More Stories

Informist, Wednesday, Aug.6, 2025

By Sunil Raghu & Adhithya Aji

AHMEDABAD/MUMBAI – Bharat Forge Ltd.'s net profit and revenue for the June quarter rose year on year but fell short of market expectations. The net profit rose 25.7% on year to INR 3.39 billion, but was lower than the INR 3.61 billion expected by analysts. On a trailing basis, the net profit was down 2.05% from INR 3.46 billion. For the last two quarters, the net profit had fallen on a year-on-year basis.

Revenue from operations for the quarter fell almost 10% on year to INR 21.05 billion and missed the consensus estimate of INR 24.12 billion. The revenue fell nearly 3% on a trailing basis, from INR 21.63 billion. The revenue has contracted for four consecutive quarters now.

The company's operating margin for the June quarter fell marginally to 27.17%, from 27.86% a year ago.  More

Bharat Forge's consolidated earnings before interest, taxes, depreciation, and amortisation for the June quarter was INR 6.82 billion, down nearly 10.2% from INR 7.59 billion a year ago. Its standalone EBITDA for the June quarter was INR 5.88 billion, down nearly 11% on year. The standalone EBITDA margin was 27.9%, down 20 basis points from the year-ago quarter and 120 bps from the March quarter.

Consolidated revenue from the company's forging segment increased 5.3% on year to INR 35.58 billion. The company earned revenue of INR 2.79 billion from its defence business, down 58.8% on year and 7% on quarter.

"Given the recent tariff announcement by the US government and changes to emission regulation in North America, we are cautious on the outlook for the US export business for the reminder of the fiscal," B.N. Kalyani, chairman and managing director, Bharat Forge, said in an investor presentation. He said 2025-26 (Apr-Mar) is likely to be a challenging period, given where Bharat Forge is in the overall cycle and its geographical exposure.

The company will focus on capturing opportunities in businesses and geographies which are relatively unaffected and work simultaneously on cost optimisation to minimise impact of operating deleverage, he said.

Kalyani said the company had secured new orders worth INR 8.5 billion, including INR 2.69 billion in defence. As of Jun. 30, the company's defence order book stood at INR 94.63 billion. "For the defence vertical. Based on the project or platforms we have participated in, we expect to secure new orders in this fiscal year generating more revenue visibility for the future years," he said.

Bharat Forge's domestic revenue for the quarter was INR 9.16 billion, down nearly 14% on year from INR 10.6 billion and up 14% on quarter from INR 8.03 billion. Net sales from the company's commercial vehicles business in India fell nearly 1.7% on year and nearly 8% on quarter to INR 2.45 billion. The fall in company's commercial vehicle business was attributed largely to market softness and seasonality seen at the start of the financial year, the company said in its investor presentation.

Revenue from the company's industrial business in India fell to INR 5.74 billion, down nearly 21.3% on year. This was largely due to completion of projects in defence and small one-time orders for machine tools, the company said.

Revenue from its domestic passenger vehicle business rose 19.2% to INR 973 million, up from INR 816 million in the June quarter last year. The revenue was up 8% on a trailing basis. Passenger car business saw a robust performance in the June quarter due to a "combination of new business wins and higher volumes at some of its key original equipment manufacturers", the company said.

Overseas revenue in the June quarter fell 8.1% on year to INR 10.75 billion. On a trailing basis, the revenue was down 13% from INR 12.32 billion. Revenue from overseas commercial vehicle sales declined nearly 15.4% on year to INR 4.50 million. Exports of commercial vehicles to Europe saw some revival after the low sales seen last year. Commercial vehicle sales in the US declined due to pause in change of emission norms and ongoing trade policy flux in US, Bharat Forge said.

Overseas sales from the company's passenger vehicle segment rose 4.7% on year to INR 2.88 billion. The company said the performance of its passenger car exports was benign owing to its diversification efforts beyond North America. Net sales from the company's overseas industrial business fell 7.1% on year and over 24.5% on trailing basis to INR 3.37 billion in the June quarter.

Bharat Forge's total expenses for the reporting quarter were INR 17 billion, down nearly 9% on year and 1% on a trailing basis. The reduction was largely driven by contraction in its finance costs and raw material costs. The cost of raw materials, which constitutes more than 50% of the total expenses, fell to INR 9.10 billion, a 2% fall from the previous year's INR 9.27 billion. The finance costs fell 25.6% on year to INR 522.4 million, from INR 701.8 million a year ago.

The company's employee costs increased 4.3% on year to INR 1.7 billion while depreciation and amortisation costs rose 2.8% on year to INR 1.13 billion. Other expenses rose 0.3% on year to INR 5.48 billion.

On Wednesday, shares of the company settled at INR 1,139.40 on the National Stock Exchange, down 1.8% from the previous close.  End  

Edited by Ashish Shirke

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.