PSFL

Paramount Speciality Forgings is undertaking a significant expansion project aimed at increasing its production capacity from 12,000 MTPA to a range of 14,000-20,000 MTPA. This expansion includes the addition of a 10-ton forging hammer, a forging press, and various CNC equipment to address existing manufacturing gaps and enable the production of more precise and complex products. The new facility is anticipated to commence commercial production by April 2026, which is expected to substantially boost future revenue and margins.

To enhance operational efficiency and reduce costs, the company is commissioning an internal NABL-accredited laboratory by February 2026. This lab will significantly cut down testing timelines and costs by reducing reliance on external agencies. Concurrently, a 1-megawatt captive solar power plant is slated for commissioning in February 2026, which is projected to substantially lower manufacturing electricity expenses. These combined efforts are expected to improve the overall efficiency of existing plants by 8-10% from February onwards.

For the current financial year (FY26), Paramount Speciality Forgings has achieved approximately ₹88-90 crores in revenue up to December 2025. The company projects to reach ₹120-130 crores by the end of FY26, representing a 15-20% growth. Looking ahead, management anticipates a 20-25% revenue growth for FY27 and aims to multiply its revenue by 2-2.5 times over the next 2-3 years. While operating margins have been temporarily strained by expansion-related costs, EBITDA margins are expected to stabilize at 12-15% from FY27.

The company's current order book stands at ₹50-60 crores, with a delivery timeline of 3-4 months. Paramount is actively expanding its customer base, adding 10-15 new clients quarterly, which have contributed approximately 7-8% of new business. The strategy focuses on cultivating long-term relationships with multinational and major Indian clients. Furthermore, the company is strategically disengaging from customers with challenging payment cycles to optimize receivables and improve working capital management.

Paramount is actively pursuing various industry-specific certifications to broaden its market reach and product offerings. This includes working towards NORSOK certification, expected within the next 2-3 months, which will enable the supply of complex, corrosion-resistant steels. The company is also targeting AS certification for aluminum forgings, particularly for the aerospace sector, with registrations anticipated within a year. Overall registrations for the aerospace and defense sectors are expected to be completed within 6 months to a year post-expansion.