Balu Forge Industries Ltd, a key player in precision engineering and manufacturing, has released its unaudited consolidated financial results for the quarter ended 30th June 2025. Balu Forge Industries Ltd reported a strong start to the fiscal year, with revenue from operations reaching ₹2,332 million in Q1 FY26. This represents a 33% increase over the same period last year, largely driven by a more advanced product mix and enhanced operating scale as the company continues to optimize its manufacturing processes.
Gross profit for the quarter rose significantly to ₹891 million, marking a 50.1% year-on-year increase. This growth was supported by rising demand for complex, high-value components, particularly in sectors that rely on precision-engineered solutions. The company’s strategic shift toward high-margin products continues to deliver tangible financial results.
EBITDA for the quarter stood at ₹723 million, reflecting a 67.3% increase compared to Q1 FY25. This performance was fueled by improvements in production efficiency, as well as the integration of high-margin machining capabilities that allowed the company to extract more value from its operations.
Net profit came in at ₹570 million, a 66.9% increase year-on-year. This strong performance was underpinned by disciplined cost management, expanded margins, and the company’s growing presence in international markets. Despite external challenges, Balu Forge continues to demonstrate resilience and financial strength.
Commenting on the quarterly performance, Executive Director Jaspal Singh Chandock noted that precision engineering is undergoing a fundamental shift, both globally and in India. As manufacturing moves toward real-time, tech-driven systems, precision components are becoming central to industrial transformation. Despite a volatile macro environment, the company posted healthy growth, with margins improving by 635 basis points.
He also acknowledged that while the quarter saw a modest sequential dip—attributable to global tensions, regional instability, and fluctuating tariffs—profitability remained intact. The company continued to push forward with focused execution, maintaining operational momentum and strategic clarity throughout the period.
Operationally, the company made significant strides in capacity building. Key developments included the addition of a new Empty Shell production line, the commissioning of a 25T Hydraulic Hammer—one of the largest in its category globally—and the installation of cutting-edge 7-axis and 11-axis machining centers. The company also began scaling unit component weights beyond 1 ton, with plans to gradually reach 1.5 tons.
Looking forward, Balu Forge is increasing its forging capacity from 100,000 to 150,000 tons annually, while machining capacity is expected to grow from 45,000 to 80,000 tons. The greenfield facility under development remains on track, with new capacities expected to be operational within the current fiscal year. Backed by strong infrastructure and a diversified customer base, the company remains focused on positioning India as a global center for precision engineering.
Operating from a 46-acre facility in Belgaum, Karnataka, Balu Forge houses integrated forging lines, CNC machining units, in-house tooling, and metallurgical labs. With a sharp focus on innovation, automation, and R&D, the company continues to invest in next-generation manufacturing. Its strategic roadmap emphasizes defence sector growth, automation upgrades, global partnerships, and sustainability initiatives.
