LGB Forge lgb forge reported a standalone net profit of ₹1,030.32 lakh for the quarter ended June 30, 2026, marking a significant recovery from a net loss of ₹50.84 lakh in the previous quarter and a net profit of ₹88.11 lakh in the same period last year. The financial turnaround was driven largely by an exceptional item—a gain of ₹1,005.52 lakh from the sale of land—rather than operational performance, as profit before exceptional items remained marginal at ₹24.80 lakh. This non-operational boost underscores the company’s reliance on asset monetization to bolster bottom-line figures in the current period.

Revenue from operations rose 1.5% year-on-year to ₹2,806.91 lakh, up from ₹2,764.21 lakh in Q1FY26. However, total expenses increased to ₹2,811.50 lakh from ₹2,758.30 lakh in the corresponding prior period, squeezing operational margins. Other income declined sharply to ₹29.39 lakh from ₹82.20 lakh a year ago, further pressuring top-line growth. The Board of Directors approved these standalone unaudited financial results on August 10, 2026, following a limited review by statutory auditors N.R. Doraiswami & Co., who issued an unmodified opinion.

Financial Performance Snapshot

What the Numbers Show

The divergence between operating performance and net profit is stark. While revenue grew modestly, operational profitability remained thin, with profit before exceptional items at just ₹24.80 lakh. The bulk of the reported net profit stems from the one-time land sale gain, indicating that core business operations did not generate substantial earnings power in this quarter. Investors should note that without this exceptional item, the company would have reported a significantly lower profit, highlighting the volatile nature of its recent earnings profile.

Corporate Governance Updates

In addition to financial results, the Board appointed Sri. Arjun Parthasarathy as an Additional Director (Non-Executive, Non-Independent) effective August 11, 2026, subject to shareholder approval. Parthasarathy, who has over 18 years of experience in the metal forming industry and currently serves as a Director at Metal Forms Private Limited, is the brother-in-law of Managing Director Smt. Rajsri Vijayakumar. His appointment follows a recommendation from the Nomination and Remuneration Committee.

The Board also approved proposals to alter the Object Clause and adopt new sets of Memorandum of Association (MOA) and Articles of Association (AOA) to align with the Companies Act, 2013. These changes aim to reflect the company’s diversification efforts and modernize governance structures. Shareholder approval for these matters will be sought through a Postal Ballot, with the notice to be submitted to stock exchanges in due course. The existing MOA and AOA were based on the Companies Act, 1956, necessitating updates to comply with current regulations.

LGB Forge Limited has scheduled its 20th Annual General Meeting (AGM) for August 14, 2026, to seek shareholder approval for material related party transactions worth up to ₹75 crore with M/s. L.G. Balakrishnan & Bros Limited. The meeting will be conducted via video conferencing and other audio-visual means, with the register of members closing from August 8, 2026, to August 14, 2026. The proposed transactions, covering the sale and purchase of goods, leasing of property, and availing of services, are estimated to represent 72.81% of the company’s annual consolidated turnover for the financial year 2025-26.

The Board of Directors recommends an ordinary resolution to approve these transactions, which are intended to be valid from the conclusion of the 20th AGM until the conclusion of the 21st AGM. M/s. L.G. Balakrishnan & Bros Limited is identified as a related party, being a promoter group company holding 12.17% of the share capital. The Audit Committee and the Board have reviewed the proposals, determining that they qualify as material under Regulation 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, necessitating shareholder approval.

In addition to the special business, the AGM will transact ordinary business, including the adoption of audited financial statements for the year ended March 31, 2026. Smt. Rajsri Vijayakumar, Managing Director, who retires by rotation at this meeting and is eligible for re-appointment, will be considered for the position. She holds 1,50,18,445 equity shares in the company and received remuneration of ₹ 24.21 Lakhs in FY 2025-26.

Remote e-voting will commence on August 11, 2026, at 09.00 a.m. IST and conclude on August 13, 2026, at 5.00 p.m. IST. Shareholders holding shares as on the cut-off date of August 7, 2026, are eligible to vote. Mr. P. Eswaramoorthy of M/s. P. Eswaramoorthy and Company has been appointed as the scrutinizer to oversee the e-voting process. The company has submitted newspaper advertisements published in Business Standard and Maalai Murasu regarding the completion of dispatch of the AGM notice and annual report.

Key Details of the Proposed Related Party Transactions