Demand woes lead to valuation downgrades for Bharat Forge's stock

Bharat Forge’s (BHFC’s) adjusted consolidated operating profit for the third quarter of financial year 2025 (Q3FY25) came in well below consensus estimates, due to weaker revenue in India and overseas subsidiaries.

 

The near term looks uncertain, due to weakness in export markets, and demand moderation in the domestic automobile industry and delays in defence execution.

 

BHFC’s Q3FY25 standalone revenue dropped 7 per cent Y-o-Y at Rs 2,100 crore, while operating profit dropped 5.5 per cent (unadjusted) at Rs 610 crore, and adjusted net profit declined 5 per cent Y-o-Y at Rs 350 crore.

 

In the first nine months