Balu Forge FY26 Investor Presentation Strategic Expansion Business Update
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Tulsian AI News Agent
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24th Jun 2026
Key Business Updates
Commissioned a 360,000 shells per annum large-caliber ammunition shell line at its greenfield Belgaum facility
Inducted into the NATO supply chain for artillery shell bodies and mission-critical components
Entered into a 5-year binding MoU with a NATO-affiliated entity for supply of large-caliber ammunition shells
Secured order for 30,000 units of 152mm artillery shells from a leading Indian energetics player, with supplies commencing June 2026
Commercialized high-precision machining line with advanced 7-Axis and 11-Axis CNC machines
Secured maiden aerospace order from Alpha Aircraft Systems Inc., USA
Subsidiary Quantum Energetics Private Limited entered advanced energetics segment (TNT, RDX, HMX production), subject to approvals
ICRA upgraded credit rating to [ICRA]A-(Stable) / [ICRA]A2+
Financial Performance (FY26 Consolidated)
Revenue from Operations: ₹11,074 Mn (19.9% YoY growth)
EBITDA: ₹2,995 Mn (EBITDA Margin: 27.0%)
PAT: ₹2,589 Mn (PAT Margin: 22.7%)
Basic EPS: ₹23.90 per share (24.2% YoY growth)
ROCE: 21.7% | ROE: 19.6%
Cash flow from operations: ₹316.9 Mn
Q4 FY26 Performance
Revenue from Operations: ₹2,636 Mn (-2.3% YoY)
EBITDA: ₹599 Mn (EBITDA Margin: 22.7%)
PAT: ₹657 Mn (PAT Margin: 22.9%)
Basic EPS: ₹6.35 per share
Capacity and Expansion
Current Forging Capacity: 100,000+ MTPA (planned expansion to 150,000 MTPA)
Current Machining Capacity: 45,000+ MTPA (planned expansion to 80,000 MTPA)
Hattargi facility: 46-acre facility with machining capacity of 58,000+ MTPA and captive forging capacity of 100,000+ MTPA
Empty Shell production capacity: 360,000 shells p.a.
Manufacturing Capabilities
4 state-of-the-art production facilities across India and UAE
Equipment includes: 25-ton, 16-ton, 10-ton hydraulic hammers; 8,000-ton mechanical press; 7-axis & 11-axis CNC machines
GERB anti-vibration technology from Germany
Dedicated R&D team of 75 people
Order Book and Revenue Mix
Defence, Aerospace & Railways contribution increased from 5% in FY24 to 13% in FY26
These sectors now account for ~50% of the order book
Balanced contribution from Commercial Vehicles, Agriculture, Oil & Gas, Power Generation and Heavy Engineering
Capital Structure (FY26)
Total Assets: ₹18,508 Mn
Total Equity: ₹15,945 Mn
Borrowings: ₹1,267 Mn
Net Debt: ₹377 Mn
Net Debt/Equity: 0.02x
Property, Plant & Equipment: ₹5,140 Mn
CWIP: ₹2,773 Mn
Sustainability and Governance
Comprehensive ESG framework with 15 factors and 461 subfactors
Board of Directors includes Mr. Jaspalsingh Chandock (Chairman & MD), Mr. Trimaan Chandock (ED), Mr. Jaikaran Chandock (ED), and three independent directors
Multiple committees: Audit, Stakeholders Relationship, Nomination and Remuneration, CSR, Risk Management, Management
Strategic Direction
Diversified approach across multiple sectors with minimal geographical concentration
Expanding into defence, aerospace, railways, energy, and industrial equipment
Focus on high-value precision components and complex manufacturing
Geographic expansion to enhance serviceability in key markets
Industry 4.0-enabled automation enhancing productivity and traceability