Q4 2026 Kalyani Forge Ltd Earnings Call Transcript
Key Points
- Kalyani Forge Ltd (BOM:513509) achieved a record high profit after tax for FY26, marking the highest profitability in 14 years.
- The company reported a second consecutive quarter with an EBITDA margin of over 15%, indicating sustained profitability improvements.
- Three major order wins in Q4, including OEM wheel hubs from customers like SKF and Schaeffler, are expected to ramp up from Q1 FY27.
- The company has successfully rationalized inventory and reclassified dyes and toolings inventory into fixed assets, aligning with industry best practices.
- Kalyani Forge Ltd's product portfolio is well-hedged and future-proof, with a focus on fuel-agnostic products applicable to electric vehicles, ensuring long-term growth visibility.
- The debt-to-equity ratio increased to 1.11, linked to growth CapEx and working capital for scale-up initiatives.
- Exports were lower in Q4 at 11% due to the removal of legacy non-fit business, impacting the overall export revenue.
- Receivables have been increasing faster than sales booking, leading to a stretched working capital situation.
- The cash conversion cycle peaked at 176 days in Q2, indicating inefficiencies in inventory, receivables, and payables management.
- Interest costs appeared lower in Q4 due to capitalization of term loans, which may not reflect the typical quarterly trend.
So, good morning. This is our investor presentation for Q4 and we will be covering the entire financial year results as well. So this is our usual Safe Harbor statement. This presentation contains forward-looking statements about our outlook and potential growth opportunities. So, these are inherently subject to risks, so please go through the entire Safe Harbor Statement carefully after this call and use the information appropriately.
So these are our Q4 FY26 highlights. We're very happy to share that we achieved a record high profit after tax for the entire year and a second consecutive quarter of EBITDA of 15%. So our FY26 profit after tax was INR9.32 crore, which is the highest profitability in around 14 years. FY26 earnings per share is INR25.6. Q4 EPS is INR16.17.
Q4 EBITDA margin is 15.2%, which is a second consecutive quarter. This was extremely important, as a lot of investors were curious about our improved EBITDA margin last quarter. And of course, we are all expecting it to be sustained and grow further
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