Kalyani Forge Ltd. (KALYANIFRG) — Tipsheet

Kalyani Forge CFO quits after auditor flags books for third year in a row

Tipsheet Editorial — Thu, 11 Jun 2026 10:05:12 GMT

Jagdish Baheti tendered his resignation on March 16. The company filed it on June 10, six weeks after his effective date. No successor has been named.

What’s new

CFO Jagdish Baheti resigned effective April 30, citing personal reasons.
The resignation letter was dated March 16 but disclosed only on June 10.
The departure comes as the auditor issued a disclaimer of opinion for the third straight year.

Why it matters

A CFO departure at a nano-cap with a qualified audit trail is not routine. Baheti was the finance head during a period when auditors refused to sign off on the books. The delayed disclosure of his exit, and the fact that no successor is named, heightens uncertainty about financial oversight at a company that just reported record profit but can't get a clean audit opinion.

What we’re watching

The name and background of the next CFO hire.
Whether the FY27 audit opinion finally clears.
Any change to the quarterly closing process or internal controls.

The full read

Kalyani Forge's CFO Jagdish Baheti quit on April 30. The company didn't tell the market until June 10. The resignation letter was dated March 16, meaning the board sat on the disclosure for nearly three months while the year-end audit was underway. Managing director Viraj Kalyani had insisted Baheti finish the quarterly close and audit finalisation before walking out the door. That task now falls to someone who doesn't exist yet. At a company with a ₹216 crore market cap, the vacancy matters. Kalyani Forge just posted a record ₹9.32 crore net profit for FY26, but its auditor issued a disclaimer of opinion for the third straight year. The CFO who presided over that stretch is now gone, with no successor named and no clean audit opinion in sight. The delayed filing itself is a red flag in a year when the company's financial reporting credibility is already under a cloud.

Primary source: BSE · NSE

Kalyani Forge sets 15% EBITDA floor, wins ₹20 cr EV axle order

Tipsheet Editorial — Tue, 09 Jun 2026 11:14:55 GMT

Record ₹9.32 cr profit and new orders from SKF and Schaeffler support a new margin floor of 15%, with a 20% target within a year.

What’s new

MD Viraj Kalyani sets a 15% EBITDA margin as the new floor, targeting 20% within 12 months.
Won a ₹20 cr annual-revenue EV axle order from a top customer, plus new allocations from SKF and Schaeffler.
Plans ₹30 cr capex for FY27, with 60% going to driveline and axle growth segments.

Why it matters

The record profit and order wins are the proof points for a step-change in profitability. Setting a 15% margin floor is a bold public commitment from the MD, especially after a year where the cash conversion cycle sat at 176 days. The capex plan shows the company is putting money behind the new EV axle and driveline push.

What we’re watching

Whether the cash conversion cycle comes down to the 120-130 day target.
Progress on the Phase 2 audit roadmap to resolve inventory and trade-balance qualifications.
Ramp-up of the new SKF and Schaeffler orders from the June quarter.

The full read

Kalyani Forge is pivoting from fixing its books to chasing growth. Record profit of ₹9.32 crore in FY26 gave MD Viraj Kalyani the platform to set a 15% EBITDA margin as the new floor, with a 20% target within 12 months. The backing is tangible: a ₹20 crore annual-revenue EV axle order and new work from SKF and Schaeffler. The company is putting ₹30 crore into capex, with 60% earmarked for driveline and axle. The challenges are equally concrete. The cash conversion cycle sits at 176 days, and management wants it at 120-130 days. The long-standing audit qualifications are only in Phase 2 of a fix. The order wins and margin pledge show ambition. Whether the operations can support that pace is the next test.

Primary source: BSE · NSE

Kalyani Forge hits 14-year profit high but management narrative slips

Tipsheet Editorial — Tue, 26 May 2026 11:55:05 GMT

The auto components maker posted a record ₹9.32 cr profit, yet contradictions in interest cost and receivables reporting raise questions about management's credit control.

What’s new

FY26 net profit reached ₹9.32 cr on flat revenue of ₹238 cr.
EBITDA margins expanded 220 bps to 13.3%, with a 20% target set for next year.
Management admitted interest costs were capitalised term loans, not working capital optimization.

Why it matters

While operational efficiency is improving through the shedding of low-margin business, the management's shifting explanation for rising interest costs is a red flag. Investors should weigh the new OEM contracts against the company's struggle to maintain consistent credit control discipline.

What we’re watching

Revenue growth as new SKF and Schaeffler contracts ramp up from Q1.
Whether the company hits its 15% EBITDA margin floor in the coming quarters.
Any further slippage in receivables beyond the current 120-130 day target.

The full read

Kalyani Forge delivered its best profit in 14 years for FY26, reaching ₹9.32 crore. The company achieved this by dumping ₹40 crore of low-margin business, which helped lift EBITDA margins by 220 bps to 13.3%. Revenue remained flat at ₹238 crore. Management is now targeting a 20% margin within a year, pinning hopes on new contracts with SKF and Schaeffler that begin ramping up this quarter. They also plan ₹30 crore in capex, mostly for driveline and axle growth. Yet, the narrative is not entirely clean. A consistency check revealed that rising interest costs were not due to working capital optimization as previously claimed, but were instead retroactively capitalized term loan interest. Receivables have also stretched due to unexpected stocking commitments. These contradictions undermine the company's earlier claims of improved credit control. The next test is whether the new OEM contracts can actually deliver the promised ₹300 crore revenue ceiling without further balance sheet surprises.

Primary source: BSE · NSE

Kalyani Forge posts Q4 profit, but auditor flags books for third year

Tipsheet Editorial — Mon, 25 May 2026 21:19:19 GMT

The company swung to a ₹587.98 lakh profit in Q4, yet persistent accounting gaps in inventory and receivables remain a material governance hurdle.

What’s new

Q4 profit hit ₹587.98 lakh, up from a ₹11.90 lakh loss in the previous quarter.
The board proposed a dividend of ₹4 per share.
Auditors issued a disclaimer of opinion for the third consecutive year.

Why it matters

While the earnings rebound is sharp, the recurring audit disclaimer is a serious red flag. Investors cannot rely on financial statements when the auditor itself refuses to vouch for the accuracy of inventory and trade balances.

What we’re watching

Shareholder reaction to the dividend proposal.
Any management response to the specific accounting gaps cited by the auditor.
Whether the company can reconcile its fixed assets and receivables in the next cycle.

The full read

Kalyani Forge reported a consolidated profit of ₹587.98 lakh for the quarter ended March 31, 2026, a significant turnaround from the ₹11.90 lakh loss recorded in the preceding quarter. This performance, supported by lower raw material costs and inventory adjustments, brought the full-year net profit to ₹931.74 lakh, up from ₹831.48 lakh a year earlier. Despite the earnings growth, the company's financial reporting remains under a cloud. For the third consecutive year, the auditor issued a disclaimer of opinion, unable to verify inventory valuation or reconcile trade receivables, payables, and fixed assets. While the board has proposed a dividend of ₹4 per share, the recurring nature of these accounting qualifications suggests that the underlying governance issues are not being resolved. The earnings beat is the headline, but the audit disclaimer is the story that matters for long-term valuation.

Primary source: BSE · NSE