1. At a Glance – Smallcap With Big Forging Ambitions
Let’s start with the spicy part.
Tirupati Forge Ltd is sitting at a ₹462 Cr market cap, trading at ₹36.8, and boasting a quarterly sales growth of 85.9% YoY. Yes, eighty-five percent. That’s not a typo. Profit for the quarter came in at ₹2.02 Cr, up 54.2% YoY.
Sounds heroic? Hold that thought.
The stock trades at P/E of 76.1, while the industry median is around 24.9. ROCE is 12.4%, ROE is 9.99%, debt-to-equity is a modest 0.21, and promoter holding stands at 49.44% (Jan 2026) after a gradual slide from above 57% two years ago.
Return over 3 months? +8%.
Return over 1 year? -7%.
Dividend? Zero.
And then comes the drama: ₹670 million capex into defence manufacturing. Solar plant commissioned. Multiple warrant conversions at ₹32. Promoter land purchase. Share dilution.
This is not just a forging company. This is a smallcap entering its “main character arc.”
Question is — are we early to the party, or just paying VIP prices for regular tickets?
2. Introduction – From Flanges to Fighter Dreams
Tirupati Forge started in 2012 manufacturing carbon steel forged flanges and automotive components. Rajkot-based. Traditional forging shop. Nothing flashy.
Then suddenly, it decided to enter defence manufacturing, build solar capacity, expand capacity, and raise money through preferential allotments.
Classic smallcap evolution story:
- Start as industrial supplier.
- Scale exports.
- Raise equity.
- Enter defence.
- Pray valuation follows.
The company currently operates with a 15,000 TPA forging capacity, with ring rolling machines and CNC capabilities. 55% revenue comes from exports. Oil & Gas contributes ~56% of revenue mix.
But here’s the twist — quarterly volatility is high. Profit growth over 5 years is strong, but TTM profit growth is negative (-28%).
So are we looking at a cyclical upturn? Or a smallcap midlife crisis?
Let’s open the hood.
3. Business Model – WTF Do They Even Do?
Imagine this: You’re an oil refinery. You need heavy steel flanges. You call Tirupati.
You’re a construction company building mining equipment. You call Tirupati.
You’re in agriculture or machine tools. You still call Tirupati.
They manufacture:
- Flanges (59% revenue)
- Specialised products (16%)
- Earth moving parts (14%)
- Gears/Shafts/Rings (7%)
- Tool discs & others
Raw steel goes in. Forged components come out.
They operate:
- Forge shop
- Ring rolling machines (150mm–500mm OD)
- CNC machines up to 800mm OD
- Paint shop
- Automatic stamping machines
Client sectors:
- Oil & Gas (55.9%)
- Construction & Mining
- Automotive
- Agriculture
Geographically:
So fundamentally, it’s a manufacturing-heavy, capex-heavy, cyclical industrial play.
But now, they want to produce 155mm M107 defence products with capacity of 150,000 per annum.
From flanges to artillery shells. That escalated quickly.
Are we witnessing diversification or distraction?
4. Financials Overview – The Numbers Don’t Lie
Latest Q3 EPS = ₹0.16
Annualised EPS = Average of Q1, Q2, Q3 EPS × 4
Q1 FY26 EPS = 0.12
Q2 FY26 EPS = 0.11
Q3 FY26 EPS = 0.16
Average = (0.12 +
