Sika Interplant Soars 16% After Signing Licensing Deal with Collins Aerospace
Indian engineering firm Sika Interplant Systems sees stock rally after securing exclusive MRO rights for Airbus aircraft components in strategic tie-up.
Stock Surges on Major Global Partnership
Sika Interplant Systems Ltd. recorded a 16% rise in its share price on Tuesday, triggered by the announcement of a landmark licensing deal with Collins Aerospace, a subsidiary of RTX Corporation. The development propelled the stock to a new 52-week high of ₹956.90 before settling around ₹945, lifting the company’s market capitalization to ₹2,003 crore.
This leap comes on the back of Sika’s strategic agreement with Goodrich Actuation Systems SAS (France) and Goodrich Actuation Systems Limited (UK)—both subsidiaries of Collins Aerospace—cementing the company’s position in the high-value aerospace maintenance and engineering domain.
Exclusive Rights for Critical Airbus Aircraft Components
Under this newly signed licensing arrangement, Sika Interplant has obtained exclusive rights to handle the complete maintenance, repair, and overhaul (MRO) of discrete primary flight control actuation components—vital parts used in Airbus A320 and A321 aircraft. These elements are a part of the standard setup for these aircraft, making the agreement strategically vital for Sika’s aviation portfolio.
As per the terms, the company is authorized to service aircraft registered in India and in selected neighboring regions. By acquiring these rights, Sika not only strengthens its capabilities in high-end aviation services but also steps further into the specialized and regulated domain of aircraft MRO services, historically dominated by global giants.
Positioning for Regional Aerospace Expansion
The tie-up with Collins Aerospace positions Sika Interplant as a key player in the aerospace MRO segment in South Asia. With India emerging as a growing aviation hub, especially for narrow-body aircraft like the Airbus A320 family, this deal offers a long-term opportunity for the company to expand its regional footprint.
This alliance is also expected to support India’s vision of increasing indigenous capabilities in aerospace and defense maintenance under the “Make in India” initiative, as the company holds the designation of a licensed Indian Offset Partner for defense production.
Multibagger Returns Backed by Steady Growth
Sika’s shares have demonstrated extraordinary long-term performance, with a five-year return of a staggering 2,622%, turning it into a multibagger stock for long-term investors. The recent rally reflects the market’s confidence in the company’s growth strategy and ability to form valuable global alliances.
As of now, the stock is trading at a Price-to-Earnings (P/E) ratio of 78x, slightly above the industry average of 70.30x, indicating that investors are willing to pay a premium for the company’s future earnings potential.
Strong Financial Performance in FY25
Financially, Sika Interplant Systems has delivered robust results for the fiscal year 2025. The firm reported ₹148 crore in revenue for the fiscal year, reflecting a substantial year-over-year increase of 39.62% compared to the ₹106 crore earned in FY24.
Net profits also saw a healthy rise of 31.57%, moving from ₹19 crore in FY24 to ₹25 crore in FY25. In terms of profitability, the company has clocked a Return on Equity (ROE) of 22.62% and a Return on Capital Employed (ROCE) of 29.73%, reflecting efficient capital utilization and a sound business model.
Diversified Operations with High-Tech Focus
Headquartered in India, Sika Interplant Systems Ltd is a specialized engineering company catering to industries including automotive, aerospace, defense, and space. The firm serves both Tier 1 and Tier 2 players across these sectors, supporting them with technology-driven, high-precision solutions.
Sika’s core business segments include:
• Engineered Projects
• Interconnect Solutions
• Maintenance, Repair, and Overhaul (MRO)
• Value-Added Distribution
With over 25 years of engineering excellence, Sika has consistently aligned itself with global partners to deliver complex projects. This latest deal with Collins Aerospace is another feather in its cap, potentially unlocking new revenue streams and reinforcing its international credibility.
What This Means for the Future
This move is more than just a commercial agreement—it represents a significant step toward localizing critical aerospace capabilities. With aircraft fleet sizes increasing across the Asia-Pacific region and airlines focusing on reducing downtime and MRO costs, having a trusted local partner like Sika can be a game-changer.
Moreover, the MRO space is becoming increasingly attractive in India due to policy support, cost efficiencies, and geographic advantages. Sika’s entry into this space with a high-value licensing deal provides it with an early-mover advantage that could pay off significantly in the coming years.
Final Thoughts
The recent collaboration between Sika Interplant Systems Ltd and Collins Aerospace has ignited strong investor enthusiasm, propelling the company’s share value to an all-time peak. This agreement grants Sika exclusive permission to conduct servicing and overhaul activities on vital parts of Airbus A320 and A321 jets within India and designated surrounding regions. This move not only enhances Sika’s technical capabilities but also opens the door to new revenue opportunities in the high-margin aerospace MRO segment.
Coupled with robust financials and exceptional long-term stock performance, Sika’s strategic direction appears to be on a solid path. As the Indian aerospace and defense ecosystem continues to mature, companies like Sika—armed with global partnerships and strong technical know-how—are well-positioned to lead the next phase of growth.
The image added is for representation purposes only
