💰 Financial Performance

Revenue Growth by Segment

Total operating income grew 17.7% YoY from INR 162.34 Cr in FY24 to INR 191.14 Cr in FY25. While segment-specific revenue is not disclosed, the company noted a recovery from a slowdown in the tractor segment which had previously caused a marginal dip in FY24 revenue.

Profitability Margins

Net profit margin improved from 1.83% in FY24 to 2.66% in FY25, representing a 45.38% increase in profitability. Operating profit margin stood at 11.57% in FY25 compared to 9.79% in FY24, an 18.18% improvement.

EBITDA Margin

EBITDA margin increased to 9.15% in FY25 from 8.21% in FY24. Absolute EBITDA grew 31.2% YoY to INR 17.49 Cr from INR 13.33 Cr.

Capital Expenditure

The company is undertaking a major capacity enhancement project with a total cost of INR 42.44 Cr. As of September 1, 2025, INR 30.04 Cr has been incurred, primarily for the installation of a 6,000-ton forging press.

Credit Rating & Borrowing

Infomerics assigned a long-term rating of IVR BBB-/Stable and a short-term rating of IVR A3 in October 2025. CRISIL migrated its ratings to BB/Stable/A4+ before withdrawing them at the company's request.

⚙️ Operational Drivers

Raw Materials

Steel forgings and steel billets are the primary raw materials used for manufacturing closed-die components. Specific cost percentages per material are not disclosed.

Capacity Expansion

Current forging capacity is 15,000 MT per annum. Machining capacity includes 7,000 crankshafts and 50,000 other parts per month. A new 6,000-ton forging press line is expected to be commissioned by the end of October 2025.

Manufacturing Efficiency

Capacity utilization metrics are not explicitly disclosed, but the company is upgrading Unit-1 with a 6,000-ton press to improve production capabilities for larger components.

📈 Strategic Growth

Expected Growth Rate

10-12%

Growth Strategy

Growth will be driven by the commissioning of the 6,000-ton forging press in October 2025, which will allow for larger component manufacturing. The company is also targeting incremental demand from existing customers and adding new clients in domestic and export markets, specifically in the infrastructure and railway sectors.

Products & Services

Steel forgings and machined components including spindles, crankshafts, connecting rods, bull gears, and crown wheels.

Brand Portfolio

Samrat Forgings Limited

New Products/Services

The 6,000-ton press will enable the production of larger and more complex forged components for the infrastructure and railway sectors.

Market Expansion

The company is expanding its presence in the infrastructure and railway sectors to reduce dependence on the tractor industry.

🌍 External Factors

Industry Trends

The forging industry is currently evolving through diversification into non-automotive sectors like railways and infrastructure to counter the cyclicality of the tractor and commercial vehicle segments.

Competitive Landscape

Operates in a competitive and fragmented domestic auto component industry, competing with other closed-die forging players.

Competitive Moat

The company's moat is built on 30+ years of promoter experience and long-standing relationships with major OEMs, which ensures repeat orders and high entry barriers for new competitors.

Macro Economic Sensitivity

High sensitivity to GDP growth and demand trends in the automotive, infrastructure, and capital goods sectors.

Consumer Behavior

OEM demand is shifting towards more complex, machined components, prompting the company's investment in higher-tonnage press lines.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to pollution control norms and manufacturing standards for the automotive and railway sectors.

Environmental Compliance

The company maintains a Safety, Health, and Environment management report, though specific ESG compliance costs are not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Project execution risk related to the INR 42.44 Cr capex; any time or cost overruns in the 6,000-ton press commissioning could impact financial stability.

Geographic Concentration Risk

Manufacturing operations are concentrated in Mohali, Punjab (Unit I and Unit II).

Third Party Dependencies

High dependency on a few large OEM customers for 75% of revenue.

Technology Obsolescence Risk

The company is mitigating technology risks by upgrading to a 6,000-ton forging press to meet modern OEM specifications.

Credit & Counterparty Risk

Receivables quality is moderate with an average collection period of 43 days and a debtors turnover ratio of 8.47 in FY25.