Bharat Forge Ltd (BFL) reported a 23% year-on-year rise in consolidated net profit to Rs 299.27 crore for the September quarter, aided by strong growth in the Indian manufacturing and defence sectors. Consolidated revenue increased 3.14% to Rs 4,031.92 crore. While export markets remained subdued, the company said robust demand from the domestic industrial and defence segments is expected to offset this weakness through the rest of FY26.
Chairman and Managing Director Baba Kalyani said performance during the quarter was hit by a sharp decline in North American truck production, resulting in inventory destocking. “Standalone revenues declined 7.5% sequentially to Rs 1,947 crore, mainly due to a 16% drop in North American sales,” he said. Exports of commercial vehicles to the region fell 48% quarter-on-quarter and 63% year-on-year. Despite this, Ebitda stood at Rs 545 crore with margins of 28%.
During the first half of FY26, new orders totalled Rs 1,582 crore, including Rs 559 crore from defence contracts. The company’s defence order book now stands at Rs 9,467 crore. Bharat Forge has completed the transfer of all defence-dedicated assets to its wholly-owned subsidiary, Kalyani Strategic Systems Ltd (KSSL), to sharpen its focus on the segment.
BFL faced weakness in its US and European operations due to seasonal factors and muted sentiment. The company said it is reviewing its European steel manufacturing footprint and will finalise corrective measures by the end of the fiscal year.
With demand in North America expected to stay soft, BFL anticipates further declines in exports to the region in the second half. However, growth in India’s industrial and defence businesses, along with higher exports to non-US markets, is expected to more than offset the downturn.
Meanwhile, the board has approved a Rs 2,000 crore fundraising plan through term loans, non-convertible debentures, or other debt instruments to support future growth.