Tirupati Forge Ltd Management Discussions

FY26 Financial Performance of Tirupati Forge Ltd

In FY26, Tirupati Forge Limited delivered a strong and strategically significant performance that marks the Companys most pivotal year in its corporate history. Revenue from Operations grew 41.3% to 16,247.85 Lakhs - the highest in the Companys history driven by an expanding US order book, strong demand for flanges and pipe fittings, and growing export volumes. Total Revenue, including Other Income, rose 42.7% to 16,594.03 Lakhs.

Profitability moderated during the year, with Net Profit standing at 629.53 Lakhs compared to 785.54 Lakhs in FY25. This moderation was not a reflection of any deterioration in the core business; rather, it was entirely attributable to upfront depreciation ( 772.28 Lakhs, up 76.7% ) and finance costs ( 304.66 Lakhs, up 85.2% ) arising from the commissioning of the new defence manufacturing facility and the 4.8 MW solar power plant. The most compelling indicator of underlying business strength was the surge in Net Cash from Operating Activities to 1,609.43 Lakhs a growth of 175.1% over 585.45 Lakhs in FY25.

The defining event of FY26 was the successful commissioning of TFLs dedicated Defence Manufacturing Facility for 155mm artillery shell bodies. Hot trials were completed and trial production of shell bodies was executed to required specifications positioning TFL as one of the very few private-sector manufacturers in India with an operational artillery components production line. The 4.8 MW captive solar power plant, the first full year in operation, has reduced electricity cost from 10.50 to approximately 3.50 per unit, delivering direct annual savings of 20-25 million.

The Company engages in the manufacture of forging components for Renewables, Automotive, Aerospace, Mining, Engineering and Agriculture sectors in the industrials vertical etc. The Industrial segment is expected to witness mega opportunities, in the renewable energy space driven by the global urgency to combat climate change.

INDUSTRIES WHICH CONSUME FORGED ARTICLES

AEROSPACE

AGRICULTURE

VALVES AND FITTINGS

RAILWAY

DEFENCE

INDUSTRIAL TOOL

STEAM ENGINES

OIL AND GAS

AGRICULTURE

2025-26

155MM GLOBAL AMMUNITION MARKET

Market Size Forecast 2026-2036

Strong and Sustained Growth Driven by Geopolitical Conflicts, Stockpile Replenishment & Expanding Production Capacity

155MM: The Backbone of Modern Artillery

GLOBAL MARKET SIZE (USD BILLION)

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	2036
US$ Billion	8.4	10.0	11.9	14.1	16.7	20.2	22.3	24.2	26.2	28.1	30.0 - 32.0

GLOBAL CAGR (2026-2036): ~13 - 14%

Note: 2026 value represents an industry projection range based on current growth trends.

INDIA - 155MM AMMUNITION MARKET SIZE (USD BILLION)

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	2036
US$ Billion	0.6	0.8	1.1	1.4	1.8	2.3	2.9	3.5	4.2	4.9	5.5 - 6.5

INDIA CAGR (2026-2036): ~16 - 18%

Note: India is rapidly scaling production capacity under Atmanirbhar Bharat and expected to become a key global supplier by 2030+.

GLOBAL MARKET SHARE BY REGION (Approx. 2031-2036)

EUROPE: 45-50%

NORTH AMERICA: 20-25%

ASIA PACIFIC: 15-20%

REST OF WORLD: 4-5%

155MM SHELL USAGE BY TYPE (% Volume)

HE High Explosive (Primary payload; optimum for maximum destructive effect against personnel, equipment & structures): 75-80%

ERFB / Extended Range Full Bore (Extended range for deep strike and precision engagements): 15-20%

Other (Includes Smoke, Illumination, Training, Special Purpose Shells): 4-5%

KEY DEMAND COUNTRIES

Ukraine

Poland

Germany

India

France

United Kingdom

South Korea

Australia

United States

KEY GROWTH DRIVERS (2026-2036)

NATO countries rebuilding ammunition stockpiles

Continued demand arising from geopolitical conflicts

Expansion of production capacity in Europe, US, India, South Korea, Australia and others

Shift toward precision-guided and extended-range artillery

Modernization of military systems worldwide

OUTLOOK

The 155mm ammunition market is set for strong, sustained growth through 2036, driven by rising global demand and increased focus on self-reliance in ammunition production.

2036 Global Market Size: USD 30.0 - 32.0 Billion

DISCLAIMER

The figures presented are industry projections based on current market trends, publicly available information and analyst estimates. Actual results may vary.

SOURCES

Industry Reports

Government Publications

Company Filings

Expert Interviews

Secondary Research

FY 2025-26

Tirupati Forge Limited (TFL), a leading player in precision forging for industrial and export markets, has made decisive strategic progress in FY26. The Company manufactures forging components for Oil & Gas, Automotive, Aerospace, Mining, Construction, Defence, Agriculture, and Railway sectors serving a deeply diversified global customer base with 64% of revenues derived from international markets.

TFL has achieved significant milestones across its two transformative strategic verticals in FY26: (i) commissioning of the Defence Manufacturing facility, with trial production of 155mm shell bodies completed and commercial production anticipated to commence; and (ii) full operation of its 4.8 MW solar power plant throughout the year, delivering energy cost savings and enhancing sustainability credentials.

1. Defence Manufacturing: Commissioned and Ready for Revenue

1.1 Project Overview and FY26 Milestone

TFLs defence manufacturing facility, designed for the production of 155mm High-Explosive (HE) and High-Explosive Base Bleed (HE-BB) shell bodies, was successfully commissioned in FY26. These shells are critical components of modern artillery systems used in howitzers and field artillery platforms, including Indias indigenous Dhanush artillery system and allied NATO-standard platforms.

Hot trials were completed during the year and trial production of shell bodies was executed to required technical and ballistic specifications. Customer discussions are at advanced stages across both domestic and international markets. FY27 is expected to be the transformative year in TFLs growth journey.

1.2 Investment, Capital Efficiency and Financial Metrics

TFL has made a total capital investment of £670 million towards the defence manufacturing facility. The project is designed for high capital efficiency with a projected asset turnover ratio of approximately 4 times at full utilisation. The defence vertical is projected to achieve EBITDA margins exceeding 40% significantly above TFLs current blended margin. At full utilisation, annual revenues of approximately £2,500 million are expected, with full-year impact visible from FY28. This represents a fundamental re-rating of TFLs earnings quality and growth trajectory.

1.3 Facility Specifications

The commissioned facility is a modern, high-capacity plant designed to manufacture 1,25,000 shell bodies annually (approximately 10,000 metric tonnes), with scalability to 1,50,000 shells per year. It incorporates advanced CNC machining lines for dimensional precision, heat treatment systems meeting ballistic strength requirements, and in-house metallurgical testing laboratories. The facility adheres to NATO Standardization Agreements (STANAGs), ensuring eligibility for both domestic and international defence contracts.

1.5 Target Markets - Domestic and Global

TFLs 155mm shell body manufacturing initiative is positioned to serve a large and growing global market. The global shell body market (forged and machined projectile bodies) is estimated at US$2.0-2.3 billion in 2026, growing to US$3.0-3.4 billion by 2030 a CAGR of approximately 8-10%. Annual global demand for 155mm shell bodies alone is estimated at 2.4-2.8 million units in 2026, rising to 3.8-4.3 million units by 2030. NATO replenishment following inventory drawdowns, sustained geopolitical tensions, and the parallel expansion of manufacturing capacity across allied nations are the principal growth drivers.

India has emerged as one of the worlds lowest-cost producers of forged artillery shell bodies, with structural advantages including competitive steel costs, a large and established forging industry, CNC machining depth, government support for defence exports, and a growing track record of delivery to international customers. India already exports artillery shells and components to Europe, North America, and other markets. Indias estimated global market share for shell bodies is projected at 4-6% in 2026, growing to 10-15% by 2030 - implying potential Indian industry revenues of US$320-480 million at 2030 market size (approximately 2,750-4,100 crore at current exchange rates). TFL is strategically positioned to capture a meaningful share of this growing opportunity.

Domestic Market

On the domestic front, TFL targets long-term supply relationships with the Indian Armed Forces, the Ministry of Defence, and key public sector undertakings such as the Ordnance Factory Board (OFB) and Bharat Dynamics Limited (BDL). Indias Union Budget 2025-26 allocates Rs.6.81 Lakh Crore to the Ministry of Defence a 9.5% increase with 75% earmarked for domestic manufacturers under Make in India and Atmanirbhar Bharat. Indias stated ambition is Rs.3 Lakh Crore in domestic defence production and Rs.50,000 Crore in exports by 2029, providing a durable and policy-backed domestic demand base.

International Market - Europe and NATO

Europe represents one of the most significant near-term international opportunities. Multiple NATO member states - including Poland, Germany, France, and others are actively expanding their artillery shell production capacity and seeking qualified, cost-competitive suppliers outside their domestic base. Poland is establishing one of Europes largest artillery manufacturing programmes; Germany has committed to substantial artillery inventory expansion. The sustained drawdown of European NATO stockpiles and the multi-year replenishment requirement create a structural demand window that Indian manufacturers with their cost competitiveness and STANAG compliant manufacturing credentials are well-placed to serve.

TFLs facility has been designed to meet NATO Standardization Agreements (STANAGs) the technical and quality baseline that European NATO procurement agencies require of approved suppliers. This positions TFL to pursue both direct supply contracts with European armed forces and sub-supply arrangements with prime defence contractors such as Rheinmetall, BAE Systems, Nammo, and others who are ramping volumes across Europe.

International Market - North America, Asia-Pacific, and Middle East

The United States has expanded its 155mm production objective toward approximately 100,000 rounds per month, with demand for qualified international suppliers growing as domestic capacity remains constrained. South Korea, Australia, and other Asia-Pacific nations are significant consumers as they modernise their artillery inventories. The Middle East particularly GCC countries with significant artillery platforms represents a growing demand pool. Indias strong Government-to-Government (G2G) defence relationships with several of these markets, combined with Indias Defence Offset Policy framework, create pathways for long-term supply contracts.

Source: Global shell body market estimates: proprietary industry assessment (2026) Ministry of Defence Annual Report 2024-25 SIPRI Military Expenditure Database 2025 NATO Allied Command Transformation supply chain assessments

2. Solar Initiative - Fully Operational and Delivering Results

TFLs 4.8 MW captive solar power plant, commissioned on May 16, 2025, was fully operational throughout FY26 supplying clean, renewable energy across TFLs manufacturing units. The plant generates approximately 85 lakh units of electricity annually and has materially reduced TFLs energy cost from Rs.10.50 per unit (Gujarat grid tariff) to approximately Rs.3.50 per unit, delivering annual Phase-1 savings of Rs.20-25 million.

2.1 Financial and Strategic Benefits

1. Cost Efficiency: The net saving of Rs.7 per unit translates directly into improved operating margins. Energy costs constitute a significant portion of manufacturing expenses in the forging industry, making this a permanent and material competitive advantage.

2. Phase-2 Savings upon Defence Integration: Once the defence facility is fully integrated into the solar grid, total annualised savings are projected to reach Rs.40-50 million - doubling the Phase-1 benefit and further strengthening TFLs cost position.

3. ESG and Policy Alignment: The project qualifies for government subsidies, interest benefits, and accelerated depreciation under Indian tax laws. It aligns with Indias National Solar Mission and Renewable Purchase Obligations, and reinforces TFLs ESG credentials with global OEM customers in the US and Europe who increasingly require supply chain sustainability disclosures.

Source: Gujarat Urja Vikas Nigam Ltd (GUVNL) Tariff Order FY2024-25 Ministry of New and Renewable Energy (MNRE)

Strategic Vision and Long-Term Growth Outlook

Tirupati Forge Limited has completed its transformation from a precision forging company to a diversified manufacturing enterprise with established roots in defence ammunition manufacturing and renewable energy two sectors central to Indias Atmanirbhar Bharat and Viksit Bharat@2047 visions. FY26 was the year the Company moved from planning to execution - commissioning major capital assets and achieving trial production in defence.

The global 155mm shell body market is expected to grow from US$2.0-2.3 billion in 2026 to US$3.0-3.4 billion by 2030. Entry barriers for this niche are lower than for complete ammunition (shell bodies do not require explosive filling), yet the technical precision requirements - dimensional tolerances, metallurgical quality, ballistic strength - are demanding and filter out low-capability manufacturers. Indias positioning as a low-cost, quality-certified producer with STANAG-compliant manufacturing and government export support makes this a highly attractive long-term opportunity. With the most capital-intensive phase of investment now complete, TFLs focus shifts to operational excellence, customer acquisition, and revenue delivery from the defence vertical.

Conclusion

FY26 represents a decisive inflection point. TFL commissioned its defence manufacturing facility, completed trial production of 155mm shell bodies to required specifications, and operated its solar plant at full capacity throughout the year. The global market opportunity in artillery shell bodies is large and growing estimated at US$3.0-3.4 billion by 2030 - with India positioned to capture a 10-15% share, implying a significant and sustained revenue opportunity for well-positioned domestic manufacturers like TFL.

The defence verticals projected EBITDA margins exceeding 40% and the permanent reduction in energy costs through solar, combined with strong revenue growth of 41.3% in FY26, underscore the resilience and momentum of TFLs underlying operations. Through calculated diversification, disciplined capital allocation, and technological adoption, Tirupati Forge Limited is well-positioned to emerge as a resilient, forward-looking enterprise with a meaningful footprint in Indias defence industrial base and global export supply chain.

Risk Factors and Mitigation

Regulatory Risk: Commercial production at TFLs defence facility is subject to requisite regulatory approvals from relevant government authorities. The Company has retained specialised legal and regulatory consultants to manage the compliance process effectively. All required trial production runs have been completed to specifications, demonstrating production readiness. The Company continues to engage proactively with the relevant authorities.

Execution Risk: The transition from trial production to commercial-scale production requires precision in machinery calibration, quality systems, and production scheduling. The Company has established a dedicated Project Management Office (PMO) to monitor all implementation milestones, and the successful completion of trial production runs - meeting required specifications - provides confidence in the production readiness of the facility.

Market Risk (Defence): The defence sector is subject to geopolitical fluctuations, procurement policy changes, and long decision-making cycles. To mitigate this, TFL is targeting both government contracts (Indian Armed Forces, OFB, BDL) and international supply arrangements under Indias Defence Offset Policy. Customer discussions are at advanced stages across both domestic and export markets.

US Trade Tariff / AD-CVD Risk: The United States implemented sweeping tariff measures effective April 2, 2025, bringing effective tariff rates to levels not seen in a century, per IMF analysis. While Indian forged flanges and industrial components have not been subject to AD/CVD measures as of the date of this report, the risk warrants monitoring. TFL maintains healthy gross margins on US exports sufficient to absorb moderate duty levels and is actively diversifying its export base toward Europe, the Middle East, and Southeast Asia. The defence vertical will also provide a domestic revenue offset that is completely insulated from US tariff risk.

Source: IMF World Economic Outlook April 2025 Office of the United States Trade Representative (USTR)

Foreign Exchange Risk: With approximately 64% of revenues denominated in USD, currency fluctuation impacts profitability. The Company employs hedging strategies and enters into foreign exchange contracts, reducing the impact of adverse currency movements. Forex gains of Rs.242.48 Lakhs were recognised in Other Income in FY26, reflecting the benefit of favourable USD/INR movement on export receivables.

Raw Material Risk: Alloy steel price volatility impacts gross margins. TFL maintains a multi-vendor strategy, 6-month buffer inventory, and medium-term procurement frameworks to mitigate supply chain disruption and ensure competitive input pricing.

Financial Risk: The capex cycle is largely complete. The Company generated strong operating cash flows of Rs.1,609 Lakhs in FY26, providing financial flexibility. Long-term borrowings have been contracted at competitive rates, and ongoing convertible warrant conversions will further strengthen the equity base.

Industry Risk: TFLs diversified end-market portfolio Oil & Gas, Defence, Automotive, Mining, Construction, Agriculture, Railway across five countries reduces single sector exposure and minimises the impact of any localised economic downturn.

Technology Risk: TFL is proactively investing in CNC automation, IoT-based monitoring, and Industry 4.0-aligned quality traceability, particularly at the defence facility, to maintain competitiveness and meet evolving customer quality requirements.

Loss of Talent Risk: TFL has implemented progressive HR policies, technical upskilling programmes, and competitive compensation to attract and retain skilled engineers particularly for precision CNC machining and defence-grade quality management.

Global Forging Industry Outlook

The global forging industry is on a sustained growth trajectory driven by strong demand across automotive, aerospace, defence, construction, oil & gas, and renewable energy sectors. The industry is benefiting from global reindustrialisation, increasing infrastructure investments, and strategic localisation of supply chains trends structurally positive for quality-certified Indian forgers like TFL.

Market Size and Growth Trajectory

According to Fortune Business Insights, the global forging market was valued at approximately USD 87 billion in 2024 and is projected to grow at a CAGR of 7.6% through 2032, reaching USD 158 billion. The Indian forging market, valued at USD 5.4 billion in 2024, is projected to grow at a faster CAGR of 9.8% through 2030. Key growth contributors include: automotive sector recovery and EV transition; elevated global defence budgets (global defence budget projected to reach USD 2,546.9 billion by 2028 at CAGR 4.9% per SIPRI); energy infrastructure for renewables; and emerging market industrialisation in Asia-Pacific, the Middle East, and Africa.

Source: Fortune Business Insights Global Forging Market Report 2024 ACMA - Indian Forging Industry Outlook 2025 SIPRI Military Expenditure Database 2025

Technological Advancements

The forging industry is modernising through automation and robotics, precision closed-die forging for aerospace and high-performance automotive applications, smart forging with IoT sensors and AI-based predictive maintenance, and green forging through captive renewable energy as implemented by TFL. Companies investing in these areas are expected to outperform peers and gain greater traction with global OEMs.

Key Regional Trends

India is emerging as a major global forging hub, supported by the Union Budget 2025-26 allocation of Rs.11.2 Lakh Crore for infrastructure and the Make in India initiative. Chinas rising costs are making Indian alternatives increasingly competitive for global OEMs. North America and Europe continue to invest in defence-sector forging. The Middle East offers growing opportunity as GCC countries invest in industrial localisation.

Source: World Forging Association (WFA) ACMA Ministry of Commerce and Industry, Government of India Union Budget 2025-26

Global Economic Overview (FY 2024-25 and FY 2025-26)

The global economy navigated a complex landscape in FY 2024-25 with stable but underwhelming growth. A significant inflection occurred in 2025: the United States implemented sweeping tariff measures effective April 2, 2025, bringing effective rates to century-high levels. The IMF revised global growth for CY 2025 downward to 2.8%, citing trade policy unpredictability as a major new risk. For Indian exporters like TFL, the tariff regime creates direct export risk but simultaneously positions India as a competitive sourcing alternative for global OEMs. Emerging markets continue to outperform at approximately 4.0-4.2%.

Source: IMF World Economic Outlook April 2025 World Bank Global Economic Prospects June 2025 OECD Economic Outlook 2025

Indias Economic Performance and Outlook (FY 2024-25 and FY 2025-26)

India recorded GDP growth of 6.5% in FY 2024-25 the fastest major economy globally driven by strong domestic consumption, government infrastructure capex, and a thriving services sector. The Union Budget 2025-26 allocates Rs.11.2 Lakh Crore for infrastructure aligned with Viksit Bharat@2047, directly supporting demand for industrial components across Oil & Gas, Construction, and Mining sectors.

Indias retail inflation moderated to 3.16% in April 2025, enabling the RBI to maintain an accommodative monetary stance supporting TFLs financing requirements. The IMF projects Indias GDP growth at 6.6% for FY 2025-26 and 6.7% for FY 2026-27, maintaining Indias status as the fastest-growing major economy.

Source: IMF World Economic Outlook April 2025 RBI Monetary Policy Committee MoSPI, Government of India Union Budget 2025-26

Internal Control Systems

Tirupati Forge Limited has established a comprehensive internal control framework, including robust Internal Financial Controls (IFC), to ensure efficient and accurate business operations. The Company follows a structured internal audit process covering all critical functions, with findings reviewed by the Management and Audit Committee. Financial results for FY 2025-26 were reviewed by the Audit Committee and approved by the Board on May 18, 2026. The Statutory Auditor, M/s. Kamlesh Rathod & Associates (FRN: 117930W), has issued an Audit Report with an Unmodified Opinion - confirming results give a true and fair view in conformity with applicable Accounting Standards.

E. Human Resources

At Tirupati Forge, our people are the foundation of our success. FY26 saw significant investment in building specialised capabilities for defence-grade manufacturing while maintaining the strong forging and export-compliance team that underpins the core business.

Defence Manufacturing Training: Specialised training in precision CNC machining for defence components, ballistic heat treatment, NATO STANAG quality documentation, and DGQA-aligned inspection protocols was conducted for shop-floor engineers.

Technical Upskilling: CNC programming, advanced metallurgy, precision measurement, and forging process optimisation programmes were conducted, strengthening TFLs manufacturing capabilities and quality certifications.

Industrial Relations: Industrial relations remained stable and cordial throughout FY26 with zero major disputes or production disruptions. The Company recorded zero major industrial accidents during the year.

Diversity and Inclusion: Efforts are ongoing to enhance representation across functions and levels, with targeted hiring initiatives and an inclusive culture framework.

F. Financial Performance - FY 2025-26

FINANCIAL PERFORMANCE - REVENUE & PROFIT TREND (Rs. Lakhs)

	FY 2024-25	FY 2025-26
Revenue	11,498	16,248
PAT	786	630
Operating Cash Flow	585	1,609

Revenue & Profit Trend: FY 2024-25 vs FY 2025-26 (Rs. Lakhs)

Particulars	FY 2025-26	FY 2024-25	Change
Revenue from Operations	Rs.16,247.85 Lakhs	Rs.11,498.30 Lakhs	+41.3%
Other Income	Rs.346.18 Lakhs	Rs.131.34 Lakhs	+163.6%
Total Revenue	Rs.16,594.03 Lakhs	Rs.11,629.64 Lakhs	+42.7%
Total Expenses	Rs.15,738.58 Lakhs	Rs.10,577.85 Lakhs	+48.8%
\u2014 of which: Depreciation	Rs.772.28 Lakhs	Rs.437.01 Lakhs	+76.7%
\u2014 of which: Finance Costs	Rs.304.66 Lakhs	Rs.164.53 Lakhs	+85.2%
Profit Before Tax	Rs.855.45 Lakhs	Rs.1,051.79 Lakhs	-18.7%
Net Profit (PAT)	Rs.629.53 Lakhs	Rs.785.54 Lakhs	-19.9%
Net Cash from Operations	Rs.1,609.43 Lakhs	Rs.585.45 Lakhs	+175.1%
EPS (Basic)	Rs.0.51	Rs.0.74	-31.1%

20,378.68 Lakhs 14,592.84 Lakhs +39.6%

Source: Audited Standalone Financial Results FY 2025-26 M/s. Kamlesh Rathod & Associates, Chartered Accountants (FRN: 117930W) SEBI LODR Regulation 33

Revenue Growth (+41.3%): Revenue from Operations surged to Rs.16,247.85 Lakhs driven by strong demand from the US market for flanges, growing export volumes, and an expanding customer base. Other Income rose 163.6% to Rs.346.18 Lakhs primarily from Foreign Exchange gains of Rs.242.48 Lakhs reflecting favourable USD/INR movements on export receivables.

PAT Moderation: Net Profit declined Rs.156 Lakhs. The entire decline is explained by: (i) Rs.335 Lakhs incremental depreciation from the defence facility and solar plant commissioned during the year, and (ii) Rs.140 Lakhs incremental finance costs on borrowings for the same. The operating business itself performed significantly better on a much larger revenue base.

Cash Generation (+175%): Net Cash from Operations grew 175% to Rs.1,609 Lakhs - the clearest and most important indicator of business health. Cash declined from Rs.3,313 Lakhs to Rs.655 Lakhs as FY25 preferential allotment proceeds were deployed into capex (investing outflows of Rs.7,515 Lakhs). The capex cycle is now largely complete.

FINANCIAL REVIEW: Analysis of Standalone Profit and Loss Statement:

Particulars	F.Y. 2025-26	F.Y. 2024-25
1. Revenue from Operations	16,247.85	11,498.30
2. Other Income	346.18	131.34
3. Total Revenue	16,594.03	11,629.64
4. Cost of Materials Consumed	6,965.54	6,148.28
5. Purchase of Stock-in-Trade	1,394.18	716.61
6. (Increase)/Decrease in Inventories	(63.95)	(241.38)
7. Employees Benefit Expenses	878.50	632.49
8. Finance Costs	304.66	164.53
9. Depreciation and Amortization Expenses	772.28	437.01
10. Other Expenses	5,487.37	2,720.31
11. Total Expenses	15,738.58	10,577.85
12. Profit Before Tax	855.45	1,051.79
Tax Expenses
Current Tax Expense	136.13	268.03
Deferred Tax Expense	89.79	(1.78)
13. Total Tax Expenses	225.92	266.25
14. NET PROFIT FOR THE YEAR	629.53	785.54
15. Other Comprehensive Income	\u2014	\u2014
16. Total Comprehensive Income	629.53	785.54
Earnings Per Share (Basic)	Rs.0.51	Rs.0.74

Source: Audited Standalone Financial Results FY 2025-26

M/s. Kamlesh Rathod & Associates (FRN: 117930W)

SEBI LODR Regulation 33

Product Wise Performance:

NAME OF PRODUCTS	F.Y. 2025-26 (Revenue in Rs.)	F.Y. 2024-25 (Revenue in Rs.)
Forged Articles (Earth Moving & Industrial Parts)	30,07,61,000/-	15,98,90,932/-
Flanges for Pipe Fittings	1,04,50,72,000/-	58,48,36,595/-
Gears, Shafts & Rings	6,14,17,000/-	6,48,99,367/-
Agriculture Parts	4,80,94,000/-	1,11,163/-
Machinery Parts	2,35,59,000/-	\u2014
Railway or Tramway Parts	3,07,08,000/-	10,56,99,285/-
Other Parts & Accessories	13,51,73,000/-	10,56,99,285/-

PRODUCT PORTFOLIO - REVENUE MIX (FY 2025-26)

	REVENUE (Rs. LAKH)	% OF TOTAL
Forged Articles (Earth Moving & Industrial Parts)	30,07,61,000	63.7%
Flanges for Pipe Fittings	1,04,50,72,000	15.2%
Gears, Shafts & Rings	6,14,17,000	10.1%
Agriculture Parts	4,80,94,000	3.7%
Other Parts & Accessories	13,31,74,000	3.0%
Railway or Tramway Parts	3,07,08,000	1.9%
Machinery Parts	2,15,59,000	1.4%
TOTAL REVENUE FROM OPERATIONS	Rs. 16,247.85 LAKH	100.0%

Figures may not add up to 100% due to rounding off.

Note: Product-wise revenue for FY 2025-26 based on approximate product mix percentages from the Investor Presentation for Q4 and FY 2025-26. Product Portfolio - Revenue Mix (FY 2025-26)

GEOGRAPHIC REVENUE SPLIT - FY 2025-26

DOMESTIC 36% India	GLOBAL (EXPORT) 64% USA / Canada	Europe	Africa	Malaysia
India	USA / Canada	Europe	Africa	Malaysia

64% global revenues reflect strong international competitiveness in precision forged components

G. STRENGTHS, OPPORTUNITIES AND THREATS ANALYSIS:

STRENGTHS

15+ years precision forging expertise

One of only 3 firms in India with 630T Lasco Press

Defence plant commissioned - first-mover advantage

4.8 MW solar - energy cost reduced to Rs.3.50/unit

64% global revenue; strong US market position

IATE 16949, ISO 9001, PED AD 2000, CRN certified

Quality of products with diversified end-use across automobile, refineries and oil pipelines

Experienced Promoters with strong industry insight and track record

Robust order book providing strong revenue visibility for FY27

Revenue +41.3%; Operating Cash Flow +175% in FY26

OPPORTUNITIES

Global 155mm shell body market: US$2.0-2.3 Bn (2026), US$3.0-3.4 Bn (2030)

Indias realistic export share: 4-6% by 2026, 10-15% by 2030

India MoD budget Rs.6.81 Lakh Cr; 75% domestic procurement

India defence exports Rs.23,622 Cr in FY25; target Rs.50,000 Cr by 2029

NATO inventory replenishment driving sustained multi-year demand

India forging CAGR 9.8%; Global forging CAGR 7.6%

Undertaking Government Contracts

Government initiatives such as PLI scheme and Atmanirbhar Bharat creating strong support for domestic manufacturing

Domestic producers are given preference in the defence sector

WEAKNESSES

PAT moderated due to investment-phase depreciation

Cash reduced Rs.3,313 ? Rs.655 Lakhs (deployed into capex)

Single manufacturing location - concentration risk

Elevated receivables Rs.2,592 Lakhs

Ashish Credit Co-op FD overdue Rs.120 Lakhs

SME scale relative to large diversified forgers

High dependence on export markets exposes to geopolitical and currency risks

THREATS

US tariffs at century-high levels - AD/CVD petition risk

US/INR forex fluctuation on 64% export revenues

Steel price volatility impacting raw material cost

Execution risk on defence commercial production

Competition from established global defence majors

Long procurement cycles in defence

A faster shift to new mobility transport will have a meaningful impact on our business

Several new companies entering the market and increasing competition in adjacent product categories

Volatility in raw material prices - Mild Steel, Alloy Steel, Carbon Steel, Stainless Steel, etc.

KEY FINANCIAL RATIOS

In accordance with SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018, the Company discloses significant changes (25% or more) in key financial ratios with explanations:

Sr. Ratio Name	FY 2025-26	FY 2024-25	% Change
1 Debtors Turnover Ratio	58.48	54.49	-7.32%
2 Inventory Turnover Ratio	6.98	5.06	+37.80%
3 Interest Coverage Ratio	5.8	8.8	-33.78%
4 Current Ratio	1.82	3.99	-54.28%
5 Debt Equity Ratio	0.26	0.17	56.09%
6 Operating Profit Margin	7.05%	10.51%	-32.93%
7 Net Profit Margin	3.87%	6.83%	-43.29%
8 Return on Net Worth	5.24%	10.01%	-47.68%

Explanation of Significant Changes in Key Financial Ratios:

Debtors Turnover Ratio - 58.48x: Increased by 7.32% from 54.49x, indicating improved collection efficiency and effective receivables management.

Inventory Turnover Ratio - 6.98x: Increased by 37.80% from 5.06x, reflecting faster inventory movement and improved inventory utilisation.

Interest Coverage Ratio - 5.80x: Declined by 33.78% from 8.80x due to higher finance costs associated with expansion-related borrowings. Coverage remains comfortable.

Current Ratio - 1.82x: Declined by 54.28% from 3.99x, mainly due to deployment of previously unutilised funds toward planned capital expenditure. Liquidity remains adequate.

Debt Equity Ratio - 0.26x: Increased from 0.17x due to additional borrowings for capacity expansion and strategic investments. Overall leverage remains relatively low.

Operating Profit Margin - 7.05%: Declined by 32.93% from 10.51%, mainly due to investment-phase costs and commissioning/ramp-up expenses of new facilities.

Net Profit Margin - 3.87%: Declined by 43.29% from 6.83%, reflecting lower operating margins, higher depreciation and increased finance costs.

Return on Net Worth - 5.24%: Declined by 47.68% from 10.01%, due to the expanded equity base and lower profitability during the investment phase.

For and on behalf of the Board of

Tirupati Forge Limited

SD/- Hiteshkumar G. Thummari

Chairman & Managing Director

Date: 24th August, 2026

Place: Hadamtala (Rajkot)