Balu Forge Industries Ltd

AGM details

• Held 30 September 2026 at 12:30 P.M. IST via VC/OAVM.

Key resolutions

• Adoption of standalone and consolidated financial statements for FY2025-26 (Ordinary).
• Declaration of final dividend of Rs 0.15 per share (1.5%) (Ordinary).
• Re-appointment of Mr. Trimaan Jaspalsingh Chandock retiring by rotation (Ordinary).
• Ratification of remuneration to Cost Auditors for FY2026-27 (Ordinary).

Voting status

• Results to be declared after scrutiny; Scrutinizer report within two working days.

Balu Forge Industries Ltd: Trading Window closed from October 01, 2026 until 48 hours after unaudited results for the quarter and half-year ended September 30, 2026 become generally available

Appointment details

• Ms. Tabassum Begum resigns as Company Secretary & Compliance Officer, effective Sep 26, 2026.
• Reason: resigning due to marriage and relocation.
• Board approved appointment of Mr. Amit Vinaybhai Jain as CS & CO and KMP, effective Oct 15, 2026.
• Amit Vinaybhai Jain is a qualified Company Secretary with 6+ years' governance and regulatory compliance experience.

KMP Change

• Resignation of Ms. Tabassum Begum as Company Secretary & Compliance Officer, effective Sep 26, 2026, due to marriage.

AR/AGM access for non-email shareholders

• Company dispatched letters to members without registered emails with links to Annual Report 2025-26 and 37th AGM.
• Web-links to the Annual Report and AGM Notices published on the company website.
• Shareholders urged to register email addresses with their DP to receive documents; green initiative noted.
• RTA Skyline Financial Services contact details provided for queries.

Overview

• Standalone BRSR for FY2025-26; main activity is manufacturing finished machined metal components.
• 100% turnover from metal products; exports comprise 55.23% of turnover.
• Markets: 50+ countries; 3 plants and 1 office in India.

Key ESG Risks & Opportunities

• Market demand fluctuations pose revenue risk; mitigate via product diversification and geographic expansion.
• Innovation opportunities from R&D and automation; expected productivity and margin gains.
• Cybersecurity risk; mitigated by robust controls, audits, and employee training.
• Energy efficiency initiatives; potential cost savings and ESG rating benefits.
• Skilled labour shortage risk; mitigated by upskilling and technical institute partnerships.
• Corporate governance improvements may lower cost of capital.

Governance & Policy Highlights

• Sustainability Committee coordinates ESG; material matters escalated to Board/Committees.
• Anti-bribery policy with zero tolerance; Code of Conduct and vigil mechanism.
• Internal management review; no independent external assurance for FY2025-26.
• Board gender diversity: 14% female on a 7-member board; KMP female 20%.
• Training: BoD 86% trained; KMPs 100%; employees 100%; workers 69%.
• No fines or penalties in FY2025-26.

Social Responsibility & Workforce

• Total employees: 80; permanent employees: 80 (72 male, 8 female).
• Total workers: 453 (449 male, 4 female).
• Turnover FY25-26: permanent 4%; workers 5%.
• LTIFR: nil; no fatalities recorded.
• KMP and employee training 100%; workers training 69%.
• Well-being spend: 0.26% of revenue.

Environmental Performance

• GHG emissions: Scope 1 1,210 t CO2e; Scope 2 19,850 t CO2e.
• Total emissions 21,060 t CO2e; intensity 0.33 t CO2e per Lakh turnover.
• Energy: non-renewable electricity 106,231 GJ; fuel 6,421 GJ; total 112,652 GJ.
• Renewable energy share not disclosed; target 50% by 2035.
• Water: groundwater withdrawal 59,556 kl; consumption 32,938 kl; water intensity 0.51 per turnover.
• Waste: total 5,023.48 MT; plastics reused 5.89 MT, recycled 2.51 MT; hazardous waste 38.05 MT.

Stakeholder Engagement & Complaints

• Stakeholders: shareholders/investors, customers, vendors, government/regulators, communities.
• Engagement channels: AGM, investor calls, website; frequency: quarterly/annual.
• Complaints FY2025-26: nil; 2024-25: one shareholder complaint filed, resolved.
• CSR engagement focuses on education and livelihood; programs benefited 1,000+ individuals.

Other Notable Metrics

• Subsidiaries: Safa Otomotiv FZ-LLC; Naya Energy Works Private Limited; Advanced Technologies & Systems Private Limited; 100% owned.
• Related-party transactions: purchases from related parties 0%; loans to related parties 14%; investments in related parties 100%.
• Affiliations: six trade associations; policy stance on public affairs aligned with governance standards.
• Data privacy: no data breaches; cyber security policy in place.
• No external assurance on BRSR; 2025-26 compliance monitored internally.

Financial performance

• Consolidated revenue from operations rose 21.2% to 114,028.66 Lakhs in FY26.
• Consolidated EBITDA reached 29,953.78 Lakhs with 27.0% margin.
• Consolidated PAT stood at 25,889.06 Lakhs with 23.38% margin.
• EPS (consolidated) was ₹23.90 per share.
• Final dividend of ₹0.15 per share proposed; subject to AGM approval.
• Net debt at FY26: ₹3,771.67 Lakhs; gearing 0.02x.
• Cash & cash equivalents: ₹8,566.01 Lakhs; liquidity stable.
• Capex additions during FY26: ₹34,682.76 Lakhs for capacity expansion.
• Total equity as of 31 Mar 2026: ₹159,452.22 Lakhs.

Operations & capacity expansion

• Forging capacity target: from 100,000 to 150,000 MTPA.
• Machining capacity target: from 45,000 to 80,000 MTPA.
• 7-axis and 11-axis machining centers commissioned.
• 25-ton hydraulic hammer plus automated press lines deployed.
• Belgaum and UAE facilities support larger, complex parts.
• Automated empty-shell line enabling 360,000 shells annually.
• NATO five-year MoU for large-calibre ammunition supply.
• maiden aerospace order from Alpha Aircraft Systems.
• Order for 30,000 units of 152mm artillery shells.

Geography & markets

• Operations span three units in Karnataka and one UAE unit.
• Products reach over 80 countries; global delivery footprint.
• 25 global OEMs served; diversified international exposure.

Capital structure & liquidity

• Long-term borrowings ₹1,072.18 Lakhs; short-term ₹11,599.35 Lakhs.
• Net debt ₹3,771.67 Lakhs; cash ₹8,566.01 Lakhs.
• No covenant breaches; balanced liquidity position.
• Dividend per share proposed; recording date 18 Sep 2026.
• Total equity ₹159,452.22 Lakhs; robust capital base.

Governance & leadership

• Roop Lal Meena appointed Independent Director on 07 Feb 2025.
• Raghvendra Raj Mehta vacated Independent Directorship on 06 May 2026.
• Amit Todkari ceased CFO on 25 May 2026; Sandeep Chadha interim CFO from 26 May 2026.
• Audit Committee chaired by Radhey Shyam Soni since May 2026.
• Six Board meetings held in FY26; one Women Director on board.

Risk management & ESG outlook

• Key risks: macro volatility, capital structure, competition, supply chain, cybersecurity.
• ESG targets: net-zero by 2040; 50% renewable by 2035; 100% water recycling by 2035.
• Zero Liquid Discharge target by 2035; 20% women leadership by 2030.
• CSR & Sustainability governance via dedicated committee; annual progress reviews.

CSR & sustainability

• FY26 CSR spend: ₹156.50 Lakhs; 620 beneficiaries.
• Average net profit for CSR: ₹155.58 Lakhs; excess ₹0.92 Lakhs.
• CSR projects: plantations, education, Uttam Shiksha, digital literacy.
• ESG programs include education and women empowerment initiatives.

Subsidiaries & associate companies

• Subsidiaries: Safa Otomotiv FZ-LLC, Quantum Energetics, Balu Advanced Technologies & Systems.
• Associate: Swan Balu Heavy Industries Limited (SBHIPL) 40% stake.
• SBHIPL formed in 2025; no joint venture as of FY26.

Outlook & strategic priorities

• 3-5 year strategy: expand capacity, deepen tech, grow global presence.
• Belagavi facility: 46 acres; target 80,000 MTPA machining by FY27.
• Asset turnover target: 3.5x-4x; diversify into defence and aerospace.
• Intensify automation, Industry 4.0, and high-value defence production.

AGM Details

• 37th AGM on 30 September 2026 at 12:30 IST via VC/OAVM.
• Remote e-voting from 26 September 2026 09:00 IST to 29 September 2026 17:00 IST.
• Cut-off date for attendance and voting: 23 September 2026.
• Record date for final dividend entitlement: 18 September 2026.
• Venue deemed at Registered Office; meeting conducted via VC/OAVM.
• Notice and Annual Report available on company website and stock exchanges.

Key Resolutions

• Adopt standalone and consolidated financial statements for FY2025-26.
• Declare final dividend of 1.5% (Rs 0.15 per share).
• Re-appoint Trimaan Jaspalsingh Chandock as Director by rotation.
• Ratify remuneration of Cost Auditors for FY2026-27 at Rs 3.50 lakh plus taxes.

Dividend Details

• Final dividend proposed at 1.5% (Rs 0.15 per share).
• Record date for entitlement: 18 September 2026.
• Dividend payment will be subject to applicable TDS.

Directors & Auditors

• Director change: Trimaan Chandock to be re-appointed by rotation.
• Cost Auditors remuneration ratified; appointment based on Audit Committee recommendation.