Kalyani Forge sets 15% EBITDA floor, wins ₹20 cr EV axle order
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.
— 4 earlier stories on Kalyani Forge Ltd. →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 this 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.
Questions answered
- What is the new margin target and what backs it up?
- MD Viraj Kalyani set a 15% EBITDA margin as the new floor, with a target of 20% within 12 months. The target is supported by a record ₹9.32 cr annual profit and the win of a high-volume EV axle order worth ₹20 cr in annual revenue.
- What are the new customer wins?
- Kalyani Forge won a high-volume EV axle order worth ₹20 cr annually from a top customer. It also received new allocations from SKF and Schaeffler, which are expected to ramp up from the June quarter.
- How is the company investing for growth?
- The company plans ₹30 cr in capex for FY27. Of that, 60% is allocated to growth segments like driveline and axle, indicating a strategic shift towards higher-value auto components.
- What is the status of the long-standing audit issues?
- The company's 'clean audit roadmap' has entered Phase 2, with external consultants now involved. The goal is to resolve long-standing auditor qualifications on inventory and trade balances.
- What is the key operational challenge?
- The cash conversion cycle remains elevated at 176 days. Management aims to bring it down to 120-130 days through tighter credit controls, a critical move to support the higher-margin growth targets.
Kalyani Forge Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on KALYANIFRG →- 9 Jun 2026 · 11:14 AM IST Kalyani Forge sets 15% EBITDA floor, wins ₹20 cr EV axle order
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