Bharat Forge has achieved a remarkable 24% year-on-year growth in its consolidated net profit, reaching ₹282.62 crore for the quarter ending March. This achievement comes amidst a 7.5% drop in revenue, which totaled ₹3,853 crore. The company’s improved EBITDA margin—up by 170 basis points—is attributed to reduced losses from its international operations and advancements in its e-mobility sector. However, on a standalone basis, profits saw an 11.3% decline, landing at ₹345 crore, with revenues also falling by 7.1% to ₹2,163 crore.

New Orders and Defence Contributions

During the recent quarter, Bharat Forge successfully secured new orders worth ₹4,343 crore. A significant portion of this includes a major contract amounting to ₹3,417 crore from the Advanced Towed Artillery Gun Systems (ATAGS) project, commissioned by the defense ministry. In the fiscal year 2025, the Bharat Forge group has amassed new orders totaling ₹6,959 crore, with a substantial 70% originating from the defense sector. As of March 2025, the defense order book stands impressively at ₹9,420 crore.

• Key Highlights:
  • New orders in Q4: ₹4,343 crore
  • Major ATAGS order: ₹3,417 crore
  • Total new orders for FY25: ₹6,959 crore
  • Defense order book: ₹9,420 crore

Operational Efficiency and Debt Reduction

At a consolidated level, Bharat Forge’s overseas operations have benefited from a reduction in debt, which has led to lower interest expenses. Notably, the company’s plant in the United States has reached profitability, operating at a 60-65% capacity utilization. With a strong order pipeline, the plant is set to increase its utilization rates. Additionally, Bharat Forge is currently restructuring its European operations to enhance efficiency.

Strategic Focus Amidst Market Volatility

B.N. Kalyani, chairman and managing director, has chosen not to provide a forecast for FY26 exports, which account for 30% of consolidated revenues, due to uncertainties related to tariffs. He emphasized the company’s commitment to improving consolidated profitability, reducing losses in e-mobility, evaluating strategic options within the European steel sector, and enhancing operational efficiency in aluminum production.

Amit Kalyani, vice chairman and joint managing director, expressed a cautious outlook regarding the ongoing U.S. tariff situation. Bharat Forge has noted a revenue dip in the North American Class 8 truck market, reflecting current market challenges.

Future Growth in the Defence Sector

On the defense front, Kalyani mentioned that the execution of the ATAGS order is set to commence in Q4 FY26, with a completion timeline of approximately two years. He anticipates 15-20% growth in the defense segment for FY26, as several ongoing projects transition into firm contracts.

Capital Investment Plans

Looking ahead, Bharat Forge is planning a capital expenditure of around ₹500 crore during FY26. The company is also making strides in the aerospace sector by establishing a specialized aerospace forging and machining facility. Furthermore, it has secured recent orders from both European and non-U.S. markets, indicating a positive outlook for future growth.

With a solid foundation and strategic initiatives in place, Bharat Forge is poised for continued success in the coming years.