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    Bharat Forge

    BHARATFORG
    Automobile and Auto Components·7 May 2026
    Management Summary

    Bharat Forge delivered robust consolidated performance in FY26, with double-digit revenue growth and healthy EBITDA. While standalone results were impacted by North American market headwinds, Q4 saw a strong sequential recovery. The company is strategically expanding its high-growth defense and aerospace segments, making targeted acquisitions like Fortuna Engineering, and undertaking restructuring of underperforming overseas assets and e-mobility investments to streamline operations and focus on profitable growth.

    Highlights

    5

    • Consolidated revenue for FY26 grew 11% to ₹16,812 crores.

    • Consolidated EBITDA for FY26 grew 6% to ₹2,921 crores.

    • Q4 FY26 standalone revenue improved 8.5% QoQ to ₹2,260 crores, driven by recovery in exports and strong domestic automotive performance.

    • Secured new businesses worth ₹4,814 crores in FY26, with Defence contributing ₹2,816 crores.

    • Aerospace business is now a meaningful part of industrial exports, contributing almost 26% of Q4 non-Auto exports and targeting ₹1,000 crores in revenue.

    Concerns

    5

    • Standalone revenue for FY26 was lower by 5% YoY at ₹8,396 crores, mainly due to regulatory uncertainties in North America and demand challenges in the U.S. CV market.

    • Standalone PBT before exceptional items for FY26 was ₹1,826 crores, about 8% lower YoY.

    • Overseas EU operations reported a low EBITDA margin of 4% and U.S. operations at 3.5% for FY26.

    • The company decided to write-off investments in e-mobility where immediate revenue and business ramp-up were not foreseen.

    • Energy costs remain a significant issue, requiring negotiations with customers for compensation.

    Key financials

    Metrics

    6

    Periods

    2

    Headline

    4
    • Consolidated Revenue
      ₹16,812 Cr
      YoY+11%
    • Consolidated EBITDA
      ₹2,921 Cr
      YoY+6%
    • Standalone Revenue
      ₹8,396 Cr
      YoY-5%
    • Standalone EBITDA Margin
      27.5%

    Q4

    2
    • Standalone Revenue
      ₹2,260 Cr
      QoQ+8.5%
    • Standalone EBITDA Margin
      27%

    Segment breakdown

    • EU Operations₹3,865 Cr52.5%
    • U.S. Operations₹1,534 Cr20.8%
    • Defense (FY26)₹1,562 Cr21.2%
    • Aerospace (FY26)₹400 Cr5.4%
    Donut· Share of Revenue

    Order Book

    high confidence

    Total Value

    ₹ 11,000 crores

    as of 2026-03-31

    quantified

    Execution

    executable over next 3-4 years

    Composition

    Mix4 segments
    • Defence₹ 2,816 crores58.4%
    • Traditional Business₹ 1,210 crores25.1%
    • JSA (Casting Unit)₹ 292 crores6.1%
    • K-Drive₹ 500 crores10.4%

    Share of order book by segment (derived from disclosed amounts)

    "The company secured new businesses worth INR 4,814 crores in FY26 and has a defense order book of INR 11,000 crores for the next 3-4 years, indicating stable revenue accretion."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹800 crores

    new plan

    Debt

    Debt disclosed

    M&A

    Fortuna Engineering

    acquisition · closed · Consideration ₹NaN (cash)

    Guidance & targets

    9
    CategoryTargetPriority
    Volume
    India business growth
    close to 25%
    		High
    Volume
    K-mobility business growth
    2X
    		High
    Revenue
    Aerospace business revenue
    INR 1,000 crores
    		High
    Revenue
    Data center orders ramp-up
    ramp up next year
    		Medium
    Margin
    K-mobility business margins
    mid-teens
    		Medium
    Capacity
    Explosives facility production start
    ~24 months
    		Medium
    Restructuring
    German steel business restructuring completion
    end of next calendar year
    		High
    Production
    ATAGS production start
    H2 this year
    		High
    Production
    CQB carbine production start
    H2 this year
    		High

    ATAGS & CQB Carbine Production Start

    H2 FY26
    CurrentTesting completed, production to start H2 FY26
    TargetProduction and supplies commenced

    Why it matters

    Indicates commencement of revenue generation from significant defense orders.

    So the first thing that you should look at is the fact that the ATAGS FOPM will happen, and then the ATAGS production will start and ramp up. The second is the CQB carbine also production will happen. So those are the two big milestones that will move the needle starting this year, and then it will continue next year and year after next as well.

    How to verify

    guidance_and_targets[metric='ATAGS production start']

    Risks & concerns

    5
    RiskSeverity

    Regulatory uncertainties in North America

    Impacted standalone revenue for FY26, causing a 5% YoY decline. — Management acknowledged

    medium

    Demand challenges in U.S. CV market

    Contributed to the 5% YoY decline in standalone revenue for FY26. — Management acknowledged

    medium

    Geopolitical crisis (Middle East, Europe)

    Caused uncertainty in markets, imports, and transportation, but the company weathered the storm well. — Management acknowledged

    medium

    High energy costs

    The biggest issue on cost, requiring negotiations with customers for compensation. — Management acknowledged

    medium

    EV adoption trajectory

    Not as anticipated globally, leading to write-offs of e-mobility investments due to lack of immediate revenue ramp-up. — Management acknowledged

    medium

    Q&A highlights

    8

    “About 5 years ago, there was a very strong focus on electrification across the Board, including commercial vehicles, including heavy commercial vehicles. However, it is definitely not seeing the same kind of trajectory as what was anticipated.”

    Management explained the rationale behind the e-mobility investment write-offs, citing a global recalibration of EV strategy and challenges faced by large OEMs.

    asked by Kapil Singh

    2 min read5 chapters

    Detailed Narrative

    01

    FY26 Consolidated and Standalone Performance

    Bharat Forge reported a consolidated revenue of ₹16,812 crores for FY26, marking an 11% growth, with consolidated EBITDA reaching ₹2,921 crores, a 6% increase. The consolidated net debt-to-equity stood at 0.41x as of March 2026. Standalone revenue for FY26 was ₹8,396 crores, a 5% YoY decline, primarily due to regulatory uncertainties in North America and demand challenges in the U.S. CV market. However, Q4 FY26 standalone revenue showed an 8.5% QoQ improvement to ₹2,260 crores, with an EBITDA margin of 27%.

    02

    Strategic Initiatives and Acquisitions

    The company secured new businesses worth ₹4,814 crores in FY26, including ₹2,816 crores in Defence and ₹500 crores from K-Drive. Bharat Forge acquired a 30% stake in Fortuna Engineering for ₹130 crores, a company with ₹380 crores in revenue and mid-teen margins, strategically complementing its machining capabilities. The aerospace business is now a significant contributor, representing almost 26% of Q4 non-Auto exports and targeting ₹1,000 crores in revenue with above-average margins.

    03

    Defense Business Outlook and Milestones

    The defense order book stands at ₹11,000 crores, expected to provide stable revenue accretion over the next 3-4 years. Key milestones for FY26 include the commencement of ATAGS FOPM and production ramp-up, as well as CQB carbine production, both expected to start in H2 FY26. The company is also planning to set up an explosives manufacturing facility in Andhra Pradesh, with ground-breaking this month and pilot production targeted within 24 months.

    04

    EV Strategy and Overseas Restructuring

    Bharat Forge has recalibrated its e-mobility strategy, deciding to write-off investments in areas without immediate revenue ramp-up, acknowledging that global EV adoption has taken a different trajectory than anticipated. The company is also restructuring its German steel business (CDP Bharat Forge), a 15-18 month process expected to conclude by the end of next calendar year, which will reduce losses from overseas subsidiaries and improve overall performance.

    05

    Capital Expenditure and Growth Targets

    The company plans a capex of ₹800-850 crores over the next 15-18 months, allocated across forging, casting, and products platforms. Management guided for a close to 25% growth in its India business for FY27, driven by growth across sectors and strategic initiatives. The K-mobility business is targeted for 2X growth in the next 3-4 years, with a goal of achieving mid-teen margins, focusing on specialty axles and LCV/SUV segments.

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