Balu Forge Industries (531112) Q3 25/26 earnings summary

Executive summary

• 9M FY26 revenue rose 29.0% YoY to ₹8,438 Mn; EBITDA increased 36.0% to ₹2,396 Mn and PAT rose 36.8% to ₹1,932 Mn.

• Q3 saw commercial production begin on new precision-machining and empty-shell lines, alongside induction into the NATO supply chain.

• Growth plans target defence, aerospace and other high-value sectors, backed by capacity expansion and a low-leverage funding approach.

Financial highlights

• Consolidated Q3 revenue from operations was ₹31,110.64 lakh (vs ₹25,578.30 lakh YoY) and net profit was ₹7,109.08 lakh (vs ₹5,900.58 lakh).

• Consolidated 9M revenue was ₹84,381.20 lakh (vs ₹65,397.12 lakh) and net profit was ₹19,315.40 lakh (vs ₹14,116.70 lakh).

• Q3 EBITDA was ₹845 Mn, up 24.8% YoY; EBITDA margin was 27.2% versus 26.5%, and PAT was ₹711 Mn, up 20.5%.

• 9M total income reached ₹8,533 Mn, up 28.0% YoY; PBT rose 28.2% to ₹2,306 Mn, with a 27.0% margin.

• Standalone Q3 revenue was ₹17,120.06 lakh and net profit ₹3,854.01 lakh; 9M revenue was ₹48,811.18 lakh and net profit ₹10,816.05 lakh.

Outlook and guidance

• The 3–5 year strategy targets machining capacity of 80,000 TPA by FY27 at the integrated Belagavi facility, serving defence, aerospace and power-generation demand.

• FY27 gross block is projected at ₹750–800 crore, supported by machining and forging lines, Industry 4.0 adoption and high-value defence and aerospace production.

• Funding plans emphasize internal accruals, preference share issues and warrants, with selective equity infusions where needed.

• Defence shell supply visibility extends up to five years; capacity expansion is intended to meet current commitments and anticipated demand.

• In-house forging is expected to increase power and fuel expenses as production transitions from outsourced forging to integrated operations.