Him Teknoforge Ltd Q3 FY26 – ₹109 Cr Quarterly Sales, 125% PAT Growth, Yet ROE Still Stuck at 5%?

1. At a Glance – Smallcap, Heavy Metal, Light Returns

Him Teknoforge Ltd is a ₹193 crore market-cap auto ancillary that forges, machines, heat-treats, and occasionally tests investor patience. The stock trades at ₹204, down 12% in 3 months, while the company reported Q3 FY26 sales of ₹108.6 crore and PAT of ₹3.04 crore, a spicy 125% YoY profit jump.

Sounds great? Hold your torque wrench.

Despite improved profitability:

• ROE: 4.93% (bank FD vibes)
• ROCE: 9.33% (barely beating inflation)
• Debt: ₹158 crore
• Promoter pledge: 50.9% (sirens, not bells 🔔)

This is a company where operational recovery is visible, but capital efficiency still needs physiotherapy.

Question for you already:
👉 Is earnings growth enough when balance sheet stress is still lifting weights in the background?

2. Introduction – Forging Profits, But Also Forging Debt

Incorporated in 1973, Him Teknoforge manufactures auto and tractor components under the KAG brand, serving both OEMs and aftermarket. Think gears, axles, shafts — basically everything heavy-duty that breaks if Indian roads exist.

Over the years, the company expanded aggressively:

• 6 manufacturing units
• Multi-product portfolio
• Export footprint across Europe, US, Asia

But somewhere along the forging press, debt crept in, margins compressed, and returns on capital went into retirement mode.

Fast forward to FY25–FY26:

• Revenues stabilized
• Margins