Capacity Expansion / Operational Update

AMIC Forging Begins Major Capacity Expansion; Phase-1 Commissioning Scheduled for June 2026

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BSE

544037

AMIC Forging Limited has announced the commissioning of Phase-1 of its integrated manufacturing expansion program on 15 June 2026. The expansion significantly increases forging, machining and ingot-making capacities while laying the foundation for entry into higher-value sectors such as aerospace, nuclear and defence engineering. The company also outlined Phase-2 plans involving a large heavy-forging facility with an estimated investment of approximately ₹165 crore.

PRICE-SENSITIVE TRIGGER

Event: Integrated Capacity Expansion and Manufacturing Scale-Up

Type: Capacity Expansion / Operational Update

Impact: Positive

Immediate Effect: Phase-1 commissioning will materially expand production capacity across ingot, forging and machining operations, creating substantial volume growth potential from FY27 and supporting margin expansion through backward integration.

Key Metrics:

FY26 Revenue: ₹141.78 Cr | +17% YoY
H2FY26 Revenue: ₹75.20 Cr | +30% YoY
FY26 EBITDA: ₹42.76 Cr | +53% YoY
FY26 EBITDA Margin: 30% | +900 bps YoY
H2FY26 EBITDA: ₹24.54 Cr | +52% YoY
H2FY26 EBITDA Margin: 33% | +900 bps YoY
FY26 Reported PBT: ₹39.73 Cr | -13% YoY
FY26 PBT (Ex-Other Income): ₹38.69 Cr | +57% YoY
FY26 PAT: ₹28.28 Cr | -20% YoY
Operating Cash Flow: ₹9.85 Cr | +64% YoY
Loans & Advances: Approximately ₹48 Cr

Highlight:

Underlying operating profitability remained strong, with FY26 PBT excluding Other Income increasing 57% YoY and EBITDA rising 53% YoY alongside a 900 bps margin expansion.

What Happened ?

AMIC Forging announced the next phase of its transformation into a fully integrated heavy precision engineering company. Phase-1 of the expansion program is scheduled for commissioning on 15 June 2026 and will significantly enhance manufacturing capabilities through backward integration into ingot production and expanded forging and machining capacities.

The expansion is expected to provide immediate capacity headroom for FY27 growth, supported by advance order bookings secured before commissioning. The company also revealed plans for a Phase-2 expansion program focused on heavy forging and integrated machining infrastructure aimed at aerospace, nuclear, defence and industrial applications.

Key Details

Manufacturing Expansion & Capacity Augmentation:

Phase-1 commissioning scheduled for 15 June 2026.
Ingot manufacturing capacity to increase from zero to 48,000 MT per annum.
Forging capacity to expand from 18,000 MT to 40,000 MT annually.
Machining capacity to increase from 8,400 MT to 33,000 MT annually.
Expansion designed to create a fully integrated manufacturing platform.
Backward integration expected to reduce dependence on external raw material sourcing.
Existing facilities operated near full utilization during FY26.
Phase-2 includes a 5,000-ton open-die hydraulic forging press and 40-ton manipulator.
Planned investments cover forging, machining, heat treatment, material handling and infrastructure facilities.
Phase-2 expected to support entry into aerospace, nuclear, advanced defence and heavy oil & gas sectors.
Estimated Phase-2 CAPEX is approximately ₹165 crore.

Note:

Management indicated that organizational capabilities, hiring and operating readiness have already been established ahead of Phase-1 commissioning to enable a faster production ramp-up and order conversion cycle during FY27.

Risk Analysis

Summary:

Execution of large-scale manufacturing expansion remains the key variable for future growth and margin realization.

Key Risks:

Timely commissioning and stabilization of Phase-1 facilities are critical for FY27 growth.
Large capital expenditure programs carry execution and project-management risks.
Revenue acceleration depends on successful order-book conversion following commissioning.
Aerospace, nuclear and defence opportunities require customer qualification and approval processes.
Working-capital management remains important during capacity ramp-up.
Growth assumptions depend on sustained demand across industrial and engineering sectors.

Worst Case Scenario:

Delays in commissioning, slower capacity utilization, approval bottlenecks in high-value sectors, or weaker-than-expected demand could postpone revenue and margin benefits from the expansion program.

Risk Level: Medium

Company Commentary

FY26 was described as a foundation-building year for the company’s next growth phase.
Existing facilities operated at near-full utilization during FY26.
Management believes margin expansion has been driven by improved realizations, richer product mix and disciplined execution.
Phase-1 investment program remains on track for commissioning on 15 June 2026.
The company expects the integrated manufacturing platform to support both volume growth and higher-value product mix expansion.
Phase-2 is intended to extend capabilities into aerospace, nuclear, defence and heavy industrial applications.
Management remains focused on working-capital discipline, product approvals and execution readiness during FY27.

Official Exchange Filing: AMIC Forging Limited