Kalyani Forge Limited has announced a Board-approved funding plan of ₹45 crore for FY27 to strengthen its balance sheet, support working capital requirements and finance the ramp-up of new orders. The announcement coincides with the company’s financial results for the quarter and half year ended September 30, 2026, which recorded significant growth in profitability.
For the first half of FY27, Profit Before Tax (PBT) increased 118.80% year on year to ₹939.21 lakh, compared with ₹429.25 lakh in the corresponding period last year. EBITDA rose 38.81% to ₹1,867.20 lakh, while Profit After Tax (PAT) grew 86.72% to ₹664.11 lakh. EBITDA margin improved by 420 basis points to 15.34%.
In Q2 FY27, revenue from operations stood at ₹5,444.86 lakh, compared with ₹5,567.32 lakh in Q2 FY26. EBITDA increased 9.41% to ₹778.09 lakh, with the EBITDA margin expanding by 158 basis points to 14.23%. PBT grew 42.88% year on year to ₹323.88 lakh.
The marginal decline in quarterly revenue was primarily attributable to lower high-tonnage production during the planned reconditioning of the company’s 2,500-tonne press and the relocation of its driveline machining plant. These initiatives were undertaken to strengthen manufacturing capacity and improve productivity in the coming quarters. The company also completed a change of banking partner during the quarter.
The ₹45 crore funding plan will be implemented in phases during FY27 and will draw on a combination of equity, debt and the monetisation of non-core assets and inventory. The indicative structure includes approximately ₹10 crore through equity, subject to shareholder and regulatory approvals, around ₹20 crore through term loans and working capital facilities, and up to ₹20 crore through the sale of non-core assets and inventory monetisation. The measures are intended to improve liquidity, provide greater balance sheet flexibility and support the execution of new engine and wheel hub orders.
Commenting on the developments, Viraj Kalyani, Managing Director and CEO, said, “The Board’s approval of a ₹45 crore Funding Plan is the most important development of the quarter. For the first time in the Company’s transformation journey, we have taken a structural review of funding adequacy for our growth ambitions. As we have gained confidence in the Company’s operational profitability, funding growth is the next logical area of transformation.”
He added that the funding plan, alongside completed capacity upgrades and the ramp-up of new programmes, would help the company restore volumes, improve cash conversion and build on its performance in the second half of FY27. The company attributed its first-half profitability improvement to cost optimisation, Vriddhi Council initiatives and stronger operating efficiency.
Kalyani Forge Limited is a Pune-based engineering company specialising in forged and machined components. It serves automotive, commercial vehicle and industrial engineering sectors, with a focus on technology, product quality and manufacturing excellence.
