Balu Forge Industries Ltd. (BFIL), a prominent player in precision engineering and manufacturing, has released its unaudited Consolidated Financial Results for Q3FY25, ending 31st December 2024, following the Board of Directors’ meeting on 7th February 2025.
BFIL delivered an impressive 73.91% year-on-year revenue growth in Q3FY25, reaching INR 2,557.83 Mn compared to INR 1,470.75 Mn in Q3FY24. This strong performance was driven by an expanding client base and heightened demand for specialized engineering products. The company’s ability to capture new market opportunities and strengthen customer relationships contributed significantly to this surge in revenue.
The company also recorded a substantial 106.95% increase in EBITDA, supported by operational expansion and a focus on high-margin, heavy-duty products. EBITDA margins improved by 422 basis points, rising from 22.24% in Q3FY24 to 26.47% in Q3FY25. This margin expansion reflects enhanced efficiency, cost optimization, and a favorable product mix, reinforcing BFIL’s strong financial health.
Profitability remained a key highlight, with Profit After Tax (PAT) soaring by 134.09% to INR 590.06 Mn in Q3FY25, compared to INR 252.07 Mn in the prior-year quarter. PAT margins also saw a significant boost, increasing by 528 basis points from 16.95% to 22.24%. This robust bottom-line growth underscores BFIL’s ability to drive sustained profitability through strategic expansion and operational excellence.
Trimaan Chandock, Executive Director of BFIL, commented: “We are excited to report a strong performance for Q3FY25, with revenue rising by 73.91% to INR 2,557.83 Mn, driven by robust demand for our specialized engineering products. EBITDA grew by 106.95% to INR 677.00 Mn, with margins expanding by 422 basis points, driven by operational efficiencies and a focus on high-margin products.” He further highlighted, “PAT grew by 134.09%, reaching INR 590.06 Mn, with PAT margins improving by 528 basis points. This sets a strong foundation for continued success.”
During the first nine months of FY25, BFIL achieved remarkable financial growth. Revenue surged by 64.03%, reaching INR 6,539.71 Mn, compared to INR 3,986.85 Mn in the same period of FY24. This strong top-line growth was driven by increased demand and operational efficiency. Additionally, the company reported a significant rise in EBITDA, which grew by 107.85% to INR 1,761.26 Mn. The EBITDA margin also expanded by 568 basis points, reflecting improved cost management and enhanced profitability.
Profitability metrics demonstrated exceptional progress, with Profit After Tax (PAT) rising by 116.34% to INR 1,411.67 Mn, compared to INR 652.53 Mn in 9M FY24. This sharp increase was accompanied by a 504 basis point improvement in PAT margins, underlining the company’s ability to translate revenue growth into bottom-line performance. These financial achievements highlight BFIL’s strong market position and effective execution of its growth strategies.
BFIL continues to drive its strategic vision through key initiatives. The company has signed a Memorandum of Understanding (MoU) with Swan Energy Ltd. to establish a Special Purpose Vehicle (SPV), aiming to strengthen its footprint in critical industries such as defense, aerospace, railways, and nuclear. Additionally, BFIL is integrating cutting-edge technology, including 7-axis CNC machining, to enhance precision and efficiency. This technological advancement positions the company to cater to high-growth sectors and maintain its competitive edge.
To support its expansion plans, BFIL is significantly increasing production capacity. The company is developing a new greenfield manufacturing campus, which will incorporate advanced technologies and energy-efficient solutions, including a dedicated solar farm. This initiative aligns with BFIL’s commitment to sustainability and operational excellence, ensuring long-term growth and resilience in an evolving market.
Management has provided guidance for FY25, expecting revenue growth between 55% and 60%, driven by new clients in sectors such as defence and railway. EBITDA margins are forecast to range from 25% to 27% for FY25, with a target of 30% to 32% for FY26 following the new plant’s commercial operations.
Founded in 1989, BFIL specializes in manufacturing fully finished and semi-finished forged components. The company serves diverse industries, including automotive, defence, oil & gas, and railways, with a global distribution network and an advanced, integrated production infrastructure. BFIL’s client base includes renowned manufacturers across various sectors, contributing to its strong market position and continued growth.
