AMIC Forging FY26: A Margin Swing, Capacity Doubling, and a 2,700 bps Operating Leverage Trail

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1. At a Glance

AMIC Forging reported FY26 revenue of ₹141.78 Cr, a 17% climb from ₹120.37 Cr. More teeth: operating margin swung from 23% to 30%, a 700 bps lift in one year. Net profit landed at ₹28.27 Cr, down 20% from ₹35.56 Cr in FY25, but that fall wears a caveat—other income normalised.

Strip out “other income” and profit before tax grew 57% year-over-year: ₹38.69 Cr (FY26 ex-other income) versus ₹24.72 Cr (FY25 ex-other income). The company runs at near-full capacity—existing assets are already maxed—but Phase 1 of a ₹150 Cr expansion is scheduled to commission on 15 June 2026, hitting triple the forging capacity (18,000 MT to 40,000 MT), quadrupling machining (8,400 MT to 33,000 MT), and adding ingot from zero to 48,000 MT. The tension: a margin re-rating already baked into Q1 of the year, waiting to prove sustainable when new steel hits the furnace.

2. Introduction

AMIC Forging, incorporated in 2007, manufactures forged and machined heavy precision components for railways, power, automotive, ports, mining, and defence. The company fabricates rounds, shafts, blanks, gear couplings, hubs, flanges—all per customer spec, in carbon steel, alloy steel, stainless steel, nickel, and tool alloys to AISI, BS, IS, DIN standards. Current facility sits at Baidyabati, Hooghly.

The company listed on BSE-SME in December 2023 after an IPO that raised capital; in October 2024, it allotted 8 lakh convertible warrants at ₹1,536 each, adding ₹96.88 Cr to its war chest. On 23 December 2025, it allotted 2,60,425 equity shares to 27 non-promoter investors at the same ₹1,536 price, raising ₹400 Cr. By April 2026, those warrants converted into equity—share count now sits at roughly 1.15 Cr shares. The CFO resigned on 1 April 2026.

3. Business Model: WTF Do They Even Do?

Forging beats casting for high-stress components: tighter grain, higher density, more muscle. AMIC takes raw steel ingots, heats, hammers, and shapes—output: shafts for railways, coupling hubs for powerplants, flanges for oil & gas. A pile of these end up in critical rotating kit where a fracture kills people. In FY25 (latest full-year geography split), domestic revenue was 92.6% (₹111 Cr roughly), exports 7% (₹8.4 Cr).

“Domestic revenue in FY25 was 92.6%; exports 7%.”

The product mix is king here: the higher up the complexity ladder—precision-machined aerospace-grade forgings versus commodity shafts—the higher the margin. FY26 result announcements flag a deliberate “richer product mix,” management’s term for trading volume for margin on fewer SKUs. The company states it absorbed ₹197% higher employee cost ahead of Phase 1—hiring, training, org prep—before revenue. This is a play on operating leverage: empty factories don’t stay empty long if the order book is full.

4. Financials Overview

Consolidated figures in ₹ crore. Latest period: FY26 (Year ended March 31, 2026).

Quarterly snapshot—H2FY26 (second half):

The year-on-year PAT decline is a mirage: FY25 carried ₹20.71 Cr of “other income” (profit on investments, interest on deposits). Strip that and FY25 operating PAT was ₹14.85 Cr; FY26 is ₹28.27 Cr—a 90% jump. The filing calls PBT (excluding other income) the “cleanest measure of underlying earning power”: ₹38.69 Cr in FY26 versus ₹24.72 Cr in FY25, a 57% leap. H2FY26 turbocharged it further—PBT ex-other income hit ₹22.53 Cr, a 66% bounce from ₹13.57 Cr in H2FY25.

Management commentary: per the 30 May 2026 press release, “EBITDA margin expansion of ~900 bps — 37% (H2FY26) vs 32% (FY26)” reflects “operating leverage, mix improvement, and disciplined cost control.” “Existing capacity operated at near-full utilisation through the year, constraining volume-led growth”—meaning the revenue step came from price and mix, not more tonnes.

5. Market Expectations & Historical Multiples

This section describes how the market is currently pricing the company and how that compares with its own history and peer group. It is descriptive, not predictive.

The market currently pays 72.1x earnings here versus a peer median of 29.0x. That spread yawns wide: AMIC sits at 2.5× the industry P/E. The company’s own 3-year