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Informist, Saturday, Aug. 8, 2026

 

By Gopika Balasubramanium

 

MUMBAI – The Pune-based manufacturer Bharat Forge Ltd. is expected to post a decent performance in the June quarter, led by robust growth in its operations across its domestic and export markets. The pick-up in the company's commercial vehicles and defence businesses are seen as the key growth drivers, according to brokerages. The depreciation of the rupee during the June quarter is expected to offset the rising commodity and energy costs, which is seen aiding margin expansion. 

 

The company's June quarter bottom line is expected to rise 13-16% year-on-year, according to estimates from three brokerages. The estimates range from a high of INR 3.92 billion by Kotak Securities Ltd. to a low of INR 3.85 billion by Motilal Oswal Financial Services Ltd. If the company is to meet the above estimates, it is expected make a rebound from the trailing quarter. 

 

The company had made a loss of INR 1.18 billion in the trailing quarter and the sales were INR 22.60 billion. If it was not for the one-time cost of INR 4.93 billion incurred for making provisions for a subsidiary, the company would have reported a net profit of INR 3.75 billion. From this sequential figure, the bottom line is expected to rise over 2-4%. Since May 7, when it had announced results, the stock has gained 14%. 

 

Bharat Forge's top line is expected to rise 10-13% on year, estimates from three brokerages showed. The highest estimate for Bharat Forge's revenue from operations for the June quarter is INR 23.73 billion from Kotak Securities. The lowest estimate is INR 23.29 billion from YES Securities. Sequentially, growth projections for the company's top line are in the range of 3-5%. 

 

Kotak Securities expect the company's standalone revenues to rise 13% on year led by a 19% on-year increase in domestic segment revenues driven by a double-digit increase in commercial vehicle and passenger vehicle volumes and recovery in defence business revenues. The 7% increase in export segment revenues on a year-on-year basis driven by strong growth in non-automobile business is expected to aid sales growth, Kotak said. "We expect defense segment revenues to grow by mid-single digit on a qoq (quarter-on-quarter) basis," Kotak said.

 

The company's earnings before interest, tax, depreciation, and amortisation estimates are in a thin range of INR 6.35 billion–INR 6.54 billion. While Kotak expects the company's EBITDA margin to improve 20 basis points on quarter to 27.5%, Motilal Oswal expects it to contract by 10 basis points to 27.10%. Kotak expects the EBITDA margin to improve on account of operating leverage benefit and foreign exchange gains, which is seen offsetting the rise in commodity and energy costs. In the trailing quarter the margin was 27.3% and in the year-ago quarter it was 27.2%. 

 

For the year-ago quarter, the company reported a net profit of INR 3.39 billion on revenues of INR 21.05 billion. The company is slated to release its June quarter results on Monday. The company's stock Friday ended 2.5% higher at INR 2,265.20 on the National Stock Exchange.  

 

Following are the Apr-Jun earnings estimates for Bharat Forge from three brokerage firms in descending order of net profit estimate in INR billion:

 

Brokerage	Sales	PAT	EBITDA
Kotak Securities Ltd	23.73	3.92	6.54
Yes Securities Ltd.	23.29	3.88	6.48
Motilal Oswal Financial Services Ltd	23.43	3.85	6.35
Average	23.48	3.88	6.46

 

End

 

Edited by Akul Nishant Akhoury

 

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