Aerolloy Technologies wins major order for LEAP engine components from Safran Aircraft Engines

Aerolloy Technologies, a wholly owned subsidiary of PTC Industries Limited, has secured a significant order from Safran Aircraft Engines for the supply of LEAP engine components. This long-term agreement positions Aerolloy Technologies as the only Indian company manufacturing and delivering titanium and superalloy castings to the global aerospace leader.

The contract involves seven complex cast components designed for CFM International’s LEAP-1A and LEAP-1B engines, widely used in next-generation commercial aircraft. This marks a pivotal moment for Aerolloy Technologies, solidifying its role in India’s expanding aerospace sector.

Strategic Partnership Expands Safran Aircraft Engines’ Indian Supply Chain

With over 370 LEAP-powered aircraft currently in operation in India and more than 2,000 LEAP engines on order, the collaboration underscores Safran Aircraft Engines’ strategy to strengthen its supplier base in India. The aviation giant continues to increase its reliance on Indian manufacturers, enhancing the country’s aerospace manufacturing ecosystem while reinforcing its role in the global aviation supply chain.

The LEAP engine series is recognised for its fuel efficiency, lower carbon emissions, and superior performance, aligning with the aviation industry‘s sustainability goals. By working with Aerolloy Technologies, Safran Aircraft Engines aims to support its LEAP engine production while contributing to India’s Make in India initiative.

PTC Industries’ Stock Performance Reflects Optimism

The announcement of the Aerolloy Technologies order comes at a time when PTC Industries Limited (PTCIL) has witnessed strong momentum in its stock performance. As of March 28, 2025, PTCIL shares closed at ₹14,944.65, reflecting a 13.12% increase over the past week and an impressive 46.45% rise over the past month. However, the stock remains 16.95% below its 52-week high of ₹17,995.00, suggesting room for potential recovery.

Financially, PTC Industries reported ₹72.37 crore in net sales for the quarter ending September 2024, a 25.83% year-over-year growth. Despite steady profits, the company has opted not to declare dividends, focusing instead on long-term strategic investments, including its expanding aerospace operations.

Investment sentiment around PTC Industries remains cautiously optimistic, with ICICI Securities maintaining a ‘buy’ rating in December 2024, setting a target price of ₹20,070. Analysts point to PTCIL’s acquisition of Trac Precision Solutions and its partnership with Safran Aircraft Engines as key drivers of future growth. However, concerns remain over the stock’s high valuation (trading at 16.7 times its book value) and a modest return on equity of 9.37% over three years.

Aerolloy Technologies Strengthens Its Position in Global Aerospace

Aerolloy Technologies’ expertise in high-precision titanium and superalloy castings has been a key factor in securing this contract. The company is currently expanding its aerospace capabilities through a multi-million-dollar investment in a new manufacturing facility in the Lucknow node of the Uttar Pradesh Defence Industrial Corridor.

Sachin Agarwal, Chairman & Managing Director of PTC Industries, stated that the deal underscores the company’s advanced manufacturing capabilities. He noted that Aerolloy Technologies is excited to contribute to the LEAP engine program and looks forward to strengthening its partnership with Safran Aircraft Engines.

Safran Aircraft Engines Invests in India’s Aerospace Sector

Dominique Dupuy, Vice President of Purchasing at Safran Aircraft Engines, highlighted that the agreement is a testament to the company’s commitment to building a robust aerospace supply chain in India. He emphasised that leveraging the manufacturing expertise of Aerolloy Technologies will further enhance the LEAP engine’s global success.

PTC Industries Expands Aerospace Capabilities

For over 60 years, PTC Industries has been a leading Indian manufacturer of precision metal components. Through Aerolloy Technologies, the company has strengthened its focus on high-performance aerospace and defence applications.

To further expand its presence in the aerospace sector, PTC Industries is investing in a state-of-the-art, fully integrated manufacturing facility that will include a Titanium and Superalloy Mill. This facility will produce aerospace-grade ingots, billets, bars, plates, and sheets, significantly enhancing India’s defence and aviation manufacturing ecosystem.

Investment Recommendation: ‘Hold’ Rating Amid Growth Prospects

Given PTC Industries’ ongoing expansion, increasing orders, and strong market position, investors may consider holding their positions in the stock while monitoring its execution of the Safran Aircraft Engines contract. While the company’s growth trajectory appears strong, its high valuation and return on equity concerns warrant a measured approach before making additional investments.

Investors should closely watch the financial impact of the Safran order and PTC Industries’ ability to scale its aerospace manufacturing capabilities before making further investment decisions.