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Informist, Tuesday, Nov. 11, 2025

 

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--Bharat Forge Jul-Sept net profit INR 3.10 bln 
--Analysts saw Bharat Forge Jul-Sept net profit at INR 3.18 bln 
--Bharat Forge Jul-Sept revenue INR 19.47 bln 
--Analysts saw Bharat Forge Jul-Sept revenue at INR 20.51 bln 
--Bharat Forge Jul-Sept net profit INR 3.10 bln vs INR 3.61 bln year ago 
--Bharat Forge Jul-Sept revenue INR 19.47 bln vs INR 22.47 bln year ago 
--Bharat Forge board OKs raising up to INR 20 bln via debt 
--Bharat Forge Apr-Sept net profit INR 6.48 bln vs INR 6.31 bln year ago 
--Bharat Forge Apr-Sept revenue INR 40.52 bln vs INR 45.85 bln year ago 
--Bharat Forge Jul-Sept operating margin 28.30% vs 27.84% year ago 
--Bharat Forge: Seeing further decline in exports to N America in Oct-Mar 
--Bharat Forge: See India industrial ops offseting weakness in US exports 
--Bharat Forge: See ramp up in defence ops offseting weakness in US exports 
--Bharat Forge:Q2 performance hit by sharp decline in N America truck output 
--Bharat Forge: Q2 US, Europe ops weak on seasonality, prevailing sentiments 
--Bharat Forge Jul-Sept EBITDA 5.45 bln vs INR 6.48 bln year ago 
--Bharat Forge Jul-Sept domestic revenue INR 9.06 bln vs INR 9.51 bln yr ago 
--Bharat Forge Jul-Sept export revenue INR 9.42 bln vs INR 11.75 bln year ago 
--Bharat Forge Jul-Sept export CV sales INR 2.84 bln vs INR 5.20 bln year ago 
--Bharat Forge Jul-Sept export PV sales INR 2.95 bln vs INR 2.77 bln year ago 
--Bharat Forge Jul-Sept export industrial sales INR 3.63 bln vs INR 3.78 bln 
--Bharat Forge Jul-Sept India CV revenue INR 2.23 bln vs INR 2.20 bln yr ago 
--Bharat Forge Jul-Sept India PV revenue INR 912 mln vs INR 920 mln yr ago 
--Bharat Forge Jul-Sept India industrial revenue INR 5.92 bln vs INR 6.39 bln 
--Bharat Forge: Defence order book INR 94.67 bln as of Sept 30 
--Bharat Forge: Secured new orders worth INR 15.82 bln in Apr-Sept 

 

By Gopika Balasubramanium

 

MUMBAI – Bharat Forge Ltd.'s top line for the September quarter fell in mid-teens and was down for the fifth straight quarter. The net sales also fell short of analysts' estimate. The company's bottom line for the reporting quarter declined but was largely in line with the consensus estimate.

 

The company's net profit for the quarter under review fell 14% on year and over 8% on quarter to INR 3.10 billion. Analysts had expected a net profit of INR 3.18 billion. Bharat Forge's revenue from operations for Jul-Sept was INR 19.47 billion, down 13% on year 7.5% sequentially. The company's net sales were also slightly lower than the expected INR 20.51 billion.

 

During Apr-Sept, the company secured new orders worth INR 15.82 billion, including defence orders of INR 5.59 billion. As of Sept. 30, the defence order book stood at INR 94.67 billion.

 

Seasonality and prevailing sentiment led to weakness in the company's US and Europe operations, Bharat Forge said. "Review of the European steel manufacturing footprint is on track and we expect to have concrete measures in place by end of this fiscal," the company said.

 

Given the challenging demand conditions in the US, exports to the region are expected to decline further in Oct-Mar, the company said. It expects the industrial business across India, exports to non-US geographies and a ramp-up in defence business to more than offset the weakness in US exports. "Our India manufacturing operations focussing on capturing opportunities in defence, aerospace, castings, and aggregates across markets continue to make steady progress," Bharat Forge said.

 

The company's operating margin improved to 28.30% from 27.84% in the year-ago quarter. Earnings before interest, tax, depreciation, and amortisation fell nearly 16% on year and over 7% on quarter to INR 5.45 billion. The EBITDA margin for the quarter was 28%, up 10 basis points on quarter, driven by a favourable product mix. The EBITDA margin, however, declined 80 bps on year.

 

DOMESTIC BUSINESS
Bharat Forge's revenue from India operations during the September quarter fell nearly 5% on year and over 1% on quarter to INR 9.06 billion. Net sales from India industrial business fell 7.5% on year to INR 5.92 billion. The company said its domestic industrial business had a steady performance on the back of better execution in defence and good traction for heavy horsepower engines.

 

The domestic commercial vehicle business grew 1.5% on year to INR 2.23 billion. The segment performance was moderate due to lower production volumes across automobile companies in Jul-Sept in anticipation of the goods and services tax rate cuts. Bharat Forge's passenger vehicle segment reported revenue of INR 912 million, down nearly 1% from INR 920 million a year ago.

 

SEGMENTAL PERFORMANCE
Bharat Forge's consolidated revenue from its forgings business rose nearly 9% on year to INR 33.56 billion. This segment has a lion's share in the company's overall revenue. In the preceding quarter, revenue from the forgings segment was INR 35.58 billion. The company's consolidated revenue from the defence segment fell nearly 23% on year but jumped 49% on quarter to INR 3.95 billion. The company's consolidated sales from other operations more than doubled on year to INR 5.88 billion.

 

EXPORTS BUSINESS 
Sales from Bharat Forge's overseas operations declined both sequentially and on year, mainly due to the slowdown in the US, especially in passenger and commercial vehicle markets. In Jul-Sept, sales from exports fell 20% on year and 12% on quarter to INR 9.42 billion.

 

By segment, the company's sales from commercial vehicle segment nearly halved on year to INR 2.84 billion. A combination of slow freight growth, weak sentiment, and tariff uncertainty weighed on demand for commercial vehicles in North America. "We expect the current sluggish scenario to persist over the remainder of the fiscal, given policy uncertainty in the US," Bharat Forge said. 

 

The company's passenger vehicle segment reported sales of INR 2.95 billion, up 6.5% on year. Despite demand challenges in the US, passenger car exports saw a flattish performance due to the company's diversification efforts across geographies and products. However, an extended period of demand uncertainty could impact discretionary spending in the US, thereby affecting passenger car sales, the company said. 

 

Industrial exports earned INR 3.63 billion as revenue, nearly 4% lower than INR 3.78 billion a year ago. The industrial segment showed a mixed performance, the company said, adding that the construction, mining and aerospace verticals showed resilience. However, the oil and gas vertical was a "spoiler" given the weak crude oil prices.

 

Revenue from the US contributed 62% to Bharat Forge's overall export sales in Jul-Sept - the highest by any geography. This is despite the top line from this region falling 32% on year. The company earned INR 5.80 billion from sales in the US. In Apr-Sept, US sales fell 23% on year to INR 12.73 billion. The company's Europe operations fetched revenue of INR 2.87 billion, up 8% from the year-ago quarter. Sales from Asia-Pacific region jumped 39% from the year-ago quarter to INR 753 million.

 

EXPENDITURE PROFILE, DEBT
Bharat Forge's total expenses for the reporting quarter were INR 15.55 billion, down over 13% on year and 8% sequentially. The reduction was largely driven by a sharp fall in raw material costs. The cost of materials consumed by the forgings company fell over 13% on year to INR 8.10 billion. The company's unsold inventories were at INR 1.05 billion during the quarter, sharply higher than almost INR 154 million a year ago. Its other expenses fell nearly 4% on year to INR 5.23 billion.

 

The company's tax expense during the September quarter declined nearly 15% on year to INR 1.20 billion. On a standalone basis, the company's debt fell to INR 8.02 billion as on Sept. 30 from INR 12.87 billion as on Mar. 31.

 

APR-SEPT, FUND-RAISE
Bharat Forge's net profit for the half year ended September rose a modest 3% on year to INR 6.48 billion. But the company's revenue from operations fell 12% on year to INR 40.52 billion. The company's board gave in-principle approval to raise up to INR 20 billion through term loan, non-convertible debentures or any other debt instruments. 

 

The company's shares Tuesday ended 5.6% higher at INR 1,402.10 on the National Stock Exchange, near their day's high of INR 1,411.  End

 

Edited by Nishant Maher

 

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