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Bharat Forge Ltd — Q4 FY26
Bharat Forge reported FY26 consolidated revenue of ₹16,812 crore (+11% YoY) and EBITDA of ₹2,921 crore (+6% YoY), with margins contracting ~80bps to 17.4% due to overseas losses.
bullish
high
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Bharat Forge reported FY26 consolidated revenue of ₹16,812 crore (+11% YoY) and EBITDA of ₹2,921 crore (+6% YoY), with margins contracting ~80bps to 17.4% due to overseas losses. Standalone Q4 revenue grew 8.5% QoQ to ₹2,260 crore, with EBITDA margin at 27% (28% excluding one-time costs). The defense order book stands at ~₹11,000 crore, providing multi-year visibility. Management guided for 25%+ growth in India operations in FY27, driven by aerospace (26% of industrial exports in Q4), defense ramp-up (ATAGS, carbines), and strong CV demand. Risks include energy cost inflation, geopolitical uncertainties, and slower-than-expected restructuring of German steel business (CDP).
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Energy cost inflation
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Defense Order Book
₹11,000 crore
+N/A
Order book provides revenue visibility for next 3-4 years.
New Business Wins (FY26)
₹4,814 crore
+N/A
Includes defense ₹2,816 cr, traditional ₹1,210 cr, casting ₹292 cr, K-Drive ₹500 cr.
Aerospace Revenue (FY26)
₹400 crore
+N/A
Aerospace now 26% of industrial exports in Q4; second largest contributor.
Standalone Net Debt/Equity
0.18
flat
Balance sheet remains robust with net cash at standalone level.
What Changed vs Last Quarter
NEW
India business to grow 25%+ in FY27
Management expects over 25% growth in India operations (standalone + Indian subsidiaries) driven by aerospace, defense, and components.
NEW
Capex of ₹800-850 crore over 15-18 months
Ongoing capex programs across forging, casting, and products platforms will translate into ₹800-850 crore spend.
NEW
Defense revenue ramp-up from H2 FY27
ATAGS and carbine production will start in second half of FY27 after FAT completion.
NEW
German steel restructuring to complete by end of CY27
CDP restructuring is a 15-18 month process; losses will reduce as CDP losses are phased out.
DROPPED
Defense business growth of 30-40%+ next year
Driven by commencement of ATAGS order and beginning of CQB production, with strong uptake expected.
DROPPED
Defense revenue share to reach 18-20% in 2-3 years
From current ~10-12%, defense could become as big as the overall business today, aided by global opportunities.
DROPPED
Capex of up to ₹3,000 crore for Odisha project
Bharat Forge's share in the group's ₹17,000 crore Odisha project, including forging, machining, and casting facilities.
DROPPED
European restructuring update by fiscal year-end
Evaluation of restructuring operations for European steel business, with progress update by end of FY26.
NEW RISK
Energy cost inflation
Energy costs have risen substantially, impacting input costs; management is negotiating with customers for compensation but uncertainty remains.
NEW RISK
Geopolitical uncertainties and tariff impacts
Tariffs and geopolitical tensions (Middle East, US-China) could disrupt demand and supply chains; company absorbed ₹12 crore tariff impact in Q4.
NEW RISK
Overseas business losses and restructuring delays
European and US operations reported low margins (4% and 3.5% respectively); restructuring of German steel business may take longer than expected.
NEW RISK
Slowdown in wind energy sector impacting castings
JSA's export market, especially wind, faces slowdown due to infrastructure buildup delays, though domestic growth is expected.
RISK GONE
European restructuring uncertainty
Management deflected specifics on European restructuring, citing external landscape challenges and secular problems in Europe.
RISK GONE
Tariff impact on US aluminium business
Tariffs on aluminium into the US are impacting profitability and demand, with current utilization at 65%.
RISK GONE
North American truck market recovery pace
While order intake is improving, the recovery is expected to be steady rather than sharp, with exports still down 51% YoY.
🤫 Topics management stopped discussing
Mentioned in Q1 FY26, Q2 FY26, Q3 FY26
Tariffs on aluminium into the US are impacting profitability and demand, with current utilization at 65%.
Mentioned in Q1 FY26, Q2 FY26
Management will outline the restructuring plan for European steel operations by the end of the fiscal year.
Fast read
Guidance and risk preview
Management expects over 25% growth in India operations (standalone + Indian subsidiaries) driven by aerospace, defense, and components.
Energy costs have risen substantially, impacting input costs; management is negotiating with customers for compensation but uncertainty remains.
View Risks →