Kalyani Forge Q1 FY27 PAT Soars 218% to ₹4.48 Cr; EBITDA Margin Hits All-Time High
Kalyani Forge reported Q1 FY27 PAT of ₹4.48 crore, up 218% YoY. EBITDA margin hit an all-time high of 16.2%, up 640 bps YoY. Total income was ₹67.07 crore. ROCE improved to 22%. The company is focused on scaling operations and converting its order pipeline to revenue.
The significant increase in PAT, record-high EBITDA margins, and positive commentary on future growth prospects are material developments that are likely to have a substantial impact on investor sentiment and the company's stock performance.
The company reported strong year-on-year growth in PAT and achieved an all-time high EBITDA margin, indicating improved financial performance and operational efficiency. Positive commentary on future outlook and strategic initiatives further supports this sentiment.
Kalyani Forge Limited has announced its financial results for the first quarter of FY27, reporting a significant surge in Profit After Tax (PAT) to ₹4.48 crore, an increase of over 218% year-on-year from ₹1.41 crore in the same period last year. The company also achieved an all-time high EBITDA margin of 16.2%, a substantial improvement of 640 basis points from 9.3% in the previous year.
Total income for the quarter stood at ₹67.07 crore, marking a 3.9% year-on-year growth and a 13.2% quarter-on-quarter increase. Earnings per share (EPS) were reported at ₹12.31, and the Return on Capital Employed (ROCE) crossed 20%, reaching 22% compared to 18% in the previous quarter.
The company's strategic initiatives, including the Vriddhi Council cost savings program, have started yielding results, with ₹19.1 crore realized to date against a ₹50 crore annual target. Management highlighted a disciplined, low-capex expansion path, focusing on core high-volume growth businesses and optimizing the business mix. New order wins, particularly for engine and wheel hub components, are progressing through the sample validation phase.
Kalyani Forge is also focusing on enhancing its product portfolio, with engine, driveline, and axle segments all showing growth. The company emphasized its fuel-agnostic product strategy, which positions it well for the evolving automotive landscape. The management expressed confidence in sustaining the improved EBITDA margins and targeting 20% in the coming quarters, with a focus on scaling up operations and converting the strengthening order pipeline into revenue.
A plain-language summary of a public exchange filing by Kalyani Forge Limited. Read the original for the full detail.