Balu Forge FY26 Net Profit Rises 27% to Rs 258.9 Crore; Revenue Up 20%

Balu Forge Industries reported a 27% year-on-year increase in consolidated net profit for FY26 at Rs 258.9 crore, supported by higher revenue and continued growth in its precision engineering business.

The company’s revenue from operations rose 19.9% to Rs 1,107.4 crore in FY26 from Rs 923.6 crore in the previous financial year. EBITDA increased 19.3% to Rs 299.5 crore, while EBITDA margin stood at 27.0%, compared with 27.2% in FY25.

Profit after tax (PAT) for FY26 rose to Rs 258.9 crore from Rs 203.9 crore a year earlier, with PAT margin improving to 22.7% from 21.7%.

For the fourth quarter ended March 31, 2026, revenue from operations declined 2.3% year-on-year to Rs 263.6 crore from Rs 269.6 crore. EBITDA fell 20.1% to Rs 59.9 crore, while EBITDA margin narrowed to 22.7% from 27.8% in the year-ago quarter.

Quarterly net profit increased 4.9% to Rs 65.7 crore from Rs 62.7 crore in Q4 FY25. PAT margin remained at 22.9%.

Chairman and Managing Director Jaspal Singh Chandock said the fourth quarter was affected by geopolitical developments in the Middle East, which led to a sequential moderation in volumes across the company’s India-UAE operations. He added that a higher contribution from high-value engineering segments helped cushion the impact on margins.

During the year, Balu Forge entered into a five-year memorandum of understanding for the supply of large-calibre ammunition from its greenfield manufacturing facility in Belgaum, Karnataka, following its induction into the NATO supply chain and commercialisation of its empty-shell production line.

The company said the agreement provides long-term demand visibility and supports its expansion in the defence manufacturing segment. It has also initiated plans to expand manufacturing capacity through internal accruals.

Balu Forge further announced its first aerospace order from Alpha Aircraft Systems Inc. in the United States for the supply of precision-engineered components, marking its entry into the global aerospace supply chain.

The company said it will continue investing in advanced manufacturing technologies and capacity expansion to strengthen its presence in the precision engineering, defence and aerospace sectors.