Kalyani Forge H1 PBT rises 118.8% as margin expands 420 basis points

Kalyani Forge Limited reported H1 FY27 profit before tax of Rs 9.3921 crore, up 118.80% from H1 FY26, as EBITDA margin rose 420 basis points to 15.34% despite revenue from operations increasing only 1.20% to Rs 121.2448 crore. The unaudited results cover the six months ended September 30, 2026.

How did Kalyani Forge perform in H1 FY27?

Kalyani Forge delivered higher half-year profitability in H1 FY27, with EBITDA rising 38.81% to Rs 18.672 crore from Rs 13.4514 crore in H1 FY26. Profit after tax increased 86.72% to Rs 6.6411 crore from Rs 3.5566 crore, while earnings per share rose to Rs 18.25 from Rs 9.77.

Revenue from operations increased by Rs 1.439 crore to Rs 121.2448 crore in H1 FY27 from Rs 119.8059 crore a year earlier. The difference between 1.20% revenue growth and 38.81% EBITDA growth marked the key change in the half-year result, with profit before tax increasing by Rs 5.0996 crore from Rs 4.2925 crore.

EBITDA margin, calculated on total income, increased to 15.34% from 11.14% in H1 FY26. Kalyani Forge attributed the 420-basis-point gain to cost optimisation, Vriddhi Council initiatives and improved operating efficiency. The company defines EBITDA as profit before tax plus finance costs and depreciation and amortisation.

Why did Kalyani Forge's Q2 FY27 revenue decline?

Kalyani Forge's revenue from operations declined 2.20% to Rs 54.4486 crore in Q2 FY27 from Rs 55.6732 crore in Q2 FY26 because high-tonnage production was reduced during planned plant work. The work comprised reconditioning its 2,500-tonne press and relocating the driveline machining plant.

Despite the revenue decline, Q2 FY27 EBITDA rose 9.41% to Rs 7.7809 crore from Rs 7.112 crore. EBITDA margin increased by 158 basis points to 14.23% from 12.65%, while profit before tax rose 42.88% to Rs 3.2388 crore from Rs 2.2668 crore.

Kalyani Forge said enhanced operating efficiency and cost optimisation supported the Q2 margin result, while the press work and machining-plant relocation were intended to strengthen capacity and productivity in coming quarters. Profit after tax, however, increased only 0.53% to Rs 2.1614 crore from Rs 2.1501 crore, and earnings per share rose to Rs 5.94 from Rs 5.91; the filing does not explain the difference between pre-tax and post-tax profit growth.

What is Kalyani Forge's Rs 45 crore funding plan?

Kalyani Forge's board approved an indicative Rs 45 crore funding plan for FY27 to strengthen the balance sheet, fund working capital and support the ramp-up of new engine and wheel hub orders. Management said the plan will be executed in phases through FY27 using equity, debt and monetisation of non-core assets and inventory.

The proposed funding mix includes approximately Rs 10 crore of equity capital, subject to shareholder and regulatory approvals, and approximately Rs 20 crore of term loans and working-capital facilities from banking partners. It also includes up to Rs 20 crore from the sale of non-core assets and inventory monetisation.

The indicative components amount to up to Rs 50 crore, compared with the board-approved Rs 45 crore plan. Kalyani Forge said the individual allocations are tentative guidelines rather than definitive amounts. Managing Director and Chief Executive Officer Viraj Kalyani said the diversified pool of capital would support the order pipeline, but execution depends on approvals, financing and asset or inventory monetisation.

What working-capital and capacity issues should readers track?

Kalyani Forge reported trade receivables of Rs 141.21 crore at September 30, 2026, compared with Rs 102.65 crore at March 31, 2026. The Rs 38.56 crore increase reflected delayed customer remittances and export receipts during a change to a new banking partner, as well as slower last-time-buy volumes from legacy phase-out customers.

The banking change was undertaken for improved borrowing rates, according to the release, and Kalyani Forge identified receivables efficiency as a priority supported by the FY27 funding plan. Management said it aims to restore volumes and strengthen cash conversion in the second half after the plant work, while the filing identified customer collections, credit risk and interest rates as factors that could affect outcomes.

The reconditioning of the 2,500-tonne press and consolidation of the MCD3 driveline machining plant into MCD1 are intended to create a more compact shopfloor and free space for future expansion. Management said upgraded equipment and ramping engine and wheel hub programmes could support second-half activity, while cautioning that a single quarter does not necessarily indicate full-year results.

Conclusion

Kalyani Forge's H1 FY27 result combined revenue growth of 1.20% with EBITDA growth of 38.81% and profit-before-tax growth of 118.80%. The increase in EBITDA margin to 15.34% from 11.14% was the clearest reported measure of improved profitability, while Q2 showed earnings growth despite a 2.20% sales decline during manufacturing upgrades.

The next items to watch are phased execution of the Rs 45 crore FY27 funding plan, including approvals for approximately Rs 10 crore of equity, and the ramp-up of engine and wheel hub orders. Receivables, which stood at Rs 141.21 crore at September 30, 2026, remain an unresolved working-capital matter as Kalyani Forge addresses banking-transition delays and legacy customer volumes.