Bharat Forge.
Bharat Forge financial result, order book in FY 2026: Bharat Forge Limited on May 7 reported a strong sequential recovery in the fourth quarter of FY26, driven by improving export demand, sustained domestic automotive momentum, and continued growth in its industrial and defence businesses, reinforcing optimism for the upcoming financial year.
The Pune-headquartered engineering major posted robust operational performance despite what it described as a challenging global demand environment and ongoing regulatory volatility across key international markets. The company also highlighted a significant rise in defence orders and improving aerospace execution as major contributors to its performance during the quarter and the broader financial year.
On a standalone basis, Bharat Forge reported revenue of Rs 2,260 crore in Q4 FY26, registering an 8.5 per cent quarter-on-quarter increase. EBITDA for the quarter rose 7.2 per cent sequentially to Rs 610 crore, with EBITDA margins remaining strong at 27.0 per cent. Profit before tax, excluding exceptional items, stood at Rs 486 crore, up 9.7 per cent from the previous quarter.
Bharat Forge Posts Strong Q4 FY26 Recovery
For the full financial year FY26, Bharat Forge reported standalone revenue of Rs 8,396 crore and standalone EBITDA of Rs 2,312 crore. On a consolidated basis, revenue increased 11.2 per cent year-on-year to Rs 16,812 crore, while consolidated EBITDA rose 5.9 per cent YoY to Rs 2,921 crore.
The company maintained a healthy financial position with standalone net debt-to-equity at 0.18x, underscoring its balance sheet strength amid ongoing investments across strategic business segments.
A major highlight of FY26 was Bharat Forge’s growing presence in the defence sector. The company secured new orders worth Rs 4,814 crore during the year, of which defence contracts accounted for Rs 2,816 crore. Its total defence order book stood at Rs 10,961 crore at the end of FY26, positioning the company strongly within India’s rapidly expanding indigenous defence manufacturing ecosystem.
The company also reported a marked improvement in export performance during the fourth quarter, aided by inventory restocking trends and a recovery in North American truck production. Passenger vehicle exports witnessed healthy demand across North and Central America, helping offset weakness in certain global industrial segments.
In aerospace, Bharat Forge said execution improved significantly during the quarter with the onboarding of new customers across engine, structural, and landing gear component programmes. The development signals the company’s increasing integration into global aerospace supply chains, a segment it has been steadily expanding in recent years.
Domestically, commercial vehicle demand remained resilient, supported by GST-led efficiencies and broader industry tailwinds. Passenger vehicle production also maintained healthy momentum, while the industrial business benefited from sustained demand in sectors such as power, construction and mining, agriculture, and machine tools.
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KSSL’s Mounted Artillery Gun (MArG).
Commenting on the company’s performance, Baba Kalyani, Chairman and Managing Director of Bharat Forge, said the company had delivered a resilient performance despite global demand uncertainties.
“Despite demand challenges and regulatory volatility, Bharat Forge delivered a resilient performance in FY26 supported by strong execution across businesses and improving export demand in the second half of the year,” Kalyani said.
He added that the company’s strong order inflows reflected renewed business momentum across multiple sectors, particularly in defence and aerospace.
“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,” he noted.
Kalyani also highlighted developments across the company’s subsidiaries. He said JS Autocast reported topline revenue of Rs 757 crore and EBITDA of Rs 106 crore in FY26, translating into EBITDA margins of 14.3 per cent.
Meanwhile, K-Drive Mobility continued efforts to reposition its electric mobility portfolio beyond medium and heavy commercial vehicles, securing new order wins across four electric vehicle platforms for light commercial vehicles.
However, Bharat Forge also disclosed a Rs 450 crore impairment during the quarter related to its investments in KPTL’s e-mobility division, reflecting changing dynamics in the global EV adoption landscape.
“The Rs 450 crores impairment during the quarter of our investments in KPTL (E-mobility division) is an acceptance of the need to take a fresh look at how we address the EV opportunity as the EV adoption globally has changed significantly,” Kalyani said.
The company’s overseas operations in the United States and Europe reported modest operating profits despite weak demand conditions. Bharat Forge said it has initiated restructuring measures for the steel business of CDP Bharat Forge, with the process expected to conclude by the end of calendar year 2027.
Management is also exploring alternative business opportunities in Europe to optimise its scaled-down manufacturing footprint and improve operational efficiency across international operations.
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Defence orders, exports boost Bharat Forge’s growth for FY27
Looking ahead to FY27, Bharat Forge expressed confidence in achieving strong growth, supported by robust order execution, expanding defence opportunities, improving export markets, and continued industrial demand.
“Looking ahead into FY27, barring any geopolitical crisis and its impact on demand, we are optimistic of achieving 25% revenue growth with a commensurate increase in EBITDA and profitability for the Indian manufacturing operations,” Kalyani said.
Industry analysts believe Bharat Forge’s diversified presence across automotive, defence, aerospace, and industrial manufacturing sectors places the company in a favourable position to benefit from both domestic infrastructure growth and global supply chain realignment trends.
With a rapidly expanding defence order pipeline, strengthening aerospace integration, and recovering export markets, Bharat Forge appears poised to sustain its growth momentum into FY27 while continuing to deepen its role in India’s evolving manufacturing and strategic sectors.
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