Date: November 14, 2026

Financial Results (Consolidated)

Q2 FY27 Performance:

  • Revenue from Operations: ₹324.3 crore (up 8.3% YoY from ₹299.5 crore in Q2 FY26)
  • Other Income: ₹5.9 crore (up 80.1% YoY)
  • Total Income: ₹330.2 crore (up 9.1% YoY)
  • Total Expenses: ₹230.7 crore (up 6.5% YoY)
  • EBITDA (excluding Other Income): ₹93.7 crore (up 13.1% YoY)
  • EBITDA Margin: 28.9% (improved 130 bps from 27.6% in Q2 FY26)
  • Finance Cost: ₹5.4 crore (up 34.9% YoY)
  • Depreciation and Amortization: ₹3.6 crore (up 65.9% YoY)
  • Profit Before Tax: ₹90.6 crore (up 13.4% YoY)
  • PBT Margin: 27.9% (improved 130 bps from 26.4% in Q2 FY26)
  • Tax Expenses: ₹14.0 crore (down 5.8% YoY)
  • PAT: ₹76.6 crore (up 17.8% YoY)
  • PAT Margin: 23.6% (improved 190 bps from 21.7% in Q2 FY26)
  • Basic EPS: ₹6.59 per share

H1 FY27 Performance:

  • Revenue from Operations: ₹625.1 crore (up 17.3% YoY from ₹532.7 crore in H1 FY26)
  • Other Income: ₹9.8 crore (up 96.9% YoY)
  • Total Income: ₹634.9 crore (up 18.1% YoY)
  • Total Expenses: ₹446.6 crore (up 18.3% YoY)
  • EBITDA (excluding Other Income): ₹178.5 crore (up 15.1% YoY)
  • EBITDA Margin: 28.6% (down 50 bps from 29.1% in H1 FY26)
  • Finance Cost: ₹10.0 crore (up 60.2% YoY)
  • Depreciation and Amortization: ₹6.9 crore (up 79.4% YoY)
  • Profit Before Tax: ₹171.3 crore (up 14.3% YoY)
  • PBT Margin: 27.4% (down 70 bps from 28.2% in H1 FY26)
  • Tax Expenses: ₹28.7 crore (up 2.8% YoY)
  • PAT: ₹142.7 crore (up 16.9% YoY)
  • PAT Margin: 22.8% (down 10 bps from 22.9% in H1 FY26)
  • Basic EPS: ₹12.08 per share

Historical Financial Performance:

| Particulars (₹ Cr) | FY23 | FY24 | FY25 | FY26 | H1FY27 |

| Revenue from Operations | 326.6 | 559.9 | 923.6 | 1,107.4 | 625.1 |

| Revenue Growth % | 14.2% | 71.4% | 65.0% | 19.9% | 17.3% |

| EBITDA | 49.8 | 119.1 | 251.1 | 299.5 | 178.5 |

| EBITDA Margin % | 15.2% | 21.3% | 27.2% | 27% | 28.6% |

| PAT | 39.0 | 93.5 | 203.9 | 258.9 | 142.7 |

| PAT Margin % | 11.9% | 16.7% | 22.1% | 23.4% | 22.8% |

| EPS (₹) | 4.7 | 9.8 | 19.2 | 23.9 | 12.1 |

Balance Sheet Highlights (H1 FY27):

  • Total Equity: ₹1,741.2 crore
  • Property Plant and Equipment: ₹743.2 crore
  • Capital Work-in-Progress: ₹173.1 crore
  • Inventories: ₹141.3 crore
  • Trade Receivables: ₹393.9 crore
  • Cash and Cash Equivalents: ₹120.0 crore
  • Short-term Borrowings: ₹183.0 crore
  • Total Assets: ₹2,146.9 crore

Cash Flow Statement (H1 FY27):

  • Net Cash flow From Operating Activities: ₹245.3 crore
  • Cash Flow From Investing Activities: -₹260.8 crore
  • Cash Flow From Financing Activities: ₹49.8 crore
  • Net Increase in Cash & Cash Equivalents: ₹34.4 crore

Key Business Updates

Defence Execution Momentum:

  • 155mm ERFB BB/BT: First purchase order received for 10,000-unit pilot supply, then monthly supplies
  • 155mm ERFB: Quality-approved at forging TIR of 3 mm and machined wall tolerance of 0.3 mm; serial dispatches shortly
  • 152mm empty shells: Multiple dispatches made against earlier announced order
  • 105mm empty shells: Approval and new orders from two large Indian Ordnance factories; dispatches shortly

Aerospace and Global Customer Wins:

  • Aerospace jet engine components approved against tightest tolerance; wider aerospace portfolio underway
  • US oil & gas major order for components over 450 kg after successful plant audit
  • Czech armoured vehicle maker new purchase order, deepening engagement with European OEMs
  • Secured long-term supply contract with Brazil's largest engine manufacturer

Capacity Expansion:

  • Ring Rolling Line Acquired: One of India's largest rings up to 6.7 meters Outer Diameter, 18 MT single product capability
  • Production trial to commence before end of December 2026
  • End markets: Wind, aerospace & defence, nuclear, oil & gas, marine, railway
  • Forging capacity scaling from 100,000 MTPA to 168,000 MTPA
  • Precision machining capacity scaling from 58,000 MTPA to 80,000 MTPA

Order Book:

  • Total Order Book as on September 30, 2026: ₹2,400 crore
  • Defence, Aerospace and Railways contribute approximately 50% of order book
  • Balanced contribution from Commercial Vehicles, Agriculture, Oil & Gas, Power Generation and Heavy Engineering

Long-Term Defence Strategy:

  • NATO certified mass production of 152mm and 155mm M107 projectiles in 'Ready to Fill' state
  • Automated Belgaum facility: robotics-led, military-grade
  • Moving up value chain: long-range munitions, multi-alloy forgings including aluminium, expanding energetics division

Capital Allocation

FCCB Proceeds Utilization (USD 50 Million):

  • ₹300 crore for Capex: Heavy forging lines including ring rolling and hydraulic press; more defence ammunition capacity
  • ₹150 crore for Balance sheet: Retire Indian working-capital limits; expected to save ~200-250 bps of interest cost after hedging
  • Working Capital and General Corporate purpose

Working Capital Management:

  • Debtor days expected to stabilize at 100-120
  • Inventory days expected to fall to 45 by FY29E (from 65 in FY27E)
  • Cash Conversion Cycle: 131 days
  • Positive Operating Cash Flows: ₹245 crore in H1 FY27

Subsidiary Update: Safa Otomotiv FZ LLC

  • Wholly owned by Balu Forge
  • Assembly facility in Ras Al Khaimah, UAE supplying powertrain subassemblies to MENA region
  • Annual assembly capacity: 15,000→21,000 units (+40%) in existing leased facility
  • Qualifies as QFZP with 0% UAE corporate tax on qualifying income, 9% on non-qualifying income
  • Products: Short block, Long block, powertrain sub-assemblies, precision parts to OE specs
  • End markets: Power generation, agriculture, commercial vehicles, oil & gas

Manufacturing Capabilities

Advanced Forging:

  • 25 Ton, 16 Ton, 10 Ton Hydraulic Hammer, 8000 Ton Mechanical Press & Ring rolling line with 6.7m outer diameter
  • GERB technology with Anti Vibration Technology from GERB Germany
  • Forging Capacity: 100,000+ MTPA (increasing to 168,000 MTPA)

Precision Machining:

  • Advanced 5, 7 & 11-Axis CNC and precision grinding capabilities
  • Machining Capacity: 58,000+ MTPA (increasing to 80,000 MTPA)

Support Infrastructure:

  • Metallurgical Testing Laboratory: State-of-the-art testing lab at Hattargi plant pursuing NABL accreditation
  • Fully integrated in-house tool room with advanced machining centers
  • Heat Treatment Shop: Continuous Pusher Type facility with advanced automation
  • Paint Shop & Shot Blasting: Highly automated industrial coating system

Board of Directors

  • Mr. Jaspalsingh Chandock: Chairman & Managing Director (DIN 00813218)
  • Mr. Trimaan Chandock: Executive Director
  • Mr. Jaikaran Chandock: Executive Director
  • Mrs. Shalu Bhandari: Independent Director
  • Mr. Radhey Shyam Soni: Independent Director

Board Committees: Audit Committee, Stakeholders Relationship Committee, Nomination and Remuneration Committee, Corporate Social Responsibility Committee, Risk Management Committee, Management Committee

Sustainability & CSR

  • CSR Amount spent in FY26: ₹15.7 million
  • Individuals Benefitted Through CSR: 620

Quality Credentials

  • ISO 9001:2015 (Quality management)
  • IATF 16949 (Automotive quality)
  • ISO 14001:2015 (Environmental)
  • ISO 45001:2018 (Health & safety)