Kalyani Forge FY26 PAT rises 12%, EBITDA margin hits 15.2%

Kalyani Forge Limited reported its highest annual profitability in approximately 14 years for FY26, with a Profit After Tax (PAT) of ₹9.32 crore. The company achieved a record EBITDA margin of 15.2% in Q4 FY26, marking the second consecutive quarter above 15%, driven by strong execution and business mix optimization. The net margin exceeded 10% for the quarter ended March 31, 2026. The Board of Directors recommended a dividend of ₹4 per equity share, subject to shareholder approval at the ensuing Annual General Meeting.

Financial Performance

The company's operational efficiency improved significantly, with FY26 EBITDA rising to ₹31.58 crore, a margin of 13.3% compared to 11.1% in FY25. Profit Before Tax (PBT) for FY26 stood at ₹14.37 crore, a 23.8% year-on-year increase. In Q4 FY26, PBT was ₹6.13 crore and PAT was ₹5.88 crore.

Particulars (₹ Crore)	Q4 FY26	Q4 FY25	FY26	FY25
Revenue from Operations	57.00	50.27	234.64	235.88
EBITDA	9.00	5.55	31.58	26.51
EBITDA Margin	15.2%	9.5%	13.3%	11.1%
Profit Before Tax	6.13	1.45	14.37	11.60
Profit After Tax	5.88	1.03	9.32	8.31
Basic EPS (₹)	16.17	2.83	25.60	22.86

Strategic Developments

Kalyani Forge secured three major order wins in Q4, including an OEM Wheel Hub contract with an estimated annual value of ₹20 crore, alongside orders from SKF and Schaeffler, which are ramping up from Q1 FY27. The company has rationalized inventory by ₹21.7 crore, reducing it from ₹57.2 crore to ₹35.5 crore, resulting in meaningful working capital improvement.

Capital expenditure efforts yielded results, with Property, Plant and Equipment (PPE) reaching ₹86.5 crore compared to ₹60.4 crore in FY25. Capital Work-in-Progress (CWIP) stood at ₹10.3 crore. The Fixed Asset Turnover improved to 3.5x against an industry standard of 1.5–2x.

Business Outlook

Management highlighted that ROCE improved from 14% in Q1 FY26 to 18% in Q4 FY26. The company has initiated Phase 4 of its Business Mix Optimization, focusing on resource re-allocation to core customers and high-volume business. For FY27, the focus remains on profitable growth, reducing the Cash Conversion Cycle, improving ROCE, and sustaining EBITDA margins above 15%.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.15%	-0.94%	-5.78%	-4.46%	-15.81%	+172.40%

Kalyani Forge Limited has intimated that its board meeting is scheduled to be held on Monday, May 25, 2026. The meeting will be conducted through video conferencing mode to transact business regarding the company's financial performance.

Agenda for the Meeting

The primary agenda for the board meeting includes the consideration and approval of the audited financial results for the quarter and financial year ended on March 31, 2026. The board will also deliberate on the recommendation of a final dividend on equity shares, if any, for the financial year ended March 31, 2026.

Trading Window Closure

Pursuant to the company's Code of Conduct to regulate, monitor, and report trading by insiders, the trading window has been closed. The closure commenced from April 1, 2026, and will remain closed until 48 hours after the audited financial results for the quarter and financial year ended March 31, 2026, are made public.