Tirupati Forge Limited: Forging Ahead with Defence and Export-Led Growth in Q3 FY26

Tirupati Forge Limited has reported a robust performance for the third quarter of fiscal year 2026, demonstrating significant growth driven by strong export demand and strategic operational efficiencies. The company's total income surged by 21.13% quarter-on-quarter, reaching 49.26 crore rupees. This impressive top-line growth was complemented by a substantial 33.85% increase in EBITDA, which stood at 5.74 crore rupees, and a remarkable 50.75% rise in Profit After Tax (PAT) to 2.02 crore rupees. These figures underscore a period of strong execution and an improved business sentiment, particularly buoyed by strengthening India-US trade relations.

The company's export-led strategy proved to be a key growth driver, with overseas markets contributing a significant 65% to the total revenue during the quarter. The improved trade sentiment between India and the US is particularly impactful, given that over 50% of Tirupati Forge's export demand is linked to the US market, enhancing medium-term demand visibility. Furthermore, operational efficiency gains, notably a 0.75 crore rupee saving in energy costs following the commissioning of their solar power plant, played a crucial role in boosting profitability.

Strategic Foray into Defence Manufacturing

A cornerstone of Tirupati Forge's future growth strategy is its ambitious entry into the defence sector. The company provided a detailed update on its project for manufacturing Empty Shell Body 155 MM M107. The civil works for the new manufacturing facility have been successfully completed as planned, and the plant is firmly on track for commissioning in March 2026. This facility is designed to have an installed capacity of 150,000 units per annum, marking a significant step towards leveraging opportunities in the global defence market.

Management has outlined a clear ramp-up plan for the new defence unit, targeting 50% capacity utilisation by Q1 FY27, with a progressive scale-up to peak utilisation of 80% by FY28. The company has already observed robust inbound interest and firm demand signals from potential customers, validating its strategic pivot. This move aligns perfectly with the broader market opportunity in the defence sector, where the Indian defence sector is projected to grow at a CAGR of 13% from FY23 to FY30, and the global defence budget is expected to reach USD 2,546.9 billion by 2028.

Diversified Portfolio and Future Outlook

Tirupati Forge boasts a diversified product portfolio and customer base, which provides resilience and multiple avenues for growth. Flanges constitute the largest share of its product portfolio at 65.35%, followed by Earth Moving Parts at 10.60%. The company serves a wide array of industries, with Oil & Gas accounting for 65.53% of its customer base, alongside Construction & Mining, Automotive, and Agriculture.

Looking ahead, the company remains optimistic about the opportunities emerging in the global defence sector. To further capitalise on this momentum, Tirupati Forge is planning a capacity expansion in FY27. While acknowledging external uncertainties, the management's strategic focus, strong execution capabilities, and favorable demand trends position the company well for sustained growth. The company's commitment to quality, evidenced by certifications like IATF 16949:2016 and ISO 9001:2015, further strengthens its competitive edge in both domestic and international markets.

In conclusion, Tirupati Forge Limited's Q3 FY26 performance reflects a company effectively navigating a dynamic global environment. With strong financial results, a strategic entry into the high-growth defence sector, and clear plans for future expansion, Tirupati Forge is well-positioned to continue its trajectory of sustainable growth and value creation for its stakeholders.