Bharat Forge reports ₹339 cr PAT in Q1 FY26 despite export challenges
Standalone revenue stood at ₹2,105 crore, down 2.7 per cent quarter-on-quarter. EBITDA came in at ₹588 crore, reflecting a margin of 27.9 per cent, while profit before tax (excluding exceptional items) was ₹465 crore. New orders worth ₹847 crore were secured during the quarter, of which ₹269 crore were from the defence sector. The total defence order book stood at ₹9,463 crore as of the end of the quarter.
Consolidated performance and market outlook
On a consolidated basis, revenue for the quarter was ₹3,909 crore, with EBITDA of ₹682 crore and a margin of 17.5 per cent. Consolidated profit before tax (before exceptional items) stood at ₹423 crore. The company did not disclose consolidated PAT in the release.
'During the quarter, the company secured new orders worth ₹847 crore including ₹269 crore in defence. As of Q1 FY26, the defence order book stood at ₹9,463 crore. For the defence vertical, based on the projects and platforms we have participated in, we expect to secure new orders in this fiscal year generating more revenue visibility for the future years,' Baba Kalyani, Chairman and Managing Director, Bharat Forge.
He added the US and European operations witnessed meaningful improvement in financial performance in the April–June quarter and are generating cash profit. Review of the European steel manufacturing footprint is on track, and we expect to have concrete steps in place by the end of this year.
On the external environment, Kalyani noted: 'Given the recent tariff announcement by the US government and changes to emission regulation in North America, we are cautious on the outlook for the US export business for the remainder of the fiscal. FY26 is likely to be a challenging period, given where we are in the overall cycle and our geographical exposure."
He noted that the company's focus is on capturing opportunities in businesses and geographies which are relatively unaffected and work simultaneously on cost optimisation to minimise impact of operating deleverage.
Segment overview
In the domestic market, the passenger vehicle and industrial segments showed steady performance, while defence execution continued. Exports declined 12.7 per cent sequentially, with North America impacted by regulatory changes and policy uncertainty. European exports showed some improvement, particularly in the commercial vehicle segment.
The company stated that both US and European operations posted improved EBITDA performance. Aluminium operations progressed in execution, and the review of the European steel manufacturing footprint is ongoing.
Despite regulatory headwinds in major export markets, Bharat Forge said it continues to pursue diversification and operational efficiency, with defence remaining a key driver for growth.
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