Kalyani Forge Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Kalyani Forge Ltd filed with BSE on 25 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Kalyani Forge reported Q1 FY27 revenue of ₹67.07 crore, up 3.9% year-on-year and 13.2% quarter-on-quarter, with PAT of ₹4.48 crore, up over 218% year-on-year. EBITDA margin rose to an all-time high of 16.2%, up 640 basis points year-on-year, while ROCE crossed 20% for the first time. Management attributed the improvement to operating leverage, cost-saving initiatives under the Vriddhi Council, business mix optimisation toward OEM customers, and reduced working capital cycle days.
Numbers mentioned
PAT: ₹4.48 crore (Q1 FY27)
p. 3
“Q1 FY27 PAT is ₹4.48 crore, up over 218% year-on-year from ₹1.41 crore last year.”
Viraj Kalyani, page 3 of the filed PDF · View the filing
EBITDA margin: 16.2% (Q1 FY27)
p. 3
“EBITDA margin is 16.2%.”
Viraj Kalyani, page 3 of the filed PDF · View the filing
ROCE: 22% (Q1 FY27)
p. 3
“ROCE — return on capital employed — crosses 20% for the first time; this has improved to 22%, up from 18% in the previous quarter, Q4.”
Viraj Kalyani, page 3 of the filed PDF · View the filing
PBT margin: 9.2% (Q1 FY27)
p. 3
“PBT margin is 9.2%, again up 600 basis points, and PAT margin 6.7%, up 450 basis points.”
Viraj Kalyani, page 3 of the filed PDF · View the filing
Total revenue: ₹67.07 crore (Q1 FY27)
p. 4
“Total income, or total revenue, is ₹67.07 crore, up from ₹64.53 crore in the same quarter last year and ₹59.24 crore in Q4.”
Viraj Kalyani, page 4 of the filed PDF · View the filing
Cash conversion cycle: 148 days (Q1 FY27)
p. 4
“Cash conversion cycle has improved to 148 days from 168 days in the previous quarter, with Vriddhi Council cost savings of ₹19.1 crore realised to date against a ₹50 crore annual target.”
Viraj Kalyani, page 4 of the filed PDF · View the filing
EBITDA: ₹10.89 crore (Q1 FY27)
p. 5
“EBITDA, as you can see, is the highest in the last five quarters, and probably at an all-time high level, at ₹10.89 crore; and similarly EBITDA margin at 16.2% is at an all-time high.”
Viraj Kalyani, page 5 of the filed PDF · View the filing
Debt to EBITDA: 2.51 (Q1 FY27)
p. 5
“debt to EBITDA has improved from 3.53 to 2.51, which is now below our target level.”
Viraj Kalyani, page 5 of the filed PDF · View the filing
New business as % of total revenue: 22% (Q1 FY27)
p. 7
“At 22%, we are at an all-time high in the last five quarters or possibly even more, and at an absolute level it's around ₹13 crore of the quarter's revenue.”
Viraj Kalyani, page 7 of the filed PDF · View the filing
OEM revenue: ₹40.7 crore (Q1 FY27)
p. 7
“OEM revenues have increased to ₹40.7 crore in Q1 FY27 — 31% year-on-year growth and 9% quarter-on-quarter growth.”
Viraj Kalyani, page 7 of the filed PDF · View the filing
Export sales mix: 16% (Q1 FY27)
p. 6
“Export sales mix has revived to 16% in Q1 FY27 compared to 11% in Q4.”
Viraj Kalyani, page 6 of the filed PDF · View the filing
Forging capacity utilisation: 50 to 60%
p. 12
“On the forging side, we have close to 20,000 tonnes of installed capacity, and the utilisation there is in the range of 50 to 60%.”
Viraj Kalyani, page 12 of the filed PDF · View the filing
Machining capacity utilisation: 90 to 95%
p. 12
“Out of this 1.8 lakh capacity, the utilisation is almost 90% — 90 to 95%.”
Viraj Kalyani, page 12 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — 20% · coming quarters
stated as an aspiration by Viraj Kalyani
p. 9
“We are targeting internally 20% as an EBITDA margin over the coming quarters, and this is in line with our industry benchmarks.”
Viraj Kalyani, page 9 of the filed PDF · View the filing
Vriddhi Council annual cost savings — ₹50 crore · FY27
stated as an aspiration by Viraj Kalyani
p. 9
“Our endeavour is to get as much of the ₹50 crore within this financial year as possible.”
Viraj Kalyani, page 9 of the filed PDF · View the filing
Sales CAGR — at least 20% CAGR · next five years
stated as an aspiration by Viraj Kalyani
p. 10
“In terms of sales CAGR over the next five years, again, we don't give revenue guidance, but I would say at least 20% CAGR is something we aim at.”
Viraj Kalyani, page 10 of the filed PDF · View the filing
Fixed asset turnover — ratio of two · long term
stated as an aspiration by Viraj Kalyani
p. 10
“Over the long term, we will bring this to a ratio of two.”
Viraj Kalyani, page 10 of the filed PDF · View the filing
Machining capacity — 3 lakh pieces per month · end of FY27
stated firmly by Viraj Kalyani
p. 12
“we are working on increasing this capacity to 3 lakh pieces per month by the end of FY27.”
Viraj Kalyani, page 12 of the filed PDF · View the filing
Wheel hub line commissioning — end of Q2
stated conditionally by Viraj Kalyani
p. 12
“We are expecting by the end of Q2 we should have it up and running, since it involves shifting our existing machinery from other businesses to this line and retooling the line.”
Viraj Kalyani, page 12 of the filed PDF · View the filing
FY27 capex — ₹30 crore · FY27
stated firmly by Viraj Kalyani
p. 8
“Apart from that, overall, our capex plan for FY27 is ₹30 crore, and that's what we are progressing on.”
Viraj Kalyani, page 8 of the filed PDF · View the filing
Capex funding mix — 75% debt, 25% internal accruals · FY27
stated firmly by Viraj Kalyani
p. 16
“So we're looking at 75% funding from debt and 25% from internal accruals.”
Viraj Kalyani, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said it is tied to overall passenger vehicle growth and did not give an exact figure, noting Gen 3 hubs are gaining adoption in India.
Answered by Viraj Kalyani
Asked by Ajit Sethi: How big can the wheel hub component business become?
p. 8
“So this is tied to passenger vehicle growth — it's a very large market.”
Viraj Kalyani, page 8 of the filed PDF · View the filing
Management said mathematically the savings would spread over years but they aim to capture as much as possible this year.
Answered by Viraj Kalyani
Asked by Ajit Sethi: Will the ₹50 crore of Vriddhi Council savings be fully realised in FY27?
p. 9
“if we — purely mathematically, it would spread out over the years, as it's a continuous saving once it kicks in.”
Viraj Kalyani, page 9 of the filed PDF · View the filing
Management declined to give an exact timeframe but suggested a few quarters.
Answered by Viraj Kalyani
Asked by Ajit Sethi: When will the company reach a 20% EBITDA margin?
p. 10
“I can't give an exact time period, but we are looking at several — within a few quarters.”
Viraj Kalyani, page 10 of the filed PDF · View the filing
Management cited current turnover of around 2.5-2.6 versus an industry benchmark below 2, and an aspiration for at least 20% sales CAGR.
Answered by Viraj Kalyani
Asked by Vanesh (via chat): What fixed asset turnover and sales CAGR should be expected over five years?
p. 10
“Fixed asset turnover currently is around 2.6 or 2.5.”
Viraj Kalyani, page 10 of the filed PDF · View the filing
Management said the cash conversion cycle actually reduced and cited efforts on inventory reduction, receivables management, and bill discounting.
Answered by Viraj Kalyani
Asked by Vanesh (via chat): How is the company addressing rising debtors and cash conversion days?
p. 10
“So our cash conversion cycle has actually reduced to 148 days compared to 170 last quarter.”
Viraj Kalyani, page 10 of the filed PDF · View the filing
Management said they are evaluating an equity raise, part of which would be used to repay debt, without giving numbers yet.
Answered by Viraj Kalyani
Asked by Vanesh (via chat): What are the debt repayment plans?
p. 11
“We do have plans to raise equity in the future.”
Viraj Kalyani, page 11 of the filed PDF · View the filing
Management explained the figure is annualised, so quarterly it is about ₹4.2 crore, part of which lifts EBITDA and part offsets cost inflation.
Answered by Viraj Kalyani
Asked by Saket Kapoor: Where do the ₹19 crore Vriddhi Council savings flow through in the financials?
p. 13
“This ₹19 crore is an annualised savings number, so for a quarterly amount it would be divided by four, so close to ₹4.2 crore per quarter.”
Viraj Kalyani, page 13 of the filed PDF · View the filing
Management pointed to wheel hub orders worth ₹20 crore annually, increased share of business on existing connecting rod programs, and export gear blank business moving to fully machined supply.
Answered by Viraj Kalyani
Asked by Saket Kapoor: What is the update on new order wins and their contribution to future revenue?
p. 13
“the new order wins are particularly on the wheel hubs, which I have spoken of — there's ₹20 crore annual business potential there.”
Viraj Kalyani, page 13 of the filed PDF · View the filing
Management said inquiries are continuing without a slowdown and the company is even selectively declining some RFQs outside its core portfolio.
Answered by Viraj Kalyani
Asked by Govindraj: How are forging business inquiries trending after an 18-24 month slowdown?
p. 14
“We continue to receive several RFQs every month, on which we are quoting.”
Viraj Kalyani, page 14 of the filed PDF · View the filing
Management said they are largely insulated via pass-through mechanisms with customers, though indirect material costs rose due to geopolitical disruptions and some increases were absorbed.
Answered by Viraj Kalyani
Asked by Govindraj: How much has the company been hit by raw material cost increases, and has it been passed on?
p. 14
“We are fairly well insulated from raw material price changes, because we have a pass-through mechanism with all our customers.”
Viraj Kalyani, page 14 of the filed PDF · View the filing
Management said the product portfolio is largely hedged against EV growth, especially since EV feasibility is limited in trucks, and driveline/axle products are EV-agnostic.
Answered by Viraj Kalyani
Asked by Aniruddha: How is the company positioning for the shift to EV vehicles?
p. 15
“across our entire product portfolio we are almost fully hedged to EV growth, especially in passenger vehicles.”
Viraj Kalyani, page 15 of the filed PDF · View the filing
Management said they plan to meet core customers at least once a quarter, with strategic customers on a dedicated calendar.
Answered by Viraj Kalyani
Asked by Rahul Singh: How important is direct customer engagement for new business, and how often are key customers visited?
p. 15
“So we have an internal plan of meeting our core customers at least once a quarter.”
Viraj Kalyani, page 15 of the filed PDF · View the filing
Management said the capex will be funded through a mix of debt and internal accruals in a fixed ratio.
Answered by Viraj Kalyani
Asked by Vanesh (via chat): How will the ₹30 crore capex this year be funded?
p. 16
“Yes, the capex is going to be funded by a combination of debt and internal accruals.”
Viraj Kalyani, page 16 of the filed PDF · View the filing
Risks flagged
Electrification risk in the passenger car engine business, where exposure is low but present
p. 4
“The only place where we see a lot of risk from electrification of vehicles is the engine business in passenger cars, where we have very low exposure.”
Viraj Kalyani, page 4 of the filed PDF · View the filing
Legacy agro and other business lines declining due to consolidation and phase-out
p. 6
“Agro business is down 31% due to consolidation of core businesses, with some legacy low-margin businesses being phased out.”
Viraj Kalyani, page 6 of the filed PDF · View the filing
Indirect material cost inflation from geopolitical disruption not yet fully resolved with customers
p. 14
“There were increases in indirect materials like consumables and cutting tools and so on, due to the Middle East war and disturbances which were taking place in the last five to six months.”
Viraj Kalyani, page 14 of the filed PDF · View the filing
Industry-wide push for consensus on conversion cost inflation still unresolved with some OEMs
p. 14
“This is still a work in progress, because some OEMs are also looking for an overall consensus in the industry to address this ongoing inflationary pressure.”
Viraj Kalyani, page 14 of the filed PDF · View the filing
EV adoption trend being closely monitored as a structural industry risk
p. 15
“It's an important risk that all manufacturers, all Tier 1 companies, as well as those in the automotive industry, are always strategizing on.”
Viraj Kalyani, page 15 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.