Balu Forge Industries announced robust financial results for Q3 and 9M FY26, showcasing sustained demand and margin resilience. 9M FY26 Revenue grew 29.0% YoY to Rs. 8,438 Mn, with EBITDA rising 36.0% YoY. Key highlights include the commercialization of the 100% ‘Made in India’ 360,000 shells per annum facility and induction into the NATO Supply Chain, marking strategic pivots toward high-value defence manufacturing.
Q3 and 9M FY26 Financial Highlights
Balu Forge reported strong performance across the third quarter and the first nine months of FY26, driven by sustained demand momentum. For the 9M FY26 period, Revenue from Operations reached Rs. 8,438 Mn, marking a 29.0% YoY growth. EBITDA saw a significant increase of 36.0% YoY to Rs. 2,396 Mn, resulting in an enhanced EBITDA Margin of 28.4%. PAT for 9M FY26 stood at Rs. 1,932 Mn, reflecting a substantial 36.8% YoY increase, with the PAT Margin reaching 22.6%.
Q3 FY26 Snapshot (vs. Q3 FY25)
In Q3 FY26, Revenue was Rs. 3,111 Mn (21.6% YoY growth), and EBITDA was Rs. 845 Mn (24.8% YoY growth). The company maintained strong margin discipline, with the EBITDA Margin at 27.2% for the quarter.
Strategic Business Updates and Milestones
Commercialization of ‘Made in India’ Shell Line
The company has commenced operations at its greenfield Belgaum campus with a new, fully automated empty shell production line for large caliber ammunition. This facility boasts an annual capacity of 360,000 shells per year and features near 100% automation using Fanuc Robotics, achieving a rapid 55-second cycle time. This move strategically aligns with the ‘Atmanirbhar Bharat’ initiative toward high-precision defence manufacturing.
Induction into NATO Supply Chain
Balu Forge has been formally inducted into the NATO Supply Chain to manufacture artillery shell bodies and mission-critical components. This external validation underscores the company’s advanced closed-die forging and precision multi-axis CNC machining capabilities, opening access to demanding global defence markets and diversifying high-margin revenue streams.
Advanced Machining Capabilities Operationalized
A cutting-edge precision machining line featuring 7-Axis and 11-Axis CNC machines from Spain and Germany has been operationalized in Belgaum. This enhances the capability to process diverse alloys, including aluminum and titanium, into complex components like turbine blades, marking a technological milestone for high-value industrial needs.
Evolving Revenue Mix
Analysis of 9M FY26 revenue contribution shows a strategic shift. The Defence segment now contributes 36% of revenue, up from 40% in FY25 (which saw a high contribution due to specific projects, but the Defence/Aerospace/Railway segment is 40% in the Order Book). The overall Order Book highlights a 40% concentration in Defence/Aerospace/Railway, indicating clear visibility and a focus on high-margin sectors.
Future Growth Trajectory
The 3-5 year strategy centers on expanding capacity through organic growth and acquisitions, aiming to scale machining capacity to 80,000 TPA by FY27 at the Belagavi facility. Funding for these expansion programs will rely on a low-leverage framework, primarily through internal accruals and selective equity infusions, ensuring balance-sheet strength while targeting high-margin defence and aerospace segments.
Source: BSE
