Bharat Forge Q2 profit rises 23% on strong domestic, defence gains

Bharat Forge Q2 profit rises 23% to ₹299 crore; defence, industrial growth offset North America slowdown. Shares jump 5.6% after results

Bharat Forge on Tuesday posted a 23 per cent increase in its consolidated net profit to Rs 299 crore for the second quarter of the financial year 2026 (Q2FY26), while revenue from operations grew 9 per cent to Rs 4,031 crore.

 

Sequentially, net profit grew 5 per cent, with revenue also increasing by 3 per cent.

 

Chairman and Managing Director Baba Kalyani said the company’s quarterly performance was impacted by a sharp decline in North American truck production and subsequent inventory destocking on a standalone basis, as revenues fell 7.5 per cent sequentially due to a 16 per cent drop in sales to North America. Exports of commercial vehicles to the region declined 48 per cent quarter-on-quarter and 63 per cent year-on-year.

 

 

Despite this, the company limited the impact through its ongoing business diversification efforts. Indian manufacturing operations, a key growth driver, recorded revenues of Rs 2,746 crore. During H1FY26, the company secured new orders worth Rs 1,582 crore, including Rs 559 crore in defence, taking the total defence order book to Rs 9,467 crore. All defence-dedicated assets of Bharat Forge have been transferred to its wholly owned subsidiary, KSSL, with additional platform and project order wins expected soon.

 

Kalyani added that the US and European operations continued to face weakness due to seasonality and market sentiment. The review of the European steel manufacturing footprint remains on track, with final measures expected by the end of FY26. While exports to North America are expected to decline further in H2FY26, the company anticipates that growth in the industrial business within India, exports to non-US regions, and the ramp-up in defence operations will offset the weakness. The India manufacturing business continues to progress steadily across Defence, Aerospace, Castings, and Aggregates segments.

 

The results were announced during market hours. The company’s shares rose 5.6 per cent, ending the day’s trade at Rs 1,401.8 per share on the BSE.