Pune: Bharat Forge Ltd., a global leader in engineering and manufacturing, August 6 announced its unaudited financial results for the first quarter ended June 30, 2025 (Q1 FY26). The company navigated challenging export market conditions, delivering resilient performance driven by strong domestic demand and strategic order wins.
Key Highlights (Standalone Q1 FY26)
- Revenue: ₹2,105 crores, decline 2.7% QoQ
- EBITDA: ₹588 crores with a margin of 27.9%
- PBT (before exceptional items): ₹465 crores
- PAT: ₹339 crores
- New orders secured: ₹847 crores, including ₹269 crores in Defence
- Defence order book: ₹9,463 crores
Consolidated Financial Performance
- Revenue: ₹3,909 crores
- EBITDA: ₹682 crores, margin of 17.5%
- PBT (before exceptional items): ₹423 crores
Chairman and Managing Director Kalyani shared, “During the quarter, the company secured new orders worth Rs 847 Crores including Rs 269 Crores in Defence. As of Q1FY26, the defence order book stood at Rs 9,463 Crores. For the defence vertical, based on the project / platforms we have participated in, we expect to secure new orders in this fiscal year generating more revenue visibility for the future years.
The US & European operations witnessed meaningful improvement in financial performance in the April – June quarter and are generating cash profit. Review of the European steel manufacturing footprint is on track, and we expect to have concrete steps in place by the end of this year.
Given the recent tariff announcement by the US government and changes to emission regulation in North America, we are cautious on the outlook for the US export business for the reminder of the fiscal. FY26 is likely to be a challenging period, given where we are in the overall cycle and our geographical exposure. Our focus is on capturing opportunities in businesses & geographies which are relatively unaffected and work simultaneously on cost optimisation to minimise impact of operating deleverage.”
Business Segment Overview
Domestic Business: Passenger Vehicle and Industrial segments performed strongly;r defence execution remained robust.
Exports: Declined 12.7% QoQ; North America impacted by emission norm rollback and policy flux; Europe showed early signs of recovery. CV exports to Europe saw some revival post the lows seen last year.
International Operations: Both US and European businesses showed improved EBITDA; aluminium operations improved execution; European steel footprint review ongoing.
Despite headwinds from tariff and regulatory uncertainties in key export markets, Bharat Forge continues to strengthen Group’s position through targeted diversification and operational efficiency. Defence remains a strong growth vector, and our global operations have begun generating cash profits.
