Balu Forge Industries Approves Q1 Financial Results, Plans $60 Million Bond Issuance and Borrow Limit Increase
Balu Forge Industries Limited announced several key decisions following its Board meeting held on August 12, 2026. The company approved the Unaudited Standalone and Consolidated Financial Results for the quarter ended June 30, 2026. Furthermore, the Board considered plans to raise funds through a private placement of Foreign Currency Convertible Bonds (FCCBs) and discussed increasing borrowing limits.The Board meeting reviewed the results and addressed strategic financial planning for the company's future capital structure. The company also scheduled an Extraordinary General Meeting (EGM) on Friday, September 04, 2026, to seek shareholder approval for key corporate actions.
Financing Plans and Corporate Actions
Key decisions stemming from the board meeting include:- Foreign Currency Bonds: Consideration of raising funds by issuing FCCBs amounting up to USD 60 million on a private placement basis. This issuance is subject to necessary regulatory and statutory approvals and shareholder approval.
- Borrowing Limits: Review of increasing the overall borrowing limits under Section 180(1)(c) of the Companies Act, 2013, up to ₹ 1,000 crore.
- Security Creation: Consideration of creating mortgage and charge over movable and immovable properties for borrowings up to ₹ 1,000 crore, subject to shareholder approval at an EGM.
In relation to related party transactions, the company entered into an agreement dated May 26, 2026, with its Managing Director, Mr. Jaspalsingh Chandock, concerning the purchase of a property. The agreed consideration for this transaction was Rs. 2,250.00 Lakhs, and the Company paid an advance of Rs. 958.33 Lakhs as at June 30, 2026.
Financial Performance Highlights (Q ended June 30, 2026)
The company's performance for the quarter ended June 30, 2026, was detailed in both the Standalone and Consolidated Financial Results. The financial statements were reviewed by the Audit Committee and reviewed by statutory auditors.Below is a summary of the Standalone Financial Results:
| Particulars | Quarter ended 30.06.2026 (Unaudited) | Quarter ended 31.03.2026 (Audited) | Quarter ended 30.06.2025 (Unaudited) | 31.03.2026 (Audited) | 31.03.2025 (Audited) |
|---|---|---|---|---|---|
| Other Income | 17,501.19 Lakhs | 15,931.08 Lakhs | 15,000.46 Lakhs | 64,742.26 Lakhs | 99,847.65 Lakhs |
| Total Income (1+2) | 276.98 Lakhs | 2,355.12 Lakhs | 206.14 Lakhs | 3,329.35 Lakhs | 1,743.43 Lakhs |
| Total Expenses | 17,778.17 Lakhs | 18,286.20 Lakhs | 15,206.60 Lakhs | $8.071.61$ Lakhs | $1,591.08$ Lakhs |
| EBIDTA | 12,535.21 Lakhs | 12,813.06 Lakhs | 10,501.10 Lakhs | 48,035.26 Lakhs | 43,159.39 Lakhs |
| Net Profit / (Loss) after tax | 253.97 Lakhs | (331.57) Lakhs | 64.38 Lakhs | (38.26) Lakhs | 210.07 Lakhs |
A summary of the Consolidated Financial Results is as follows:
| Particulars | Quarter ended 30.06.2026 (Unaudited) | Quarter ended 31.03.2026 (Audited) | Quarter ended 30.06.2025 (Unaudited) | 31.03.2026 (Audited) | 31.03.2025 (Audited) |
|---|---|---|---|---|---|
| Other Income | 30,071.47 Lakhs | 26,355.49 Lakhs | 23,319.60 Lakhs | 1,10,736.69 Lakhs | 92,361.74 Lakhs |
| Total Income (1+2) | 386.49 Lakhs | 2,347.44 Lakhs | 168.29 Lakhs | 3,291.97 Lakhs | 1,714.30 Lakhs |
| Net Profit / (Loss) after tax | 6,608.82 Lakhs | 6,573.66 Lakhs | 1,702.69 Lakhs | 25,889.06 Lakhs | 20,385.54 Lakhs |
Other Matters and Review Findings
The auditor's review noted that the company has export receivables outstanding from a wholly owned subsidiary amounting to Rs 524.13 Lakhs, whose realization exceeds prescribed timelines set by the Reserve Bank of India. Furthermore, as of June 30, 2026, ongoing block assessment proceedings initiated by the Income Tax Department related to previous search operations remain inconclusive.The board's review confirmed that the company is primarily engaged in the business of manufacturing Crankshafts and other Forged Components and related activities, operating with a single reportable segment for resource allocation and performance assessment under Ind AS 108.
BALUFORGE Stock Price Movement
On Wednesday, Balu Forge Industries Limited shares gained 0.92%, settling at ₹463 after climbing by ₹4.20. The stock traded within an intraday range of ₹455 to a high of ₹471, while nearly one million shares were exchanged during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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