Forge Auto International Limited is an established engineering enterprise specializing in the manufacture, export, and OEM supply of **customized closed-die hot forgings** and **machined components**. Originally founded as a partnership in **2001**, the company has transitioned into a professionally managed, publicly listed entity on the **NSE Emerge (SME) Platform** (listed **October 1, 2024**). The company serves as a critical link in the global supply chain for high-precision components across the automotive, defense, and industrial sectors. --- ### **Core Manufacturing Capabilities & Product Portfolio** The company operates a vertically integrated manufacturing model, focusing on high-precision engineering for carbon steel, alloy steel, and aluminum. Its technical expertise allows for the production of complex geometries required by heavy industries. * **Primary Segment:** Customized closed-die hot forging and machining. * **Material Specialization:** * **Carbon & Alloy Steel Forgings:** Components ranging from **1 kg to 20 kg**. * **Aluminum Forgings:** Capability across any grade, ranging from **500 gms to 6 kg**. * **End-User Industries:** Automotive, Tractor, Railway, Hydraulic, Agriculture, Oil & Gas, and Chain-link components. * **Infrastructure & Machinery Profile:** The company has aggressively modernized its shop floor, moving toward electric-driven precision over traditional methods. | Equipment Type | Capacity/Details | Recent Additions (FY 2024-25) | | :--- | :--- | :--- | | **Drop Forged Hammers** | **6 Units** | - | | **Electric Screw Presses** | **1600 MT (1), 1000 MT (2), 630 MT (2)** | **2 units of 630 MT** | | **CNC Ring Rolling** | **350 mm** | **1 unit** (Targeting Oil & Gas) | --- ### **Financial Performance & Capital Structure** Forge Auto has demonstrated a consistent growth trajectory, nearly doubling its revenue over a four-year period and maintaining strong profitability margins. **Key Financial Metrics** | Metric (₹ in Crore) | FY 2024-25 (Full Year) | FY 2023-24 (Partial*) | Growth (%) | | :--- | :--- | :--- | :--- | | **Total Revenue** | **212.67** | **170.84** | **24.48%** | | **Revenue from Operations** | **209.89** | **169.42** | **23.89%** | | **Profit After Tax (PAT)** | **9.53** | **6.46** | **47.52%** | *\*Note: FY 2023-24 figures represent the period from April 25, 2023, to March 31, 2024.* **Capitalization and IPO Details** Following its **Initial Public Offering (IPO)** in **2025**, which raised **₹31.10 Crores**, the company has significantly strengthened its equity base: - **IPO Allotment:** **28,80,000 Equity Shares** issued at **₹108 per share** (including a **premium of ₹98**). - **Authorized Capital:** **₹11,00,00,000** (1,10,00,000 shares of ₹10 each). - **Paid-up Capital:** **₹10,92,00,000** (1,09,20,000 shares of ₹10 each). --- ### **Strategic Growth Roadmap: Diversification & Integration** The company is executing a multi-pronged strategy to move up the value chain from a component supplier to a provider of finished, high-value assemblies. * **Vertical Integration via Acquisition:** In **August 2025**, the company completed the **100% acquisition** of **Forge Mach Auto Private Limited**. This subsidiary expands the company’s **machining array**, allowing it to supply fully finished components rather than raw forgings, thereby capturing higher margins. * **Sector Expansion:** Management is actively diversifying away from traditional automotive cycles by entering: * **Electric Vehicles (EV):** Developing lightweight aluminum forged components. * **Defense & Aerospace:** High-strength alloy components. * **Oil & Gas:** Utilizing new **CNC Ring Rolling** capabilities for specialized valves and fittings. * **Geographic Reach:** Currently exporting to **Germany, Denmark, France, Poland, Turkey, U.K., Austria, Italy, North America, and South America**. Future targets include untapped markets in **Southeast Asia**. --- ### **Operational Efficiency & Technological Innovation** Forge Auto’s strategy emphasizes **cost efficiency** and **technological absorption** to maintain a competitive edge in a capital-intensive industry. * **Energy Transition:** The company has successfully transitioned from **Furnace Oil** to **Natural Gas**, utilizing cleaner energy to power its forging furnaces. * **Industry 4.0:** Implementation of automation and advanced manufacturing technologies aimed at reducing **personnel requirements**, lowering **electricity consumption**, and optimizing **capital costs** relative to production volume. * **R&D Focus:** Continuous research into process innovation to reduce the **cost of production** while improving metallurgical quality. --- ### **Sustainability & ESG Leadership** The company is positioning itself as a leader in "Green Manufacturing" within the Indian forging industry through its "Journey Towards Sustainability" program. * **Carbon Neutrality:** Subsidiary **Forge Mach Auto Pvt. Ltd.** achieved **certified carbon-neutral status** for **FY 2024-25**, making it the first automotive component manufacturer in Punjab to reach this milestone. * **Emissions Offsetting:** Validated an offset of **253 tonnes of CO2e** in partnership with **TerraBlu Climate Technologies**. * **Certifications:** The company maintains a robust quality and environmental framework: * **ISO 9001:2015** (Quality Management) * **ISO 14001:2015** (Environmental Management) * **IATF 16949:2016** (Automotive Quality) * **ZED (GOLD)** (Zero Defect Zero Effect certification) --- ### **Risk Management & Governance Framework** Forge Auto maintains a conservative risk profile, supported by a strengthened governance structure following its transition to a public company. * **Governance:** In **February 2026**, the company strengthened its board by appointing a **Non-Executive Independent Director**. * **Subsidiary Capitalization:** In **March 2026**, the company converted an outstanding loan of **₹17.35 Crore** into **36,14,584 equity shares** of its subsidiary to optimize the group’s balance sheet. * **Risk Assessment:** * **Litigation:** **Nil** pending litigations with material financial impact. * **Financial Controls:** Annual audits confirm the **operating effectiveness** of Internal Financial Controls (IFC). * **Market Risk:** No material exposure to **derivative instruments** or high-risk long-term contracts. * **Compliance:** Full adherence to **Section 197** of the Companies Act regarding director remuneration and statutory filings.