Kalyani Forge approves ₹45 crore FY27 phased funding plan

Kalyani Forge Limited announced on November 6, 2026 that its board had approved a phased ₹45 crore funding plan for FY27, combining approximately ₹10 crore of equity, approximately ₹20 crore of debt and up to ₹20 crore from non-core asset and inventory monetisation. The plan is intended to support liquidity, working capital and new-order ramp-up.

What did Kalyani Forge approve for FY27?

Kalyani Forge approved a ₹45 crore funding framework for FY27 to strengthen its balance sheet, fund working capital and support the ramp-up of new engine and wheel hub orders. The company disclosed the plan with unaudited financial results for the quarter ended September 30, 2026, when it also carried out capacity upgrades and changed its banking partner.

The ₹45 crore framework is a board-approved plan, not a completed fund raise. Kalyani Forge said its allocations are indicative and tentative rather than definitive, and that execution will take place in phases through FY27. The proposed equity portion requires shareholder and regulatory approvals, while the release does not set dates for any individual financing transaction.

Management described the funding decision as the principal development of the quarter. According to Managing Director and Chief Executive Officer Viraj Kalyani, the plan followed a structural review of funding adequacy for growth ambitions and is intended to provide capital for the order pipeline, capacity upgrades and working-capital needs.

How will Kalyani Forge raise the ₹45 crore?

Kalyani Forge proposes approximately ₹10 crore of equity capital, approximately ₹20 crore of term loans and working-capital facilities, and up to ₹20 crore from non-core asset sales and inventory monetisation. The equity component is intended to bring long-term growth capital, while the debt portion would be sourced from the company’s banking partners.

The listed components can total up to Rs 50 crore using their stated ceilings, although Kalyani Forge describes the approved overall framework as a Rs 45 crore plan. The release does not identify assets proposed for sale, inventory categories to be monetised, lenders, borrowing rates or repayment terms.

The funding plan is linked to a higher receivables balance. Trade receivables stood at Rs 141.21 crore on September 30, 2026, compared with Rs 102.65 crore on March 31, 2026, an increase of Rs 38.56 crore. Kalyani Forge attributed the movement to delayed customer remittances and export receipts during its banking changeover, as well as slower last-time-buy volumes from legacy phase-out customers.

What did Kalyani Forge report for Q2 FY27?

Kalyani Forge reported a 2.20% year-on-year decline in Q2 FY27 revenue from operations to Rs 54.4486 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased 9.41% to Rs 7.7809 crore. Profit before tax rose 42.88% to Rs 3.2388 crore in the quarter ended September 30, 2026.

Q2 revenue declined because high-tonnage production was reduced during reconditioning of the 2500T press and relocation of the driveline machining plant. Despite lower revenue, EBITDA margin increased by 158 basis points to 14.23% from 12.65%, while profit after tax increased 0.53% to Rs 2.1614 crore.

Kalyani Forge calculates EBITDA as profit before tax plus finance costs and depreciation and amortisation, and calculates EBITDA margin on total income. Earnings per share rose to Rs 5.94 in Q2 FY27 from Rs 5.91 in Q2 FY26, matching the 0.53% increase in profit after tax.

How did Kalyani Forge perform in H1 FY27?

Kalyani Forge’s H1 FY27 profit before tax more than doubled to Rs 9.3921 crore from Rs 4.2925 crore in H1 FY26, a 118.80% increase. EBITDA rose 38.81% to Rs 18.6720 crore, while revenue from operations increased 1.20% to Rs 121.2448 crore for the six-month period.

The EBITDA margin expanded by 420 basis points to 15.34% in H1 FY27 from 11.14% in H1 FY26. Profit after tax increased 86.72% to Rs 6.6411 crore from Rs 3.5566 crore, and earnings per share rose to Rs 18.25 from Rs 9.77.

Kalyani Forge attributed the half-year movement to cost optimisation, Vriddhi Council initiatives and improved operating efficiency. The company also cited manufacturing productivity, overall equipment effectiveness and existing-infrastructure utilisation as operating focuses, but did not quantify the savings or gains generated by each measure.

The contrast between the two periods is that H1 revenue grew 1.20% while Q2 revenue declined 2.20%. The company linked the Q2 production disruption to the 2500T press work and machining-plant relocation, while reporting H1 EBITDA growth of 38.81% and a 15.34% margin.

What should investors watch during FY27?

Kalyani Forge has reconditioned its 2500T press and consolidated the MCD3 driveline machining plant into MCD1. The company said the changed layout creates a more compact shopfloor and frees space for future expansion, while management expects the upgraded press and consolidated plant to help restore volumes in the second half of FY27.

Management also expects new engine and wheel hub programmes to ramp up alongside the funding plan. This remains forward-looking: Kalyani Forge said execution depends on the timing of shareholder, lender and regulatory approvals, completion of debt facilities and monetisation actions, customer collections and the receipt of export remittances.

The company identified demand from customer industries, raw-material and input-cost volatility, foreign-exchange and interest-rate movements, plant availability and credit risk as further uncertainties. Kalyani Forge also cautioned that results for the single quarter ended September 30, 2026 are not necessarily indicative of results for the full financial year.

Conclusion

Kalyani Forge has combined a phased Rs 45 crore FY27 funding framework with higher half-year profitability, including a 118.80% rise in profit before tax to Rs 9.3921 crore and a 38.81% increase in EBITDA to Rs 18.6720 crore. The plan uses prospective equity and debt alongside internal capital release through non-core asset sales and inventory monetisation, as receivables reached Rs 141.21 crore.

The next disclosed milestones are phased execution of the FY27 funding plan, including approvals for the equity component, debt facilities and monetisation actions. Investors should also watch receivables recovery following the banking-partner change, the second-half volume effect of the 2500T press and MCD1 consolidation, and the ramp-up of engine and wheel hub orders.