Kalyani Forge Limited has informed the Exchange about Transcript
KALYANIFRG · price
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Kalyani Forge reported Q1 FY26 total income of Rs. 64.52 crore, up 12% year-on-year and 9% quarter-on-quarter, driven by strong growth in driveline (up 42% YoY) and axle (up 124% YoY) businesses. PAT stood at Rs. 1.4 crore and EBITDA margin was 9.7%, with margins temporarily under pressure due to higher planned maintenance expenses. Exports contributed 21% of sales, with Europe and the US split roughly equally and no current tariff impact. The company won Rs. 115 crore of new orders in FY25 (a historic high), with a closing order book of around Rs. 260 crore. Management has approved a Rs. 25 crore CapEx budget for FY26 (75% debt, 25% internal accruals) and indicated plans to raise equity capital in coming quarters. The company guided to doubling revenue and reaching 15% EBITDA margin by 2027, driven by material cost reduction (48% to 45%), higher machining content, energy efficiency, and OEE improvement in forging from current 40% utilization.
Strong order pipeline and multi-year growth targets (doubling revenue, 15% EBITDA margin by 2027) are positives, but near-term margin recovery depends on executing capacity unlocks. The hint of an equity raise in coming quarters may dilute existing shareholders, while continued investment in capex and maintenance may keep short-term margins subdued.