Bharat Forge Q3 PAT rises 28% YoY to Rs 273 cr

Bharat Forge reported consolidated net profit rallied 28.21% to Rs 272.80 crore in Q3 FY26 as against Rs 212.78 crore posted in Q3 FY25.

Revenue from operations soared 24.96% YoY to Rs 4,342.93 crore in the quarter ended 31 December 2025.

Profit before exceptional items and tax stood at Rs 462.93 crore in Q3 FY26, compared with Rs 347 crore in Q3 FY25. The company reported an exceptional loss of Rs 55.72 crore during the quarter, primarily on account of the impact of newly notified labour codes, resulting in higher gratuity and leave liabilities.

Total expenses rose 23.79% YoY to Rs 3,918.51 crore in Q3 FY26. The cost of material consumed stood at Rs 1,841.79 crore (up 28.02% YoY), finance cost was at Rs 76.64 crore (down 20.13% YoY), and employee benefits expenses stood at Rs 534.56 crore (up 22.56% YoY) during the period under review.

 

Segment-wise, revenue from forgings rose 10.01% to Rs 3,367.09 crore, while the defence segment saw a sharp 102.36% surge to Rs 681.99 crore. The "Other" segment revenue surged 158.84% to Rs 570.06 crore.

The operating margin rose to 17.18% in Q3 FY26, down from 17.92% a year ago, while the net profit margin increased to 6.28% from 6.12%.

B.N. Kalyani, chairman & managing director of Bharat Forge, said, The quarterly performance continued to be impacted by the de-stocking in the North American CV market. Standalone revenues were up 7.0% sequentially to Rs 2,084 crores, and EBITDA at Rs 569 crore was up 4.6% QoQ, translating to an EBITDA margin of 27.3%. The performance was aided by the strong growth in the domestic automotive business and execution of the defense order book. Export revenues witnessed a 3% sequential decline, with the auto sector down 13% and industrials showing an 11% increase.

In Q3, the company secured new orders worth Rs 2,388 crores, including Rs 1,878 crores in Defence. As of Dec 31st, 2025, the defence order book stood at Rs 11,130 crores. We signed the CQB Carbine contract with the Ministry of Defence for the supply of more than 250,000 units to the Indian armed forces. This order unlocks significant growth opportunities for our small arms vertical within the defence business.

In the quarter gone by, JS Autocast (JSA) recorded revenue of Rs 203 Crore and EBITDA of Rs 32 Crore (15.7% EBITDA margin), representing a 22% and 39% YoY jump, respectively. K-Drive Mobility, a supplier of axle assembly across segments, witnessed a muted topline but a sharp jump in their profitability, with EBITDA margins moving up from 3.1% in Q2 FY26 to 5.1% in this quarter. We expect the margin profile to continue to improve over a 3-year time frame. The US & European operations reported modest operating profits despite seasonal weakness in the PV market. Review of the European steel manufacturing footprint is on track, and we expect to have concrete measures in place by the end of this fiscal year.

Looking ahead into Q4 FY26 and FY27, it is fair to say that the worst is behind us and things are starting to look up. With both domestic and export markets looking strong across sectors and the commencement of ATAGS execution in H2 FY27, we expect high double-digit top-line growth and a commensurate impact on profitability.

Meanwhile, the board declared an interim dividend of Rs 2 per equity share (face value Rs 2 each). The dividend will be paid on or before 12 March 2026 to shareholders on record as of 18 February 2026.

The board also approved the reappointment of B. P. Kalyani and S. E. Tandale as whole-time directors, designated as executive directors, for a further term of five years from 23 May 2026 to 22 May 2031, subject to shareholders approval by way of postal ballot. In addition, the board approved the merger of Ferrovia Transrail Solutions (FTSPL), a step-down wholly owned subsidiary, with BF Infrastructure (BFIL), a wholly owned subsidiary and the holding company of FTSPL.

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 rose 3.33% to close at Rs 1,732.55 on the BSE.

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