Hilton Metal Forging reported a 44% year-on-year decline in profit after tax (PAT) to ₹3.45 crore for the financial year ended March 2026. The drop occurred despite revenue from operations surging 41% to ₹230.37 crore, driven by higher volumes and expanded business activity.

Financial Performance

Total income for FY26 stood at ₹232.01 crore, up from ₹168.22 crore in the previous year. However, total expenses rose to ₹228.32 crore from ₹162.13 crore. Profit before tax fell to ₹3.69 crore compared to ₹6.10 crore in FY25. The company recorded a tax expense of ₹24.66 lakh, resulting in the lower bottom-line figure.

Balance Sheet and Capital Raise

The company strengthened its capital base through a rights issue, allotting 1.13 crore equity shares at ₹28.32 per share, raising approximately ₹32 crore. This infusion, coupled with the repayment of approximately ₹10 crore in term loans, improved the debt-equity ratio to 0.33 from 0.49 in the prior year.

Current assets grew to ₹183.29 crore, primarily due to an increase in inventories to ₹99.94 crore and other current assets to ₹41.07 crore. Trade receivables decreased slightly to ₹35.08 crore from ₹39.20 crore. Total borrowings declined to ₹49.92 crore from ₹61.01 crore.

Strategic Outlook

Management highlighted opportunities in railway wheels, defence components, and turbine blades as key growth drivers. The company has supplied over 2,500 railway wheels currently in service and holds orders in hand for further deliveries. Exports to the United States and Europe remain a significant pillar of the growth strategy, with a focus on value-added forged pipe fittings.

What the Numbers Show

The divergence between top-line growth and bottom-line contraction highlights margin pressure. While revenue grew by nearly 41%, operating expenses increased disproportionately. Finance costs remained high at ₹7.01 crore, largely offsetting the operational gains. The rights issue proceeds have been deployed to reduce debt, which should lower interest burdens in future quarters, but the immediate impact was a compression in net margins to 1.49% from 3.67%.

Hilton Metal Forging Limited shareholders have approved the issuance of equity shares through Qualified Institutions Placement (QIP). The resolution was passed during an Extraordinary General Meeting (EGM) held on July 15, 2026, via Video Conferencing. This authorization allows the company to raise capital by allotting shares in one or more tranches under Section 62(1)(c) of the Companies Act, 2013.

The special resolution received overwhelming support, with 99.9994% of the total valid votes cast in favour. A total of 9,859,684 votes were polled for the resolution, while only 58 votes were against it. The voting process combined remote e-voting and e-voting conducted during the meeting, supervised by Ms. Shreya Shah, Practicing Company Secretary.

Voting Details

The remote e-voting period was open from July 12, 2026, to July 14, 2026. The cut-off date for determining shareholder eligibility was July 8, 2026, on which the company had 28,283 shareholders on record. Promoters held 9,551,366 shares, while public shareholders held 41,913,185 shares.

Meeting Proceedings

The EGM was presided over by Yuvraj Malhotra, Chairman and Managing Director. The Board of Directors, including Independent Directors Ms. Himanshi Mota, Mr. Amit Pathak, and Mr. Rakesh Khajuria, was present. The scrutinizer's report confirms that the requisite quorum was present and the voting was conducted in a fair and transparent manner using the NSDL e-voting system.