Him Teknoforge FY26: Revenue Clears ₹435 Cr, Profit Jumps 29%, and 43.7% of Promoter Stock Still Sits Pledged in a Courtroom
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1 — At a Glance
Him Teknoforge closed FY26 with revenue of ₹435.23 crore and net profit of ₹12.61 crore, a 29% jump over the ₹9.76 crore of FY25. That is the headline the company put out, and it is real. Underneath it sits a longer story. This is a ₹201 crore company carrying ₹170 crore of borrowings, running an operating margin of 10%, and turning a ROCE of 9.08% and a ROE of 5.43% — the sort of returns where the equity clocks in but never quite clocks overtime.
The profit growth is genuine; the profit level is thin. PAT margin for the year worked out to 2.9% of sales, meaning roughly ninety-seven paise of every rupee that came in went straight back out. Interest alone ate ₹18.11 crore, more than the ₹17.51 crore of pre-tax profit the business generated. Interest coverage sits at 1.97x, which is the financial equivalent of covering your rent with almost exactly your paycheque.
And then there is the footnote that refuses to stay a footnote: 43.7% of promoter holding is pledged, tied up in a years-long dispute with IFCI Venture Capital Funds now sitting before the Punjab & Haryana High Court.
A company that grew profit 29% while a chunk of its own promoters’ shares hang in litigation — that tension runs through the entire year. Read on.
2 — Introduction
Incorporated in 1973, Him Teknoforge manufactures, sells and markets automotive, non-automotive and engineering components. It makes auto and tractor parts under the brand name KAG, serving both the aftermarket and OEMs in India. The product line runs through transmission gears, pins, axle shafts, propeller-shaft components and wheel spanners — the unglamorous metal that keeps trucks and tractors turning.
Its customer roster is the kind that reads well: Mahindra & Mahindra, Ashok Leyland, Bharat Gears, VE Commercial Vehicles and Sonalika, among others. It exports to a spread of countries including Germany, the UK, the US and Southeast Asia.
FY26 brought a busy slate of corporate activity. In September 2025 the company announced a Pithampur forging plant with ₹51.75 crore of capex, targeting 14,400 MT of capacity. It exited its subsidiary Himforge Rings LLP in December 2025. A joint venture to subscribe 40% of Dinamico Axles & Drive Wheels was initiated in the September quarter and then called off, with the JV company now being struck off the register. In March 2026 it allotted 8,59,600 equity shares against convertible-warrant conversion at ₹175 per share, raising paid-up capital. Vijay Aggarwal was re-appointed Managing Director for three years from 31 January 2026.
3 — Business Model: WTF Do They Even Do?
Strip away the KAG branding and Him Teknoforge is a forging house. It takes alloy and carbon steel, heats it, beats it into shape, machines it, heat-treats it, and ships gears, shafts, axles and spider kits to the people who assemble tractors and commercial vehicles. Six manufacturing units, a stated capacity of 40,000 MT of forgings per annum and around 5 million machined components, and more than 2,000 people on the floor.
The dependency is the whole plot. Per the credit rating report, roughly 85–90% of revenue comes from the tractor manufacturing industry — a single end-market doing almost all the heavy lifting. The top five customers accounted for about 58.9% of operating income in FY25. So the business is two concentrations stacked on top of each other: one sector, five names. When tractors sneeze, this P&L reaches for a tissue.
Revenue is overwhelmingly domestic — the FY26 press release puts the split at roughly 84% domestic to 16% export. Segment-wise, tractor and agricultural implements are about 52% of revenue, commercial vehicles 37%, and others the rest.
The forging model is a brutal one to earn margin in. You buy steel, you burn power to shape it, you carry months of inventory, and your pricing lives at the mercy of raw-material swings and OEM negotiating power. Him Teknoforge does all of this competently and at scale — the numbers just show how little room the model leaves once interest and depreciation take their cut.
Does a business this dependent on tractors need a second act, or does it simply need tractors to keep selling?
