Garg Furnace Limited has announced robust financial results for the second quarter of FY 2025-26, reporting strong revenue stability, sharp margin improvement and significant profit growth, supported by a strategic shift toward value-added steel and disciplined operations. The company released its official press statement on November 21, 2025.
Revenue Rises to ₹6,138.43 Lakh in Q2 FY26
Garg Furnace posted ₹6,138.43 lakh in revenue for Q2 FY26, marking a 2.04% quarter-on-quarter (QoQ) increase from ₹6,015.31 lakh in Q1 FY26, despite an industry-wide softening in steel prices. Year-on-year revenue remained largely stable, reflecting the company’s increased focus on high-value products rather than volume-led growth.
This performance was highlighted in the company’s detailed results sheet on page 2 of the document, which attributes the revenue uptick to a shift toward specialised steel grades for automotive, agri-machinery, engineering and industrial applications.
Operating Profit Surges Over 111% QoQ
One of the most notable improvements came in operating profitability. Garg Furnace recorded ₹3.11 crore in operating profit, up 111.5% QoQ and an impressive 190.7% YoY.
This steep rise was driven by internal chemistry optimisation—balancing carbon, manganese, chromium and other elements—to produce performance-led steel rather than low-margin, commodity-grade products. This technical capability helped the company maintain 100% capacity utilisation and secure recurring orders from OEM Tier-2 suppliers.
OPM Expands Sharply to 5.07%
Operational efficiencies played a key role in earnings expansion. The company’s Operating Profit Margin (OPM) improved from 2.44% in Q1 FY26 to 5.07% in Q2 FY26, representing a 263 bps expansion QoQ.
Year-on-year, margins grew from 1.72% to 5.07%, an increase of 335 basis points, aided by process optimisation across melting and rolling, improved scrap sourcing and tighter controls over power usage and yield losses
Net Profit Jumps 119.5% QoQ, 272.3% YoY
Garg Furnace reported ₹274.19 lakh in net profit for the quarter, reflecting:
- 119.5% QoQ growth, and
- 272.3% YoY growth (compared to ₹124.88 lakh last year)
This surge emphasises the effectiveness of the company’s pivot toward margin-accretive product lines and tighter operational discipline.
H1 FY26 Revenue Jumps 73.6% YoY
For the half-year period (H1 FY26), the company recorded:
- ₹12,153 lakh in revenue
- ₹399.07 lakh in net profit
This represents a 73.6% increase over last year’s H1 performance, signalling a strong upward trajectory heading into the second half of FY26.
Alloy Steel Expansion Through Subsidiary Vaneera Industries
A major future growth lever for the company is the upcoming alloy steel facility being set up by its subsidiary, Vaneera Industries Ltd.
The expansion will add capabilities such as:
- Advanced metallurgy (LRF, EMS, VD)
- Premium alloy steel grades
- Access to auto, engineering and defence-sector customers
This upgrade is expected to significantly improve the company’s long-term product mix and profitability, positioning Garg Furnace among the most competitive mid-sized steel producers in North India.
According to the director’s statement in the press release, the alloy steel expansion will make FY 2025-26 “a year of accelerated scale” following a foundation-building FY 2024-25.
Strategic Focus Areas Ahead
The company outlined its forward outlook, stating it will continue to prioritise:
- Scaling alloy steel output after Vaneera integration
- Increasing the share of high-strength, performance-led steel
- Driving bottom-line-focused growth
- Maintaining innovation-driven product development
- Strengthening operational efficiency and cost controls
With stable capacity utilisation and rising demand for specialised steel grades, Garg Furnace is entering FY26’s second half with strong momentum.
Conclusion
Garg Furnace Limited’s Q2 FY26 performance reflects a solid transformation toward value-added steel manufacturing, powered by chemistry-driven innovation, strict cost discipline and upcoming alloy steel capacity. The company’s double- and triple-digit growth metrics across profit indicators underline the success of its strategic shift, preparing it for the next phase of expansion in India’s evolving steel sector.
