KALYANIFRG Q3 FY26 earnings call.
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Revenue
₹58.22 Cr
verification pending
Revenue YoY
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reported change
EBITDA
Pending
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Kalyani Forge reported Q3 FY26 revenue of 58.22 crore, flat sequentially, with EBITDA margin expanding to 15.7%—the highest in company history—driven by deliberate exit from low-margin business, improved material and power cost discipline, and operational stabilization through press reconditioning. PAT turned negative at -0.12 crore due to a non-cash deferred tax adjustment, which management characterized as an aberration. The new business order book stands at 162 crore (107 crore connecting rods, 45 crore driveline, 10 crore axle), with 30 crore targeted for productionization by March FY26. Capex of 25 crore is allocated 60% to future growth areas (driveline/axle). Installed capacity can theoretically produce 500 crore revenue, but current available capacity is ~200 crore with net fixed assets at 74 crore. Management flagged working capital optimization and debtor quality improvement via ERP-based credit controls as priorities. Guidance is deliberately non-specific on revenue and margins beyond stating FY26 revenue similar/slightly higher than FY25 and EBITDA margin improvement expected on full-year basis.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects FY26 revenue at similar level to last year or slightly higher, noting deliberate business rationalization ongoing alongside new business ramp-up.
- EBITDA margin expected to show some improvement for FY26 overall compared to prior year, though Q3's 15.7% represents record and focus is on stabilizing at this level.
- Company aims to productionize 30 crore of new business by March end FY26, with approximately 20 crore already done in 9 months; projects in final launch phase.
- Of 25 crore FY26 capex budget, approximately 18 crore has been spent through Q3, with remainder to be completed in Q4; turnaround time for projects monitored for efficiency.
Risks flagged
- Q3 PAT was negative at -0.12 crore due to non-cash deferred tax expense from asset capitalization. Management says it may reverse in Q4 but cannot commit. Investors questioned when to expect consistently positive PAT without such adjustments.
- Revenue grew only 2 crore QoQ despite strong margin expansion. Management denies consciously sacrificing growth but acknowledged removing bad business while adding good business simultaneously. Full-year FY26 revenue expected only similar to FY25—meaning structural topline growth has not yet materialized.
- Management admitted working capital is currently higher than desired, though ERP-based credit controls have been installed for receivables. No specific timeline or target for working capital reduction provided.
- No specific client names disclosed. Price negotiations with customers ongoing for legacy products without revisions for years—positive confirmations received but execution risk remains. Employee costs at 12% of sales remain elevated versus industry benchmarks.
Key quotes
- We are consciously removing bad business and bringing in good business into the company and this is what will improve future ability to increase sales as well as future sales and improve the margins.
- The biggest lever is EBITDA margin. That's why that has been our topmost focus. The moment you increase EBITDA margin, it just lifts up PBT as well as PAT as long as we keep depreciation and interest costs in control.
- 20% is the next milestone. So it will take a little more time but it is definitely within sight and we know the approaches for it. So I won't give an exact milestone date or expected timeframe for that.
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