LGB Forge Limited Reports Widened Q3 FY26 Loss of ₹186.36 Lakhs Amid Revenue Decline
LGB Forge Limited announced deteriorated Q3 FY26 financial results with net loss widening to ₹186.36 lakhs from ₹42.97 lakhs year-on-year, while revenue declined to ₹2,384.89 lakhs. The company's nine-month performance showed improved revenue growth of 10.57% but increased losses. Board approved key auditor appointments for FY 2026-27.
*this image is generated using AI for illustrative purposes only.
LGB Forge Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing a challenging operational environment with widened losses despite mixed revenue performance.
Financial Performance Overview
The company's financial performance showed significant deterioration in profitability metrics for the third quarter of FY26:
| Metric: | Q3 FY26 | Q3 FY25 | Change |
|---|---|---|---|
| Revenue from Operations: | ₹2,384.89 lakhs | ₹2,420.35 lakhs | -1.47% |
| Total Income: | ₹2,397.73 lakhs | ₹2,450.14 lakhs | -2.14% |
| Net Loss: | ₹186.36 lakhs | ₹42.97 lakhs | -333.85% |
| Basic EPS: | ₹(0.08) | ₹(0.02) | -300% |
Nine-Month Performance Analysis
For the nine-month period ended December 31, 2025, LGB Forge demonstrated contrasting trends with improved revenue but deteriorated bottom-line performance:
| Parameter: | 9M FY26 | 9M FY25 | Variance |
|---|---|---|---|
| Revenue from Operations: | ₹7,752.52 lakhs | ₹7,011.23 lakhs | +10.57% |
| Total Income: | ₹7,885.16 lakhs | ₹7,051.08 lakhs | +11.83% |
| Net Loss: | ₹170.89 lakhs | ₹82.22 lakhs | -107.89% |
| Basic EPS: | ₹(0.07) | ₹(0.03) | -133.33% |
Cost Structure and Operational Challenges
The company's expense analysis reveals several pressure points affecting profitability. Total expenses for Q3 FY26 reached ₹2,519.29 lakhs compared to ₹2,493.11 lakhs in Q3 FY25. Key expense categories included:
| Expense Category: | Q3 FY26 | Q3 FY25 |
|---|---|---|
| Cost of materials consumed: | ₹930.62 lakhs | ₹1,111.17 lakhs |
| Employee benefits expense: | ₹561.09 lakhs | ₹521.37 lakhs |
| Other expenses: | ₹821.29 lakhs | ₹693.92 lakhs |
| Finance costs: | ₹73.54 lakhs | ₹58.84 lakhs |
Impact of New Labour Codes
A significant development affecting the company's financial results was the implementation of new labour codes. The company reported exceptional items of ₹64.80 lakhs for Q3 FY26, representing increased employee benefit provisions due to the consolidation of multiple labour laws into four unified Labour Codes effective from November 21, 2025. This one-time impact was treated as exceptional items due to its material and non-recurring nature.
Board Meeting Outcomes and Corporate Governance Updates
The Board of Directors, in their meeting held on February 5, 2026, approved several key appointments and considered the unaudited financial results:
| Position: | Appointee | Details |
|---|---|---|
| Internal Auditor: | Sri. G. Jawaharlal | Re-appointed for FY 2026-27 |
| Tax Auditors: | M/s. N.R.D. Associates | Appointed for FY 2026-27 |
| Firm Registration: | 005662S | Established in 1992 with 60 employees |
Sri. G. Jawaharlal brings three decades of experience in internal audit, including risk-based internal audit across various manufacturing sectors. M/s. N.R.D. Associates offers comprehensive services including audit functions, taxation services, and regulatory compliance with a team of five partners and 60 employees.
Business Segment and Outlook
LGB Forge Limited operates in the manufacturing of forged and machined components, representing a single reportable segment under Ind AS 108. The company maintains its paid-up equity share capital at ₹2,382.02 lakhs with a face value of Re.1 per share. The financial results were reviewed by the statutory auditors M/s. N.R. Doraiswami & Co. and approved by the Audit Committee and Board of Directors.
Historical Stock Returns for LGB Forge
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.40% | +3.52% | -6.54% | -32.80% | -48.40% | 0.0% |
20
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
