Forge Auto International Ltd

Forge Auto International Ltd – Company Report


1. Company Overview


Forge Auto International Ltd, established in 2001 and headquartered in Ludhiana, Punjab, is an engineering company specializing in the forging and manufacturing of complex, safety-critical, forged, and precision-machined components. The company primarily serves the automotive sector—including automobiles, tractors, and railways—as well as the non-automotive sectors such as agriculture, hydraulics, and striking tools. Forge Auto International operates with a robust infrastructure, featuring advanced forging presses, machining capabilities, and in-house testing labs. It is recognized as a Tier 1 and Tier 2 supplier to major Indian and global OEMs, including Ashok Leyland, TAFE, Tata Motors, Mahindra & Mahindra, Isuzu, Daimler, and Indian Railways. The company exports to Europe and other international markets and is backed by a workforce in the intermediate size segment (501–1,000 employees as of 2025).

  • Incorporated: 2001
  • Headquarters: Ludhiana, Punjab, India
  • Employees: ~501–1,000
  • Core Focus: Forged and precision-machined components for auto, rail, tractor, and hydraulic sectors
  • Facilities: Forging capacity of 20,000 MT/year; machining capacity of approx. 2.5 million units/year
  • Major OEM Clients: Ashok Leyland, TAFE, Tata Motors, Mahindra & Mahindra, CNH, Isuzu, Daimler, Indian Railways
  • Export Presence: Europe (Poland, Germany, Denmark, Turkey, Brazil, etc.)
  • Certifications: Advanced forging and testing capabilities, CAD/CAM/CAE design

2. Products and Services


Forge Auto International Ltd offers a diverse range of high-quality forged and machined components for multiple sectors:

  • Automotive Components:
    Big/small rings, ball studs, gear blanks with/without broach, stub axle assemblies, flange yoke 325HS; used in tractors, light and heavy commercial vehicles, three- and four-wheelers.

  • Railways and Non-Automotive:
    Ball studs and related forgings for railway bogies, gear blanks, axle assemblies, castor wheel parts.

  • Agricultural and Hydraulic Equipment:
    Tractor and combine parts, striking tools, hydraulic components, and custom-forged pieces for specialized industrial use.

  • Other Capabilities:
    Closed die hot forging in carbon/alloy steel (1kg–20kg) and aluminum forging (0.5–6kg), in-house heat treatment, CNC/VMC machining, quality control/testing, design and prototyping services.

The company excels in customized parts per international standards, serving both automotive and non-automotive OEMs domestically and abroad. The product portfolio continues to grow, responding to evolving client needs in the auto, agriculture, rail, and industrial segments.


3. Recent News & Financial Performance


Business Developments

  • Upgraded manufacturing with new machinery and expanded capacity to 20,000 MT/year.

  • Expansion strategy to enter verticals like defense, oil & gas, and aluminum forgings.

  • Enhanced focus on exports and diversification into heavy machining and non-auto forgings.

  • Capex & Expansion: Ongoing investment in heavy machinery and forging lines, with expected operational benefits by late 2024.

  • Growth Outlook: Revenue growth surpassing its 3-year CAGR of 16.46%, driven by diversification and export expansion.


4. Financial Performance (FY2025)


Metric FY2025 Value YoY Growth
Total Revenue ₹212.67 crore 24.48%
Net Profit ₹9.53 crore 47.55%
Operating Profit Margin 8.28%
Net Profit Margin 4.54%
EPS ₹8.73

Financial Summary

FY2025
MetricCompanyIndustry Avg.
Price / Sales0.51.55
EV / EBITDA6.7511.62
Debt / Equity0.610.61
ROE %24.1116.6
ROCE %22.418.24
P / B1.83.18
Div Yld %00.64
P/E1122.43
OPM %8.4612.89
Qtr Sales Growth YOY %021.85
Qtr Profit Growth YOY %028.02
ROA LAST 12M %8.067.93
Prom. Hold. %73.6371.15
Sales 3Yrs CAGR %16.5312.17
Sales 5Yrs CAGR %013.15
Profit 3Yrs CAGR %53.430.96
Profit 5Yrs CAGR %041.02

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