Kalyani Forge Ltd Q3 FY26 Results & Concall Highlights: Revenue, Margins & Order Book
Published 18 Jul 2026 | Industrial Products | Market Cap: ₹224 Cr
The company aims to productionize new business worth around ₹30 crores in FY26, a significant jump from previous years. EBITDA margin target: Medium-term goal to achieve at least 15%, with a longer-term milestone of around 20%.
From Kalyani Forge Ltd's Q3 FY26 earnings-call transcript · updated 23 Aug 2026.
Price
₹692
Market Cap
₹224 Cr
P/E Ratio
24.0
How does Kalyani Forge Ltd rank in Industrial Products?
Compare Kalyani Forge Ltd against every Industrial Products company this quarter on revenue, margins and earnings-call signals.
Kalyani Forge Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹57 Cr, net profit ₹6 Cr.
Full financials →📊 Revenue & Sales Performance
- →The company aims to productionize new business worth around ₹30 crores in FY26, a significant jump from previous years.
- →Installed capacity can theoretically generate revenues up to ₹500 crores, with current revenues at 3.5 times net fixed assets. CAPEX plans aim to increase fixed assets, enabling this growth.
- →Focus on new growth areas like driveline and axle, with ₹45 crores and ₹10 crores new business order book respectively, showing strong potential beyond the core engine segment.
- →Business mix optimization and pruning of non-core, low-margin businesses aim to improve scalability and long-term margin stability, enabling faster growth.
- →Seasonality affects demand across segments but diversification across passenger cars, trucks, construction, and agriculture provides hedging.
- →Strategic investments in forging and machining capacity upgrades target increased production output and value addition.
- →Strong emphasis on customer quality upgrade and new business order inflow to sustain profitable volume growth.
📈 Profitability & Margins
- →EBITDA margin target: Medium-term goal to achieve at least 15%, with a longer-term milestone of around 20%. Current priority is stabilizing at ~15.7%, with 20% within sight but no specific timeframe given.
- →PAT margin improvement driven by EBITDA margin expansion, price improvements, optimized depreciation, and better interest cost management.
- →New business productionizing target: Rs. 30 crores in FY26, expected to provide a good jump versus previous years.
- →Revenue for FY26 expected to be around the same or slightly higher compared to last year; EBITDA margin expected to improve year-on-year.
- →Capacity expansion underway to support revenue growth, aiming for installed capacity to produce up to Rs. 500 crores in revenue eventually.
- →Seasonality and diverse product segments provide hedging benefits; long-term trends favor automotive premiumization and market growth.
- →Strong operational reset and continuous improvement underway to sustain margin improvements and growth.
🏗️ Capital Expenditure Plans
- →FY26 CapEx budget is ₹25 crores.
- →Approximately 60% of CapEx allocated to future growth areas: driveline and axle segments.
- →Remaining 40% focused on the engine product group, which is experiencing significant growth.
- →About ₹7.6 crores of the CapEx budget is dedicated to reconditioning forging presses, primarily to increase production output for new driveline and engine business.
- →Emphasis on upgrading asset base to improve productivity, quality, and reduce rejections.
- →Goal to productionize ₹30 crores of new business in FY26.
- →Focused on quick turnaround for CapEx projects to start generating returns rapidly.
- →Strategic investments aim to increase installed capacity towards ₹500 crores revenue potential by expanding and capitalizing fixed assets.
- →Also, maintaining flexibility in funding options with both debt and equity planned for CapEx.
💰 Fundraising & Capital Structure
- →The company has both debt and equity fundraising options under consideration and is keeping both options open.
- →Timing of debt and equity raises will be different, so the company is evaluating them in parallel.
- →The fundraising is aligned with the capital expenditure (CAPEX) strategy focused on growth, particularly for upgrading assets and expanding capacity.
- →The company plans to increase fixed assets to support growth, reduce working capital debt, and increase long-term debt for a healthier funding mix.
- →No specific timeline or amount has been disclosed for the fundraising activities.
📋 Order Book & Pipeline
- →The new business order book value is around ₹162 crores, comprising:
- → - ₹107 crores from connecting rods (core engine business)
- → - ₹45 crores from driveline segment
- → - ₹10 crores from axle segment
- →New growth areas like driveline and axle represent multiples of existing business in those segments.
- →New business includes ramp-up of xEV driveline programs and new MNC customer orders in the axle segment.
- →The company is focusing on increasing vehicle and customer share of wallet by offering engine, driveline, and axle components.
- →Older low-margin and unrelated businesses are being pruned to focus on strategic growth areas.
- →Productionizing around ₹30 crores worth of new projects in the current financial year, with ₹20 crore roughly done in the first nine months.
Key Metrics
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What Kalyani Forge Ltd's management said in earlier quarters
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Frequently Asked Questions
What were Kalyani Forge Ltd Q3 FY26 results?
The company aims to productionize new business worth around ₹30 crores in FY26, a significant jump from previous years. EBITDA margin target: Medium-term goal to achieve at least 15%, with a longer-term milestone of around 20%.
What is Kalyani Forge Ltd share price analysis?
Kalyani Forge Ltd currently shows a neutral. The stock trades at a P/E of 24.0 with a market cap of ₹224 Cr. Investors should review the full earnings analysis for detailed insights.
Is Kalyani Forge Ltd planning capital expenditure?
FY26 CapEx budget is ₹25 crores.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.