Goodluck India Targets 18–20% Revenue Growth, Led By Hydraulic Tube And Artillery Shell Production

Goodluck India Ltd. is targeting a revenue growth of 18% to 20% in the coming years, according to Chairperson MC Garg.

"I am very conservative. I am confident we will be doing anything between 18% and 20% year after year," he told NDTV Profit in a conversation on Tuesday.

"We are not going to high-fly unnecessarily, giving the expectation that we may go higher... with this addition of the hydraulic tube, defence shell making, which will give another boost to the Ebitda margin of the plant," Garg said.

For the defence vertical, the company aims to improve its operating profit margins from the current 8% to around 25%, he said.

Goodluck India aims to expand its presence in the defence sector through its new subsidiary, Goodluck Defence and Aerospace. The company will start trial production of precision components, specifically artillery shells, in the first quarter of FY26.

Commercial production is expected to begin by the end of the second quarter of FY26. The new subsidiary will produce 1,50,000 precision components annually, specifically 150 mm artillery shells.

"We are not going to stop at that. We plan to put up another plant to go to 3,50,000 shells. Once we stabilise the production in the first plant, the second plant is already on the horizon," Garg added.

The facility will offer end-to-end solutions, including forging, machining, heat treatment, and coating of steel, catering primarily to the defence and aerospace industries.

Garg said that the subsidiary is awaiting a critical government licence. "It's on the verge of commissioning, awaiting government licence. It's more or less complete, but the production trial will start as soon as we get the licence from the government," he said.

On being asked about the timeline for licensing, the top executive said: "Normally it should not take more than six months. It's already six months over... It's a very, very sensitive subject and the government is very careful in granting the licence."

He anticipates that commercial production can begin within two months of receiving the necessary approvals.

Highlighting the company’s credentials for catering to the defence sector, he said the company is already an approved supplier for the BrahMos missile programme, though the quantity remains "insignificant".

Underlining the rationale for expanding into the defence sector, the top executive said: "It's a high value-added item. It will add to our Ebitda and add to our value in the market."

Goodluck India is also a significant supplier to the automotive industry, with clients including Tesla, BMW and Volkswagen. Specialised precision tubes constitute "almost 30% of production growth" of the company. 

Garg said that the new plant for hydraulic tubes, commissioned in September last year, is "one of its kind in the world” and it will be a "game changer for the company".