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 t...
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✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
67%Questions answered2Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Is Q2 the toughest quarter or will tariff impact trickle into Q3?
Asked by Ben, Morgan Stanley
Management gave a clear directional answer comparing Q2 and Q3.
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Question
I'll just go back to our Q2 commentary where we talked about Q2 being the toughest quarter in the year and now would you still maintain that the full impact of tariff slowdown especially on the export side is already built in the detocking is done or do you expect that to trickle into Q3 as well?
Amit Kalyani (Deputy CEO)
I would say Q2 and Q3 should be similar and hopefully by Q4 we should see going uptick.
Partial answer
Medium priority
What drove the sequential jump in non-auto exports?
Asked by Ben, Morgan Stanley
Management listed sectors but gave no quantitative breakdown or specific drivers.
no segment breakdownvague sustainability claim
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Question
On the export of non-auto we've seen a nice jump sequentially could you talk a little bit about what drove that because if I look at your aerospace numbers seemed largely flat quarter over quarter so what are the other segments that drove that?
Amit Kalyani (Deputy CEO)
It's a multiple sectors it includes power gen, it includes construction, mining and aerospace. It's also sustainable in that sense.
Partial answer
High priority
What factors drove the impressive gross margins and how sustainable?
Asked by Ben, Morgan Stanley
Management listed factors but gave no numbers or specific sustainability outlook.
no quantificationno sustainability timeline
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Question
Very impressive gross margins you know I think it's one of the highest that we've done in recent times could you help us break down into factors that are driving it and how sustainable is this?
Amit Kalyani (Deputy CEO)
We've done a lot of cost reduction work. When the quarter started and it looked really bleak we took a lot of block shutdowns etc. And we're trying to do more value addition in house more improve our product mix. So it's a combination of all these factors.
Answered
High priority
What is the size of the carbine order and execution timeline?
Asked by Kapir Singh, Nomira
Management provided the order size and clarified the execution timeline.
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Question
On the defense order book just wanted to clarify there was a carbine order as well. What is the size of that order? And what would be the execution timeline for that?
Amit Kalyani (Deputy CEO)
Yeah it's about 1,400 crores. So from the time the order gets signed I would say about 9 to 12 months. No no start. Over a 4 year period because it's two lakh two lakh odd weapons.
Answered
Medium priority
What is the 24 crore carriage charge and where is it accounted?
Asked by Kapir Singh, Nomira
Management clearly explained the nature and accounting treatment.
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Question
There was some 24 crores carriage charges. What is it related to and where is it accounted for?
Amit Kalyani (Deputy CEO)
This is the tariff charges the sharing of tariff the US tariff what we have for our US exports. This is in sales.
Evasive
High priority
Is the tariff impact at peak or could it increase further?
Asked by Kapir Singh, Nomira
Management avoided giving any forward view on tariff trajectory.
declined to commentcited uncertaintyrefused to share
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Question
As things stand is this the peak or should we expect that there will be a further impact because the tariff seems to have gone up right?
Amit Kalyani (Deputy CEO)
I think it's a very dynamic situation it's difficult to comment with any amount of certainty. It's a little bit of a comparative information issue. So I don't think I want to talk about it very publicly.
Partial answer
Medium priority
Was the tariff charge for the full quarter or partial?
Asked by Gjan Pritani, Bank of America
Management confirmed full quarter but refused to elaborate.
no further detailcut off explanation
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Question
There is no you know this was only for a month or two like it was in quarter one it was only 14 crores but partial period right this is for the entire period is that the correct way to look at it?
Amit Kalyani (Deputy CEO)
This was for the quarter I don't want to say anything more than that.
Answered
High priority
What is the execution timeframe for the defense order book and growth outlook?
Asked by Gjan Pritani, Bank of America
Management gave a clear timeline and corrected the analyst's assumption.
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Question
With the new order we'll be roughly at whatever you know 11,000 odd cr sort of order book how would you think about the revenue or execution time frame of this? I'm just trying to assess what sort of growth we think on the defense business over next two years.
Amit Kalyani (Deputy CEO)
We'll definitely continue to have new wins and additions but execution will also start. The 10,000 cr order book it's fair to assume 3 year sort of time frame? No it will take longer than that. In this business from the time order is signed you cannot expect revenues to start in less than 12 months.
Answered
High priority
What is the aerospace revenue scale-up trajectory?
Asked by Gjan Pritani, Bank of America
Management provided specific revenue figures and growth outlook.
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Question
On aerospace you do talk about a lot of wins. Can you give us some perspective on how to think about the revenue stream there? What is it right now? How does that scale up over the next couple of years?
Amit Kalyani (Deputy CEO)
Aerospace for last year for the full year was in the ballpark of about 250 odd crores. I think this year should be in excess of 350 crores. So we are growing at that kind of rate or higher and that rate should continue for the next three four years at least.
Partial answer
High priority
Is Q2 still the bottom given unresolved US-India situation?
Asked by Nitan Jen, Fair Value Equity Advisory
Management acknowledged delay but did not reaffirm Q2 as the bottom.
no commitment to bottomshifted timeline
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Question
Last quarter management had guided that Q2 will mostly be the bottom of this down cycle. Now given the geopolitical situation between India and US it is still not resolved. So do we still stand with that commentary or we see some more pain going forwards?
Amit Kalyani (Deputy CEO)
Clearly when we spoke last time, we were more hopeful of a quicker resolution. I would expect that hopefully in this quarter it should happen and I would say quarter 3 will be on a similar lines as quarter two.
Answered
Medium priority
Did transferring defense to KSSL impact standalone revenues?
Asked by Rishi Wara, Kotak Securities
Management clearly stated no impact on standalone revenue booking.
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Question
In the presentation you'd highlighted that the defense has transferred to KSSL. So was there any impact on the standalone revenues on account of this or the revenue booking remains the same?
Amit Kalyani (Deputy CEO)
The revenue bookings remains the same. It's only the business what we have transferred from Bat to Kani strategic systems. And so it more of the assets which have moved and all the new orders what we will get those would be on Kani strategic system.
Deflected
High priority
Can you bifurcate US business by tariff type?
Asked by Rishi Wara, Kotak Securities
Management declined to provide the requested segmentation.
refused to break downredirected to overall outlook
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Question
For the US business can you just bifurcate what percentage of business is linked to this kind of tariff because whenever the deal happens we just want to understand which business or which segment does get positively impacted?
Amit Kalyani (Deputy CEO)
You can't break our tariff down in that way. You have a outlook on our overall business. You know how much of our business goes to US how much goes to Europe. So I think we should just leave it at that.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Aerospace revenue last year ~250 cr, this year >350 cr | ₹350 cr | ₹4,032 cr | Understated vs filing |
| Defense subsidiary margins improved to double digit | 10% | 17.7% | Understated vs filing |
| BSI margin expansion to 14% | 14% | 17.7% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.