Bharat Forge delivered a strong Q3 FY26 for standalone operations, driven by domestic automotive and defense, with sequential revenue growth and stable margins. Indian subsidiaries, particularly JSA, showed robust performance. However, export revenues were affected by North American truck market destocking and US aluminum tariffs. The company secured significant new orders, especially in defense, and anticipates strong growth in defense and aerospace, alongside plans for a major specialty steel project in Odisha.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| Standalone Revenue | ₹2.1K Cr | — |
| Standalone EBITDA | ₹569 Cr | — |
| Standalone EBITDA Margin | 27.3% | — |
| Consolidated Revenue | ₹4.3K Cr | — |
| Consolidated EBITDA Margin | 17.3% | — |
| Standalone 9M Revenue | ₹6.1K Cr | — |
Segment Breakdown
| Metric | Latest | Trend |
|---|---|---|
| Standalone Revenue(crores) | 8396 | |
| Standalone EBITDA(crores) | 569 | |
| Standalone EBITDA Margin | 27.5% | |
| Consolidated Revenue(crores) | 16812 | |
| Consolidated EBITDA(crores) | 2921 | |
| Consolidated EBITDA Margin | 17.3% |
Inflow this qtr
₹ 2,388 crores
Execution
Small arms: 5 years; Other defense: mostly 4 years
Composition
"The company secured significant new business across key segments, particularly in defense, with long execution timelines."
| Category | Headline | |
|---|---|---|
Capex | ₹3,000 crores | |
Debt | Debt disclosed | |
M&A | JSA divestment · closed · Consideration ₹NaN (cash) | |
M&A | American Axle acquisition · integrated |
| Category | Target | Priority |
|---|---|---|
| Volume | Defense Business Growth→30-40% plus | High |
| Volume | Aerospace Growth→very strong growth | Medium |
| Market Outlook | CV Sector India Outlook→very strong | Medium |
| Market Outlook | Exports Outlook→gradual improvement | Medium |
| Revenue Mix | Defense Revenue Contribution→18-20% (or 20-30%) | Medium |
| Capex | Odisha Project Capex (Bharat Forge share)→up to INR 3,000 crores | High |
| Operations | Europe Restructuring Update→update progress | High |
| # | Metric | |
|---|---|---|
| 01 | Europe Restructuring Progress | |
| 02 | American Axle Market Share Quantification | |
| 03 | Defense Business Growth | |
| 04 | Global Truck Business Upcycle Confirmation | |
| 05 | Odisha Project Capex Commencement |
| Severity | Risk |
|---|---|
medium | North American Truck Market Destocking Continued destocking in the North American truck market adversely impacted export revenues in Q3 FY26. Management |
medium | US Aluminum Tariff Impact Tariffs on aluminum into the US are impacting the profitability and demand in the US aluminum business. Management |
high | European Market Secular Problems Europe is facing a 'secular problem' and management is evaluating restructuring options for its European steel business. Management |
Bharat Forge reported strong Q3 FY26 standalone revenues of INR 2,084 crores, marking a 7% sequential increase. Standalone EBITDA stood at INR 569 crores, growing 4.6% quarter-on-quarter, with an EBITDA margin of 27.3%. Consolidated revenues for the quarter were INR 4,343 crores, achieving an EBITDA margin of 17.3%. For the nine months ended December 31, 2025, standalone revenues were INR 6,135 crores with a 27.7% EBITDA margin, and consolidated revenues were INR 12,284 crores with a 17.5% EBITDA margin.
Indian subsidiaries demonstrated robust performance, contributing significantly to the overall results. JSA, the casting business, recorded a strong 22% growth in top line and a 39% increase in EBITDA. K Drive, a recent acquisition, saw its EBITDA margin improve from 3% to 5% in the quarter, despite a muted top line, indicating operational efficiencies.
Overseas operations faced mixed conditions. European operations maintained stability with an EBITDA of INR 39 crores and utilization levels between 60-65%, despite 'patchy demand' and holiday season impacts. US Aluminum operations generated an EBITDA of INR 10 crores at 65% utilization, but profitability was affected by tariffs on aluminum. Management acknowledged that Europe faces a 'secular problem' and is evaluating restructuring options for its European steel business, with an update expected by the fiscal year-end.
The company secured new business worth INR 2,388 crores during the quarter. This includes INR 378 crores for the component business, a substantial INR 1,878 crores for defense, INR 78 crores for casting, and INR 55 crores for K Drive. These wins highlight broad-based demand and strong order inflows across Bharat Forge's key business segments.
Bharat Forge is strategically focused on and anticipates strong growth in its defense and aerospace sectors. The defense business is projected to achieve a 30-40% plus growth next year, driven by the commencement of ATAGS orders and CQB carbine production. Management believes defense could eventually contribute 18-30% of overall revenues, up from the current 10-11%. The aerospace segment is also expected to see 'very strong growth' in the coming years due to new programs and capacity additions.
The Kalyani Group is planning a large-scale project in Odisha with a total investment of INR 17,000 crores. Bharat Forge's share of this investment is projected to be up to INR 3,000 crores, earmarked for forging, machining, and potentially casting facilities. This project is considered the 'next growth phase' after existing expansions and is expected to commence beyond the next fiscal year.
The acquisition of American Axle has performed well, contributing to a nearly 200 basis points improvement in margins. Management views this as a successful acquisition in a high-growth sector, noting significant new business wins from Indian OEMs. While market share gains were confirmed, specific quantification was deferred to the next quarter.