Kalyani Forge Q1 FY27 PAT Surges 218% YoY to ₹4.48 Cr; ROCE Crosses 20%
Kalyani Forge reported Q1 FY27 PAT of ₹4.48 Cr, up 218% YoY. ROCE crossed 20% to 22%, and EBITDA margin improved to 16.2%. Total Income was ₹67.07 Cr. New orders for engine and wheel hub components are in validation. Cash Conversion Cycle improved to 148 days.
The substantial YoY growth in profit, improvement in margins and ROCE, and progress on new orders are material positive developments for the company's financial performance and future prospects.
The company has reported significant year-on-year growth in PAT and improvement in key financial metrics like ROCE and EBITDA margin. Positive developments in new orders and cost savings also contribute to the positive sentiment.
Kalyani Forge Limited has announced its financial results for the first quarter of FY27, reporting a significant year-on-year increase in Profit After Tax (PAT) to ₹4.48 Crore, up by 218% from ₹1.41 Crore in Q1 FY26. Earnings Per Share (EPS) for the quarter stood at ₹12.31 (basic & diluted). The company achieved a Return on Capital Employed (ROCE) of 22%, crossing the 20% mark for the first time, an improvement from 18% in Q4 FY26.
EBITDA margin expanded to 16.2%, a substantial increase of 640 basis points from 9.3% YoY. Similarly, PBT margin improved to 9.2% (+600 bps) and PAT margin to 6.7% (+450 bps). Total Income for the quarter was ₹67.07 Crore, up from ₹64.53 Crore in Q1 FY26 and ₹59.24 Crore in Q4 FY26. Profit Before Tax (PBT) stood at ₹6.15 Crore, a growth of over 203% YoY.
The company has new orders in the sample validation phase for engine and wheel hub components from global customers. Kalyani Forge is progressing on a disciplined, low-capex expansion path. The Cash Conversion Cycle improved to 148 days from 168 days in Q4 FY26. Vriddhi Council cost savings of ₹19.1 Crore have been realized against an annual target of ₹50 Crore.
Sales performance showed strong growth across segments, with Cars up 35% YoY, Trucks up 48% YoY, and Industrial up 67% YoY. Agro sales declined 31% due to consolidation and phasing out of legacy low-margin business. Exports sales mix revived to 16% with new high-volume business replacing legacy non-fit business.
The company is focusing on its 'KFL Growth Formula' which includes Strong Execution, Business Development, and Capex Growth. Revenue from new businesses, launched in the last three years, constitutes 22% of the total. New Wheel Hub lines are being installed, utilizing existing CNC machines from phased-out businesses. The company is also optimizing its business mix, pruning low-volume, low-price export and legacy programs, and focusing on OEM-focused accounts and the Engine + Driveline + Axle portfolio.
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