“Given the challenging demand conditions in North America, we are witnessing exports into that region declining further in H2 FY26. However, we expect the industrial business across India, exports to non-US geographies and ramp up in defence business to more than offset the weakness in US exports. Our India manufacturing operations focusing on capturing opportunities in Defence, Aerospace, Castings and Aggregates across markets continue to make steady progress in their journey.” Baba Kalyani, Chairman and Managing Director, Bharat Forge Limited
Bharat Forge Limited (BFL) has announced its financial results for the quarter ended September 30, 2025. The company remains strategically positioned with a diversified business mix, strong order book in defence and a healthy balance sheet. Management emphasises that although export markets remain under pressure, the domestic industrial and defence verticals should provide the growth impetus for the remainder of FY26.
Key Highlights – Q2 FY26 (Standalone)
Revenue: ₹1,947 crore, down 7.5% QoQ, impacted by a slowdown in North American Commercial Vehicle (CV) demand.
EBITDA: ₹545 crore; EBITDA margin at 28%, up 10 bps QoQ driven by a favorable product mix.
PBT (before exceptional items): ₹432 crore, down 7.2% QoQ due to weaker export volumes.
PAT: ₹310 crore compared to ₹339 crore in Q1 FY26.
Consolidated Highlights – Q2 FY26
Revenue: ₹4,032 crore, up from ₹3,909 crore in Q1 FY26, supported by strong performance in Indian manufacturing and defence segments.
EBITDA: ₹715 crore; consolidated with margin at 17.7%.
PBT (before exceptional items): ₹445 crore.
Business Developments
New Orders Secured (H1 FY26): ₹1,582 crore, including ₹559 crore in Defence.
Defence Order Book (as of H1 FY26): ₹9,467 crore.
Bharat Forge completed the transfer of all defence-dedicated assets to its wholly owned subsidiary, Kalyani Strategic Systems Limited (KSSL), to strengthen its focus on the defence segment.
Chairman and Managing Director, Baba Kalyani shared: “The quarterly performance was impacted by the sharp decline in the North American truck production and the resulting inventory destocking. Standalone Revenues declined by 7.5% sequentially to ₹1,947 crore, impacted by 16% drop in revenues to North America. CV exports to North America declined by 48% sequentially and 63% on a YoY basis. Because of the constant endeavour towards de-risking the business, the impact was minimized with EBITDA coming in at ₹545 Crore (EBITDA margins of 28%) and PBT of ₹432 crore.
Consolidated revenue & EBITDA in Q2 came in at ₹4,032 Crore and ₹715 crore respectively. The balance sheet remains robust with Cash of ₹2,309 crore and ROCE (net) of 15.5%. Indian manufacturing, a key focus area and growth driver for the company registered revenues of ₹2,746 Crore and EBITDA of ₹676 crore.
The company secured new orders worth ₹1,582 Crore including ₹559 crore in Defence in H1 FY26. As of H1FY26, the defence order book stood at ₹9,467 crore. We have transferred all the Defence dedicated assets of Bharat Forge to our wholly owned subsidiary KSSL. On the business front we expect to conclude more order wins for platforms/ projects we have participated in.
The US & European operations saw weakness driven by seasonality and prevailing sentiments. Review of the European steel manufacturing footprint is on track, and we expect to have concrete measures in place by the end of this fiscal. Given the challenging demand conditions in North America, we are witnessing exports into that region declining further in H2 FY26. However, we expect the industrial business across India, exports to non-US geographies and ramp up in defence business to more than offset the weakness in US exports. Our India manufacturing operations focusing on capturing opportunities in Defence, Aerospace, Castings and Aggregates across markets continue to make steady progress in their journey.”
