Kalyani Forge Reports 14-Year High Profitability

FY26 PAT ₹9.32 crore, FY26 Revenue ₹238 crore.

Reader Takeaway: Strong profit growth and improved margins driven by strategic initiatives, but working capital and debt require monitoring.

What just happened

Kalyani Forge announced its financial results for the fiscal year ended March 31, 2026 (FY26). The company reported a Profit After Tax (PAT) of ₹9.32 crore on revenues of ₹238 crore. Notably, this PAT figure represents the highest profitability level seen in approximately 14 years.

Why this matters

The reported profit marks a significant turnaround for Kalyani Forge, signaling a successful execution of its business transformation strategy. The improved EBITDA margin, reaching 15.2% in the latest quarter (Q4 FY26) and maintaining an annual average of 13.3%, indicates enhanced operational efficiency and pricing power.

The backstory

Kalyani Forge has been undergoing a business transformation, now entering 'Phase 4'. This phase involves strategic reallocation of resources and aligning capital expenditure (capex) with key customer programs. The company also established a new Plant Engineering Vertical in Q4 FY26 to boost shop floor efficiency.

What changes now

The company secured new orders for EV components in the axle segment, projected to generate ₹20 crore annually. The FY26 capex was ₹23.44 crore, with ₹30 crore planned for FY27 to support growth in driveline and axle segments. Management is targeting a 20% EBITDA margin within a year, up from the current 15% baseline.

Risks to watch

Kalyani Forge is currently managing an increase in receivables due to stocking commitments with OEMs, leading to a high cash conversion cycle of 176 days in Q2 FY26. The company aims to reduce this to 120-130 days. The debt-to-equity ratio stands at 1.11, influenced by growth capex and working capital needs.

Peer comparison

While specific peer data for this filing is not provided, Kalyani Forge's focus on EV components and margin expansion aligns with broader industry trends in the automotive ancillaries sector. Competitors are also navigating similar challenges in working capital management and investment in new technologies.

Context metrics (time-bound)

• FY26 Revenue: ₹238 crore
• FY26 PAT: ₹9.32 crore
• FY26 EBITDA: ₹31.58 crore
• FY26 EBITDA Margin: 13.3%
• Q4 FY26 Revenue: ₹59.24 crore
• Q4 FY26 PAT: ₹5.88 crore
• Q4 FY26 EBITDA Margin: 15.2%
• FY26 Capex: ₹23.44 crore
• FY27 Capex Budget: ₹30 crore

What to track next

Investors will be keen to observe Kalyani Forge's progress in reducing its cash conversion cycle, managing its debt levels, and achieving its ambitious target of a 20% EBITDA margin by FY27.