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Informist, Thursday, May 7, 2026

 

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--Bharat Forge Jan-Mar net loss INR 1.18 bln 
--Analysts saw Bharat Forge Jan-Mar net profit at INR 3.79 bln 
--Bharat Forge Jan-Mar revenue INR 22.60 bln 
--Analysts saw Bharat Forge Jan-Mar revenue at INR 23.16 bln 
--Bharat Forge Jan-Mar net loss INR 1.18 bln vs PAT INR 3.46 bln year ago 
--Bharat Forge Jan-Mar revenue INR 22.60 bln vs INR 21.63 bln year ago 
--Bharat Forge Jan-Mar net loss includes one-time cost INR 4.93 bln 
--Bharat Forge FY26 net profit INR 8.19 bln vs INR 13.22 bln year ago 
--Bharat Forge FY26 revenue INR 83.96 bln vs INR 88.44 bln year ago 
--Bharat Forge would have posted profit of INR 3.75 bln Q4 ex-one time cost 
--Bharat Forge Jan-Mar operating margin 27.31% vs 28.51% year ago 
--Bharat Forge Jan-Mar EBITDA INR 6.10 bln vs INR 6.29 bln year ago 
--Bharat Forge Q4 one-time cost largely impairment provision for arm 
--Bharat Forge Jan-Mar EBITDA margin 27% vs 29.1% year ago 
--Bharat Forge Q4 domestic sales INR 10.63 bln vs INR 8.03 bln yr ago 
--Bharat Forge Q4 export revenue INR 10.84 bln vs INR 12.32 bln yr ago 
--Bharat Forge: Saw rebound in North American truck market demand in Jan-Mar 
--Bharat Forge to pay INR 6.50 per share final dividend 
--Bharat Forge: Need to take a fresh look at how we address EV opportunity 
--Bharat Forge: Expect FY27 revenue to grow 25% for India mfg operations 
--Bharat Forge defence order book at INR 109.61 bln as of Mar 31 
--Bharat Forge: Order wins across businesses reflect resurgence in demand

 

By Arya S. Biju

 

MUMBAI – A one-time cost related to provision made for the impairment of investment in a subsidiary and the restructuring cost of another subsidiary, dragged Bharat Forge Ltd. into the red in the March quarter, the first time in around six years. However, if one were to exclude the one-time cost totalling INR 4.93 billion, the company would have reported a net profit for the quarter, though below the Street's expectations.  

 

The auto ancillary company reported a net loss of INR 1.18 billion for the March quarter, compared to a net profit of INR 3.46 billion in the corresponding quarter a year ago. Adjusted for the one-time cost, the company reported a net profit of INR 3.75 billion for the quarter, up around 9% on year but slightly below the INR 3.79 billion estimated by analysts. 

 

The company's top line, on the other hand, grew 4.5% on year to INR 22.60 billion, marking the first on-year growth in seven quarters. This was, however, lower than the Street's view of INR 23.16 billion. 

 

Reacting to the earnings announcement, shares of the company rose as much as 8.2?ter falling into the red briefly. At 1346 IST, the stock traded around 5% higher at INR 1,964.70 on the National Stock Exchange.

 

The INR 4.93-billion one-time cost for the quarter included a provision of INR 4.50 billion made for impairment of investment in the company's wholly-owned subsidiary Kalyani Powertrain Ltd., factoring in the weak business due to change in electric vehicle adoption globally, Bharat Forge said. The exceptional item also included INR 426 million recorded as incidental costs related to the restructuring of its German subsidiary Bharat Forge CDP GmbH, which is currently facing "market challenges and associated cost disadvantages."  

 

On a sequential basis, the company's top line for the quarter grew over 8%, the fastest in 18 quarters. The sequential growth was supported by a rebound in demand in the North America truck market and strong domestic demand for commercial vehicles, the company said in a post-earnings presentation.  

 

The company's overall domestic sales for the quarter jumped over 26% on year to INR 11.76 billion. However, on a sequential basis, they rose just 0.2%. Within this, sales in the domestic commercial vehicle segment grew around 16% on year to INR 3.07 billion, driven by higher production volumes across original equipment manufacturers led by benefits from the goods and services rate rationalisation, which continued to spur demand. Revenue from the domestic passenger vehicles segment grew over 18% on year to INR 1.07 billion and that from the industrial segment jumped 45% to INR 6.50 billion. However, on a sequential basis, the domestic industrial business declined over 8% due to modest execution in the defence business, it said. 

 

Sales from Bharat Forge's export business fell 12% on year but rose over 19% sequentially to INR 10.84 billion. Even though all three segments under the exports business delivered growth on a sequential basis, it fell on year. Among geographies in which the company has its exports business, except for Europe, sales from all other regions declined on year. 

 

The company's earnings before interest, taxes, depreciation, and amortisation for the March quarter fell 3% on year but rose over 7% on quarter to INR 6.10 billion. Its EBITDA margin for the quarter contracted 210 basis points on year and 30 bps sequentially to 27%. This contraction was mainly due to changes in the company's product mix, Bharat Forge said. 

 

The company's total expenditure for the March quarter grew 4.6% on year to INR 17.96 billion. This was mainly driven by an over 7% on-year rise in raw material cost at INR 9.68 billion and a 4.5% rise in other expenses at INR 5.59 billion. 

 

For the finanacial year ended March, Bharat Forge reported a net profit of INR 8.19 billion, down 38% on year. Its revenue for the full year fell 5% to INR 83.96 billion. The company secured new orders worth INR 48.14 billion in 2025-26 (Apr-Mar), including defence orders worth INR 28.16 billion. As of Mar. 31, the company's defence orderbook was INR 109.61 billion. 

 

"The order wins across businesses reflect a resurgence in business momentum including in aerospace with onboarding of new customers across engine, structural and landing gear components," the company's management said in the presentation. "Looking ahead into FY27, barring any geopolitical crisis and its impact of demand, we are optimistic of achieving 25% revenue growth with a commensurate increase in EBITDA & profitability for the Indian manufacturing operations driven by execution of orders across business and recovery in the export market."

 

Along with its March quarter earnings, the company's board approved final dividend of INR 6.50 per share for FY26. The dividend, if approved, will be paid on or after Aug. 14, Bharat Forge said while not specifying the record date for the dividend.  End

 

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

 

Edited by Avishek Dutta

 

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