Small-Cap Stock Rallies 700% in 5 Years After Reporting Impressive Q4 Earnings

Tirupati Forge Surges 5% Amid Positive Sentiment Over Improving Growth Prospects

Tirupati Forge, a small-cap stock with a market capitalisation of ₹547 crore, reached its 5% upper circuit at ₹43.2 apiece in Tuesday's trade on May 19, following the announcement of its March quarter performance. Despite a mixed set of numbers for both the March quarter and FY26, investor sentiment remained positive due to improving long-term growth prospects.

The company reported revenue of ₹43.03 crore for Q4FY26, a decline from ₹49.25 crore in Q3FY26, as its traditional business faced headwinds due to geopolitical tensions. Net profit declined to ₹1.52 crore from ₹2.02 crore on a sequential basis. However, adjusted PAT stood at ₹6.30 crore, compared to ₹7.86 crore in the previous quarter, after accounting for higher depreciation and interest costs related to the commissioning of the new defence manufacturing plant and solar unit.

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On a year-over-year basis, the company posted a rise in both revenue and profit by 52% and 17% respectively. For the full financial year FY26, revenue increased sharply to ₹165.94 crore from ₹116.29 crore in FY25, driven by a growing order book and strong demand momentum from the US market. PAT stood at ₹6.29 crore in FY26, compared to ₹7.86 crore in FY25.

According to the company, the temporary moderation in profitability was primarily attributed to upfront investments in the new defence manufacturing facility and solar power plant, aimed at supporting long-term growth and improving operational efficiency. The company undertook transformative investments aimed at embarking on a major growth journey, improving operational efficiency, and creating a more strategic and higher-margin business profile.

The company believes that the defence business represents a significant long-term opportunity, driven by increasing localisation initiatives, supply chain diversification, and strong policy support for domestic defence manufacturing. While the external environment may continue to remain dynamic in the near term, the company is well-positioned for future growth.

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Tirupati Forge's shares staged a strong comeback in recent months after remaining under prolonged pressure. The stock closed the last three months in the green, delivering a cumulative gain of 31%. It witnessed a sustained bull run between June 2023 and December 2024, rallying from ₹8.75 apiece to ₹61, resulting in a massive 597% gain. During the rally, the stock also touched a fresh all-time high of ₹73 apiece. In terms of long-term performance, the stock has delivered a return of 354% over the last three years and 700% over the past five years.