Kalyani Forge Posts Strong Q1 FY27 Results; PAT Jumps Over 218% and ROCE Exceeds 20% Target

Kalyani Forge Posts Strong Q1 FY27 Results; PAT Jumps Over 218% and ROCE Exceeds 20% Target​

Kalyani Forge Limited announced its unaudited financial and operational results for the quarter ended June 30, 2026, reporting significant bottom-line growth, expanded margins, and achievement of key capital efficiency targets. The company demonstrated resilient operational execution amidst sector shifts.

The Q1 FY27 performance showcased substantial improvement across profitability metrics, driven by stringent cost controls and focused capital allocation.

Key Financial Highlights for Q1 FY27​

Kalyani Forge's financial results reflect a strong quarter, with Profit After Tax (PAT) increasing significantly year-on-year. The company successfully improved its Return on Capital Employed (ROCE), crossing the 20% target for the first time.

The financial performance for the quarter, compared to previous periods, is summarized below:


The company reported a basic and diluted Earnings Per Share (EPS) of ₹12.31 for the quarter.

Operational Focus and Strategy​

Management highlighted that Q1 FY27 marked one of the strongest opening quarters in recent history, with the PAT more than tripling year-on-year. This growth is attributed to operational and financial discipline, tighter cost controls, and a favorable inventory policy.

Focus areas during the quarter included:

• Cost Reduction: The internal ‘Vriddhi Council’ initiative realized savings of ₹19.1 Crores to date, positioning the company toward its annual target of ₹50 Crores.
• Working Capital Optimization: The Cash Conversion Cycle (CCC) improved substantially to 148 days from 168 days in the preceding quarter, with a management objective set to reduce it further to 120 days. Trade receivables stand at ₹124.21 Crores.
• Conservative Capex: The company commissioned its second conrod production line for a key customer program using existing infrastructure and incurring zero additional capital expenditure. Additionally, the wheel hub line expansion was executed by redeploying existing machining assets, reducing planned capital outlay from an initial ₹10 Crores to approximately ₹2 Crores.

Management Commentary and Outlook​

Mr. Viraj Kalyani, Managing Director and CEO of Kalyani Forge Limited, stated that the results prove the success of the operational and financial discipline implemented over the past quarters. He noted that new order wins in the wheel hub business, which represent an incremental potential of ₹20 crore of annual revenue with global customers, are progressing alongside a disciplined approach to capacity expansion.

Looking ahead, management outlined specific priorities for Q2: improving Overall Equipment Effectiveness (OEE) in the Forge Shop, accelerating collections, and converting the strengthening order pipeline into revenue.

Operationally, Kalyani Forge secured key new orders from global customers for engine and wheel hub components, valued at approximately ₹20 Crores in annual revenue potential. While acknowledging a recent reduction in the driveline business segment, the company is actively tracking growth areas to diversify its revenue base.

Kalyani Forge Limited specializes in precision forged and machined components for automotive and industrial markets, leveraging over 40 years of expertise as a world-class supplier.

KALYANIFRG Stock Price Movement​

As of 10:17 AM, shares of Kalyani Forge Limited rally higher in live trading, with the equity surging 8.52% to trade at ₹680.1. This movement places the stock within its intraday range, having traded between a low of ₹661.5 and a high of ₹704.4.