Tirupati Forge Q2 profit climbs 238% as income rises 51%

Tirupati Forge Limited reported profit after tax of Rs 4.12 crore in Q2FY27, a 238% quarter-on-quarter increase from Rs 1.22 crore, while total income rose 51% to Rs 58.15 crore as management cited robust demand from the North American market during the quarter.

How much did Tirupati Forge earn in Q2FY27?

Tirupati Forge recorded total income of Rs 58.15 crore and profit after tax, or PAT, of Rs 4.12 crore in Q2FY27. The company’s Q2FY27 update compares these figures with total income of Rs 38.43 crore and PAT of Rs 1.22 crore in Q1FY27. The presentation describes the income increase as 51% and the PAT increase as 238% on a quarter-on-quarter basis.

The sequential expansion in income was Rs 19.72 crore, while PAT increased by Rs 2.90 crore between Q1FY27 and Q2FY27. Tirupati Forge labels the Rs 58.15 crore metric as total income in its chart, although the accompanying Q2FY27 commentary also says revenue increased to the same figure. The presentation does not provide a year-on-year comparison, segment-wise revenue or a cost breakdown for the quarter.

What drove Tirupati Forge’s Q2FY27 income growth?

Tirupati Forge attributed the rise from Rs 38.43 crore in Q1FY27 to Rs 58.15 crore in Q2FY27 to robust demand from the North American market. Its chairman said the company had seen healthy business growth, particularly from North America, and referred to demand across key markets. The Q2FY27 update separately repeats that strong demand from North America fuelled sales.

International markets are material to Tirupati Forge’s existing business mix: the company says 55% of its revenue is attributed to overseas markets, including the United States, Canada, Malaysia, Europe and African countries. This disclosure gives context to management’s North American demand comment, but the presentation does not disclose North American sales, customer concentration, export volumes or the share of Q2FY27 income generated by any individual market.

Did Tirupati Forge’s profitability improve faster than income?

Yes. Tirupati Forge’s stated 238% quarter-on-quarter PAT growth was higher than its 51% total-income growth, while EBITA, or earnings before interest, taxes and amortisation, increased 74% to Rs 8.188 crore. EBITA was Rs 4.703 crore in Q1FY27, meaning the reported operating-profit measure rose by Rs 3.485 crore in Q2FY27. Management described the quarter as reflecting improving operating performance and a significant improvement in profitability.

Calculated against reported total income, PAT represented about 7.1% in Q2FY27, compared with about 3.2% in Q1FY27, an increase of roughly 3.9 percentage points. EBITA represented about 14.1% of total income in Q2FY27 versus about 12.2% in Q1FY27. These are calculations from the presentation’s reported figures, not company-provided margin guidance; Tirupati Forge does not disclose the interest, tax, depreciation, amortisation or other cost movements behind the change.

How does Tirupati Forge’s manufacturing base support overseas demand?

Tirupati Forge says it has an installed manufacturing capacity of 15,000 tonnes per annum, or TPA, and a manufacturing unit spread across 5 acres with in-house testing and research and development laboratories. The company also says it has more than 15 years of experience manufacturing forged and machined components. Its stated overseas revenue share of 55% indicates that export markets already account for more than half of the business before the Q2FY27 North American demand increase.

The company lists customers or end-use exposure across oil and gas, aerospace, defence, automotive, power and mining, rather than reporting quarterly sales by sector. Its forging operation has stated capacity of 15,000 TPA, ring rolling capacity of 15,000 TPA and hydraulic extrusion press capacity of 10,000 TPA. These installed-capacity figures describe the operating base, but Tirupati Forge does not disclose Q2FY27 utilisation, production volumes, export realisations or capacity-expansion spending.

What is Tirupati Forge’s defence manufacturing progress?

Tirupati Forge completed its first batch of 200 units of 155mm M107 empty shells and expects commercial production to commence in Q4 FY27. The company says the Defence team completed final inspection at its facility and that proof-testing results are awaited. It also says it received a manufacturing licence from the Department for Promotion of Industry and Internal Trade, or DPIIT, during this progress phase.

For the 155mm extended range full bore, or ERFB, shell body, Tirupati Forge says it has completed forging and machining and expects commercial production by H1 FY28. Management said multiple prospective customers in international markets had expressed commercial interest in the product. The presentation calls the defence order-book visibility encouraging, but it does not provide an order-book value, customer names, order quantities, pricing, proof-testing outcome or revenue contribution from defence in Q2FY27.

Conclusion

Tirupati Forge’s Q2FY27 figures show a sequential increase in total income to Rs 58.15 crore alongside a faster increase in PAT to Rs 4.12 crore. North American demand was management’s stated driver of the 51% income rise, while the 74% EBITA increase and 238% PAT increase show that reported profitability expanded faster than sales during the quarter.

The next disclosed milestones are proof-testing results for the initial 200 M107 shells, expected M107 commercial production in Q4 FY27, and planned ERFB shell-body commercial production by H1 FY28. Tirupati Forge has not disclosed the value of its defence order book or the financial contribution expected from these products.