Balu Forge Industries shares surged to hit the 10% upper circuit on Thursday, February 26, reaching ₹489.4 per share on the National Stock Exchange (NSE). The stock's market capitalisation stood at ₹5,627.70 crore following the company's significant contract win with a NATO-affiliated organization. The stock had opened at an intraday low of ₹447.05 and touched the upper circuit limit, demonstrating strong investor confidence in the defense manufacturing deal.
Under the Memorandum of Understanding (MoU), Balu Forge is committed to delivering 30,000 units of 155 mm M107 ammunition monthly and 10,000 units of 152 mm ammunition monthly, both in ready-to-fill condition, over a five-year period starting April 2026. As reported by Livemint, the negotiated price is USD 315 per unit for both ammunition types, with the contract beginning on February 25, 2026. The volumes exceed the company's existing production capability of 360,000 units per year, though strategies are in place to increase manufacturing through internal funding.
The agreement encompasses the entire category of large-caliber ammunition, starting with the 155 mm M107 and 152 mm & 155 mm ERFB/BT variants, with intentions to later include 105 mm, 120 mm, and 81 mm ammunition. According to the exchange filing, this represents the next phase of the company's journey post onboarding onto the NATO supply chain and commercialization of their empty shell line. The phased commencement will begin in April 2026, with initial shipments consisting solely of 155 mm M107 and 152 mm variants.
The company delivered robust financial results for Q3 FY26, with revenue from operations reaching ₹3,111 million, representing a 21.6% year-on-year growth from ₹2,558 million in Q3 FY25. As reported by ScanXNews, EBITDA grew 24.8% to ₹845 million with margins expanding to 27.2% from 26.5% in the previous year. Profit after tax increased 20.5% to ₹711 million with PAT margins improving to 22.5%. For the nine months ended December 31, 2025, the company achieved even stronger growth with revenue of ₹8,438 million (29.0% YoY growth) and EBITDA of ₹2,396 million with 36.0% growth.
On February 25, 2026, Balu Forge Industries completed the allotment of 16.30 lakh equity shares through convertible warrant conversion at ₹360 per share, generating ₹44.01 crore from three non-promoter investors. According to ScanXNews, Ebisu Global Opportunities Fund Limited emerged as the largest participant with 11.00 lakh shares (₹29.70 crore), while Rakesh Hasmukhlal Kanabar and Ovata Equity Strategies Master Fund contributed 3.30 lakh shares (₹8.91 crore) and 2.00 lakh shares (₹5.40 crore) respectively. The conversion was executed at a 1:1 ratio with a two-stage payment mechanism, providing the company with staged capital infusion while offering investors flexibility in investment timing.
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, the stock is witnessing strong traction with healthy volumes and has reclaimed its 20-DEMA while forming a higher-bottom structure on the daily chart. As reported by Livemint, considering the improving momentum, prices may extend the upmove towards the 89-EMA near ₹530, while the higher-bottom zone around ₹440 is likely to act as immediate support. The stock has traded in a 52-week range between ₹341.05 (January 29, 2026) and ₹784 (June 12, 2025), with the current surge reflecting strong investor confidence in the NATO supply chain expansion.
As of the quarter ended September 2025, ace investor Ashish Kacholia holds a 1.88% stake in Balu Forge Industries Ltd, amounting to 18,65,933 shares, according to reports from Livemint. This significant investment by the prominent investor adds credibility to the company's strategic positioning in the defense manufacturing sector and provides institutional backing for the NATO supply chain expansion.
