Bharat Forge (BFL) reported a 28% year-on-year increase in consolidated net profit to Rs 272.80 crore for the December quarter. Revenue also rose by 24.9% to Rs 4,342.93 crore. However, BFL’s standalone profit declined 17% year-on-year to Rs 288.1 crore, primarily due to provisions related to the new labour code and rising tariff costs. Standalone revenue fell by 0.6% to Rs 2,083.7 crore. The quarterly performance was affected by de-stocking in the North American commercial vehicle (CV) market.
Lower production and inventory de-stocking significantly impacted CV exports to North America, resulting in a 51% decline in truck revenues during the quarter. Total exports to the US dropped by 37.2% to Rs 535.5 crore in the December quarter. This decline was partially offset by a 28% increase in exports to Europe to Rs 298.8 crore, and a 19.36% rise in exports to the Asia-Pacific region to Rs 75.4 crore.
Baba Kalyani, chairman and managing director, expressed optimism about the future, stating, “The worst is behind us, and things are starting to look up. With both domestic and export markets showing strength across sectors, and the commencement of ATAGS (gun) execution in the second half of FY27, we expect high double-digit top-line growth and corresponding improvements in profitability.” He said that as trade disputes ease, a recovery in consumer confidence is anticipated, leading to increased spending on personal mobility.
BFL’s defence order book has reached Rs 11,130 crore, with the company securing new orders worth Rs 1,878 crores in the defence segment. The company signed a contract for supplying 2,50,00 CQB carbines to the Ministry of Defence for the Indian armed forces. This order opens up significant growth opportunities for BFL’s small arms division within the defence sector, he said.
A review of the European steel manufacturing footprint is progressing well, with concrete measures expected to be implemented by the end of the fiscal year.