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Bharat Forge Revenue Up, Defence Orders Surge Past Rs 11,000 Crore as Q1 Profit Engine Fires

Bharat Forge has posted double-digit growth in its June quarter, powered by defence and exports and has unveiled a ₹2,500 crore fundraise alongside ₹1,800 crore in new capacity to fuel its next phase of expansion

Bharat Forge Limited, the Kalyani Group flagship, reported consolidated revenue of ₹4,640 crore for the quarter ended June 30, 2026, up 18.7% year-on-year, with consolidated EBITDA rising 10.2% to ₹752 crore, translating into a margin of 16.2%. On a standalone basis, revenue climbed 11.5% to ₹2,347 crore on sale tonnage of 66,787 tonnes, up 8% YoY, while the standalone EBITDA margin came in at a robust 26.2% – or 28% when normalised for higher input costs.

Defence remains the standout performer. The company’s defence orderbook stood at ₹ 11,196 crore as of June 30, 2026, after winning ₹1,352 crore in new orders during the quarter, including ₹681 crore from the Defence ministry itself. The single largest win on the naval side was a contract for 12 Marine Gas Turbine Generator sets signed with the Ministry of Defence, underscoring the company’s growing footprint in India’s naval modernisation push.

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Exports and domestic sales both grew at a similar clip. Standalone exports rose 12% YoY to ₹1,205 crore, led by strong traction in heavy-hydraulic and aerospace engine components. The Americas accounted for the lion’s share of export revenue at ₹797 crore (66%), followed by Europe at ₹305 crore (25%) and Asia Pacific at ₹103 crore (9%). Domestic standalone revenue grew 11% to ₹1,143 crore, with sustained defence execution driving robust growth in the industrial business. Kalyani Strategic Systems Limited (KSSL), the group’s defence systems arm, posted an EBITDA margin of 17.2%, a sharp jump from 6.9% a year earlier, aided by better realisations and an improved product mix.

Looking ahead, the company is doubling down on capacity. Bharat Forge announced a ₹1,800 crore investment in dedicated forging and machining capacity aimed at what it calls “sunrise sectors” – defence, aerospace, data centres and semiconductors – including a new energetics plant coming up in Andhra Pradesh. To fund this expansion, the Board has approved a fund raise of up to ₹2,500 crore through equity, convertible instruments or other securities via a Qualified Institutional Placement (QIP) or other modes, subject to shareholder approval. The company has maintained its FY27 growth outlook of 20-25% for the Indian manufacturing business, with a more pronounced ramp-up expected in the second half of the fiscal year.

Commenting on the results, Chairman and Managing Director Babasaheb N Kalyani said the company had delivered resilient numbers despite spiralling energy prices and geopolitical uncertainty, pointing to the 11.5% standalone revenue growth and healthy 26.2% EBITDA margin as evidence of the strength of its diversified portfolio.

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He added that the company’s sustained pivot towards defence, aerospace and other sunrise sectors, along with a continued focus on deepening technology capabilities and building dedicated capacity, positions it well for its next phase of growth.

Bharat Forge operates across a diversified set of sectors including automotive, renewable energy, oil and gas, defence, aerospace, marine, construction & mining and rail. The company noted that Q1 FY26 consolidated figures did not include K-Drive Mobility, which was consolidated with effect from July 1, 2025, meaning year-on-year consolidated comparisons for the current quarter are not strictly like-for-like.

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