Bharat Forge reported a 24% year-on-year increase in consolidated net profit to Rs 282.62 crore for the March quarter, even as revenue declined by 7.5% to Rs 3,853 crore. The improvement in Ebitda margin by 170 basis points was driven by reduced losses in the company’s overseas entities and e-mobility operations. However, on a standalone basis, profit fell 11.3% to Rs 345 crore, while revenue dropped 7.1% to Rs 2,163 crore. Standalone Ebitda declined 6.4% to Rs 616.7 crore, though margins expanded by 20 basis points to 28.5%.
During the quarter, the company secured new orders worth Rs 4,343 crore, including a major order of Rs 3,417 crore from Advanced Towed Artillery Gun Systems (ATAGS) from the defence ministry. For FY25, the Bharat Forge group bagged total new orders worth Rs 6,959 crore, with the defence segment contributing 70%. As of March 2025, the defence order book stood at Rs 9,420 crore.
At the consolidated level, debt reduction at overseas operations contributed to lower interest costs. Notably, the company’s US plant turned profitable during the quarter, operating at 60–65% capacity utilisation. With a robust order pipeline, the plant is now ramping up utilisation further. Bharat Forge is also restructuring its European operations and actively exploring improvement strategies.
B N Kalyani, chairman and managing director of Bharat Forge, said the company is refraining from providing an outlook for FY26 exports — which make up 30% of consolidated revenues — citing volatility and uncertainty arising from the tariff situation. He emphasised that the focus will remain on enhancing consolidated profitability, reducing losses in the e-mobility vertical, assessing strategic options for the European steel business, and boosting operational efficiency in the aluminium segment.
Amit Kalyani, vice chairman and joint MD, adopted a wait-and-watch stance on the US tariff issue. Bharat Forge has experienced a decline in revenue from the North American Class 8 truck segment due to market weakness.
On the defence front, Kalyani noted that execution of the ATAGS order is expected to begin in Q4FY26, with completion targeted over a two-year timeline. He projected 15–20% growth in the defence segment in FY26, as multiple ongoing projects transition into firm orders.
Bharat Forge plans to invest approximately Rs 500 crore in capital expenditure during FY26. With momentum building in the aerospace vertical, the company is setting up a dedicated aerospace forging and machining facility. It has also secured new orders from both European and non-US markets.