SYNOPSIS: The stock slid sharply on heavy volumes despite no fresh trigger, even as recent commissioning of a fully automated, indigenous ammunition manufacturing line highlighted strong operational progress at Balu Forge.
During Wednesday’s morning trading session, shares of a precision engineering company engaged in the manufacturing of forged and machined components hit a 20 percent lower circuit on the stock exchanges on heavy volumes.
At 02:27 p.m., shares of Balu Forge Industries Limited were trading in the red at Rs. 520.95 on BSE, down by around 11 percent, compared to its previous closing price of Rs. 583.55, with a market cap of Rs. 5,940 crores. The stock has delivered negative returns of over 31 percent in one year, and has fallen by nearly 12 percent in the last one month.
What’s the News
The stock witnessed a steep decline on Wednesday, accompanied by intense selling pressure and unusually high trading volumes. Selling pressure remained elevated through the session, with volumes of nearly 90 lakh shares on the NSE by early afternoon, translating into a turnover of about Rs. 441 crore. The heavy sell-off dragged the company’s market capitalisation down to around Rs. 5,736 crore. Notably, the fall came without any clear company-specific trigger, extending the stock’s decline to nearly 14 percent over the past five trading sessions.
This correction stands in contrast to the company’s recent operational progress. On 10th December 2025, Balu Forge announced the commissioning of its empty shell production line at its greenfield facility in Belgaum, Karnataka. The new line, among the first fully indigenous setups in India, has an annual capacity of 3.6 lakh shells and is designed for manufacturing large-calibre ammunition projectiles.
The facility is highly automated, with close to 100 percent automation enabled by FANUC robotics, positioning it among the most advanced defence manufacturing lines in India and globally. Designed and commissioned entirely in-house, the unmanned forging line was developed in collaboration with more than 18 machinery manufacturers and operates with a rapid cycle time of just 55 seconds.
Financials & More
Balu Forge reported a significant growth in revenue from operations, experiencing a year-on-year increase of over 34 percent, from Rs. 223 crores in Q2 FY25 to Rs. 300 crores in Q2 FY26. Likewise, its net profit increased during the same period from Rs. 48 crores to Rs. 65 crores, representing a rise of nearly 35 percent YoY.
The company’s order book is well diversified across industries. Defence, aerospace and railway projects form the largest share at 35 percent, followed by agriculture at 15 percent and oil & gas at 15 percent. Commercial vehicles contribute 20 percent, while power generation accounts for 10 percent. Heavy engineering and industrial machinery make up the remaining 5 percent of the total order book.
For FY26, Balu Forge expects a revenue growth guidance in the range of 40-45 percent, driven by strategic capacity expansions and increased penetration into high-demand industries.
As per the September 2025 shareholding pattern, the ace investor Ashish Kacholia, along with his investment firm Bengal Finance and Investment Pvt Ltd, holds a total of 2.87 percent stake in the company.
Balu Forge Industries Limited is one of the leading Indian precision engineering company delivering forged and machined components across multiple global industries. The company offers a comprehensive product portfolio ranging from 1 kg to 1,500 kg and up to 3 meters in length, supporting diverse applications in automotive, industrial vehicles, earthmoving equipment, wind energy, aerospace, defence, oil and gas, railways, marine, and agriculture.
