Kalyani Forge delivered a robust financial performance in Q1 FY27, driven by significant margin expansion and improved capital efficiency rather than volume growth. Profit After Tax (PAT) surged over 218% year-on-year to ₹4.48 Crores from ₹1.41 Crores in Q1 FY26, while Return on Capital Employed (ROCE) crossed the 20% threshold for the first time, reaching 22%. This marks a pivotal shift towards profitability-led value creation, supported by the company’s 'Vriddhi Council' cost-saving initiatives and strategic business mix optimization.

The results were communicated via an investor presentation filed on August 12, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The presentation highlighted that the profit surge was underpinned by a 640 basis point expansion in EBITDA margins to an all-time high of 16.2%, alongside a reduction in the Cash Conversion Cycle to 148 days.

Financial Performance

Total income rose modestly to ₹67.08 Crores in Q1 FY27, compared to ₹64.52 Crores in Q1 FY26 and ₹59.24 Crores in Q4 FY26. However, the bottom-line impact was substantial due to operating leverage. EBITDA increased to ₹10.89 Crores from ₹6.34 Crores in the corresponding quarter last year. Profit Before Tax (PBT) more than tripled to ₹6.15 Crores from ₹2.02 Crores in Q1 FY26. The Debt to EBITDA ratio improved to 2.51x from 3.53x in Q1 FY26, reflecting a continued deleveraging trend.

Operational Efficiency & Cost Savings

The primary driver of the profit surge was the 'Vriddhi Council' initiative, which has realized ₹19.1 Crores in savings to date against an annual target of ₹50 Crores. Management emphasized comprehensive cost reduction, improvements in Overall Equipment Effectiveness (OEE), and price increases kicking in. The Cash Conversion Cycle improved significantly to 148 days from 168 days in the preceding quarter, with a target to reduce it further to 120 days. Working capital optimization remains a key focus, with trade receivables standing at ₹124.21 Crores.

Strategic Investments & Order Book

Kalyani Forge maintained a conservative capital expenditure approach, planning ₹30.00 Crores for FY27. The company commissioned its second conrod production line utilizing existing infrastructure with zero additional capex. Similarly, the wheel hub line expansion is being executed by redeploying existing assets, reducing planned outlay from ₹10 Crores to approximately ₹2 Crores. New order wins in the wheel hub business represent an incremental ₹20 Crore of annual revenue potential with marquee global customers. Revenue from new business launched in the last three years accounted for 22% of total revenue in Q1 FY27.

What the Numbers Show

The divergence between modest revenue growth (approximately 4% YoY) and explosive profit growth (over 200% YoY) highlights a strategic shift towards margin-driven value creation. The ability to expand EBITDA margins by 640 basis points while reducing capital intensity demonstrates successful operational leverage. Furthermore, crossing the 20% ROCE target signals improved asset utilization efficiency, validating the management's strategy of low-capex capacity expansion and strict working capital governance. The phasing out of low-margin agro and legacy businesses has allowed for a sharper focus on high-growth segments like trucks and industrial components.

Kalyani Forge Ltd has appointed Mr. Sainath Bhanage as its Chief Financial Officer and Key Managerial Personnel effective July 14, 2026. The decision strengthens the company's financial leadership and was approved by the Board of Directors based on recommendations from the Nomination and Remuneration Committee and Audit Committee. The appointment aims to leverage Bhanage's extensive experience in financial strategy and operations.

The approval was granted pursuant to Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was submitted to both the Bombay Stock Exchange and the National Stock Exchange of India Limited.

Mr. Sainath Bhanage brings over 12 years of experience in finance and accounts to the role. His expertise spans financial strategy, accounting, treasury, taxation, audit, budgeting, compliance, business transfer arrangements (BTA), mergers & acquisitions (M&A), investor relations, and business transformation. He has worked across diverse sectors including manufacturing, services, trading, infrastructure, real estate, and automotive.

Prior to this appointment, Bhanage held various positions such as Assistant Manager – Finance, Financial Analyst, Senior Accounts Manager, Treasury Manager, and Tax & Audit Executive. His broad exposure to financial functions within private limited companies and larger enterprises positions him to oversee the financial operations of Kalyani Forge effectively.

Key Details of Appointment

The company confirmed that the appointment does not involve any directorial positions, hence disclosures regarding relationships between directors are not applicable. Kalyani Forge operates from its registered office in Pune and is listed on both BSE and NSE under the symbol KALYANIFRG.