Kalyani Forge Limited — PPTs, 12-08-2026: Investor Presentation

Kalyani Forge delivered strong Q1 FY27 results with Profit After Tax (PAT) at ₹4.48 Cr, soaring 218% year-on-year, and Earnings Per Share (EPS) of ₹12.31. Total Income reached ₹67.07 Cr. The company achieved an all-time high EBITDA margin of 16.2% and ROCE of 22%, crossing the 20% mark for the first time. Key segments like Cars (+35% YoY), Trucks (+48% YoY), and Industrial (+67% YoY) drove growth, alongside Engine (+38% YoY), Axle (+22% YoY), and Driveline (+11% YoY) product groups. Exports revived to a 16% mix.

Growth is propelled by a disciplined, low-capex expansion path. The company is actively optimizing its business mix, phasing out approximately ₹40 Cr of low-margin business in FY26 to enhance scalability and long-term margins. A unique strategy involves increasing 'share of wallet' with OEMs by offering a comprehensive suite of Engine + Driveline + Axle components, further boosted by cost savings from the Vriddhi Council.

Recent developments include securing new order wins for engine and wheel hub components from global customers, currently in sample validation. A new Wheel Hub Line is also being installed, efficiently utilizing existing CNC machines, contributing to new businesses which now account for 22% of total revenue.

Management remains focused on continued margin stability and working capital efficiency, evidenced by an improved Cash Conversion Cycle of 148 days. The capex strategy prioritizes Driveline and Axle, with 60% of capital expenditure allocated towards future high Return on Capital Employed (ROCE) growth areas.