Tirupati Forge Presents Update on Q4FY26 and FY26 Performance, Highlights Defence Project Milestones

Tirupati Forge Presents Update on Q4FY26 and FY26 Performance, Highlights Defence Project Milestones​

Tirupati Forge Limited released a comprehensive update detailing its financial and operational performance for the quarter and financial year ending March 31, 2026. The report underscores the company's strategic pivot towards high-margin defense manufacturing, alongside reflecting the current status of its major defense projects.

In a Chairman's update, the company stated that the past year marked a significant phase of evolution, involving transformative investments aimed at strengthening the foundation of its existing business and driving long-term growth. While noting that these investments resulted in higher depreciation and financing costs during the initial phase, they are expected to substantially enhance the company's earnings potential and competitive positioning in the coming years.

Financial Performance Review​

The financial results for Q4FY26 and FY26 showed specific trends influenced by strategic investments.

Revenue dipped to INR 430.3 mn in Q4FY26 compared to INR 492.5 mn recorded in Q3FY26, largely due to headwinds in the traditional business caused by geopolitical tensions. Profit After Tax (PAT) declined from INR 20.2 mn to INR 15.2 mn quarter over quarter (QoQ). However, the adjusted PAT stood at INR 62.95 mn, compared to INR 78.55 mn, after accounting for higher depreciation and interest costs associated with commissioning the new defence plant and solar unit.

On an annual basis, the company reported a revenue increase to INR 1,659.4 Mn in FY26, up from INR 1,162.9 Mn in FY25. PAT stood at INR 62.9 Mn in FY26, compared to INR 78.5 Mn in FY25. Management attributed the temporary moderation in profitability to the upfront capital expenditures made in the new defence manufacturing facility and the solar power plant, which support long-term growth and operational efficiency.

Status of Defence Vertical and Operational Milestones​

The defence business was highlighted as a major long-term opportunity, driven by increased localization efforts and strong policy support for domestic defense.

Several key milestones have been achieved for the defence project, relating to the manufacture of Empty Shell Body 155 MM M107:

• The defence plant has been successfully commissioned.
• Hot trials are complete, with balance trials expected to conclude by Q1 FY27.
• Trial production of shell bodies has been successfully completed according to required specifications.

The company expects commercial production to commence in Q2 FY27, with customer discussions reportedly at an advanced stage. The management views FY27 as a transformative year for the growth journey of Tirupati Forgings.

Looking ahead, the defence vertical is projected to generate annual revenues of approximately INR 2500 mn at full utilization. While revenue contribution is expected to begin in FY27, the full-year impact is visible from FY28 onwards. Furthermore, EBITDA margins from the defence vertical are expected to be upwards of 40%.

In addition to the defence unit, the commissioning of the solar power plant is anticipated to deliver annualized cost savings of approximately INR 20 Mn, with full benefits realized upon the commencement of commercial production at the defence facility.

Company Capacity and Market Positioning​

Tirupati Forge Limited operates a fully integrated manufacturing unit, spread across 5 acres, which includes in-house testing and R&D labs. The current installed capacity stands at 15,000 TPA, adhering to high quality standards and holding certifications including IATF 16949:2016 and ISO 9001:2015.

Operationally, the company’s facilities include:

• Forging: Capacity of 15,000 TPA, utilizing MPM Hammers of 2.5 ton and 4 ton, with job capacity ranging from 0.5 Kg to 125 Kg Single Piece Weight.
• Hydraulic Extrusion Press: Capacity of 10,000 TPA, featuring a 630 Ton Lasco Hydraulic Extrusion Press.
• Machining Facility: Equipped with CNC machines ranging from 15mm to 800mm OD, and fully automatic VMC machines up to 1000mm OD.

Geographically, 55% of the revenue is attributed to the overseas market, spanning nations including the USA, Canada, Malaysia, Europe, and African countries.

Market Outlook: Defence and Forging​

The global and domestic markets supporting the company's growth are also noted to be favorable.

In the defense sector, the Ministry of Defence is allocated INR 6.8 lakh crore, with 75% of this amount earmarked for procurement from domestic manufacturers. The country is projected to spend $130 bn on military over the next five years. The India Defence sector is forecasted to grow at a Compound Annual Growth Rate (CAGR) of 13% from FY23 to FY30. Globally, the defense budget is projected to reach USD 2,546.9 billion by 2028, growing at a CAGR of 4.9%.

The forging industry benefits from a rapidly growing automotive sector and increasing global infrastructure investments. The market growth is further supported by the 'Make in India' initiative, which aims to establish India as a global forging hub.

TIRUPATIFL Stock Price Movement​

Today, Tirupati Forge Limited shares slipped by 1.92% to settle at ₹41.12 in pre-market trading. The equity found its range between ₹40.13 and ₹41.87, supported by a traded volume of 316,837 shares.