Defence Order Execution and Milestones

152mm Empty Shells Dispatches: The company has made multiple successful dispatches of 152mm empty shells against previously announced orders, demonstrating on-time conversion of defence order book into revenue.

155mm ERFB Shell Achievement: The company successfully produced and obtained quality approval for the 155mm ERFB shell, achieving:

  • Total Indicated Runout (TIR) forging tolerance of 3mm
  • Machined wall tolerance of 0.3mm

This validates the company's process capability and manufacturing facility standards. Serial dispatches are expected to commence shortly.

105mm Shells New Order: Received approval and new orders for 105mm empty shells from a large Indian Government Defence unit. Dispatches will commence shortly.

Aerospace Sector Entry

Jet Engine Components: The company has received approval for jet engine components to the aerospace sector, approved against the tightest tolerance standards. This marks the company's entry into one of the most quality-intensive segments of precision engineering. A further expansion into a much larger product portfolio in the aerospace domain is now underway.

New Customer Acquisitions

US Oil & Gas Major: Secured an order for large components weighing over 450 kg from one of the largest oil and gas companies in the United States. The order follows successful plant audit and drawing approval, validating the company's manufacturing capabilities and quality standards for heavy, precision-engineered components.

Czech Armored Vehicle Manufacturer: Received purchase order from one of the largest Czech Republic-based armored vehicle manufacturers known for vehicles used across defence, mining, quarrying, construction, and drilling.

Management Commentary

Trimaan Chandock, Executive Director, commented:

  • This quarter marks a turning point from winning orders to delivering them
  • The 155mm ERFB achievement demonstrates facilities and processes meet exacting defence standards
  • Aerospace approvals and new international customers confirm capabilities extend across sectors and geographies
  • Discussions ongoing with new customers across aerospace, oil & gas, and high-precision engineering segments
  • Regular customer visits to facilities reflect growing interest in capabilities
  • New order from India's largest defence shell factory strengthens position in defence sector

Financial Guidance and Growth Strategy

  • Targeting machining volume of 80,000 tonnes
  • Revenue growth of 25-30% each year over the next two years
  • Significant ramp-up expected in the third year
  • Building a diversified, high-precision business
  • Focus on scaling up serial production and strengthening growth momentum

Company Background

Balu Forge Industries Limited offers comprehensive product portfolio ranging from 1 kg to 1,500 kg and up to 3 meters in length, supporting diverse applications in automotive, industrial vehicles, earthmoving equipment, wind energy, aerospace, defence, oil and gas, railways, marine, and agriculture.

Operations include fully integrated forging and machining capabilities with advanced manufacturing facilities in Belgaum, Karnataka, spread over 46+ acres campus. Equipped with high-capacity hydraulic hammers and forging presses, supported by dedicated in-house tool room, metallurgical labs, and CNC machining units.

Strategic initiatives emphasize expanding defence production, enhancing automation, and strengthening global partnerships with focus on operational scalability, customer diversification, and ESG commitments.