Balu Forge starts 152 mm shell dispatches, clears 155 mm ERFB approval and wins global engineering orders

Balu Forge Industries has been expanding its precision-forging platform into specialised Defence and high-engineering applications. Defence, Aerospace and Railway applications accounted for 13 per cent of its FY2025-26 revenue mix, while the company commissioned an automated large-calibre empty-shell line with an annual capacity of 3,60,000 shells during the year.

The company has now begun multiple dispatches of 152 mm empty artillery shells against an earlier order and obtained quality approval for its 155 mm ERFB shell. Balu Forge said the 155 mm shell was produced and approved at a total indicated runout (TIR) forging tolerance of 3 mm and a machined-wall tolerance of 0.3 mm. Serial dispatches of the 155 mm shells are expected to begin shortly.

The 152 mm dispatches are significant because they mark the movement of the company’s defence Order Book into deliveries and revenue recognition. The 155 mm approval, meanwhile, validates the manufacturing process for a larger and technically demanding shell variant. Balu Forge has also received approval and fresh orders for 105 mm empty shells from a large Indian government defence unit, with dispatches expected shortly.

Outside defence, the company received approval for jet-engine components manufactured to tight tolerances, providing an entry point into aerospace precision engineering. It also secured an order for components weighing more than 450 kg from a large US oil and gas company after a plant audit and drawing approval.

Separately, Balu Forge has received a purchase order from a Czech Republic-based armoured-vehicle manufacturer serving defence, mining, quarrying, Construction and drilling applications. The order strengthens its presence in European heavy-mobility markets and adds to the company’s international customer base.

The new developments come after consolidated revenue from operations rose 19.9 per cent to Rs 1,107.37 crore in FY2025-26, while profit after Tax increased to Rs 258.89 crore. The company has stated that it aims to raise machining volume to 80,000 tonnes and target annual revenue growth of 25-30 per cent over the next two years, followed by a larger ramp-up in the third year.

As of 10:31 am on November 2, 2026, Balu Forge shares were trading at Rs 476.00, compared with the previous close of Rs 442.30, a gain of 7.62 per cent. The stock was about 27 per cent below its 52-week high of Rs 653.50, while remaining above its 52-week low of Rs 356.05. The company’s market capitalisation stood at Rs 5,369.16 crore at the time of the update.

What This Means for Investors

This update strengthens evidence that Balu Forge’s new large-calibre line is moving from qualification into commercial execution. The 152 mm dispatches and 155 mm approval support its push towards specialised defence work, while aerospace and overseas industrial orders broaden customer channels. Defence, aerospace and railway already accounted for 13 per cent of FY2025-26 revenue on management’s end-market classification. The immediate financial benefit, however, will depend on serial-production volumes, customer call-offs and timely acceptance.

That makes the announcement potentially supportive for medium-term revenue mix and capability validation rather than a basis for assuming an immediate earnings step-up. Investors should watch whether dispatches translate into receivables and operating cash flow. Consolidated trade receivables stood at Rs 425.10 crore on March 31, 2026, while operating cash flow after tax was Rs 31.70 crore, alongside a sizeable capacity build-out. Stronger cash conversion and sustained margins would make the technical and order progress more financially meaningful.

Disclaimer: The article is for informational purposes only and not investment advice.