Latest news with #BabaKalyani
Time of India
7 days ago
- Business
- Time of India
Bharat Forge reports ₹339 cr PAT in Q1 FY26 despite export challenges
Bharat Forge on Wednesday reported a standalone profit after tax (PAT) of ₹339 crore for the quarter ended 30 June 2025 (Q1 FY26), even as the company faced subdued demand in export markets. The company's performance was supported by domestic business and defence order wins. 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.
Business Upturn
7 days ago
- Business
- Business Upturn
Bharat Forge Delivers Resilient Q1 FY26 Performance Amid Export Market Challenges
Bharat Forge Ltd. reported a resilient Q1 FY26 performance with consolidated revenues of ₹3,909 crore, buoyed by strong domestic demand and strategic defence orders worth ₹269 crore. Despite a 12.7% QoQ decline in exports due to regulatory headwinds in North America, the company maintained robust EBITDA margins and saw improved profitability across its international operations. With a defence order book of ₹9,463 crore and continued focus on cost optimization and market diversification, Bharat Forge remains well-positioned to navigate global uncertainties. By Riddhima Jain Published on August 6, 2025, 17:50 IST Bharat Forge Ltd., the Pune-headquartered engineering and manufacturing giant, reported a resilient performance for the first quarter of FY26, demonstrating strong domestic momentum and continued growth in its defence segment despite ongoing global headwinds. The company posted a consolidated revenue of ₹3,909 crore for the quarter ended June 30, 2025, supported by strong EBITDA margins of 17.5%. The company also announced securing new orders worth ₹847 crore, including ₹269 crore in the defence segment, reinforcing its strategic focus on high-value sectors. Standalone Financial Highlights (Q1 FY26) Revenue: ₹2,105 crore (down 2.7% QoQ) EBITDA: ₹588 crore, with margins at 27.9% Profit Before Tax (PBT): ₹465 crore Profit After Tax (PAT): ₹339 crore Consolidated Financial Performance Revenue: ₹3,909 crore EBITDA: ₹682 crore PBT: ₹423 crore (before exceptional items) Chairman and Managing Director Baba Kalyani commented on the quarterly performance, stating: 'We secured ₹847 crore in new orders, including ₹269 crore in defence, taking our defence order book to ₹9,463 crore. With active participation in ongoing platforms, we expect more order wins this fiscal, enhancing long-term revenue visibility.' He added that international operations in the US and Europe showed improved financial metrics, now generating cash profits, while a strategic review of European steel operations is on track and expected to yield actionable results by year-end. However, Kalyani remained cautious about the export outlook, particularly due to tariff changes and emission regulation rollbacks in the US, noting that FY26 could be a challenging year due to global market volatility. Segment-Wise Performance Domestic Business: Passenger vehicle and industrial segments saw robust growth; defence continued strong execution. Exports: Declined 12.7% QoQ; North America saw headwinds from regulatory shifts, while Europe showed early signs of recovery—especially in commercial vehicle (CV) exports. International Operations: EBITDA improved across the US and Europe; aluminium business saw better execution; European steel restructuring remains a priority. Despite export pressures, Bharat Forge remains focused on cost optimization, diversification, and targeting stable geographies to sustain growth. The defence vertical, bolstered by a strong order book, continues to be a major driver for the company's long-term strategy. Ahmedabad Plane Crash
India.com
11-06-2025
- Business
- India.com
India Once Laughed At Its Own Guns, Now The World Is Watching
New Delhi: Inside the buzzing halls of a Delhi defence expo in the summer of 2012, something unusual sat quietly in a corner. A made-in-India artillery gun. While foreign stalls drew crowds with glossy brochures and polished pitch decks, this indigenous weapon from Bharat Forge attracted little more than chuckles. Uniformed officers walked by, barely giving it a glance. Some scoffed. Others smirked. Nobody stopped. At the time, the idea that an Indian private firm, better known for automotive parts, could build heavy weaponry was, to many, laughable. But behind that gun was industrialist Baba Kalyani, a man with a clear vision and a thick skin. The 2008 global financial crisis hit many manufacturing businesses hard. For Baba Kalyani, it forced a rethink. Rather than shrink, he chose to pivot. His background, years in military schools, friendships with top brass and a lifelong fascination with engineering, nudged him toward defence. By 2011, he was asking why India cannot make its own artillery guns. The answer, at the time, was policy bottlenecks, an import-first mindset and a closed defence ecosystem controlled by public sector undertakings (PSUs). But Kalyani saw opportunity where others saw red tape. Artillery, after all, was steel and engineering – Bharat Forge's bread and butter. He was not naive about the system. He approached it methodically, even knocking on the doors of the highest offices. Then Prime Minister Manmohan Singh passed him to Defence Minister AK Antony. The meeting lasted less than 20 minutes. The outcome: a polite thank you and a dead end. There was no space for private players. And even though India had received full technology transfer from Sweden post-Bofors, that tech never made it beyond dusty files and state-run factories. The belief was foreign defence firms meant quality, and Indian firms meant risk. Turning Point Change did not happen overnight. But it did begin slowly in late 2014, when Prime Minister Narendra Modi launched the 'Make in India' campaign. Kalyani was there. For the first time, private players were invited to the policy table. His experience, insights and persistence found a place in the conversation. The breakthrough, however, came with the late Manohar Parrikar, India's defence minister at the time. He understood both the strategic need and the bureaucratic chokeholds. Under his leadership, India rewrote its defence procurement policies in 2016 – a move many credit for unlocking the gates for private industry. To understand how long this change was overdue, Kalyani's son, Amit, shared a haunting anecdote. In the late 1970s, Baba Kalyani had submitted a proposal to manufacture a key defence item. That proposal gathered dust for four decades. By the time Parrikar saw it in 2016, the same equipment was still being imported. When asked why countries like South Korea or China managed to scale their defence production while India lagged, the answer was India trusted only its public sector. Innovation suffered under the weight of audits, paperwork and a fear of risk. 'You spend Rs 100 and someone from the finance department will grill you for a week,' Kalyani once remarked. Creativity could not breathe in that climate. Fast forward to today. Bharat Forge is no longer a curiosity in defence exhibitions. Its artillery guns are being tested, deployed and even exported. The same generals who once ignored the prototype now study it closely. What changed? A mix of policy reform, entrepreneurial courage and a refusal to accept the status quo. In the end, the laugh was on those who never looked.
Time of India
10-06-2025
- Business
- Time of India
Bofors fully transferred tech to India in 80s, I even proposed made-in-India guns to Cong govt, but...: Baba Kalyani's explosive reveal
India imported 400 Bofors guns from Sweden in the 1980s under the Congress regime, claimed Bharat Forge Chairman Baba Kalyani . Kalyani, who made the observations during an interview, said that along with the guns, India also received the complete technology transfer from the Swedish firm in the 1980s; however, this was never utilized to establish indigenous artillery gun manufacturing. Separately, he revealed that in 2011, he personally approached then Prime Minister Manmohan Singh and Defence Minister AK Antony to pitch domestically produced howitzer guns, but his proposals were met with, in his own words, a cold response. Reflecting on the origins of his interest in artillery manufacturing and the Bofors legacy, Kalyani said, 'What really got me excited was the connection between metallurgy and artillery guns. I still remember in the 80s, when the Bofors technology came in, it really was a transfer of technology of something which, if India has, is metallurgical strength, and that's what got me excited.' When Swedish firm Bofors tranferred its tech to India Despite the comprehensive technology transfer that accompanied the Bofors deal, Kalyani highlighted the exclusion of the private sector from defense manufacturing during that era. 'I still remember in the 80s, Sweden literally gave the total artillery technology package on a platter, but unfortunately, at that time, the private sector was locked out from defense manufacturing,' he lamented. Live Events Years later, Kalyani faced further hurdles in promoting indigenous defense technology. 'We showcased this gun in 2012, and I can tell you, the kind of, you know, skepticism that came out, it was as if, you know, we didn't exist,' he said, underscoring the prevailing reluctance to embrace homegrown innovation. This challenge was separate from the Bofors era, but continued to hinder domestic manufacturing. Recounting his efforts in 2011, he added, 'And literally, if I look at it, they kept on going back and buying stuff from outside, and I remember meeting every prime minister, every defense minister, and it was like a blank wall,' Kalyani explained, describing the perceived lack of support for indigenous efforts, even well after the Bofors scandal . 'Made-in-India a game changer' Adding to the frustration, Kalyani pointed out the cost-effectiveness of manufacturing within India. 'I was much cheaper than buying it from outside, so I used to keep wondering what is wrong with us, you know,' he stated, highlighting the missed economic opportunity. However, Kalyani expressed optimism about the shift in approach under the current government. 'I think the whole dream has come alive in this government,' he said, referring to the Modi administration's push for local manufacturing and self-reliance in defense. According to Kalyani, the "Make in India" initiative has been a game-changer. "So in December '14, when we had this Make in India conclave, that's where the real revolution started," he emphasized, noting its transformative impact on the sector. He also credited Manohar Parrikar, former Defence Minister, for bringing about crucial policy changes that opened the sector to private players. "I think the biggest change that happened was Manohar Parrikar came in, and the first thing he did was unleashed what is called the DPP 2016, where he opened it up to the private sector," Kalyani stated. The Bofors Scandal The Bofors scandal remains a prominent chapter in India's political history. The $1.4 billion deal to acquire 410 field howitzers from Swedish arms manufacturer Bofors in 1986 became embroiled in allegations of bribery and corruption, casting a shadow over defense procurements for years to come. While the technology transfer was part of the agreement, India's indigenous artillery manufacturing remained largely dependent on imports and public sector units for decades, per Kalyani's account.
News18
12-05-2025
- Business
- News18
IdeaForge, Zen Technologies, HAL, BDL, BEL Gain Up To 8%; Why Are Defence Stocks Rallying?
Last Updated: Defence-related stocks, particularly drone manufacturers, were among the top gainers in Monday's trade; Know why Defence Stocks Rise: Defence-related stocks, particularly drone manufacturers, were among the top gainers in Monday's trade, driven by a day of calm along the India-Pakistan border following a ceasefire. Investor sentiment was further buoyed by expectations of increased government spending on defence in the coming quarters. Among the top performers, Ideaforge Technology Ltd surged 6.44% to Rs 493.05, while ZEN Technologies Ltd gained 5% to Rs 1,476.65 on the BSE. Droneacharya Aerial Innovations Ltd also advanced 5% to Rs 71.53, and Data Patterns (India) Ltd rose 4.14% to Rs 2,390.50. However, Paras Defence and Space Technologies Ltd, which has been leading the recent defence sector rally, declined 4.9% to Rs 1,387. The stock moved out of the short-term ASM (Additional Surveillance Measure) framework starting today, which may have triggered some profit-taking. Bharat Forge Ltd rose 1.36% to Rs 1,181.90. Reports suggest the government has called for a key meeting with defence manufacturers in Delhi this week, as hinted by CMD Baba Kalyani in a recent CNBC-TV18 interview. According to JM Financial, while markets may not be significantly impacted by border tensions, 'one cannot rule out further escalation or a prolonged conflict." The firm noted that the Indian economy is now more resilient and better equipped to handle geopolitical stress compared to the past. Other notable movers included Bharat Dynamics Ltd, which edged up 0.25% to Rs 1,535.05, Bharat Electronics Ltd gaining 0.71% to Rs 318, and BEML Ltd, which advanced 3.71% to Rs 3,172.05. First Published: May 12, 2025, 15:14 IST
