Amic Forging Ltd (544037)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, Amic Forging's revenue was ₹75.0 Cr (+29.3% year on year, +11.9% on the previous half-year), and net profit ₹16.0 Cr (+23.1% year on year); the operating margin was 33.3%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹75.0 | +29.3% | +11.9% |
| Operating profit | ₹25.0 | +56.2% | +38.9% |
| Net profit | ₹16.0 | +23.1% | +33.3% |
| EPS (₹) | 14.77 | +20.8% | +25.0% |
| Operating margin | 33.3% | — | — |
📢 Recent Corporate Announcements
Amic Forging Limited announced the outcome of its Board meeting held on August 31, 2026. The Board approved the re-appointment of M/s Kumar Sanjeev and Associates as Internal Auditors for FY 2026-27. Additionally, M/s Sohan Lal Jalan & Associates was re-appointed as Cost Auditors for FY 2026-27, with remuneration subject to shareholder approval at the upcoming Annual General Meeting. These represent routine statutory compliance updates with no direct impact on financial or operational performance.
- Re-appointed Kumar Sanjeev and Associates (FRN: 328267E) as Internal Auditors for FY 2026-27
- Re-appointed Sohan Lal Jalan & Associates (FRN: 000521) as Cost Auditors for FY 2026-27
- Cost Auditor remuneration subject to approval at the upcoming Annual General Meeting
- Board meeting commenced at 3:30 PM and concluded at 5:00 PM on August 31, 2026
Amic Forging has completed the allotment of 26,200 equity shares and 14,22,900 convertible warrants at a price of ₹1,525 per unit. The total potential capital infusion is approximately ₹221 crore, with ₹58.24 crore (₹4 crore from equity and ₹54.25 crore from the 25% warrant subscription) received immediately. The issue saw participation from marquee investors including Motilal Oswal Financial Services and Mukul Mahavir Agrawal. The warrants are convertible into equity within 18 months upon payment of the remaining 75% consideration.
- Allotted 14,22,900 convertible warrants at an issue price of ₹1,525 each, totaling ₹216.99 crore
- Immediate cash inflow of ₹54.25 crore received as 25% upfront warrant subscription price
- Marquee investors include Motilal Oswal (5,63,900 warrants) and Mukul Mahavir Agrawal (3,27,800 warrants)
- Allotted 26,200 equity shares at ₹1,525 per share, aggregating to ₹3.99 crore
- Warrants are convertible into equity shares within a maximum period of 18 months
Amic Forging has completed the allotment of 26,200 equity shares and 14,22,900 convertible warrants on a preferential basis at a price of Rs. 1,525 per unit. The total potential fundraise is approximately Rs. 221 crore, with the company receiving an immediate cash inflow of ~Rs. 58.24 crore (100% of equity and 25% of warrant subscription). Notable allottees include Motilal Oswal Financial Services and Mukul Mahavir Agrawal. The warrants are convertible into equity within 18 months upon payment of the remaining 75% consideration.
- Allotment of 14,22,900 convertible warrants at a fixed price of Rs. 1,525 each
- Immediate receipt of Rs. 54.24 crore representing 25% of the warrant subscription price
- Allotment of 26,200 equity shares to Kvasa Capital at Rs. 1,525 per share
- Participation from marquee investors including Motilal Oswal (5,63,900 warrants) and Mukul Agrawal (3,27,800 warrants)
- Warrant holders have 18 months to exercise conversion by paying the balance 75% (Rs. 162.74 crore)
Financial Performance
Revenue Growth by Segment
The company operates in a single business segment (Forging), hence segment-wise performance reporting is not applicable. Overall profitability showed significant growth with Net Profit Margin increasing by 167.43% YoY.
Profitability Margins
Operating Profit Margin improved significantly to 37.78% in FY2025 from 15.16% in FY2024 (a 149.20% increase). Net Profit Margin rose to 29.31% from 10.96% in the previous year, representing a 167.43% improvement due to a substantial increase in profit after tax.
EBITDA Margin
Operating Profit Margin (EBITDA-based) stands at 37.78%, up 149.20% YoY. This core profitability surge is attributed to operational efficiencies and increased scale.
Capital Expenditure
The company is pursuing capacity expansion and backward integration to enhance operational efficiency; however, specific historical or planned INR Cr values for CapEx are not disclosed in the provided documents.
Credit Rating & Borrowing
The company has significantly reduced its reliance on debt, with the Debt-Equity Ratio improving from 0.06 in 2024 to 'NA' (negligible) in 2025. Interest Coverage Ratio increased by 225.1% to 118.58 due to the repayment of borrowings and increased profits.
Operational Drivers
Raw Materials
Steel is the primary raw material used in the forging process. While the exact percentage of total cost is not specified, the company identifies raw material volatility as a significant risk to profitability.
Capacity Expansion
The company plans continued investments in capacity expansion and backward integration to meet growing demand in automotive, aerospace, and defense sectors. Current installed capacity in MT is not specified.
Raw Material Costs
Raw material costs are subject to volatility, particularly steel prices. The company implements strategies to mitigate these risks, though specific procurement percentages are not disclosed.
Manufacturing Efficiency
Return on Net Worth increased to 35.48% (up 65.64% YoY), indicating high capital efficiency. However, Inventory Turnover Ratio decreased by 60.31% to 14.79 due to an increase in closing inventory.
Strategic Growth
Growth Strategy
AMIC Forging plans to achieve growth by capitalizing on expanding sectors like automotive, aerospace, and defense. The strategy involves investments in backward integration, capacity expansion, innovation, and digital transformation to improve operational efficiency and capture market share from customers looking to reduce import reliance.
Products & Services
Forged components and products tailored for the automotive, aerospace, defense, construction, agriculture, and energy industries.
Brand Portfolio
AMIC Forging Limited.
New Products/Services
The company is focusing on innovation and expansion into critical industries like defense and aerospace, though specific new product revenue contributions are not disclosed.
Market Expansion
Targeting expanding domestic and potentially international markets in critical sectors where customers are shifting toward localized production.
External Factors
Industry Trends
The forging industry is evolving with a focus on digital transformation, sustainability, and innovation. There is a significant shift toward localized production in critical industries like defense and aerospace, which AMIC Forging is positioned to leverage.
Competitive Landscape
The industry is highly competitive and capital-intensive, requiring significant investment in machinery and technology, which acts as a barrier for smaller entrants.
Competitive Moat
The company's moat is built on its presence in high-entry-barrier sectors like aerospace and defense, and its strategy of backward integration which provides cost leadership and quality control.
Macro Economic Sensitivity
The company is sensitive to the growth of the Indian manufacturing sector and GDP, particularly in the automotive and infrastructure segments.
Consumer Behavior
Increased demand for localized and high-quality forged components in critical infrastructure and defense sectors.
Geopolitical Risks
Global supply chain shifts toward localized production present an opportunity for the company to capture business from customers reducing import reliance.
Regulatory & Governance
Industry Regulations
The company complies with the Companies Act, 2013 and maintains cost records as specified under section 148(1). It has implemented audit trail (edit log) facilities in its accounting software as per statutory requirements.
Legal Contingencies
The company reports that there are no pending litigations that would impact its financial position as of March 31, 2025.
Risk Analysis
Key Uncertainties
Raw material price volatility (steel) and skilled labor shortages are identified as the primary business risks that could impact margins by over 25% if not managed.
Third Party Dependencies
The company has a loan outstanding of INR 2.02 Cr from Mackeil Ispat & Forgings Ltd, a company with a common director.
Technology Obsolescence Risk
The company is mitigating technology risks through digital transformation and investments in modern forging machinery.
Credit & Counterparty Risk
Debtor Turnover Ratio is 4.29, a 13.50% decrease from the previous year, suggesting a slight slowdown in receivable collections.
