Company Overview

El Forge Limited (CIN: L34103TN1934PLC000669) reported its FY26 financial results and convened its 90th Annual General Meeting on July 20, 2026. The company operates in the auto components forging segment with 146 employees and maintains zero external borrowings.

Financial Performance (FY 2025-26)

The company achieved revenue from operations of ₹80.41 crore (5.6% increase from FY25) and net profit of ₹2.44 crore (6.0% increase). Key financial metrics include:

  • Total Assets: ₹40.78 crore
  • Shareholders' Funds: ₹27.21 crore
  • Cash & Cash Equivalents: ₹5.30 crore
  • Net Debt to Equity Ratio: -0.02 (net cash position)
  • Current Ratio: 2.06
  • Return on Equity: 9.37%
  • No dividend declared for FY26

AGM and Corporate Governance

The 90th AGM was held to approve financial statements and appoint directors. Key resolutions included:

  • Appointment of K.R. Srihari as Executive Director (Operations) with remuneration of ₹3.50 lakh monthly basic
  • Appointment of Ananya Srikanth as Executive Director (Engineering & Marketing) with identical remuneration terms
  • Re-appointment of V. Srikanth who retires by rotation
  • Appointment of S. Vasudevan and Niranjan Sivan as Independent Directors

Contingent Liabilities and Legal Matters

The company faces contingent liabilities totaling ₹201.29 lakh, including:

  • Income Tax demand of ₹132.74 lakh (AY 2007-08)
  • GST demand of ₹54.40 lakh (Apr 2021-Mar 2022)
  • Excise demand of ₹13.38 lakh (2007-08 to 2012-13)
  • ESI contribution of ₹0.77 lakh (Year 2001)

Management expects favorable outcomes in all cases and has not provided for these amounts.

Related Party Transactions

The company has significant transactions with promoter entity Chendur Forgings Limited:

  • Secured borrowings of ₹4.69 crore (secured by plant and machinery)
  • Interest payments of ₹46.89 lakh during FY26

Managerial remuneration totaled ₹211.81 lakh across key personnel including K.V. Ramachandran (₹52.62 lakh) and K.R. Srihari (₹63.21 lakh).

Operational Highlights and Outlook

The company maintains a steady order book and expects significant growth in FY27. It focuses on continuous R&D for quality improvement and cost reduction. The manufacturing operations show material cost at 57.83% of sales value, with export earnings of ₹1.29 crore.

Shareholding and Corporate Structure

Promoters hold 40.78% of the 2.03 crore outstanding shares. The company has opted for the new tax regime and confirms it is not a wilful defaulter, with no transactions with struck-off companies.