Kalyani Forge Ltd

Financial Performance

• PAT ₹4.48 crore; YoY +218% from ₹1.41 crore
• EPS ₹12.31
• ROCE 22% (first time above 20%)
• EBITDA margin 16.2%, up 640 bps YoY from 9.3%
• PBT margin 9.2%, up 600 bps; PAT margin 6.7%, up 450 bps
• Total revenue ₹67.07 crore; YoY +3.9%, QoQ +13.2%
• Vriddhi savings realised ₹19.1 crore to date vs ₹50 crore annual target
• Cash conversion cycle 148 days, improved from 168 days

Operating Update

• Engine revenue ₹40 crore in Q1 FY27 vs ₹29 crore Q1 FY26 (38% YoY)
• Axle up 22% YoY; Driveline up 11% YoY
• OEM revenue ₹40.7 crore, +31% YoY, +9% QoQ; fourth straight OEM growth quarter
• Export mix revived to 16% in Q1 FY27 (11% in Q4 FY26)
• Wheel hub line installation in progress; approx ₹20 crore annual potential
• New wheel hub samples; capacity ramp via existing CNCs from phased-out business

Capex and Capacity

• Capex for FY27 = ₹30 crore; 60% allocated to future growth (driveline/axle)
• Dies/tools reclassified from inventory to fixed assets in Q4 (~₹10 crore)
• Machining capacity ~1.8 lakh pieces per month; 90–95% utilisation
• Target machining capacity 3 lakh pieces per month by end FY27
• Forging capacity ~20,000 tonnes installed; 50–60% utilisation

Guidance and Outlook

• EBITDA margin target raised to 20% in coming quarters
• No formal revenue guidance; expects to maintain around ₹67 crore quarterly level
• Capex funding: 75% debt, 25% internal accruals for FY27

Q&A Highlights

• Wheel hubs: ₹20 crore annual potential; line online by end of Q2
• Capacity expansion: machining to 3 lakh p.m. by FY27 vs 1.8 lakh now
• Top five customers contribute ~30–40% of revenue
• Debt deleveraging: plan to repay debt; potential equity raise by promoters
• New business mix: 22% of revenue from new business (last 5 quarters)

Record date and AGM details

• Record Date for dividend payment: August 21, 2026.
• Date of AGM: September 21, 2026.
• Purpose: record date for declaration of dividend.

Meeting Details

• Investors Meet held on August 12, 2026; video and audio recordings available on company website.

Business overview

• Core forging components for engines, driveline, and axle across trucks, cars, industrial, and agro sectors.
• Optimization strategy focused on Engine/Driveline/Axle; 60% capex allocation to growth areas.
• Distinct position supplying Engine, Driveline, and Axle components to OEMs.

Operational highlights

• New order wins in sample validation phase for engine and wheel hub components.
• Wheel Hub line installation in progress, using CNCs from phased-out businesses.
• Exports mix revived to 16% with new high-volume business.
• OEM revenue rose to ₹40 Cr in Q1 FY27; 31% YoY, 9% QoQ.
• FY26 Q4 non-core exits reduced non-fit revenue by ~₹40 Cr.
• Phase 4 of Business Mix Optimization started; Phase 2 Good-fit Customers focus.
• Capex plan prioritizes growth areas: Driveline, Axle, Ramp Up and New Business.
• Dies and Tooling reclassified from inventory to fixed assets in FY26 Q4.

Financial performance

• PAT ₹4.48 Cr, up 218% YoY; EPS ₹12.31.
• Total Income ₹67.07 Cr, up from ₹64.53 Cr YoY.
• EBITDA margin 16.2%; PBT margin 9.2%; PAT margin 6.7%.
• ROCE reached 22% in Q1 FY27, first time above 20%.
• PBT ₹6.15 Cr; +203% YoY.
• CCC improved to 148 days; best in five quarters.
• Vriddhi Council cost savings ₹19.1 Cr realized versus ₹50 Cr annual target.

Capital structure & liquidity

• Capex focus: 60% of FY27 budget allocated to growth areas.
• Capex supports asset upgrades and higher OEE; ramping up core capacity.

Strategic priorities & outlook

• Margin stability and working capital efficiency remain focus into FY27.
• New business revenue share at 22%; wheel hub potential ~₹20 Cr annual revenue.
• OEM-led growth; focus on high-value customers and Engine/Driveline/Axle solutions.
• Phase 1-4 optimization to improve scalability and margins.

Risks & mitigation

• Risks include demand fluctuations, raw material costs, FX, and competition.
• Mitigation through cost discipline and diversification across high-value OEM customers.

Governance & leadership

• Executive Chairperson: Rohini Kalyani; MD: Viraj Kalyani.
• Independent Directors: Ajay Tandon, Jeevan Mahaldar, V. Swaminathan.
• Director: Gaurishankar N. Kalyani.

Financial highlights

• Total income ₹6,707.28 Lakhs in Q1 FY27, up from ₹6,452.67 Lakhs (Q1 FY26).
• PBT ₹615.33 Lakhs, up 203% YoY vs ₹202.57 Lakhs (Q1 FY26).
• PAT ₹447.96 Lakhs, up 218% YoY from ₹140.65 Lakhs.
• EBITDA margin 16.2%, expansion of 640 bps YoY.
• ROCE 22%, crossing 20% target for first time.
• EPS Basic & diluted ₹12.31.

Operational & strategic highlights

• Vriddhi Council savings ₹19.1 Crores to date toward ₹50 Crores annual target.
• Cash Conversion Cycle improved to 148 days from 168; receivables ₹124.21 Crores.
• Second conrod production line commissioned with zero incremental capex.
• Wheel hub expansion redeploys existing assets; capex ~₹2 Crores vs ₹10 Crores.
• New orders from marquee global customers for engine and wheel hub components, ~₹20 Crores annual revenue potential.
• Roadmap: improve OEE, accelerate collections, convert order pipeline into revenue.

Key approvals and disclosures

• Unaudited standalone quarterly results for quarter ended 30 June 2026 approved, with Limited Review Report.
• Limited Review Report submitted with disclaimer of opinion.
• Record date for dividend fixed as Friday, 21 August 2026.
• 47th AGM scheduled for Monday, 21 September 2026.

Meeting Details

• The meeting is scheduled for August 12, 2026, from 11:00 AM to 12:00 Noon IST.
• The meeting will be conducted virtually.
• Organiser: Kalyani Forge Limited.
• Event: Kalyani Forge Limited Investors Meet.

Participants

• Management representation: Managing Director will represent the company.

Purpose

• Purpose: discuss the first-quarter FY2026-27 results ended June 30, 2026.

Meeting Details

• Date: August 11, 2026; Location: Video Conferencing.

Key Agenda Items

• Approve unaudited standalone financial results for quarter ended June 30, 2026 with Limited Review Report.

Other Notes

• Trading window closed from July 1, 2026 until 48 hours after results are made public.

CFO Appointment

• Appointment of Mr. Sainath Bhanage as CFO and KMP, effective 14 July 2026, by NRC and Audit Committee.
• Brief profile: 12+ years in finance; expertise in financial strategy, treasury, M&A, investor relations, and compliance.
• Disclosure of relationships between directors: Not Applicable.