Bharat Forge reported a 17% year-on-year decline in net profit to Rs 233.44 crore for the March quarter. However, revenue increased by 17.53%, reaching Rs 4,528 crore. The company’s EBITDA rose by 14.21% to Rs 778 crore for the quarter, with the EBITDA margin improving by 13 basis points to 17.81%. The company said there was a strong recovery in exports driven by improved demand in the North American market, a resilient domestic automotive sector, and ongoing momentum across industrial and defence businesses.
During the quarter, there was an impairment of Rs 450 crore relating to Bharat Forge’s investments in the electric mobility division, KPTL. The company is re-evaluating its approach to the electric vehicle (EV) opportunity, as it has not grown as expected and significant changes in global EV adoption.
Amit Kalyani, Vice Chairman and Joint Managing Director of BFL, announced that the company plans to commence production of the 155 mm Advanced Towed Artillery Guns (ATAGs) and small arms in the current financial year. BFL has secured a Rs 4,140 crore contract to supply 184 ATAGs and a Rs 1,661.9 crore deal for 255,128 close-quarter carbines to the Indian Army.
Production of these indigenously designed and developed weapons will begin in the second half of FY27 and ramp up in the following financial year, with revenues from this segment expected to contribute to the company’s overall revenues.
Artillery and Explosives
BFL has also received new orders for drones and unmanned systems for air and sea operations.
The company is set to break ground on a new facility for in-house manufacturing of explosives this month in Anantapur, Andhra Pradesh, marking BFL’s entry into the explosives business. Construction is scheduled to start at the end of the year and is expected to take 24 months due to the necessary regulatory approvals and clearances.
In the defence sector, Kalyani mentioned that the company is expanding its portfolio and adding new platforms while exploring opportunities in Europe. Bharat Forge secured new orders worth Rs 4,814 crore, which includes Rs 2,816 crore in defence contracts. The defence order book stood at Rs 10,961 crore at the end of FY26. The defence business is expected to grow 50%.
The aerospace, defence, and auto components sectors are anticipated to be growth drivers for BFL in FY27. During an investor call, Kalyani noted that aerospace has become a significant part of industrial exports, accounting for 26% of this segment’s exports in the fourth quarter.
Aerospace Resurgence
Additionally, BFL has become a supplier to an aerospace company for essential components.
Despite weak demand, the company’s operations in the US and Europe reported modest operating profits. BFL has initiated a restructuring of its steel business, CDP Bharat Forge, in Germany, with the process expected to conclude by the end of 2027.
Baba N. Kalyani, Chairman and Managing Director of BFL, expressed a positive outlook for FY27, anticipating a 25% growth in Indian operations. He stated, “The order wins across businesses reflect a resurgence in business momentum, including in aerospace, with the onboarding of new customers for engine, structural, and landing gear components.”
BFL’s export performance improved significantly during Q4, aided by inventory restocking and a recovery in North American truck production. BFL’s Indian subsidiary, JS Autocast, reported a topline of Rs 757 crore and an EBITDA of Rs 106 crore with a 14.3% EBITDA margin in FY26. K-Drive mobility is reorienting its product portfolio, achieving new order wins beyond the medium and heavy commercial vehicles (M&HCVs), including four EV platforms for light commercial vehicles (LCVs).
“We are optimistic about achieving 25% revenue growth with a corresponding increase in EBITDA and profitability for our Indian manufacturing operations, driven by order execution across various businesses and recovery in the export market,” Kalyani concluded.