Kalyani Forge Ltd has approved a ₹45 crore funding plan for FY27, combining equity, debt and monetisation of non-core assets to strengthen its balance sheet, support working capital requirements and fund the ramp-up of new engine and wheel hub orders.
The plan will be implemented in phases during FY27 and is aimed at providing the company with a diversified capital base to support its growth and operational priorities.
Funding through three sources
The company plans to raise ₹10 crore through equity to bring in long-term growth capital. Another ₹20 crore will be mobilised through term loans and working capital facilities from banking partners.
It also plans to raise up to ₹20 crore through the sale of non-core assets and monetisation of inventory, releasing funds for core operations.
New orders to support volume recovery
“For the first time in the company’s transformation journey, we have taken a structural review of funding adequacy for our growth ambitions, with industry benchmarking and formulas,” Kalyani Forge, Managing Director and CEO, Viraj Kalyani, said.
He said improved confidence in operational profitability had made funding growth the next priority. The plan is expected to strengthen the company’s financial position and support execution of its order pipeline.
Manufacturing efficiency remains focus
The reconditioning of a 2,500-tonne press and consolidation of the driveline machining plant MCD3 into MCD1 have created a more compact shopfloor and freed up space for future expansion.
With the upgraded press and consolidated machining facility in place, the company is focusing on ramping up new engine and wheel hub programmes. Manufacturing productivity, overall equipment effectiveness (OEE) and cost optimisation remain key priorities.
Receivables under close watch
Trade receivables stood at ₹141 crore in September 2026, compared with ₹103 crore in March 2026. The increase was attributed to delays in customer remittances and export receipts during the transition to a new banking partner, as well as slower lifting of last-time-buy volumes by customers whose programmes are being phased out.
The company said improving receivables efficiency remains a priority, supported by the funding plan. It is also focusing on strengthening customer relationships and expanding opportunities across automotive and industrial segments.