Balu Forge Industries shares experienced a significant rebound on Tuesday, January 13, jumping as much as 10% and breaking an eight-day losing streak. This marked the first day of gains for the stock in 2026, providing relief to investors after a challenging start to the year.

Stock Performance Recovery

The stock's performance showed a dramatic turnaround following recent declines:

Income Tax Investigation Concludes

The rally was triggered by the company's announcement regarding the conclusion of an income tax department investigation. In an exchange filing, Balu Forge Industries detailed that the income tax department had conducted a search under the Income Tax Act, 1961, at several of its offices and manufacturing units.

The investigation, which commenced on January 7, concluded on Tuesday with favorable outcomes for the company. The filing emphasized that the company, its promoters, and key managerial personnel provided full cooperation to officials throughout the process.

Investigation Outcomes

Key findings from the concluded probe include:

• No incriminating documents were discovered during the operation
• No documents were seized by the department
• Full cooperation was provided by company management
• All requested documents, clarifications, and details were furnished to officials

Business Operations Unaffected

Balu Forge Industries confirmed that the investigation had minimal impact on its core operations. The company stated that business operations and production continued as usual throughout the probe period, with no disruption to manufacturing activities.

Importantly, the company noted that there was no material adverse impact on its financials as a result of the investigation. Management committed to providing additional information as and when required by authorities.

Company Background

Balu Forge Industries operates as a manufacturer of crankshafts, serving multiple industrial sectors including automotive, agricultural, marine, and industrial applications. The company's products are essential components in various machinery and equipment across these diverse industries.

The successful conclusion of the income tax probe without any adverse findings has restored investor confidence, as reflected in Tuesday's strong stock performance and the end of the prolonged losing streak.

The Income Tax Department recently conducted comprehensive search operations at Balu Forge Industries ' offices and manufacturing facilities. The investigation has concluded without uncovering any evidence of financial irregularities or compliance violations.

Search Operations Completed

The tax authorities carried out detailed examinations across the company's offices and factory locations. The search operations were conducted as part of routine compliance verification procedures by the Income Tax Department.

No Evidence of Irregularities Found

Following the comprehensive investigation, the Income Tax Department found no evidence of tax evasion, financial misconduct, or regulatory violations. The search operations concluded without any adverse findings against the company.

Business Operations Resume Normally

Balu Forge Industries has confirmed that all business operations have resumed normal functioning following the completion of the search procedures. The company's manufacturing activities, administrative functions, and customer service operations continue without any disruption.

The company maintains that it has always adhered to all applicable tax regulations and compliance requirements. With the search operations now concluded and no evidence found, the organization continues its regular business activities across all locations.