Forge Auto half-year profit climbs 22% to Rs 7.31 crore

Forge Auto International Limited reported unaudited consolidated profit after tax of Rs 7.31 crore for the half year ended 30 September 2026, up 22% from Rs 6.02 crore a year earlier. Revenue from operations rose 7% to Rs 143.56 crore, while profit before tax increased to Rs 10.02 crore from Rs 8.28 crore.

How did Forge Auto perform in the September 2026 half year?

Forge Auto reported total income of Rs 143.84 crore for the half year ended 30 September 2026, compared with Rs 134.42 crore in the corresponding half year ended 30 September 2025. Revenue from operations contributed Rs 143.56 crore, up from Rs 133.86 crore, while other income fell to Rs 27.55 lakh from Rs 55.80 lakh.

Profit after tax rose by Rs 1.29 crore to Rs 7.31 crore from Rs 6.02 crore, exceeding the Rs 9.70 crore increase in operating revenue. Basic and diluted earnings per share both increased to Rs 6.72 from Rs 5.51. The board approved the unaudited consolidated results on 13 November 2026, following a limited review by the statutory auditor.

Forge Auto also improved on the immediately preceding half year ended 31 March 2026, when revenue from operations was Rs 136.33 crore and profit after tax was Rs 6.32 crore. However, other income was lower than the preceding half year's Rs 1.15 crore, so the increase in total income was narrower than the increase in operating revenue.

Which costs changed at Forge Auto during the half year?

Forge Auto's material-consumption cost declined to Rs 86.71 crore from Rs 89.46 crore a year earlier, despite the rise in revenue from operations to Rs 143.56 crore. Changes in inventories of finished goods were negative Rs 6.08 crore, compared with negative Rs 9.69 crore, while changes in work-in-progress and stock-in-trade were negative Rs 2.15 crore against negative Rs 3.25 crore.

Employee-benefit expense increased to Rs 9.25 crore from Rs 8.15 crore and other expenses rose to Rs 40.37 crore from Rs 35.05 crore. Depreciation and amortisation fell to Rs 2.42 crore from Rs 2.70 crore, while finance costs declined to Rs 3.30 crore from Rs 3.72 crore. These reported movements coincided with a Rs 1.74 crore increase in profit before tax.

Current tax expense rose to Rs 2.36 crore from Rs 1.85 crore, while deferred tax was Rs 35.01 lakh compared with Rs 41.65 lakh. The filing identifies customized closed-die hot forging and machining as Forge Auto's only reportable business segment, so it does not provide product-level revenue or profit splits.

How did Forge Auto's working capital and borrowings move?

Forge Auto's inventories increased to Rs 88.10 crore at 30 September 2026 from Rs 80.36 crore at 31 March 2026, and trade receivables rose to Rs 42.34 crore from Rs 37.03 crore. The combined Rs 13.05 crore increase in these two balances represents additional funds held in stock and customer dues over the six-month period.

Short-term borrowings rose to Rs 54.43 crore from Rs 51.24 crore, while long-term borrowings increased to Rs 22.63 crore from Rs 20.81 crore. Trade payables to micro, small and medium enterprises increased to Rs 24.29 crore from Rs 18.15 crore, whereas dues to suppliers other than such enterprises declined to Rs 20.61 crore from Rs 21.87 crore.

Forge Auto's total equity and liabilities were Rs 211.84 crore at 30 September 2026, compared with Rs 196.25 crore at 31 March 2026. Reserves and surplus increased to Rs 66.06 crore from Rs 58.72 crore, while share capital remained Rs 10.92 crore at both reporting dates.

What do Forge Auto's cash flow and equity proceeds show?

Forge Auto reported net cash flow from operating activities of Rs 6.46 crore for the period ended 30 September 2026, compared with Rs 24.26 crore for the year ended 31 March 2026. Operating profit before working-capital changes was Rs 15.63 crore, but trade receivables absorbed Rs 5.30 crore and inventories absorbed Rs 1.74 crore.

Trade payables added Rs 4.88 crore to operating cash flow, while short-term provisions used Rs 3.72 crore. Cash and cash equivalents stood at Rs 71.02 lakh at 30 September 2026, up from Rs 38.41 lakh at the start of the period; the closing balance included Rs 63.10 lakh in deposit accounts.

Forge Auto spent Rs 4.49 crore on fixed-asset purchases and reported net investing cash outflow of Rs 4.23 crore. Financing activities included a Rs 1.82 crore increase in long-term borrowings and Rs 3.30 crore of finance costs, with net financing cash outflow reported at Rs 1.90 crore.

Forge Auto said it received Rs 31.10 crore from a fresh equity-share issue and fully utilised the proceeds. It allocated Rs 19.00 crore to working capital, Rs 5.00 crore to loan repayment, Rs 4.26 crore to general corporate purposes and Rs 2.84 crore to issue-related expenses, reporting no deviation from the stated objects.

Conclusion

Forge Auto's September 2026 half-year results show profit after tax rising faster than revenue, with profit reaching Rs 7.31 crore and revenue from operations reaching Rs 143.56 crore. Lower material consumption and finance costs than a year earlier accompanied the profit increase, while employee costs and other expenses rose.

The next disclosures will show whether Forge Auto converts the Rs 13.05 crore increase in inventories and receivables into cash after reporting Rs 6.46 crore of operating cash flow. The company has fully deployed its Rs 31.10 crore fresh-equity proceeds, including Rs 19.00 crore for working capital and Rs 5.00 crore for loan repayment, leaving subsequent balance-sheet movements as the disclosed matter to watch.