Officer Jim Collins said the VAR facility “represents a significant leap forward in our technological capabilities” to meet aerospace-grade titanium alloy production standards.
However, ICICI Securities flagged several risks, including export dependency, potential delays in commissioning future capacities, competition from established global players, lengthy product development cycles, and high working capital requirements.
Expansion plans
The company plans to expand its capabilities by commissioning EBCHR and PAM furnaces to increase total titanium alloy capacity to 6,700 tonnes per annum. It is also developing a new manufacturing facility in the Uttar Pradesh Defence Industrial Corridor.
“Post-pandemic, we witnessed defense funds going up. The government’s special focus towards the defense industry and increased expenditure created opportunities,” Bathini said, explaining his firm’s early investment in PTC Industries at ₹1,500 levels.
PTC Industries specialises in metal casting for aviation and specialised allied services, distinguishing itself from traditional forging companies. To strengthen its global position, the company recently acquired Trac Precision Solutions, a UK-based firm.
Earnings accretion is expected to begin in FY26 after quality approvals for the new facility are secured. The company’s advanced manufacturing technology is anticipated to drive domestic and export demand, particularly as global aerospace and defence manufacturers seek to diversify their titanium supply chains away from Russia.
The stock’s current valuation reflects high growth expectations, though analysts emphasise that building such technological capabilities requires 10-15 years of consistent development. “These are highly sophisticated technologies where governments are involved. As India encourages domestic companies to participate, they’re going to benefit,” Bathini added.
