LGB Forge Reports Mixed Financial Performance in Q2 FY2026
LGB Forge Limited, a manufacturer of forged and machined components, released Q2 FY2026 results. Revenue decreased 5.82% QoQ to Rs. 2,603.42 lakhs but increased 11.36% YoY. H1 FY2026 revenue rose 7.55% to Rs. 5,367.63 lakhs. Q2 saw a loss before tax of Rs. 72.65 lakhs, while H1 reported a profit of Rs. 15.47 lakhs. The company's half-yearly performance improved despite quarterly challenges.
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LGB Forge Limited , a manufacturer of forged and machined components, has released its unaudited financial results for the second quarter and half-year ended September 30, 2025, revealing a mixed performance.
Revenue and Profitability
The company reported a decline in revenue for Q2 FY2026 but showed improvement in half-yearly figures:
| Particulars (in Rs. Lakhs) | Q2 FY2026 | Q1 FY2026 | Q2 FY2025 | H1 FY2026 | H1 FY2025 |
|---|---|---|---|---|---|
| Revenue from Operations | 2,603.42 | 2,764.21 | 2,337.88 | 5,367.63 | 4,990.88 |
| Total Income | 2,641.02 | 2,846.41 | 2,340.29 | 5,487.43 | 4,800.94 |
| Profit/(Loss) Before Tax | (72.65) | 88.12 | (87.67) | 15.47 | (39.25) |
| Basic EPS (in Rs.) | (0.03) | 0.04 | (0.04) | 0.01 | (0.02) |
The company's revenue from operations in Q2 FY2026 decreased by 5.82% quarter-on-quarter (QoQ) to Rs. 2,603.42 lakhs from Rs. 2,764.21 lakhs in Q1 FY2026. However, it showed an 11.36% year-on-year (YoY) increase compared to Rs. 2,337.88 lakhs in Q2 FY2025.
For the half-year ended September 30, 2025, LGB Forge's revenue from operations stood at Rs. 5,367.63 lakhs, marking a 7.55% increase from Rs. 4,990.88 lakhs in the corresponding period of the previous year.
Profitability and Expenses
The company reported a loss before tax of Rs. 72.65 lakhs in Q2 FY2026, contrasting with a profit of Rs. 88.12 lakhs in the previous quarter. However, the half-yearly results showed a profit before tax of Rs. 15.47 lakhs, an improvement from a loss of Rs. 39.25 lakhs in H1 FY2025.
Key expense items for Q2 FY2026 included:
- Cost of materials consumed: Rs. 1,100.98 lakhs
- Employee benefits expense: Rs. 607.96 lakhs
- Finance costs: Rs. 68.03 lakhs
- Depreciation and amortization expense: Rs. 86.76 lakhs
- Other expenses: Rs. 893.74 lakhs
Balance Sheet and Cash Flow
The company's balance sheet as of September 30, 2025, showed a paid-up equity share capital of Rs. 2,382.02 lakhs. The cash flow statement for the half-year ended September 30, 2025, revealed:
- Net cash generated from operating activities: Rs. 266.15 lakhs
- Net cash used in investing activities: Rs. 29.94 lakhs
- Net cash used in financing activities: Rs. 296.03 lakhs
Management Commentary and Outlook
The Board of Directors, in their meeting held on November 10, 2025, approved these unaudited financial results. The company operates in the business of manufacturing forged and machined components, with only one reportable segment in accordance with Ind AS 108.
Auditor's Review
The statutory auditors, N.R. Doraiswami & Co., Chartered Accountants, have conducted a limited review of the financial results and expressed an unmodified opinion on the financial statements.
LGB Forge Limited continues to navigate through market challenges while focusing on its core business of manufacturing forged and machined components. The company's ability to improve its half-yearly performance despite a challenging quarter demonstrates its resilience in the face of market fluctuations.
Historical Stock Returns for LGB Forge
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.21% | -2.33% | -9.98% | -26.22% | -4.27% | +278.43% |
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