Bharat Forge (500493) Q4 25/26 earnings summary

Executive summary

• Consolidated FY26 revenue reached INR 168,116 million, up 11.2% year-over-year, with EBITDA at INR 29,207 million, up 5.9%.

• Standalone FY26 revenue declined 5.1% to INR 83,958 million, and EBITDA fell 8.4% to INR 23,121 million.

• Q4 FY26 standalone revenue grew 8.5% sequentially to INR 22,605 million, driven by export recovery and strong domestic demand.

• Net debt/equity remained low at 0.18x standalone and 0.41x consolidated, reflecting balance sheet strength.

• Audited financials for FY26 were approved with an unmodified audit opinion; a final dividend of ₹6.50 per share was recommended.

Financial highlights

• Standalone FY26 revenue was INR 83,958 million, down 5.1% year-over-year due to North America regulatory and demand challenges.

• Standalone EBITDA for FY26 was INR 23,121 million (27.5% margin); PBT before exceptionals at INR 18,260 million, down 8% year-over-year.

• Q4 standalone revenue rose 8.5% quarter-over-quarter to INR 22,605 million; EBITDA margin at 27% (28% excluding one-time power cess costs).

• Overseas: EU revenue INR 3,865 crore (EBITDA margin 4%), US revenue INR 1,534 crore (EBITDA margin 3.5%).

• ROCE (Net) for FY26 was 14.9% standalone and 15.6% consolidated.

Outlook and guidance

• FY27 India business expected to grow 25%+, led by aerospace, defense, and automotive components, with a commensurate rise in EBITDA and profitability.

• Aerospace and defense segments to see highest growth, with aerospace expected to surpass overall company growth rate.

• CapEx of INR 800–850 crore planned over 15–18 months for forging, casting, and product platforms.

• Ongoing restructuring of German steel business (CDP) to conclude by end of next calendar year, expected to reduce overseas losses.

• Company continues to monitor global electric mobility trends and labor code changes, adjusting provisions and strategy.