Balu Forge Industries Limited (BALUFORGE)
Small CapAuto stocks · Small cap · NSE
Balu Forge Industries manufactures precision machined and forged components for diverse end-markets including automotive, industrial machinery, power generation, defence, and railways. It supplies to 25 global OEMs across 80 countries, operating four facilities in India and UAE with integrated forging, heat-treatment, and machining lines.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Average · 52/100margin compression · Rev +29% YoY · PAT +16% YoY · +14% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹301 Cr | +29.2% | +14.0% |
| EBITDA | ₹85 Cr | +18.1% | +41.7% |
| Operating margin | 28.0% | -300 bps | +500 bps |
| PAT | ₹66 Cr | +15.8% | +0.0% |
| PAT margin | 21.9% | -253 bps | -307 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
FY26 Revenue from Operations grew 19.9% YoY to Rs. 11,074 Mn, with EBITDA margin at 27.0% and PAT margin at 22.7%. Q4 FY26 revenue declined 2.3% YoY and 15.3% QoQ, while EBITDA fell 20.1% YoY and 29.1% QoQ, indicating a sequential slowdown.
Balu Forge is strategically expanding into high-value defence, aerospace, and railway sectors, evidenced by new orders and NATO induction. While FY26 showed strong growth, Q4 FY26 results indicate a sequential slowdown in revenue and profitability, warranting close monitoring of execution and demand in new segments.
FY26 Order Book by Industries
Latest issuer-disclosed distribution across 6 reported categories.
Expanding in High-Value Engineering Sectors
Expanding into defence, aerospace, railways, energy, and industrial equipment with complex precision components.
Facility at Hattargi for Future Growth
Developing a 46-acre facility with machining capacity of 58,000+ MTPA and captive forging capacity of 1,00,000+ MTPA.
Acquired Integrated Manufacturing Platform
Acquired facilities from Mercedes-Benz Truck AG (Germany), Thyssenkrupp AG (France), and Ursus SA (Poland).
Ongoing Investment in Technology and R&D
Equipped with 7-axis and 11-axis machining systems and a 25-ton hydraulic hammer for high-precision forgings.
Large-caliber ammunition shell line
Commissioned a 360,000 shells per annum large-caliber ammunition shell line at its greenfield Belgaum facility.
Precision machining line
Commercialized a high-precision machining line comprising advanced 7-Axis and 11-Axis CNC machines at its Belgaum facility.
Forging capacity expansion
Forging capacity of 100,000 MTPA, planned to be expanded in phases to 150,000 MTPA.
25T hydraulic hammer
Acquired one of the world’s largest closed die forging 25T hydraulic hammer, significantly enhancing forging capacity. Presently under commissioning.
India Defence Outlook
Indian Ammunition Market Expected to Reach Rs. 107 Bn by 2030.
Global Ammunition Market
Global Ammunition Market Expected to Reach Rs. 1,714 Bn by 2030.
Defence Budget Allocation
75% of FY26 Capital Procurement Allocated for Indian Industry.
China+1 and Europe+1 Shift
The China+1 shift, alongside the emerging Europe+1 trend, is creating new opportunities with increasing production moving out of the EU.
Geopolitical Risks
Subject to certain risks and uncertainties like government actions, local political or economic developments.
Technological Risks
Subject to certain risks and uncertainties like technological risks.
Competitive Environment
Future developments in its businesses and its competitive and regulatory environment.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Full-year (FY26 YoY) provides a comprehensive view of the company's growth trajectory and strategic shifts. Quarterly (Q4 FY26 YoY and QoQ) is crucial to assess recent momentum, especially given the sequential decline in revenue and profitability, and the commissioning of new lines.
Revenue from Operations (FY26)
Rs. 11,074 Mn
EBITDA Margin (FY26)
27.0%
PAT Margin (FY26)
22.7%
ROCE (FY26)
21.7%
Non-automotive sector growth
Revenue share from the Non-automotive sector is expected to increase in the coming years as the company expands into Defence, Aerospace, and Railways.
Diversified approach
The company is well-protected from geopolitical risks and industry downturns due to its diversified approach across multiple sectors and minimal geographical concentration.
Focus on value-added components
Prioritization the production of the fully machined, value-added components, reflecting its core expertise in precision machining.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Defence, Aerospace & Railways Revenue Contribution | 13% (FY26) | Continued increase in revenue share from these high-value segments, validating strategic shift. |
| Forging Capacity Utilization | 100,000+ MTPA (planned to 150,000 MTPA) | Ramp-up and utilization rates of new forging capacity, especially the 25T hydraulic hammer. |
| Order Book Growth & Diversification | Defence, Aerospace & Railways account for ~50% of order book. | Sustained order wins and diversification across new high-value sectors and global markets. |
| Quarterly Revenue & Profitability | Q4 FY26 revenue down 15.3% QoQ, EBITDA down 29.1% QoQ. | Reversal of sequential decline and stabilization/growth in revenue and margins in upcoming quarters. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
51NeutralSMA20 +25.2% / mo · MACD − · sector -3.3pp vs Nifty (3M)
Technical chart
BALUFORGEdaily · 1Y · AUTO+24.4%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 57. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~20.1% over last month) — short-term momentum positive.
- RSI(14) at 57 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 18% off 52W high · 68% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 58 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 58 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 36.5%.
- Growth contributes 23/25 to the score.
Main drags
- Cash flow is weaker at 2/10; verify the latest quarterly trend.
- Valuation is weaker at 7/30; verify the latest quarterly trend.
- Quality is weaker at 11/20; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 81st percentile of the scored universe and 62nd percentile within Auto. Main check: cash conversion is weak at 55/100.
High Trust Lite: Promoter pledge is zero. Key concern: Promoter holding fell 1.3%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Auto: 62nd pctile, median 74 · Small: 83rd pctile, median 66
36 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸Debt/equity is 0.10.
- ▸ROCE is 22.7%.
- ▸3/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸Promoter holding fell 1.3%.
- ▸ROCE trend is -5.3%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 26.00
- P/B
- 4.38
- EV/EBITDA
- 21.98
- Market Cap
- 6969.00Cr
Profitability
- ROE
- 19.60%
- ROCE
- 22.70%
- ROA
- 14.48%
- Dividend Y
- 0.03%
Growth (CAGR)
- Revenue 5Y
- 51.00%
- EPS 5Y
- 102.00%
- Revenue 3Y
- 50.00%
- EPS 3Y
- 88.00%
Balance Sheet
- Debt/Equity
- 0.10
- Interest Coverage
- 16.42×
- Altman Z
- 8.62
- Book Value
- 131.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 2/5
- OCF
- 32.00 Cr
- EPS TTM
- 22.75
Shareholding
- Promoter Hold
- 53.51%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 65%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
Business-comparable peers in Auto — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.