Balu Forge Industries Limited is an India-based company, which is engaged in the manufacturing of crankshafts and other forged components and related activities. The Company offers raw forged, semi-finished, fully finished or assembled products, such as crankshafts, carriage (which include track shoe, track link, track roller, carries roller, sprocket, track chain, idler, and chassis, which include front axle beams, steering knuckles, control arm, fork, and steering). The Company is a preferred supplier of crankshafts to OEMs in India and around the world with manufacturing facilities at Belagavi in Karnataka. The Company was the first entity in India to mass-produce Crankshafts suitable for Tractor, Trucks, and Passenger car applications.
Balu Forge Industries Limited formerly known as Bell Agromachina Limited was incorporated in March 1989. The Company name was then changed from Bell Agromachina Limited to Amaze Entertech Limited on November 16, 2016, and further changed to Balu Forge Industries Limited on September 30, 2020. During 2020-21, the Company vide Business Succession Agreement dated August 3, 2021, agreed to acquire the business of M/s Balu India, a sole proprietary concern of which the business was conducted by a Proprietor Mr. Jaspalsingh Chandock. The name of Amaze Entertech Limited changed to Balu Forge Industries Limited with effect from September 30, 2020.
Balu Forge Industries Ltd is engaged in the manufacturing of fully finished and semi-finished forged crankshafts and Forged Components. It has the capability to manufacture components conforming to the New Emission Regulations & the New Energy Vehicles and has evolved into a comprehensive precision engineering company serving multiple critical sectors.
The company's extensive product portfolio includes fully finished and semi-finished forged components like crankshafts, railway wheels, transmission clutches, hydraulic motors, hooks, brake parts, etc. This diversification across automotive, railway, defense, aerospace, and industrial applications has positioned Balu Forge as a versatile manufacturer capable of serving both traditional and emerging market segments.
The Company became an approved vendor to the majority of the 41 Ordnance Factories, a part of Ordnance Factory Board in India and for supply of 181 Components to the above factories in FY 2020. The Company got accredited with the 14001: 2015 & ISO 45001: 2018 Certifications during the same period. These certifications and approvals underscore the company's commitment to quality and its capability to serve defense and government sectors with precision-engineered components.
Balu Forge Industries Ltd (BFIL), a leading precision engineering and manufacturing company, announced its audited consolidated financial results for the year ended March 31, 2025. The company achieved its highest-ever revenue from operations at ₹9,240 million, up by sixty-five percent year-on-year. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) rose by one hundred ten point eight percent to ₹2,510 million, while Profit After Tax (PAT) increased by one hundred eighteen percent to ₹2,040 million.
The EBITDA margin expanded by 591 basis points to 27.2%, and PAT margin rose to 21.7%. A final dividend of one point five percent was recommended. These exceptional margin improvements demonstrate the company's operational efficiency and ability to generate higher value from its manufacturing processes.
Balu Forge Industries Ltd's net profit jumped 121.68% since last year same period to ₹62.69 Crore in Q4 FY2024-2025. Balu Forge announced a final dividend of ₹0.15 per share, with Q4 FY25 profit up 123% YoY to ₹63 Crore. Revenue reached ₹270 Crore, a 67.3% increase YoY. The company achieved record annual revenue of ₹924 Crore, driven by growth in key sectors like defence and aerospace.
- Market Capitalization: ₹7,633 Crore.
- Revenue (FY25): ₹924 Crore.
- Profit (FY25): ₹204 Crore.
- Stock Performance: Mkt Cap: ₹7,557 Crore (up 71.6% in 1 year).
- Book Value: ₹96.2.
- Dividend Yield: 0.02%.
- ROCE: 31.3%.
- ROE: 25.4%.
The company reported net cash of ₹600 million and improved working capital days to one hundred four. Return on Capital Employed (ROCE) improved to 30.1%. Key developments included expanding forging capacity to one hundred thousand tonnes per annum, adopting advanced machining technologies, diversifying into defence, aerospace, and railways, and strengthening presence in Europe and Asia.
The company has been actively investing in technological upgrades and capacity enhancement. The major focus area for this acquisition is to move into a more elite category of machining companies that are capable of offering both advanced & critical machining solutions specific to industries like Railways, Defence, Aerospace & other critical precision industries globally. The new acquisition will enhance the capability of the company to offer more precision engineered components & further increase the product portfolio in these key industries. This new acquisition consists of 7 Axis CNC machines from a prominent German manufacturer. These possess the capability to machine parts up to 3 Meters in length.
The company reported a 123% YoY profit surge and has seen a 110% stock increase over the past year. With significant capacity expansions planned, Balu Forge is expected to achieve a revenue CAGR of 35% from FY25-28. Nuvama has initiated a BUY rating on Balu Forge Industries, projecting a target price of ₹790, citing strong growth potential in defense and industrial sectors.
"We've gathered analysts' opinions on BALU FORGE INDUSTRIES LTD future price: according to them, BALUFORGE price has a max estimate of 790.00 INR and a min estimate of 790.00 INR." This unanimous analyst target reflects confidence in the company's growth trajectory and market position.
Promoter Holding: 54.8%. Promoter holding in Balu Forge Industries Ltd has gone down to 54.85% as of May 2025 from 55.25% as of March 2025. The slight reduction in promoter holding indicates some stake dilution but maintains strong management control. The Company is almost debt-free.
Debtor days have improved from 169 to 129 days. Company's working capital requirements have reduced from 168 days to 124 days. These improvements in working capital management demonstrate enhanced operational efficiency and better cash flow management.
Cash flow from operations increased by five hundred sixty-six percent to ₹1,480 million. This substantial improvement in operational cash flows provides the company with financial flexibility for growth investments and expansion plans.
The company's strategic focus on high-value sectors like defense, aerospace, and railways, combined with its technological capabilities and strong financial performance, positions Balu Forge Industries as a compelling investment opportunity in the precision engineering and forging industry. The company's debt-free status, improving operational metrics, and aggressive expansion plans support its growth potential in serving critical industrial sectors both domestically and internationally.
