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Prolonged US tariff uncertainty
View Risks →Bharat Forge Limited — Q2 FY26
Bharat Forge reported consolidated Q2 FY26 revenue of ₹4,032 crore with EBITDA margins of 17.7%, impacted by a sharp decline in North American CV exports (down 67% YoY) due to tariff uncertainty and destocking.
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Bharat Forge reported consolidated Q2 FY26 revenue of ₹4,032 crore with EBITDA margins of 17.7%, impacted by a sharp decline in North American CV exports (down 67% YoY) due to tariff uncertainty and destocking. Standalone revenue fell 7.5% QoQ to ₹1,947 crore, but EBITDA margins held at 28% aided by cost actions and product mix. Defense order book remains strong with a new ₹1,400 crore carbine order and a ₹250 crore Navy order, though execution will take 12+ months. Aerospace revenue is expected to exceed ₹350 crore for FY26, up from ₹250 crore last year. Management guided Q3 to be similar to Q2, with recovery expected by Q4. Key risks include prolonged US tariff uncertainty and weak European steel operations, which are undergoing restructuring.
भारत फोर्ज ने दूसरी तिमाही (जुलाई-सितंबर) में 4,032 करोड़ रुपये की कमाई की। मुनाफा दर (EBITDA) 17.7% रही, जो अमेरिका में ट्रकों के निर्यात में 67% गिरावट के कारण प्रभावित हुई। वजह है टैरिफ अनिश्चितता और कंपनियों का स्टॉक कम करना। भारत में कारोबार की कमाई 1,947 करोड़ रुपये रही, जो पिछली तिमाही से 7.5% कम है, लेकिन लागत कम करने से मुनाफा दर 28% बनी रही। रक्षा क्षेत्र में 1,400 करोड़ रुपये का नया ऑर्डर (कार्बाइन) और 250 करोड़ का नौसेना ऑर्डर मिला है, लेकिन इसे पूरा होने में 12 महीने से ज्यादा लगेंगे। विमानन कारोबार से इस साल 350 करोड़ रुपये से ज्यादा की कमाई होने की उम्मीद है। कंपनी का कहना है कि अगली तिमाही भी ऐसी ही रहेगी, लेकिन साल के अंत में सुधार होगा। मुख्य जोखिम अमेरिकी टैरिफ और यूरोप में स्टील कारोबार की कमजोरी है।
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Read Transcript →Quarter Snapshot
North American CV exports decline
67%
-67% YoY
CV exports to North America dropped 67% YoY due to tariff impact and inventory destocking.
Defense order book (new wins in H1)
₹1,582 crore
+N/A
New business secured in H1 includes ₹823 crore components, ₹559 crore defense, and ₹200 crore casting.
Aerospace revenue (FY26E)
₹350 crore
+40% YoY
Aerospace revenue expected to exceed ₹350 crore in FY26, up from ~₹250 crore in FY25.
JS Auto sales growth (Q2)
26%
+26% YoY
JS Auto reported 26% sales growth in Q2 with 44% EBITDA growth, indicating improving profitability.
What Changed vs Last Quarter
NEW
Q3 similar to Q2, recovery by Q4
Management expects Q3 performance to be similar to Q2, with an uptick in Q4 as tariff uncertainties resolve.
NEW
Aerospace revenue >₹350 crore in FY26
Aerospace revenue is expected to exceed ₹350 crore for the full year, growing at 40%+ YoY.
NEW
Fundraising of up to ₹2,000 crore for organic and inorganic growth
Company has approval to raise up to ₹2,000 crore via debt and NCDs for organic and inorganic expansion in India.
UPDATED
European steel restructuring roadmap by end of FY26
Management will outline the restructuring plan for European steel operations by the end of the fiscal year.
DROPPED
Aerospace revenue to grow 20%+ YoY
Aerospace business expected to continue strong growth with limited US exposure.
DROPPED
American Axle to add ₹1,000 crore to consolidated topline
Consolidation from Q2 FY26, adding approximately ₹1,000 crore in annual revenue.
DROPPED
H2 performance better than H1
Management expects second half to be stronger than first half, with Q2 marking a low.
NEW RISK
Weak European steel operations
European steel business is a weak spot; restructuring plans are not yet finalized, posing a drag on consolidated margins.
NEW RISK
Defense order execution delays
Large defense orders like ATAGS and carbines have long gestation periods (12+ months to start revenue), delaying cash flows.
NEW RISK
EV business in India underperforming
Management identified the EV business in India as a weak spot, though no specific remediation was discussed.
RISK GONE
Q2 weakness from US exports
Management guided Q2 to be weaker due to US export slowdown, potentially marking a cyclical low.
RISK GONE
Price increases not yet secured for US aluminum
Despite improved margins, price increases from customers are still pending, as highlighted by an analyst.
RISK GONE
EV business challenges
Kalyani Powertrain losses reduced but breakeven depends on large contracts; EV sector faces magnet availability issues.
Fast read
Guidance and risk preview
Management expects Q3 performance to be similar to Q2, with an uptick in Q4 as tariff uncertainties resolve.
US tariff situation remains dynamic; management declined to quantify further impact, indicating potential for continued headwinds.
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