EL Forge Limited Reports Mixed Q2 FY2026 Results with Revenue Decline but Profit Growth
EL Forge Limited, a steel forgings manufacturer, announced Q2 FY2026 results with revenue falling 77.04% year-over-year to Rs. 471.43 lakh. Net profit decreased by 59.18% to Rs. 29.78 lakh. Despite revenue decline, earnings per share improved by 25% to Rs. 0.45. Half-year revenue stood at Rs. 3,772.10 lakh with a net profit of Rs. 69.06 lakh. The company's entire Q2 revenue came from the Forgings segment. Total assets as of September 30, 2025, were Rs. 4,220.19 lakh with total equity at Rs. 2,546.81 lakh. The company maintained positive operating cash flow of Rs. 162.72 lakh for the half-year.
*this image is generated using AI for illustrative purposes only.
EL Forge Limited , a manufacturer of steel forgings, has announced its unaudited standalone financial results for the second quarter and half-year ended September 30, 2025. The company's performance shows a mixed picture with a significant revenue decline but an improvement in profitability compared to the previous year.
Revenue and Profitability
For Q2 FY2026, EL Forge Limited reported:
| Metric | Q2 FY2026 | Q2 FY2025 | YoY Change |
|---|---|---|---|
| Revenue from Operations | 471.43 | 2,053.24 | -77.04% |
| Net Profit | 29.78 | 72.96 | -59.18% |
| Earnings Per Share | 0.45 | 0.36 | +25% |
Despite the substantial year-over-year decline in revenue and net profit, the company managed to improve its earnings per share, indicating better profitability on a per-share basis.
Half-Year Performance
For the half-year ended September 30, 2025:
- Revenue from operations stood at Rs. 3,772.10 lakh
- Net profit reached Rs. 69.06 lakh
Segment-wise Performance
EL Forge Limited operates in two business segments:
- Manufacture and Sale of Steel Forgings
- Land and Development (described as 'Other Operating Income-Land')
For Q2 FY2026, the entire revenue of Rs. 1,723.47 lakh was generated from the Forgings segment, with no income reported from the Land segment.
Balance Sheet Highlights
As of September 30, 2025:
- Total Assets: Rs. 4,220.19 lakh
- Total Equity: Rs. 2,546.81 lakh
- Current Assets: Rs. 1,985.99 lakh
- Current Liabilities: Rs. 1,204.40 lakh
The company maintains a healthy current ratio, indicating good short-term liquidity.
Cash Flow
For the half-year ended September 30, 2025:
- Net cash flow from operating activities: Rs. 162.72 lakh
- Net cash flow used in investing activities: Rs. 92.28 lakh
- Net cash flow used in financing activities: Rs. 11.89 lakh
The positive operating cash flow suggests that the company is generating cash from its core business operations despite the revenue decline.
Management Commentary
The financial results were approved by the Board of Directors at their meeting held on November 13, 2025. The management has not provided specific commentary on the reasons for the revenue decline or future outlook in the available data.
Conclusion
EL Forge Limited's Q2 FY2026 results present a challenging picture with a significant revenue decline. However, the company has managed to maintain profitability and positive cash flow from operations. Investors and stakeholders may want to seek further clarification from the management on the factors contributing to the revenue drop and the strategies in place to address these challenges in the coming quarters.
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
