Bharat Forge Q1 PAT rises 63% YoY to Rs 284 cr

Bharat Forge reported a 62.60% rise in consolidated net profit to Rs 283.87 crore in Q1 FY26 as against Rs 174.58 crore posted in Q1 FY25.

However, revenue from operations declined 4.80% YoY to Rs 3,908.75 crore in the quarter ended 30 June 2025.

Profit before tax (PBT) stood at Rs 410.99 crore in Q1 FY26, up 37.20% from Rs 299.54 crore reported in the same period a year ago.

Total expenses fell 4.39% YoY to Rs 3,544.17 crore in Q1 FY26. Cost of material consumed stood at Rs 1,716.96 crore (up 2.13% YoY), finance cost was at Rs 82.22 crore (down 33.53% YoY), Employee benefits expenses stood at Rs 513.67 crore (up 2.99% YoY) during the period under review.

Segment-wise, revenue from forgings rose 5.33% to Rs 3,557.97 crore, while the defence segment saw a sharp 58.79% drop to Rs 264.40 crore. The "Other" segment revenue jumped 31.16% to Rs 279.04 crore.

Operating margin slightly decline to 17.13% in Q1 FY26 from 18.06% a year ago, and net profit margin increased to 7.26% from 4.25%.

During the quarter, the company secured new orders worth Rs 847 crore including Rs 269 crore in Defence. As of Q1FY26, the defence order book stood at Rs 9,463 crore.

B.N. Kalyani, chairman & managing director of Bharat Forge, said, During the quarter, the company faced challenging market conditions in our export markets caused by tariff & regulatory uncertainties. The US & European operations witnessed meaningful improvement in financial performance in the Apr Jun quarter and are generating cash profit. Review of the European steel manufacturing footprint is on track, and we expect to have concrete steps in place by the end of this year.

Given the recent tariff announcement by the US government and changes to emission regulation in North America, we are cautious on the outlook for the US export business for the reminder of the fiscal. FY26 is likely to be a challenging period, given where we are in the overall cycle and our geographical exposure. Our focus is on capturing opportunities in businesses & geographies which are relatively unaffected and work simultaneously on cost optimization to minimize impact of operating deleverage.

Bharat Forge manufactures an extensive array of critical and safety components for several sectors, including automobiles (across commercial & passenger vehicles), oil & gas, aerospace, locomotives, marine, energy (across renewable and non-renewable sources), construction, mining, and general engineering.

Shares of Bharat Forge fell 2.10% to Rs 1,137 on the BSE.

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