Balu Forge H1FY27 PAT at ₹143 Cr, Revenue ₹625 Cr; capacity expansion underway
Balu Forge reported H1 FY27 revenue of ₹625 Cr (up 17%) and PAT of ₹143 Cr (up 17%). EBITDA was ₹179 Cr. The company is expanding forging capacity to 168,000 MTPA and machining to 80,000 MTPA. Defence, Aerospace, and Railways constitute 50% of the ₹2,400 Cr order book. Promoters are investing up to ₹162 Cr.
The announcement details substantial financial growth, significant capacity expansions aimed at capturing high-value market segments (Defence, Aerospace), and strong order book growth. These factors are expected to have a material positive impact on the company's future performance and valuation.
The company reported record financial performance with significant year-on-year growth in revenue and profit, alongside strong operational cash flow. Strategic capacity expansions, a favorable shift in business mix towards high-value sectors like Defence and Aerospace, and promoter group investment further contribute to a positive outlook.
Balu Forge Industries Limited has released its investor presentation for Q2 and H1 FY2027, highlighting record performance and strategic growth initiatives.
For the first half of FY2027, the company reported a revenue of ₹625 crore, marking a 17% year-on-year increase. Profit After Tax (PAT) grew by 17% to ₹143 crore. EBITDA stood at ₹179 crore, up 15% with a margin of 28.6%. The company also demonstrated strong operational cash flow, reaching ₹245 crore, a significant increase from the previous year, while maintaining a low net debt-to-equity ratio of 0.04x.
Balu Forge is actively scaling its manufacturing capacities. Forging capacity is set to increase from 100,000 MTPA to 168,000 MTPA, and precision machining capacity will rise from 58,000 MTPA to 80,000 MTPA. These investments in advanced machining and automated forging are aimed at enhancing in-house capabilities for complex, high-value components.
The company's business mix is shifting towards higher-value applications, with Defence, Aerospace, and Railways now contributing approximately 50% to its order book of ₹2,400 crore. The recent acquisition of a 6.7-meter ring rolling capability is expected to further expand the range and complexity of components manufactured.
Balu Forge anticipates delivering 25-30% revenue growth in FY27, driven by ongoing defence dispatches and the progressive commissioning of expanded capacities. The promoter group's commitment of up to ₹162 crore through investments underscores confidence in the company's growth trajectory. The company also secured a long-term supply contract with Brazil’s largest engine manufacturer and received its first purchase order for 155mm ERFB BB/BT ammunition, with pilot supply and subsequent monthly dispatches planned.
The acquisition of one of India's largest ring rolling lines, with trials commencing before the end of December 2026, is poised to unlock new high-value end-markets and provide a multi-year revenue runway. This strategic move, along with other capacity expansions, positions Balu Forge to benefit from India's growing defence and aerospace ecosystem.
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