Balu Forge FY26 PAT rises 27% to ₹2,589 Mn
Balu Forge Industries Ltd reported a 27% increase in PAT for FY26 to ₹2,589 Mn, while revenue from operations grew 19.9% to ₹11,074 Mn. The company disclosed in an investor presentation that Defence, Aerospace & Railways sectors now constitute 50% of its order book, driven by strategic orders and a 5-year MoU. Balu Forge is expanding its Belgaum facility to boost machining and forging capacities and has commercialized a production line for empty shells.
*this image is generated using AI for illustrative purposes only.
Balu Forge Industries Ltd reported a financial performance for FY26 with revenue from operations reaching ₹11,074 Mn, a 19.9% increase from the previous year. The company’s Profit After Tax (PAT) stood at ₹2,589 Mn, reflecting a 27.0% year-on-year growth. The EBITDA for the period was ₹2,995 Mn with an EBITDA margin of 27.0%. The Basic EPS for FY26 was recorded at ₹23.90.
The company submitted its investor presentation to the exchanges following a non-deal roadshow held on June 24, 2026. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The presentation highlighted that the contribution from Defence, Aerospace & Railways sectors increased from 5% in FY24 to 13% in FY26. These strategic sectors now account for approximately 50% of the order book, supported by a 5-year MoU for large calibre ammunition and a 152mm artillery shell order.
Financial Performance
| Metric (₹ Mn) | FY26 | FY25 | YoY Growth (%) |
|---|---|---|---|
| Revenue from Operations | 11,074 | 9,236 | 19.9% |
| PAT | 2,589 | 2,039 | 27.0% |
| EBITDA | 2,995 | 2,511 | 19.3% |
| Total Assets | 18,508 | 12,522 | - |
| Total Equity | 15,945 | 10,532 | - |
Capacity and Expansion
Balu Forge Industries is expanding its manufacturing footprint with a new greenfield facility in Belgaum spread over 46 acres. This facility aims to increase the total machining capacity to over 80,000+ MTPA and forging capacity to 1,50,000 MTPA. The company has commercialized a dedicated forging and machining line for Empty Shell production with a capacity of 360,000 shells per annum. Additionally, the firm secured a maiden aerospace order from Alpha Aircraft Systems Inc., USA, marking its entry into the global aerospace supply chain.
The company’s net debt position stood at ₹377 Mn for FY26, compared to a net cash position of ₹(603) Mn in the previous year. The credit ratings for the long-term and short-term borrowings are [ICRA] A – (Stable) and [ICRA] A 2 +, respectively.
Historical Stock Returns for Balu Forge Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.99% | -4.29% | -6.57% | +6.61% | -34.73% | +55.39% |
How will the shift in revenue mix towards Defence, Aerospace, and Railways impact the company's overall profit margins in the coming years?
What is the expected timeline for the new greenfield facility in Belgaum to reach full operational capacity?
How will the transition to a net debt position affect the company's capital allocation strategy and future expansion plans?
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