China+1 Opportunity, Aerospace Entry and ₹1,180 Crore Order Book: Is This Lesser-Known ₹1,800 Crore Engineering Stock a Hidden Gem?
India's manufacturing sector is getting opportunities as global companies look to diversify their supply chains beyond China. This is creating room for domestic manufacturers that can offer quality products, precision engineering and reliable delivery. While large companies usually get most of the attention, smaller manufacturers are also trying to build their presence in this space. One such company has reported strong H1 FY27 growth, entered the aerospace segment and built a sizeable order book. Its plans to expand capacity and increase its non-automotive business make it an interesting company to track.
What Does the Company Do?
Poojaa Precision Engineering is a precision engineering manufacturer engaged in aluminium die-casting and precision-machined components. Incorporated in 1992, the company has developed manufacturing capabilities covering product design, engineering, melting, casting, machining, assembly and testing.
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Its products are used across automotive, electric vehicles and non-automotive industries. The portfolio includes cylinder head covers, clutch housings, bearing sleeve assemblies, elbow assemblies and other precision-engineered components. The company has more than 600 stock-keeping units (SKUs), which gives it exposure to different product requirements and applications.
One important part of its business is that it does not operate only as a basic casting supplier. It also offers machining and finishing services, allowing it to supply more complete components to customers.
This can be useful for OEMs because they can source multiple manufacturing processes from a single supplier instead of dealing with different vendors for casting, machining and finishing. It can also help build long-term customer relationships, as precision components generally require product approvals, quality checks and manufacturing consistency.
The company is now looking to use these capabilities to expand beyond its traditional automotive business and enter industries that require specialised components.
H1 FY27 Results: Revenue Grows 68%
Poojaa Precision Engineering reported its unaudited financial results for the six months ended September 30, 2026. Revenue from operations increased 68.2% year-on-year to ₹210.1 crore against ₹124.9 crore in H1 FY26.
The company reported a profit before tax of ₹33.8 crore, registering growth of 85.28% from ₹18.3 crore in H1 FY26. Profit after tax increased 87.61% to ₹24.9 crore against ₹13.3 crore in the same period last year. The basic and diluted earnings per share stood at ₹16.43 for H1 FY27, compared with ₹9.70 in the corresponding period last year.
The operating performance was also strong. Operating EBITDA increased approximately 73% to ₹39.6 crore from around ₹22.8 crore. The EBITDA margin stood at approximately 19%, compared with around 18% in H1 FY26.
The company has therefore managed to grow its revenue and profits while maintaining a healthy operating margin.
However, the ability to maintain margins while increasing production will be equally important, especially as the company enters new industries and expands its manufacturing facilities.
China+1 Opportunity: Can It Bring More International Business?
The China+1 strategy is creating opportunities for Indian manufacturers across several industries. Global companies are looking to diversify their supply chains and reduce dependence on a single manufacturing location.
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India has an established automotive component manufacturing base, but there is still room for domestic suppliers to increase their participation in global supply chains.
Poojaa Precision is looking to benefit from this opportunity through its aluminium die-casting and precision machining capabilities. Its integrated manufacturing setup can help it cater to customers that require multiple stages of component manufacturing.
During its latest earnings call, management discussed accelerating direct exports to Tier-1 OEMs in North America and Europe. This is an important development because building relationships with international OEMs could help the company expand its customer base beyond the domestic market.
The company also has experience in manufacturing components for different applications, which could support its efforts to target new customers. However, China+1 is an opportunity and not a confirmed source of revenue. The company still needs to secure orders, complete customer approvals and establish repeat business in international markets.
Aerospace Entry and Growing Non-Automotive Business
Another development that makes the company interesting is its entry into aerospace manufacturing. The company has received vendor approval from an initial customer for aerospace product supply. This gives it an opportunity to participate in a new industry that requires precision manufacturing and strict quality standards.
Aerospace is not an easy industry to enter. Components generally go through detailed qualification and testing processes, and suppliers need to maintain consistent manufacturing standards. Therefore, receiving vendor approval is an important first step.
However, approval should not be confused with large-scale commercial orders. The company will need to demonstrate its ability to supply products consistently and build a meaningful revenue contribution from this segment.
Apart from aerospace, management is also looking at opportunities in power and energy, defence, healthcare and other engineering applications. The non-automotive business is already showing strong growth. During H1 FY27, non-automotive revenue increased 194% year-on-year to approximately ₹53 crore. It contributed around 25% of total revenue, compared with approximately 15% in H1 FY26.
Automotive contributed around 63% of H1 FY27 revenue, the company is targeting a long-term revenue mix of approximately 50:50 between automotive and non-automotive businesses. This is an important part of its growth strategy. A wider industry presence could reduce its dependence on conventional automotive demand and create additional opportunities.
₹1,180 Crore Order Book: Strong Visibility for Future Growth
One of the biggest highlights from the latest earnings call was the company's order book of approximately ₹1,180 crore. This is a sizeable order book compared with its H1 FY27 revenue of ₹210 crore. Management indicated that the order book provides revenue visibility over the coming financial year.
The company also receives requests for quotations from potential customers. Management discussed annual RFQ (Request For Quotation) opportunities of more than ₹2,000 crore, with an estimated conversion rate of around 8–10%. These opportunities could help replenish the order book as existing orders are executed.
However, investors should understand the difference between an order book and requests for quotations. The order book represents business already secured, while RFQs are potential opportunities that may or may not convert into confirmed orders.
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This makes execution an important factor. A large order book provides visibility, but the actual benefit will depend on how quickly the company converts orders into revenue and how much profit it earns from them.
Capacity Expansion: Nearly Doubling Manufacturing Capacity
To support its growing order book, the company is expanding its manufacturing capacity. Management indicated that installed melting capacity of approximately 13,800 metric tonnes is expected to increase to 28,800 metric tonnes by FY28.
Similarly, casting and finishing capacity is planned to increase from approximately 6,000 metric tonnes to 12,600 metric tonnes. This expansion is expected to nearly double its manufacturing capacity.
The company is developing its Unit III facility at Khed, Pune, to support this growth. The project is expected to help it handle larger orders and cater to additional customer requirements.
This expansion is important because the company needs sufficient manufacturing capacity to execute its existing order book and take up new opportunities. However, increasing capacity also brings additional costs. The company needs to ensure that the new facilities achieve adequate utilisation and generate sufficient revenue to justify the investment. If capacity increases faster than demand, fixed costs and depreciation could put pressure on profitability.
Balance Sheet and Cash Flow: What Do the Latest Numbers Say?
The September 2026 balance sheet provides a better picture of the company's financial position. As of September 30, 2026, total assets stood at ₹374.35 crore. Reserves and surplus were approximately ₹280.82 crore, while share capital stood at ₹19.95 crore. The company reported long-term borrowings of ₹16.85 crore and short-term borrowings of ₹6.90 crore, taking total borrowings to approximately ₹23.75 crore.
Cash and cash equivalents stood at ₹76.58 crore. This is higher than the reported borrowings, although investors should remember that the cash position also reflects funds raised through the IPO that are yet to be fully deployed.
The half-year cash flow statement is also worth examining. The company generated ₹30.65 crore in net cash from operating activities during H1 FY27. This is a positive sign because the business generated cash from its operations while reporting strong revenue and profit growth.
At the same time, investing activities resulted in a cash outflow of ₹116.46 crore. Financing activities generated ₹97.05 crore, which included proceeds from the IPO. The investing outflow needs to be viewed in the context of its expansion plans and capital expenditure. The company is investing in additional manufacturing capacity, which requires funds before the new facilities start contributing to revenue.
Another important point is the utilisation of IPO proceeds. The company raised approximately ₹159.83 crore through its public issue. The proceeds need to be deployed according to the stated objectives of the issue. Going forward, investors should track whether the company's operating cash flow increases along with its revenue and whether the new manufacturing investments generate adequate returns.
Management's Growth Targets: ₹1,000 Crore Revenue by FY30
Management has outlined ambitious growth plans during the latest earnings call. For FY27, it is targeting approximately 50% revenue growth. For the following two years, management expects revenue growth of around 30–35% annually. It has also set an ambition to reach ₹1,000 crore in annual turnover by FY30.
The target is supported by its existing order book, capacity expansion and efforts to enter new industries. The company is also looking to increase its direct exports and expand its presence among Tier-1 OEMs in North America and Europe.
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However, these are management targets and should not be treated as guaranteed outcomes. The company will need to execute its order book, utilise the expanded manufacturing capacity and maintain healthy margins to achieve these numbers.
The transition towards a higher non-automotive contribution will also be important. If the company can successfully build business across aerospace, energy and other engineering applications, it could have a more diversified revenue base over the coming years.
Conclusion
Poojaa Precision Engineering has several factors that make it worth tracking in India's precision manufacturing space. Its H1 FY27 revenue increased 68%, PAT grew 87.61%, and the order book stood at approximately ₹1,180 crore.
The entry into aerospace, growing non-automotive revenue and plans to increase exports could provide additional growth opportunities. Its capacity expansion also indicates that management is preparing the business for a larger scale of operations.
However, the company still has to prove that it can execute its order book, maintain margins and generate sufficient cash from its expanding operations. The ₹1,000 crore FY30 revenue ambition is attractive, but achieving it will require consistent execution over the coming years.