Balu Forge Industries' Q2 FY 2025-26 Quarterly Results

Result Summary

• Balu Forge Industries Ltd reported a 28.9% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 34.4%.
• Its expenses for the quarter were up by 35.2% QoQ and 38.1% YoY.
• The net profit increased 14.0% QoQ and increased 35.1% YoY.
• The earnings per share (EPS) of Balu Forge Industries Ltd stood at 5.91 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Balu Forge Industries Ltd is a company operating in the manufacturing sector, with a focus on producing high-quality forged and machined components. The company caters to a diverse range of industries including automotive, aerospace, and industrial engineering. As of October 2023, specific recent developments in the company are not available. However, the company is known for its emphasis on technological advancements and innovation in forging processes, which helps in maintaining its competitive edge in the market. Balu Forge Industries Ltd continues to expand its market presence by enhancing production capabilities and exploring new markets.

Revenue

In the second quarter of fiscal year 2026 (Q2FY26), Balu Forge Industries Ltd reported a total income of ₹302.80 crores. This represents a significant quarter-over-quarter (QoQ) increase of 28.9% from ₹234.88 crores in Q1FY26. Additionally, there is a year-over-year (YoY) growth of 34.4% compared to ₹225.38 crores in Q2FY25. These figures indicate a robust revenue performance over both the quarterly and annual periods. The growth in total income suggests an effective strategy in revenue generation through either increased sales volume, higher pricing, or a combination of both.

Profitability

During Q2FY26, Balu Forge Industries Ltd achieved a Profit Before Tax (PBT) of ₹79.92 crores, marking a QoQ increase of 14.1% from ₹70.04 crores in Q1FY26, and a YoY rise of 25.0% from ₹63.95 crores in Q2FY25. The company's Profit After Tax (PAT) for the same quarter was ₹65.04 crores, reflecting a 14.0% QoQ improvement from ₹57.03 crores in Q1FY26, and a 35.1% YoY growth from ₹48.14 crores in Q2FY25. The tax expense for Q2FY26 stood at ₹14.88 crores, which indicates a slight decrease in YoY tax expenses by 5.9% compared to Q2FY25. This decrease in tax expense coupled with increased profitability reflects positively on the company's financial health.

Operating Metrics

The total expenses for Balu Forge Industries Ltd in Q2FY26 amounted to ₹222.88 crores, showing a 35.2% QoQ increase from ₹164.84 crores in Q1FY26 and a 38.1% YoY increase from ₹161.43 crores in Q2FY25. Despite the rise in expenses, the company managed to maintain a healthy profit margin, as evidenced by the growth in both PBT and PAT. The Earnings Per Share (EPS) for Q2FY26 was ₹5.91, up by 20.9% QoQ from ₹4.89 in the previous quarter and by 38.7% YoY from ₹4.26 in Q2FY25. This improvement in EPS indicates positive earnings growth per unit of shareholder equity. These operating metrics reflect the company's ability to effectively manage its expenses while enhancing shareholder value.