Balu Forge Industries has delivered strong financial results for Q3 and nine months FY26, demonstrating sustained growth momentum across its precision engineering operations. The company reported revenue from operations of Rs 3,111 Mn for Q3 FY26, representing a 21.6% year-on-year increase, supported by robust demand across its diversified end-market portfolio.

Financial Performance Highlights

The company's quarterly performance showcased strong operational leverage with EBITDA reaching Rs 845 Mn, marking a 24.8% year-on-year growth. EBITDA margin remained healthy at 27.2%, reflecting stable cost structures and operational efficiency gains. Profit after tax for the quarter stood at Rs 711 Mn, up 20.5% from Q3 FY25, with PAT margin of 22.5%.

For the nine months ended December 31, 2025, the company achieved even stronger growth metrics with revenue from operations of Rs 8,438 Mn, representing 29.0% year-on-year growth. EBITDA for 9M FY26 reached Rs 2,396 Mn with 36.0% growth and margin expansion to 28.4%. PAT grew by 36.8% to Rs 1,932 Mn with margin of 22.6%.

Strategic Operational Milestones

During Q3 FY26, Balu Forge successfully operationalized several high-impact strategic assets positioning the company for sustained growth. The company commissioned precision machining facilities equipped with advanced 7-Axis and 11-Axis CNC machining lines, enabling manufacture of highly complex components from specialized alloys with micron-level accuracy.

The company commercialized its dedicated artillery shell production line with focus on 155mm large calibre ammunition. This represents a significant milestone in defence manufacturing journey, supporting the Atmanirbhar Bharat vision through indigenous capabilities in strategically critical segments.

Global Recognition and Market Expansion

Balu Forge achieved formal induction into the NATO Supply Chain during the quarter, representing external validation of the company's adherence to highest global quality, compliance, and reliability standards. This recognition opens access to demanding defence markets and reinforces the company's position to support long-term supply programs with capacity to service engagements for up to five years.

Revenue Diversification Progress

The company's revenue mix continues evolving across end-user industries, with defence contribution increasing to 12% in 9M FY26 from 9% in FY25. Agriculture remains the largest segment at 36%, while commercial vehicles expanded to 20%. The order book shows further diversification with defence/aerospace/railway representing 40% of total orders, indicating strong future growth visibility in high-margin segments.

Manufacturing Infrastructure Enhancement

The company operates four strategically located manufacturing facilities across India and UAE with total machining capacity exceeding 80,000 MTPA and forging capacity of 1,50,000 MTPA. The 46-acre greenfield facility at Hattargi provides platform for future growth with advanced automation, digital systems, and scalable infrastructure for complex components.

Balu Forge's integrated manufacturing platform includes forging infrastructure with 25T, 16T and 10T hydraulic hammers, 8,000T mechanical press line, and 1,000T hydraulic press line. The company serves 25+ global OEMs across 80 countries with precision-engineered components for automotive, industrial machinery, power generation, defence, and railways sectors.

Balu Forge Industries Limited has completed a significant equity allotment following the successful conversion of convertible warrants. The Board of Directors approved the allotment of 10,00,000 equity shares on February 09, 2026, marking an important milestone in the company's capital structure enhancement.

Warrant Conversion Details

The allotment involves the conversion of convertible warrants held by Ebisu Global Opportunities Fund Limited, a non-promoter group investor. The conversion was executed on a 1:1 ratio, with each warrant converting into one fully paid-up equity share.

Financial Impact and Consideration

The warrant conversion generated substantial capital infusion for Balu Forge Industries. The total consideration received amounts to Rs. 27,00,00,000, representing 75% of the total transaction value.

The remaining 25% of the consideration was previously received during the initial warrant allotment, completing the full payment structure as per the original terms of the issue.

Allottee Information

Ebisu Global Opportunities Fund Limited, classified as a non-promoter group entity, exercised its option to convert all 10,00,000 convertible warrants into equity shares. This conversion demonstrates the investor's confidence in Balu Forge Industries' growth prospects and strategic direction.

Regulatory Compliance

The allotment was conducted in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has duly informed both BSE Limited and National Stock Exchange of India Limited about this corporate action, ensuring full regulatory compliance and transparency.

This warrant conversion strengthens Balu Forge Industries' equity base while providing additional capital resources for operational expansion and strategic initiatives. The successful completion of this transaction reflects the company's ability to attract institutional investment and execute capital-raising activities effectively.