Balu Forge Industries shares surge nearly 12% after tax search clears company

Balu Forge Share Price Today: Shares of Balu Forge Industries surged sharply in Tuesday’s session after the company informed exchanges that the Income Tax Department did not find any incriminating documents during a recent search operation. The stock climbed as much as 11.7 per cent on the BSE to touch an intra-day high of Rs 493.25 per share.

At around 12:06 pm IST, Balu Forge Industries Ltd was trading at Rs 493 on the NSE, up 11.69 per cent, or Rs 51.60, reflecting strong buying interest in the counter despite weakness in the broader market. The benchmark Sensex was down 0.25 per cent at 83,668.81, highlighting the stock’s outperformance.

Balu Forge Industries currently commands a market capitalisation of Rs 5,422.02 crore. Over the past year, the stock has seen sharp swings, with a 52-week high of Rs 784 per share and a 52-week low of Rs 429 per share.

Why the stock is in focus?

In an exchange filing, the company said the Income Tax Department conducted a search under the provisions of the Income Tax Act, 1961, at certain offices and manufacturing units on January 7, 2026, with the operation concluding on January 13, 2026.

The company said it, along with its promoters and key managerial personnel, fully cooperated with the authorities and provided all documents, clarifications and details sought during the course of the search. It added that no incriminating documents were found or seized by the Department.

Balu Forge also clarified that its business operations and production activities continued as usual during the search period and were not impacted in any manner. The company said there is no material adverse impact on its financial position arising from the search.

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The production line includes advanced forging and machining capabilities for large-calibre ammunition projectiles, strengthening the company’s presence in the defence manufacturing space. Balu Forge said the new facility enhances its ability to deliver advanced machining solutions for critical defence applications and that it plans to further expand capacity to cater to both domestic and global demand.

What does Balu Forge do?

Balu Forge Industries is a precision engineering company engaged in manufacturing forged and machined components across multiple sectors. Its product portfolio ranges from components weighing 1 kg to 1,500 kg and up to 3 metres in length, catering to industries such as automotive, industrial vehicles, earthmoving equipment, wind energy, aerospace, defence, oil and gas, railways, marine and agriculture.

Balu Forge Q2FY26 result highlights

Balu Forge's Q2 FY26 results showed strong growth, with Revenue up 34.4 per cent to Rs 299.5 crore, Net Profit (PAT) surged 35.5 per cent to Rs 65 crore, and EBITDA increasing 27 per cent to Rs 82.8 crore, despite a slight dip in margin. Key figures include 21.5 per cent PAT margin and Rs6.08 EPS, with significant year-on-year expansion driven by execution and capacity readiness, particularly in defence.