LGB Forge Ltd (533007)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, LGB Forge's revenue was ₹28.1 Cr (+1.6% year on year, +9.4% on the previous quarter), and net profit ₹10.3 Cr; the operating margin was 5.3%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹28.1 | +1.6% | +9.4% |
| Operating profit | ₹1.5 | -10.3% | +123.7% |
| Net profit | ₹10.3 | — | from loss |
| EPS (₹) | 0.43 | +975.0% | from loss |
| Operating margin | 5.3% | — | — |
📢 Recent Corporate Announcements
LGB Forge Limited conducted its 20th Annual General Meeting on August 14, 2026, via video conferencing. A total of 49 members representing 7,84,43,805 equity shares attended the proceedings. Key business items transacted included the adoption of FY26 audited financial statements, the reappointment of Director Smt. Rajsri Vijayakumar, and approval for material related-party transactions with L.G. Balakrishnan & Bros Limited. Remote e-voting was held between August 11 and August 13, 2026, and final voting results will be disclosed following the scrutinizer's report.
- 49 members representing 7,84,43,805 equity shares attended the 20th AGM via VC/OAVM
- 3 resolutions were placed before shareholders, including approval of material related-party transactions with L.G. Balakrishnan & Bros Limited
- Remote e-voting was open from August 11, 2026 (9:00 AM) to August 13, 2026 (5:00 PM)
- 3 out of 9 registered speaker shareholders raised queries during the meeting, which concluded at 3:53 PM
LGB Forge reported its Q1 FY27 results featuring a significant exceptional gain of ₹10.06 Cr from a land sale, which is highly material given the company's total net worth of ₹16 Cr. The board has also proposed altering the company's Object Clause in the Memorandum of Association to allow for business diversification beyond its core forging operations. In a notable management change, Arjun Parthasarathy (related to the MD) was appointed as an Additional Director. However, the company also disclosed the resignation of its statutory auditors, which requires careful monitoring by investors.
- Recorded an exceptional gain of ₹1,005.52 lakhs (₹10.06 Cr) from the sale of land during the quarter ended June 30, 2026
- Exceptional gain represents approximately 63% of the company's total Net Worth of ₹16 Cr
- Proposed alteration of the Memorandum of Association (MOA) to explore new business opportunities and diversification
- Appointment of Arjun Parthasarathy as Additional Director, bringing 18 years of experience in the metal forming industry
- Disclosure of the resignation of Statutory Auditors, with a postal ballot to be conducted for shareholder approvals
LGB Forge reported its Q1 FY27 results, featuring a significant one-time exceptional gain of Rs 10.06 Cr from a land sale, which represents approximately 63% of the company's current net worth. The board also announced the resignation of its statutory auditors and the appointment of Arjun Parthasarathy (a related party to the MD) as a director. Furthermore, the company is seeking shareholder approval to diversify its business objects beyond core forging. These developments come as the company struggles with a high debt-to-equity ratio of 1.75 and negative TTM earnings.
- Realized an exceptional gain of Rs 1,005.52 lakhs (Rs 10.06 Cr) from the sale of land in Q1.
- Statutory Auditors N.R. Doraiswami & Co have resigned, effective as per the board meeting date.
- Proposed alteration of the Memorandum of Association (MOA) to allow for business diversification.
- Appointed Arjun Parthasarathy, brother-in-law of the Managing Director, as an Additional Director.
- TTM revenue stands at Rs 103 Cr against a market capitalization of Rs 139 Cr.
LGB Forge reported its Q1 FY27 results (ending June 30, 2026), featuring a significant exceptional gain of Rs 10.06 Cr from a land sale, which represents approximately 63% of its current net worth. The board has also proposed amending the Memorandum of Association (MOA) to alter the 'Object Clause,' signaling a strategic intent to diversify into new business areas. Additionally, Arjun Parthasarathy, who has 18 years of industry experience and is related to the Managing Director, has been appointed as a Non-Executive Director. The company will seek shareholder approval for these changes via postal ballot.
- Recorded an exceptional gain of Rs 1,005.52 lakhs (Rs 10.06 Cr) from the sale of land in Q1 FY27.
- Proposed alteration of the MOA Object Clause to facilitate business diversification beyond core forging.
- Appointed Arjun Parthasarathy as Additional Director effective August 11, 2026, subject to shareholder approval.
- TTM revenue stands at Rs 103 Cr with a low operating profit margin of 3.0%.
- Debt-to-Equity ratio remains high at 1.75 based on a net worth of Rs 16 Cr.
LGB Forge reported its Q1 FY27 results featuring a significant exceptional gain of Rs 10.05 crore from a land sale, providing a liquidity boost to the loss-making entity (TTM PAT of -Rs 2 crore). The board appointed Mr. Arjun Parthasarathy, who has 18 years of industry experience and is the brother-in-law of the Managing Director, as an Additional Director effective August 11, 2026. Additionally, the company is seeking shareholder approval to alter its Memorandum of Association (MOA) to facilitate business diversification. Notably, the filing also mentions the resignation of the Statutory Auditors, a development that requires close monitoring.
- Exceptional gain of Rs 1,005.52 lakhs (Rs 10.05 cr) recorded in Q1 FY27 from the sale of land
- Appointment of Mr. Arjun Parthasarathy as Additional Director (Non-Executive) with 18 years of experience in metal forming
- Proposed alteration of the MOA Object Clause to allow for business diversification and expansion
- Disclosure regarding the resignation of the Statutory Auditors as per SEBI Master Circular
- Land sale gain represents approximately 7.2% of the company's current market capitalization of Rs 139 cr
LGB Forge reported its Q1 FY27 results (quarter ended June 30, 2026) featuring a significant exceptional gain of Rs 10.05 crore from a land sale, which is substantial compared to its TTM revenue of Rs 103 crore. However, the company also announced the resignation of its Statutory Auditors, N.R. Doraiswami & Co, a development that typically warrants caution. The board has approved the appointment of Arjun Parthasarathy (brother-in-law of the MD) as a Non-Executive Director and is seeking shareholder approval to alter the company's Object Clause for business diversification.
- Recognized an exceptional gain of Rs 1,005.52 lakhs (Rs 10.05 Cr) from the sale of land during the quarter.
- Statutory Auditors N.R. Doraiswami & Co have resigned, effective as per the SEBI Master Circular dated January 30, 2026.
- Proposed alteration of the Memorandum of Association (MOA) Object Clause to facilitate business diversification and expansion.
- Appointed Arjun Parthasarathy as Additional Director effective August 11, 2026, who brings 18 years of experience in the metal forming industry.
- Board meeting concluded at 01:40 p.m. on August 10, 2026, approving a Postal Ballot for these special businesses.
LGB Forge reported its Q1 FY27 results, featuring a significant exceptional gain of Rs 10.06 Cr from a land sale, which represents approximately 63% of the company's current net worth (Rs 16 Cr). The Board also approved the appointment of Arjun Parthasarathy as a Non-Executive Director and proposed altering the company's Object Clause to facilitate business diversification. Notably, the company disclosed the resignation of its statutory auditors, a development that requires close monitoring by investors.
- Exceptional gain of Rs 1,005.52 lakhs (Rs 10.06 Cr) recorded from the sale of land in Q1 FY27.
- Proposed alteration of the Memorandum of Association (MOA) to include new business objects for diversification beyond core forging.
- Appointment of Arjun Parthasarathy (MD's brother-in-law) as Additional Director effective August 11, 2026.
- Disclosure of the resignation of Statutory Auditors as per SEBI Master Circular requirements.
- Board approval for a Postal Ballot to seek shareholder consent for MOA/AOA changes and director appointment.
LGB Forge has scheduled a board meeting for August 10, 2026, to consider and approve the unaudited standalone financial results for the quarter ended June 30, 2026. The company is currently navigating a challenging financial period with a TTM net loss of ₹2 Cr and a high debt-to-equity ratio of 1.75. Investors will be monitoring these results for signs of margin recovery, as the operating profit margin stood at a thin 3.0% in the trailing twelve months. The trading window for insiders has been closed since July 1, 2026, in anticipation of this announcement.
- Board meeting scheduled for August 10, 2026, to approve Q1 FY27 results.
- Trading window for insiders closed from July 1, 2026, until 48 hours post-results.
- Company reported a net loss of ₹0.51 Cr in the most recent quarter (March 2026).
- TTM revenue stands at ₹103 Cr against a market capitalization of ₹138 Cr.
- Promoter holding remains stable at 72.89% as of March 2026.
LGB Forge has released its FY2025-26 Annual Report and scheduled its 20th AGM for August 14, 2026. A significant agenda item is the approval of material related party transactions (RPT) with L.G. Balakrishnan & Bros Limited for up to ‡75 crore, which is approximately 73% of the company's TTM revenue. The company remains in a loss-making position with a TTM PAT of -‡2 crore on revenue of ‡103 crore. Management changes include the appointment of Venkatesan N as CFO effective March 11, 2026.
- Proposed material related party transactions with L.G. Balakrishnan & Bros Ltd up to ‡75 crore
- 20th Annual General Meeting scheduled for August 14, 2026, via Video Conferencing
- Venkatesan N appointed as Chief Financial Officer effective March 11, 2026
- Top 5 customers contribute approximately 75% of total sales, indicating high concentration risk
- Debt stands at ‡28 crore against a net worth of ‡16 crore, resulting in a D/E ratio of 1.75
LGB Forge has scheduled its 20th Annual General Meeting (AGM) for August 14, 2026. A key agenda item is the approval of Material Related Party Transactions (RPT) with L.G. Balakrishnan & Bros Limited for up to ₹75 Crores. This proposed limit represents a significant 72.81% of the company's FY26 consolidated turnover, an increase from the ₹60 Crore limit approved in the previous year. The company remains heavily dependent on its promoter group for business, with the top 5 customers accounting for 75% of sales.
- 20th AGM scheduled for August 14, 2026, to be held via Video Conferencing.
- Proposed Material Related Party Transaction limit of ₹75 Crores with L.G. Balakrishnan & Bros Limited.
- The ₹75 Cr limit accounts for 72.81% of the annual consolidated turnover for FY 2025-26.
- The new limit is a 25% increase over the previous year's approved limit of ₹60 Crores.
- Agenda includes the re-appointment of Smt. Rajsri Vijayakumar as a Director.
Financial Performance
Revenue Growth by Segment
The company operates in a single segment (Forging and Machining) which generated INR 94.04 Cr in FY2024-25, representing a 5.21% YoY growth from INR 89.38 Cr in FY2023-24. Total income including other sources rose 5.28% to INR 94.75 Cr.
Geographic Revenue Split
Domestic sales dominate the revenue profile at 81% (approximately INR 76.17 Cr), while export markets contribute 9% (approximately INR 8.46 Cr) as of fiscal 2025.
Profitability Margins
Net loss narrowed significantly by 87.6% from INR 9.87 Cr in FY2023-24 to INR 1.22 Cr in FY2024-25. Operating margins turned positive to 2.3% in FY2025 from a loss of 1.09% in FY2024 due to softening raw material prices and cost efficiencies.
EBITDA Margin
Operating profit margin improved to 6% in Q1 FY2026 compared to a loss of 1.8% in Q1 FY2025. This 780 basis point improvement was driven by better fixed cost absorption and execution of higher-margin orders.
Capital Expenditure
Planned capital expenditure for fiscal 2026 is INR 4 Cr, to be funded through internal accruals. Additionally, the company is receiving INR 6 Cr in support from its parent LGB for the purchase and lease of secondhand press machines.
Credit Rating & Borrowing
Crisil reaffirmed 'Crisil BBB-/Stable/Crisil A3' ratings in October 2025. ICRA previously assigned 'BB+ (Stable)' and 'A4+' before withdrawing them at the company's request in February 2025. Debt levels reduced to INR 19 Cr in March 2025 from INR 29 Cr in March 2024.
Operational Drivers
Raw Materials
Forging raw materials (primarily steel) represent the largest cost component, with cost of materials consumed at INR 43.01 Cr, accounting for 45.7% of total revenue in FY2025.
Import Sources
Not specifically disclosed in available documents, though the company caters to 85% domestic and 15% export markets, suggesting primarily domestic sourcing.
Capacity Expansion
Current capacity includes 1,080 MTPA at Coimbatore (Cold Forging) and 6,000 MTPA at Mysore (Hot Forging). Expansion includes a new plant in Chennai expected to begin operations by mid-2026 and a newly leased plant in Coimbatore to meet increased demand.
Raw Material Costs
Raw material costs rose 2.4% YoY to INR 43.01 Cr in FY2025. The company is focusing on product-mix optimization to mitigate price volatility and improve margins.
Manufacturing Efficiency
Efficiency is being driven by process improvements and refurbishment of press machines, which led to a 6% operating margin in Q1 FY2026 through better fixed cost absorption.
Logistics & Distribution
Distribution costs are expected to decrease following the planned setup of facilities closer to customer locations, which will directly improve operating margins by 5-7% over the medium term.
Strategic Growth
Expected Growth Rate
17-27%
Growth Strategy
Growth will be achieved through a target revenue of INR 110-120 Cr driven by a healthy order book, the refurbishment of aging machinery to reduce downtime, and the addition of new manufacturing lines in Chennai and Coimbatore. The company is also shifting its product mix toward higher-margin orders.
Products & Services
Forged (hot, warm, and cold) and machined components for passenger vehicles (PV), commercial vehicles (CV), and tractor segments.
Brand Portfolio
LGB Forge (operating under the flagship LGB Group).
New Products/Services
Focusing on higher-margin product mixes in the forging segment; specific new product names were not disclosed.
Market Expansion
Expanding manufacturing footprint with a new facility in Chennai (operational by mid-2026) and a leased plant in Coimbatore to support customer demand.
Market Share & Ranking
Relatively small player in a highly competitive forging industry with low market share compared to larger competitors.
Strategic Alliances
Strong operational and financial linkage with parent L.G. Balakrishnan & Bros Limited (LGB), which provides managerial support and leasing of machinery.
External Factors
Industry Trends
The forging industry is currently facing a shortage of skilled labor and rising energy costs. The company is positioning itself by automating/refurbishing lines to improve fixed cost absorption as the industry shifts toward higher precision components.
Competitive Landscape
Faces intense competition from larger, more integrated forging companies which restricts pricing power and market share growth.
Competitive Moat
Moat is derived from the 'LGB' brand heritage (founded 1937) and longstanding relationships with Tier-1 auto suppliers. Sustainability is supported by the parent company's willingness to provide unsecured loans (INR 2 Cr in FY25) and lease equipment.
Macro Economic Sensitivity
Highly sensitive to the automotive cycle across PV, CV, and tractor segments; however, diversification across these three segments provides a hedge against a slump in any single category.
Consumer Behavior
Demand is driven by Tier-1 suppliers who are increasingly requiring uninterrupted supply and higher quality standards, prompting the company's current capex in new facilities.
Geopolitical Risks
Global geopolitical instability is cited as a threat that could increase input costs and disrupt the delivery of forged products.
Regulatory & Governance
Industry Regulations
Complies with SEBI Listing Obligations and Disclosure Requirements (LODR) 2015 and the Companies Act 2013. The company maintains a 'Code of Conduct' for insider trading and fair disclosure of UPSI.
Risk Analysis
Key Uncertainties
Machinery reliability is a key risk; historical breakdowns led to revenue dips. Financial risk is moderate with a networth of INR 18 Cr and past losses affecting capital reserves.
Geographic Concentration Risk
High concentration in Southern India with plants in Coimbatore (Tamil Nadu) and Mysore (Karnataka), and a new facility coming up in Chennai.
Third Party Dependencies
High dependency on the parent company (LGB) for financial support, machinery leasing, and managerial guidance.
Technology Obsolescence Risk
High risk due to 'very old' machinery (18+ presses) which required a major refurbishment plan to remain competitive against modern forging technologies.
Credit & Counterparty Risk
Debtors Turnover Ratio of 3.34 in FY2025 (up from 2.73) suggests improving receivables management and moderate credit risk from Tier-1 auto clients.
