Kalyani Forge Ltd: ₹244 Cr Sales, ₹9 Cr PAT – Forging Profits with a Hammer and Chisel
1. At a Glance
Kalyani Forge is that rare smallcap auto-ancillary stock that actually makes money instead of excuses. With ₹244 Cr in sales, ₹9.4 Cr PAT, and a shiny ₹700 share price, it looks like a mid-size hammer — not huge, but can still break bones. The problem? Growth is slower than Indian Railways pantry service, but profits are quietly compounding.
2. Introduction
Imagine an old-school blacksmith in Pune who somehow survived the EV revolution, GST, and half a dozen CFO resignations. That’s Kalyani Forge. Incorporated in 1979, the company literally forges hot, warm, and cold steel into auto parts — from chassis systems to turbochargers.
Clients? Daimler, Honda, Tata, Cummins, JCB. Basically, the who’s who of automotive royalty. But here’s the twist: while the customers are racing ahead with EV launches and fancy IPOs, Kalyani Forge is still reporting sales growth of just 3% CAGR over 5 years. It’s like being Virat Kohli’s bat supplier — you’re in the game, but nobody cheers for you.
Still, profits are up 142% YoY (FY25). So maybe this is the small, strong underdog that doesn’t trend on Twitter but quietly forges cash.
3. Business Model (WTF Do They Even Do?)
Kalyani Forge manufactures close-tolerance precision forged parts. Translation: they take lumps of metal, heat them, beat them, shape them into:
Chassis parts,
Engine and transmission gears,
Driveline and suspension bits,
Turbocharger parts.
Services include design, machining, heat treatment, warehousing, and door-to-door delivery. Basically, they’re like Swiggy for forged metal.
End users: Automotive (primary), plus construction, mining, power, marine, and railways. Lately, they’ve been developing products for EV drivelines — so yes, even electric cars need parts that someone has to hammer out.
4. Financials Overview
Latest Quarter (Jun’25 vs YoY vs QoQ):
Metric
Latest Qtr (Jun’25)
YoY (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹64.1 Cr
₹56.7 Cr
₹58.9 Cr
+13.0%
+8.8%
EBITDA
₹5.9 Cr
₹3.8 Cr
₹6.4 Cr
+55.1%
-7.0%
PAT
₹1.41 Cr
₹0.35 Cr
₹2.23 Cr
+303%
-37%
EPS (₹)
3.9
0.96
6.1
+306%
-36%
👉 Revenue up nicely YoY, PAT tripled YoY, but fell QoQ because costs bit harder. Annualised EPS = ₹15–16 → P/E ~43 (on annualised Q1). On FY25 EPS ₹25.8 → P/E = 27. Not dirt cheap, not Titan-expensive.
