Krishanveer Forge Ltd Q3 FY26: 86% Profit Jump, Zero Debt, 20% ROCE — Small Cap Hammering Big Numbers?

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1. At a Glance – The Forging Factory That Quietly Got Fit

Small cap. ₹144 crore market cap. Zero debt. ROCE at 20%. And in Q3 FY26, profit up 86% YoY.

Welcome to Krishanveer Forge Ltd, currently trading at ₹132 with a P/E of 19 and a dividend yield of 1.91%. The stock is down ~6.9% in the last 3 months — so the market clearly hasn’t thrown a wedding procession yet.

Latest quarterly numbers?
Revenue: ₹20.33 crore
PAT: ₹1.76 crore
EPS (Q3): ₹1.61

Annualised EPS (average of Q1, Q2, Q3 × 4 as per rule):
(1.89 + 1.64 + 1.61) / 3 × 4 = ₹6.45 approx

Which magically matches TTM EPS of ₹6.46. Consistency level: CA Final student.

The company is trading at 3.3x book value with ROE of 13.8%. Not a rocket ship. Not a dud. More like that steady student who doesn’t top the class but never fails.

Question is — is this a disciplined turnaround story… or just a good year in a cyclical forging business?

Let’s open the furnace.

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2. Introduction – From Rajkumar to Krishanveer: Rebranding or Rebirth?

Founded in 1990. Renamed in 2022 from Rajkumar Forge to Krishanveer Forge. Name changed. Business same. Metal still hot.

But something else changed too.

If you look at history, this company has seen the full Bollywood script:

• Losses in 2016 and 2017
• Recovery phase 2019–2021
• Strong bounce in FY24 and FY25

Profit growth TTM: 45%
Sales growth TTM: -2%

Yes. Sales down slightly. Profit up strongly.

So margins improved. That’s called operational discipline — or commodity cycle helping you.

ROCE improved from 8.21% (Mar 2023) to 20.04% (Mar 2025).
That’s not luck. That’s tightening screws.

Also:

• Debt: ₹0 crore
• Interest coverage: 503

Five hundred and three. At this point, banks probably call them asking, “Sir loan le lo please.”

But here’s the real twist — this is a ₹144 crore company in a capital goods sector where peers are 10x–200x larger.

Can a small open die forging player punch above its weight?

Let’s see what exactly they do.

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3. Business Model – WTF Do They Even Do?

Krishanveer Forge makes open die forgings.

Translation: They heat big pieces of metal and smash them into industrial components used in heavy industries.

Not Instagram reels. Not SaaS. Just metal. Fire. Hammer.

They manufacture:

• Shafts
• Rings
• Blanks
• Square & rectangular sections
• Hollow forgings

Specialty items:

• Khuff blocks
• Y-blocks
• Studded tees
• GV bodies

Client industries:
Oil & Gas, Gearbox manufacturing, Cement plants, Sugar mills, Steel plants, Power transmission, Wind mills, Construction, Mining.

Basically, if it’s heavy and loud, they probably supply something inside it.

Manufacturing capacity:

• 11 MT single piece
• 0.5 tons pressed forgings
• 5 tons hammer forgings
• 3–16 tons closed die hammer capacity

Plant located in Pune. Exports to Singapore, Malaysia, Middle East, Europe, USA, Latin America.

Revenue breakup (FY22):

• Sale of products: 89%
• Scrap: 4%
• Job work: 6%
• Other income: 1%

So core business is manufacturing, not financial jugglery.

But here’s the real question:

Forging is a cyclical, commodity-like industry. So how defensible is their moat?

Let’s look at numbers.

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4. Financials Overview – Q3 FY26

Annualised EPS = Average of Q1, Q2, Q3 × 4
= (1.89 + 1.64 + 1.61) / 3 × 4 = ₹6.45

Metric	Latest Q3 FY26	Q3 FY25	Q2 FY26	YoY %	QoQ %
Revenue	₹20.33 Cr	₹18.16 Cr	₹20.98 Cr	11.95%	-3.1%
EBITDA	₹2.69 Cr	₹1.95 Cr	₹3.11 Cr	37.9%	-13.5%
PAT	₹1.76 Cr	₹1.21 Cr	₹1.79 Cr	45.5%	-1.7%
EPS