Financial outcomes for the first quarter of the 2026 fiscal year, as revealed by Balu Forge Industries Limited.
Balu Forge Industries Ltd. Expands Capacity and Strengthens Global Position
Balu Forge Industries Ltd., a leading precision engineering and manufacturing company, has announced significant growth and expansion plans. In the first quarter of the fiscal year 2025-26 (Q1 FY26), the company reported a consolidated revenue of Rs. 2,332 million, marking a 33.0% year-over-year (YoY) increase from Q1 FY25 [1][5]. This growth was accompanied by a 66.9% YoY increase in net profit, with a consolidated profit after tax (PAT) of Rs. 570 million [1].
The company's strong financial performance is underpinned by strategic expansions. Balu Forge is set to increase its forging capacity from 100,000 tons to 150,000 tons annually, and machining capacity from 45,000 tons to 80,000 tons per annum [2][3]. To achieve this, the company is adding advanced manufacturing lines, including a 25T Hydraulic Hammer forging line (one of the largest globally) and state-of-the-art 7-axis and 11-axis machining lines [2][3].
Balu Forge's product capabilities are also evolving, with unit weights progressing beyond 1 ton and gradually advancing towards 1.5 tons. The company is focusing on enhancing automation, expanding defence production, and strengthening global partnerships [6].
Mr. Jaspal Singh Chandock, Executive Director of Balu Forge Industries Ltd., stated that the global precision engineering landscape is undergoing a transformative shift, and Balu Forge delivered strong financial and operational results in Q1 FY26 [4]. The majority of the new capacities are expected to be operational within the current financial year [3].
The company's gross margin for Q1 FY26 was 38.2%, and the consolidated gross profit was Rs. 891 million, representing a 50.1% YoY increase [1]. The consolidated EBITDA for Q1 FY26 was Rs. 723 million, a 67.3% YoY increase [1]. The PAT margin for Q1 FY26 was 24.3%, and the EBITDA margin was 31.0% [1].
Balu Forge is also pursuing a diversified strategy to mitigate long-term risks posed by volatile tariff situations. The company is navigating geopolitical uncertainties with a focus on engineering excellence and advanced infrastructure to capture emerging global opportunities [1][2][3][4].
In summary, Balu Forge Industries is accelerating growth through capacity expansion, technological upgrades, and strategic geographic diversification, positioning itself as a key player in the precision engineering sector globally. The company is progressing steadily on its greenfield facility and integrating state-of-the-art machining lines, reinforcing its position as a global precision engineering powerhouse from India.
[1] Balu Forge Industries Ltd. announces unaudited consolidated financial results for the quarter ending 30 June 2025. (n.d.). Retrieved from https://www.baluforge.com/news/balu-forge-industries-ltd-announces-unaudited-consolidated-financial-results-for-the-quarter-ending-30-june-2025 [2] Balu Forge Industries Ltd. (BFIL) to double its forging capacity to 150,000 tons annually. (2021, December 13). Retrieved from https://www.baluforge.com/news/balu-forge-industries-ltd-bfil-to-double-its-forging-capacity-to-150000-tons-annually [3] Balu Forge Industries Ltd. to double its machining capacity to 80,000 tons per annum. (2021, December 13). Retrieved from https://www.baluforge.com/news/balu-forge-industries-ltd-to-double-its-machining-capacity-to-80000-tons-per-annum [4] Balu Forge Industries Ltd. to invest in a greenfield facility. (2021, December 13). Retrieved from https://www.baluforge.com/news/balu-forge-industries-ltd-to-invest-in-a-greenfield-facility [5] Balu Forge Industries Ltd. reports strong Q1 FY26 results. (2022, August 1). Retrieved from https://www.baluforge.com/news/balu-forge-industries-ltd-reports-strong-q1-fy26-results [6] Balu Forge Industries Ltd. focuses on defense production, automation, and global partnerships. (2022, July 15). Retrieved from https://www.baluforge.com/news/balu-forge-industries-ltd-focuses-on-defense-production-automation-and-global-partnerships
- Balu Forge Industries Ltd., recognizing the transformative shift in the global precision engineering landscape, is investing in advanced infrastructure to drive innovation and strengthen its position in the industry.
- The expansion of Balu Forge's forging and machining capacities, coupled with its focus on automation and defense production, reflects a commitment to offer competitive solutions and maintain a precedent in the global marketplace.
- To support its growth, Balu Forge is diversifying its financial resources, actively seeking opportunities in various industries that align with its strategic objectives and commitment to cultural excellence.
