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Informist, Wednesday, Aug. 6, 2025

--Bharat Forge: Not looking at setting up any facility outside India 

--Bharat Forge: No effect on order inflows from US tariffs 

--Bharat Forge: See over 20% growth in aerospace business during the year 

--Bharat Forge: Facing unprecedented times, confident of coming out stronger 

By Sunil Raghu and Ashutosh Pati

AHMEDABAD/MUMBAI – Bharat Forge Ltd. management Wednesday said while it was yet to ascertain the impact of tariffs by the US, the September quarter of 2025-26 (Apr-Mar) may be a little weaker compared with the quarter ended June. "Q2 looks a little weaker driven by US exports and hopefully marks the low for this cycle. Second half (Oct-Mar) should be better than the first half (Apr-Sept)," the company management told analysts in its conference call.

In Apr-Jun, overseas business accounted for nearly 55% of the company's revenue. Of this, Americas accounted for nearly two-thirds, and Europe and Asia Pacific the rest. Any change in US policy, including tariffs, have a direct impact on earnings of Bharat Forge. With US President Donald Trump announcing his intent of levying additional tariff and penalties on imports from India, Bharat Forge management said it has already begun exploring ways to offset any hit.

"At this point, there is no impact on order inflows because typically, you know, for the products that we are engaged with, it takes anywhere between two to four, three years to complete the whole approval and validation cycle, even if we have to move it anywhere ourselves," the management said.

On being asked if it was considering setting any facility on-shore US to tide over the situation, the company management denied any such plans. The management said that it was not looking to set up any new facility right now, especially outside India.

In the medium to longer term, Bharat Forge management said that the centre of gravity of their business could shift back to India operations, as manufacturing in India becomes larger and more lucrative. "And we're already seeing opportunities emerge for machine tools for supply to emerging sectors in domestic market as well," they added.

For Apr-Jun, domestic sales account for nearly 45% of the company's total turnover. Among the sectors the company is hopeful for its growth going forward include aerospace, which it feels would grow more than 20% annually. Currently, its aerospace business is largely based in Europe and the growth in this segment is coming from non-US markets. 

The company, which has over INR 94 billion in defence orders, is pushing its case for playing a role in supply of equipment for use on land, sea and air. As of now, Bharat Forge is said to be a key player for defence equipment used on land. The company is also expecting to sign the contract of INR 14 billion worth of defence equipment supply order. The company had emerged as the leader in bidding process.

"As you know, we are facing unprecedented times. But, you know, this company has weathered a lot of downturns...we've worked internally to make ourselves more competitive. And that's the same thing that we will do this time around also. And I'm quite confident that we will come out stronger and better at the end of this," the company management told analysts.

Bharat Forge'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 June 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. Wednesday, shares of the company closed 1.8% lower at INR 1,139.4 on the National Stock Exchange.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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