Bharat Forge’s share price rose 5.5% to an intra-day high of Rs 1,175 on the National Stock Exchange. The surge in the stock price of the company came after the geopolitical tension between India and Pakistan escalated. The company’s FY26 defence orderbook is also adding to investor optimism.
However, the company also reported its quarterly earnings for Q4FY25, which, according to the brokerage houses, were weak.
Nuvama on Bharat Forge
Bharat Forge’s standalone revenue fell 7% YoY to Rs 2,160 crore in Q4FY25. Subsidiaries’ loss stood at Rs 90.8 crore as against a loss of Rs 150 crore in Q4FY24. The company’s core business outlook is muted, which Nuvama factored in by cutting FY26 and FY27 earnings per share estimates by 2% each. The core segments, such as commercial vehicles and global construction equipment or tractors, are likely to be weak, limiting standalone revenue and EBITDA CAGRs to 7% each over FY25–27.
The brokerage house has a ‘Hold’ rating on the stock, which it has maintained post results, but trimmed the target price slightly to Rs 1,230 from Rs 1,250 per equity share.
JM Financial on Bharat Forge
JM Financial, in a research report, said that Bharat Forge’s revenue came below expectations due to muted commercial vehicle export demand and weakness in domestic industrial business, excluding defence. The company’s consolidated EBITDA margin expanded 220 basis points YoY to 17.7% due to the easing of losses in overseas operations and E-mobility.
The order book for the defence segment remains strong, and the management expects 15-20% revenue growth in the defence segment in FY26. Aerospace momentum also remains healthy. However, exports are expected to remain under pressure due to weakness in global CV demand and tariff-related uncertainty. JM Financial sets a target price of Rs 1,250 per equity share on the stock while maintaining a ‘Buy’ call on the stock.
Bharat Forge stock performance
The share price of Bharat Forge has risen 5.6% in the last five trading sessions. The stock has given a return of 21% in the past one month. However, Bharat Forge’s share price has fallen more than 16% in the last six months and 17% in the previous one year.