Samrat Forgings Ltd (543229)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Samrat Forgings' revenue was ₹48.2 Cr (-4.8% year on year, -5.2% on the previous quarter), and net profit ₹1.2 Cr (+17.8% year on year); the operating margin was 8.8%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹48.2 | -4.8% | -5.2% |
| Operating profit | ₹4.3 | -0.7% | +0.5% |
| Net profit | ₹1.2 | +17.8% | +18.9% |
| EPS (₹) | 2.47 | +17.6% | +18.8% |
| Operating margin | 8.8% | — | — |
📢 Recent Corporate Announcements
Shareholders of Samrat Forgings Limited approved the reappointment of Mr. Rakesh M. Kumar as Managing Director for a 3-year term from December 1, 2026, to November 30, 2029. Mr. Kumar holds 11,80,100 shares in the company and brings over three decades of industrial experience. Additionally, the AGM approved the reappointment of Mr. Satish Chander Sharma as an Independent Director for a second 5-year term from June 30, 2027, to June 29, 2032. The approvals ensure leadership continuity as the company continues operations with a TTM revenue base of ₹201 Cr.
- Reappointment of Mr. Rakesh M. Kumar as MD for a 3-year term (December 1, 2026, to November 30, 2029)
- Mr. Rakesh M. Kumar holds 11,80,100 equity shares in the company
- Reappointment of Independent Director Mr. Satish Chander Sharma for a second 5-year term (June 30, 2027, to June 29, 2032)
- Approvals concluded at the company's 45th Annual General Meeting held on September 25, 2026
Samrat Forgings' Board of Directors has approved the re-appointment of Mr. Rakesh M. Kumar as Managing Director for a 3-year term from December 1, 2026, to November 30, 2029. The Board also approved the reappointment of Mr. Satish Chander Sharma as an Independent Director for a second term of 5 years from June 30, 2027, to June 29, 2032. Both appointments are subject to shareholder approval at the upcoming general meeting. The announcement ensures continuity in executive leadership for the Rs 122 crore market cap forgings company.
- Mr. Rakesh M. Kumar re-appointed as Managing Director for a 3-year term (December 01, 2026 to November 30, 2029)
- Mr. Satish Chander Sharma re-appointed as Independent Director for a second term of 5 years (June 30, 2027 to June 29, 2032)
- Both re-appointments approved by Board on August 13, 2026, subject to shareholder approval
Samrat Forgings reported a mixed Q1 FY27 performance where revenue from operations declined 4.8% YoY to ₹48.16 Cr. Despite the top-line contraction, Net Profit grew 18.3% YoY to ₹1.24 Cr, supported by a significant reduction in raw material costs and lower finance charges. Profit Before Tax (PBT) margins improved to 3.53% from 2.77% in the year-ago period. The company's EPS rose to ₹2.47 from ₹2.09 YoY, reflecting improved operational efficiency.
- Net Profit grew 18.3% YoY to ₹1.24 Cr from ₹1.05 Cr in Q1 FY26.
- Revenue from operations decreased 4.8% YoY to ₹48.16 Cr compared to ₹50.57 Cr.
- Finance costs reduced by 12.3% YoY to ₹1.68 Cr from ₹1.92 Cr.
- Cost of materials consumed as a percentage of revenue fell to 44.2% from 51.6% YoY.
- Profit Before Tax (PBT) increased 21.2% YoY to ₹1.70 Cr.
Samrat Forgings reported a mixed performance for Q1 FY27, with revenue from operations declining 4.8% YoY to ₹48.16 Cr. Despite the top-line dip, net profit grew 18.1% YoY to ₹1.24 Cr, primarily aided by a significant reduction in raw material costs and a 12.5% decrease in finance costs. The company's operating margins showed resilience, with Profit Before Tax (PBT) margins improving to 3.5% from 2.8% in the year-ago period.
- Revenue from operations decreased 4.8% YoY to ₹48.16 Cr from ₹50.57 Cr.
- Net profit increased 18.1% YoY to ₹1.24 Cr compared to ₹1.05 Cr in Q1 FY26.
- Finance costs reduced to ₹1.68 Cr from ₹1.92 Cr, a positive sign given the high D/E ratio of 2.37.
- Cost of materials consumed dropped to ₹21.28 Cr from ₹26.10 Cr YoY, improving gross margins.
- Earnings Per Share (EPS) for the quarter stood at ₹2.47, up from ₹2.09 YoY.
Samrat Forgings Ltd has scheduled a board meeting for August 13, 2026, to consider and approve the unaudited financial results for the quarter ended June 30, 2026. The company reported a TTM revenue of ₹203 Cr and a PAT of ₹4 Cr for FY26. Investors will be monitoring this quarter for the operational impact of the 6,000-ton forging press commissioned in late 2025, which was intended to diversify revenue into the railway and infrastructure sectors. The company currently operates with a high debt-to-equity ratio of 2.37 and significant customer concentration.
- Board meeting scheduled for August 13, 2026, to approve Q1 FY27 results
- Company reported TTM revenue of ₹203 Cr and OPM of 8.3% as of March 2026
- Promoter holding remains stable at 74.98% as of the latest filing
- New 6,000-ton forging press commissioned in October 2025 is expected to drive 10-12% growth
Financial Performance
Revenue Growth by Segment
Total operating income grew 17.7% YoY from INR 162.34 Cr in FY24 to INR 191.14 Cr in FY25. While segment-specific revenue is not disclosed, the company noted a recovery from a slowdown in the tractor segment which had previously caused a marginal dip in FY24 revenue.
Profitability Margins
Net profit margin improved from 1.83% in FY24 to 2.66% in FY25, representing a 45.38% increase in profitability. Operating profit margin stood at 11.57% in FY25 compared to 9.79% in FY24, an 18.18% improvement.
EBITDA Margin
EBITDA margin increased to 9.15% in FY25 from 8.21% in FY24. Absolute EBITDA grew 31.2% YoY to INR 17.49 Cr from INR 13.33 Cr.
Capital Expenditure
The company is undertaking a major capacity enhancement project with a total cost of INR 42.44 Cr. As of September 1, 2025, INR 30.04 Cr has been incurred, primarily for the installation of a 6,000-ton forging press.
Credit Rating & Borrowing
Infomerics assigned a long-term rating of IVR BBB-/Stable and a short-term rating of IVR A3 in October 2025. CRISIL migrated its ratings to BB/Stable/A4+ before withdrawing them at the company's request.
Operational Drivers
Raw Materials
Steel forgings and steel billets are the primary raw materials used for manufacturing closed-die components. Specific cost percentages per material are not disclosed.
Capacity Expansion
Current forging capacity is 15,000 MT per annum. Machining capacity includes 7,000 crankshafts and 50,000 other parts per month. A new 6,000-ton forging press line is expected to be commissioned by the end of October 2025.
Manufacturing Efficiency
Capacity utilization metrics are not explicitly disclosed, but the company is upgrading Unit-1 with a 6,000-ton press to improve production capabilities for larger components.
Strategic Growth
Expected Growth Rate
10-12%
Growth Strategy
Growth will be driven by the commissioning of the 6,000-ton forging press in October 2025, which will allow for larger component manufacturing. The company is also targeting incremental demand from existing customers and adding new clients in domestic and export markets, specifically in the infrastructure and railway sectors.
Products & Services
Steel forgings and machined components including spindles, crankshafts, connecting rods, bull gears, and crown wheels.
Brand Portfolio
Samrat Forgings Limited
New Products/Services
The 6,000-ton press will enable the production of larger and more complex forged components for the infrastructure and railway sectors.
Market Expansion
The company is expanding its presence in the infrastructure and railway sectors to reduce dependence on the tractor industry.
External Factors
Industry Trends
The forging industry is currently evolving through diversification into non-automotive sectors like railways and infrastructure to counter the cyclicality of the tractor and commercial vehicle segments.
Competitive Landscape
Operates in a competitive and fragmented domestic auto component industry, competing with other closed-die forging players.
Competitive Moat
The company's moat is built on 30+ years of promoter experience and long-standing relationships with major OEMs, which ensures repeat orders and high entry barriers for new competitors.
Macro Economic Sensitivity
High sensitivity to GDP growth and demand trends in the automotive, infrastructure, and capital goods sectors.
Consumer Behavior
OEM demand is shifting towards more complex, machined components, prompting the company's investment in higher-tonnage press lines.
Regulatory & Governance
Industry Regulations
Operations are subject to pollution control norms and manufacturing standards for the automotive and railway sectors.
Environmental Compliance
The company maintains a Safety, Health, and Environment management report, though specific ESG compliance costs are not disclosed.
Risk Analysis
Key Uncertainties
Project execution risk related to the INR 42.44 Cr capex; any time or cost overruns in the 6,000-ton press commissioning could impact financial stability.
Geographic Concentration Risk
Manufacturing operations are concentrated in Mohali, Punjab (Unit I and Unit II).
Third Party Dependencies
High dependency on a few large OEM customers for 75% of revenue.
Technology Obsolescence Risk
The company is mitigating technology risks by upgrading to a 6,000-ton forging press to meet modern OEM specifications.
Credit & Counterparty Risk
Receivables quality is moderate with an average collection period of 43 days and a debtors turnover ratio of 8.47 in FY25.
