Balu Forge September-quarter profit reaches Rs 76.59 crore

Balu Forge Industries Limited reported consolidated net profit of Rs 76.59 crore for the quarter ended September 30, 2026, up from Rs 66.09 crore in the preceding quarter, as revenue from operations reached Rs 324.34 crore. First-half profit was Rs 142.68 crore and net operating cash inflow rose to Rs 245.35 crore.

How did Balu Forge perform in the September 2026 quarter?

Balu Forge recorded net profit after tax of Rs 76.59 crore in the quarter ended September 30, 2026, compared with Rs 66.09 crore in the June 2026 quarter and Rs 85.04 crore in the September 2025 quarter. Profit before tax was Rs 90.61 crore, up from Rs 80.73 crore sequentially and Rs 79.92 crore a year earlier.

Revenue from operations rose to Rs 324.34 crore from Rs 300.71 crore in June 2026 and Rs 299.51 crore in September 2025. Other income was Rs 5.93 crore, taking total income to Rs 330.27 crore, compared with Rs 304.58 crore in the preceding quarter and Rs 302.80 crore a year earlier.

Balu Forge reported total expenses of Rs 239.45 crore for the September quarter, against Rs 223.85 crore in June and Rs 222.88 crore a year earlier. The filing lists material costs of Rs 232.03 crore, employee-benefit expense of Rs 12.23 crore, depreciation and amortisation of Rs 3.57 crore, and finance cost of Rs 5.43 crore.

Basic earnings per share were Rs 6.59 for the September quarter, compared with Rs 5.49 in June 2026 and Rs 6.08 in September 2025. Diluted earnings per share were also Rs 6.59, calculated on equity shares with a face value of Rs 10 each and stated as not annualised.

What changed in Balu Forge's first-half results?

Balu Forge generated revenue from operations of Rs 625.05 crore in the half year ended September 30, 2026, compared with Rs 532.71 crore in the corresponding 2025 period. Total income increased to Rs 634.85 crore from Rs 537.68 crore, while profit before tax rose to Rs 171.34 crore from Rs 149.96 crore.

Net profit for April to September 2026 was Rs 142.68 crore, and total expenses were Rs 463.51 crore, compared with Rs 387.72 crore in the prior-year half. The difference between the Rs 92.35 crore increase in revenue from operations and the Rs 75.78 crore increase in expenses accompanied the rise in first-half profit before tax.

Balu Forge reports a single operating segment under Indian Accounting Standard 108, covering crankshafts, other forged components and related activities. As a result, the filing does not break down the Rs 625.05 crore first-half revenue or Rs 142.68 crore profit by product category.

The results were reviewed by the audit committee and approved by the board on November 14, 2026. The consolidated statements were prepared under Indian Accounting Standard 34, which governs interim financial reporting, for the quarter and half year ended September 30, 2026.

How did Balu Forge's cash flow and investment change?

Balu Forge generated net cash from operating activities of Rs 245.35 crore in the half year ended September 30, 2026, compared with Rs 35.77 crore in the prior-year period. Cash generated from operations before taxes was Rs 245.60 crore, compared with Rs 37.27 crore a year earlier, while net taxes paid were Rs 0.25 crore.

Working-capital movements included a Rs 4.01 crore reduction in inventories, a Rs 35.72 crore reduction in trade receivables and a Rs 60.99 crore increase in trade and other payables. These movements were partly offset by a Rs 41.07 crore increase in other receivables, according to the half-year cash-flow statement.

Net cash used in investing activities was Rs 260.82 crore, increasing from Rs 183.26 crore in the first half of 2025. The outflow included Rs 157.80 crore for property, plant and equipment and Rs 103.34 crore for capital advances, while interest received was Rs 0.07 crore.

Financing activities generated net cash inflow of Rs 49.83 crore, compared with Rs 89.04 crore a year earlier. Net short-term borrowings increased by Rs 67.05 crore, net long-term borrowings decreased by Rs 4.57 crore, and cash and cash equivalents rose by Rs 34.35 crore to Rs 120.01 crore at September 30, 2026.

What changed in Balu Forge's assets, funding and review matters?

Balu Forge's consolidated assets rose to Rs 2,146.88 crore at September 30, 2026 from Rs 1,850.78 crore at March 31, 2026. Property, plant and equipment increased to Rs 743.18 crore from Rs 487.91 crore, while capital work-in-progress declined to Rs 173.11 crore from Rs 277.31 crore.

Current assets were Rs 837.76 crore at September 30, compared with Rs 793.84 crore at March 31. Trade receivables declined to Rs 393.88 crore from Rs 425.10 crore, inventory fell to Rs 141.27 crore from Rs 145.28 crore, and cash and cash equivalents increased to Rs 120.01 crore from Rs 85.66 crore.

Total equity increased to Rs 1,741.20 crore from Rs 1,594.52 crore over the six months. Short-term borrowings rose to Rs 183.04 crore from Rs 115.99 crore, while total current liabilities increased to Rs 374.64 crore from Rs 224.09 crore.

M.B. Agrawal & Co. stated in its November 14, 2026 limited-review report that nothing had come to its attention indicating that the consolidated results lacked required disclosures or contained a material misstatement. The auditor noted Rs 20.24 crore of machinery advances to a wholly owned subsidiary where realisation exceeded the timeline prescribed under Reserve Bank of India export rules, and said block-assessment proceedings following an Income Tax Department search remained ongoing at September 30, 2026.

Conclusion

Balu Forge increased September-quarter revenue to Rs 324.34 crore from both the June 2026 and September 2025 quarters, while net profit of Rs 76.59 crore rose sequentially but remained below the Rs 85.04 crore reported a year earlier. First-half operating cash inflow of Rs 245.35 crore was followed by Rs 260.82 crore of investing outflow, primarily for property, plant and equipment and capital advances.

The next disclosed capital item is a proposed preferential issue of up to 30 lakh fully convertible warrants at Rs 540 each, aggregating up to Rs 162 crore, to two proposed promoter allottees. Each warrant can be converted into one equity share in one or more tranches within 18 months of allotment; the ongoing tax proceedings and the Rs 20.24 crore machinery-advance matter also remain unresolved disclosures to watch.