Bharat Forge Q4 results: Net profit falls 17.5% on labour code impact

Bharat Forge reported a 17.5 per cent decline in Q4 net profit due to labour code-related charges and expects around 25 per cent revenue growth in FY27

Pune-based Bharat Forge on Thursday posted a decline of 17.5 per cent year-on-year in their consolidated net profits for the fourth quarter (Q4) of the financial year 2025-26 (FY 26) at ₹232.5 crore. However, the revenue from operations rose 17.5 per cent at ₹4,528 crore. 

The decline in net profit can be attributed to the exceptional charge arising from the implementation of the four labour Codes notified by the Centre, leading to higher gratuity and leave liabilities for the Group during FY26. 

For the full year, the consolidated net profits rose to 14.7 per cent at ₹1,079.6 crore, while the revenue from operations increased by 11 per cent to ₹16,811.6 crore. 

 

The results were announced during the market hours. Bharat Forge’s shares reached an all time high, rising 6.2 per cent, ending the day’s trade at ₹1,991 per share at BSE. 

Baba Kalyani, chairman and managing director, Bharat Forge, said: “Bharat Forge performance in FY26 was supported by strong execution across businesses and improving export demand in the second half of the year. The company secured new orders worth ₹4,814 crore in FY26, including ₹2,816 crore in defence. The order book for defence stood at ₹10,961 crore as of FY26. The order wins across businesses reflect a resurgence in business momentum, including in aerospace with onboarding of new customers across engine, structural and landing gear components.” 

Bharat Forge said the ₹450 crore impairment on its investment in KPTL during the quarter reflected the need to reassess its EV strategy amid slower-than-expected global EV adoption. The company added that its US and European operations remained modestly profitable despite weak demand conditions, while restructuring of the steel business at CDP Bharat Forge is underway and expected to conclude by the end of CY27. 

Bharat Forge said it is also exploring alternative business opportunities in Europe to utilise its scaled-down manufacturing footprint. For FY27, the company expects around 25 per cent revenue growth along with improved earnings before interest, taxes, depreciation, and amortisation and profitability in its Indian manufacturing operations, supported by order execution and a recovery in exports, while continuing to focus on diversified growth across automotive, defence, aerospace, renewable energy, oil & gas, marine, rail, and industrial sectors.