India's precision engineering sector is experiencing rapid growth, driven by increasing demand for high-precision components across various industries, including automotive, aerospace, electronics, and medical devices. As India aims to become a global manufacturing hub, precision engineering is playing a crucial role in shaping a self-reliant future. Investors are increasingly interested in companies riding this wave, seeking opportunities for long-term gains in this booming market. The Indian precision engineering market was valued at USD 500 Million in 2024 and is expected to reach USD 930 Million by 2033, exhibiting a CAGR of 7.2% during 2025-2033.
Here are five precision engineering stocks in India that are worth adding to your watchlist:
KPIT Technologies: KPIT Technologies provides embedded software and product engineering services to automotive companies. The company offers solutions for autonomous driving, connected vehicles, vehicle engineering and design, electric and conventional powertrains, and integrated diagnostics. KPIT Technologies is also expanding its capabilities through acquisitions, such as the recent 100% acquisition of four Caresoft entities. The company is using algorithms and semantic annotation to build perception systems that accurately capture and interpret the road, especially in complex urban environments. KPIT also offers various solutions in integrated electrification, new-generation vehicle platforms, and digital twin technologies.
Unimech Aerospace: Unimech Aerospace is a high-precision engineering solutions company specializing in complex manufacturing needs across industries like aerospace, defense, energy, and semiconductors. Unimech Aerospace offers machining, fabrication, assembly, and testing services, adhering to stringent build-to-print and build-to-specification standards. In FY24, Unimech reported a 121% increase in revenue, from Rs 941.7 m in FY23 to Rs 2,087.7 m, and a net profit surge of over 150%, from Rs 211.8 m in FY23 to Rs 580.5 m in FY24. The company anticipates precision components and subsystems to constitute 30% of its revenue within four years.
MTAR Technologies: MTAR Technologies is a key player in India's precision engineering space, manufacturing mission-critical components and assemblies with extremely tight tolerances (as precise as 5-10 microns). These high-precision parts are used in projects of national importance across nuclear, space, defense, and clean energy sectors. Founded in 1970, MTAR has evolved into a technology-driven company with advanced manufacturing facilities and a strong track record of supporting India's most strategic programs.
Harsha Engineers: Harsha Engineers is the largest manufacturer of precision bearing cages in the organized sector in India, with a market share of approximately 5-6% in the organized segment of the global brass, steel, and polyamide bearing cages. The company offers a range of bearing cages made from brass, steel, and polyamide, as well as precision components, complex stamped components, brass castings, and bronze bushings. Harsha Engineers is currently undertaking a big capex, with one of its subsidiaries, Harsha Engineers Advantek, setting up a greenfield project with an investment of Rs 2.5 billion.
Gala Precision Engineering: Gala Precision Engineering Limited is a leading precision component manufacturer specializing in technical springs and fastening solutions. Their product offerings include disc and strip springs (DSS), such as wedge lock washers, coil and spiral springs (CSS), and special fastening solutions (SFS). These components are essential for original equipment manufacturers (OEMs), tier 1 suppliers, and channel partners across various industries.
These five companies represent a diverse range of capabilities within the precision engineering sector, poised to benefit from the increasing demand for high-precision components and India's growing manufacturing ambitions.
