Pune. Bharat Forge Ltd has reported a strong standalone performance for the quarter ended September 30, 2026, even as one-time charges linked to its German operations kept consolidated profit below last year’s level for the half-year.
Standalone results
Standalone revenue from operations rose 29.8% to ₹25,263.57 million, from ₹19,468.62 million a year earlier. Net profit climbed to ₹3,708.25 million from ₹3,099.36 million, a gain of about 19.6%. Earnings per share stood at ₹7.74, against ₹6.48 in the year-ago quarter.
Sequentially, revenue increased 7.6% from ₹23,474.16 million in the June quarter, and profit rose from ₹3,213.99 million. For the half-year, standalone revenue reached ₹48,737.73 million and net profit ₹6,922.24 million, up from ₹40,515.69 million and ₹6,484.57 million respectively.
The company booked exceptional losses of ₹205.57 million in the quarter, tied to incidental expenses for restructuring Bharat Forge CDP GmbH, one of its German subsidiaries.
Consolidated picture
On a consolidated basis, revenue from operations grew 20.8% to ₹48,699.66 million from ₹40,319.27 million. Net profit, however, slipped to ₹2,786.81 million from ₹2,992.78 million a year ago, a decline of about 6.9%. Consolidated EPS was ₹5.77, against ₹6.26.
For the half-year, consolidated profit fell sharply to ₹1,887.93 million from ₹5,831.48 million. The drop reflects a restructuring provision of ₹3,304.21 million recorded in the June quarter after Bharat Forge CDP GmbH finalised a social plan with its Works Council. The company said the German unit faces market challenges and associated cost disadvantages. Consolidated exceptional losses totalled ₹3,825.73 million for the half-year.
The consolidated operating margin eased to 15.64% in the quarter from 17.96% a year earlier.
Segment performance
The Forgings segment, the group’s largest, posted revenue of ₹38,939.95 million, up from ₹33,555.34 million, though segment profit slipped to ₹4,974.35 million from ₹5,120.43 million. The Defence segment grew revenue to ₹4,727.25 million from ₹3,945.11 million, with segment profit rising to ₹136.98 million from ₹122.64 million. The Others segment recorded revenue of ₹7,520.60 million and profit of ₹541.98 million, compared with ₹5,877.61 million and ₹371.81 million a year earlier.
QIP proceeds and balance sheet
During the quarter, Bharat Forge raised ₹20,000 million through a Qualified Institutional Placement, issuing 10,582,010 equity shares at ₹1,890 apiece. The issue lifted equity share capital to ₹977.43 million. Of the proceeds, ₹683.29 million was used during the period for equipment purchases, general corporate purposes and issue expenses, while ₹19,316.71 million remains placed with banks.
The infusion strengthened the standalone balance sheet. Cash and cash equivalents rose to ₹23,004.62 million from ₹3,590.59 million on March 31, and net worth increased to ₹134,256.41 million. The standalone debt-equity ratio improved to 0.31, while the consolidated ratio stood at 0.64, down from 0.73 in June.
Cash flow from operations was weaker, however. Standalone operating cash flow for the half-year fell to ₹1,872.20 million from ₹10,197.57 million, as trade receivables and inventories absorbed cash.
Further investment in defence subsidiary
The board also approved a further investment of up to ₹2,905.08 million in Kalyani Strategic Systems Ltd (KSSL), its wholly owned defence subsidiary, in one or more tranches at fair value. The money will come from QIP proceeds and will fund KSSL’s capital expenditure and product and technology development, consistent with the QIP’s stated objects.
KSSL, incorporated in December 2010 and based in Pune, develops and manufactures defence platforms, systems and equipment, with a presence in India and Spain. Its turnover was ₹12,244.70 million in FY2025-26, down from ₹14,044.97 million in FY2024-25 and ₹11,445.58 million in FY2023-24.
The transaction is a related party transaction but will be conducted at arm’s length, the company said. It requires no governmental or regulatory approvals, will be settled in cash, and is to be completed by March 31, 2027. Bharat Forge will continue to hold 100% of KSSL.
