This Ashish Kacholia portfolio company reports stellar Q3; net profit soars 134%

Balu Forge shares have not had a pleasant start to the year, cracking over 17 percent.

Balu Forge Industries, a portfolio company of ace investor Ashish Kacholia, delivered an impressive set of financial results for the third quarter of FY25, showcasing remarkable growth across key metrics. The company's net profit surged by an astounding 134 percent year-on-year, reaching Rs 59 crore compared to Rs 25 crore in the same period last year. Revenue from operations surged 74 percent, totalling Rs 256 crore, up from Rs 147 crore in Q3FY24.

Kacholia, who held a 1.73 percent stake in Balu Forge at the close of December 2024, has seen the company’s stellar performance unfold. The company’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) stood at Rs 68 crore for the quarter from Rs 33 crore in Q3FY24, reflecting a 107 percent increase. EBITDA margins expanded by a remarkable 422 basis points, from 22.24 percent in Q3FY24 to 26.47 percent, driven by operational efficiencies and a strategic focus on high-margin, value-added niche products.

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For the nine-month period of FY25, Balu Forge reported a 64 percent rise in revenue, which reached Rs 654 crore, up from Rs 399 crore in FY24. EBITDA more than doubled, increasing by 108 percent to Rs 176 crore, with margins improving by 568 basis points to 26.93 percent. Profit after tax (PAT) also saw a significant jump, growing by 116.34 percent to Rs 1411.67 crore, compared to Rs 652.53 crore in 9MFY24, with PAT margins expanding by 504 basis points to 21.17 percent.

In a strategic move, Balu Forge has entered into a Memorandum of Understanding (MoU) with Swan Energy Limited to create a Special Purpose Vehicle (SPV), which will target high-growth industries including defence, aerospace, railways, and nuclear. This collaboration positions Balu Forge as a formidable player in technology-driven sectors with significant growth potential.

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Balu Forge Industries is engaged in the business of fully finished and semi-finished forged components like crankshafts, railway wheels, transmission clutches, hydraulic motors, hooks, brake parts, etc.

Balu Forge shares closed at Rs 654, higher by 1.6 percent from the last close on the NSE. Balu Forge shares have not had a pleasant start to the year, cracking over 17 percent.

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