Balu Forge Industries (531112) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated revenue was ₹23,319.60 lakh and net profit ₹5,702.69 lakh, both higher YoY but lower QoQ.

• FY26 revenue growth guidance remains 40–45%; the quarter also saw formation of a 40%-owned SPV to pursue railways, defence and aerospace opportunities.

Financial highlights

• Consolidated revenue from operations was ₹23,319.60 lakh versus ₹17,530.90 lakh YoY and ₹26,964.62 lakh QoQ; total income was ₹23,487.89 lakh.

• Consolidated net profit was ₹5,702.69 lakh versus ₹3,416.79 lakh YoY and ₹6,268.84 lakh QoQ; exceptional items were nil.

• EBITDA, excluding Other Income, increased 67.3% YoY to ₹723 Mn; QoQ EBITDA declined 3.6%.

• Consolidated PBT was ₹7,003.88 lakh; total expenses were ₹16,484.01 lakh, including finance costs of ₹223.17 lakh.

• FY25 revenue reached ₹9,236 Mn, up 65.0% YoY; EBITDA was ₹2,511 Mn, up 110.8%, and PAT was ₹2,039 Mn, up 118.0%.

Outlook and guidance

• FY26 revenue growth guidance remains 40–45%, supported by capacity expansion, higher penetration in high-demand sectors, and commercialization of the Mercedes-Benz unit and greenfield facility.

• Forging capacity is planned to rise from 100,000 to 150,000 MTPA, with most new capacity expected to become operational within FY26.

• By FY27, machining capacity is projected to reach 80,000 TPA, aligned with integrated forging capacity and expansion at the 46-acre Belagavi facility.

• Non-automotive revenue share is expected to increase as defence, aerospace and railway activity expands; commercial vehicles remain a growth area.