Bharat Forge Limited (BFL), the Pune-based engineering and forging major, announced its financial results for the quarter ended September 30, 2025 (Q2 FY26), reporting a mixed performance marked by export weakness but steady domestic and defence growth.
The company’s standalone revenue stood at ₹1,947 crore, a decline of 7.5% quarter-on-quarter, mainly due to a sharp drop in North American commercial vehicle (CV) demand. EBITDA for the quarter was ₹545 crore, with margins improving slightly to 28% on the back of a favourable product mix. Profit before tax (PBT) came in at ₹432 crore, down 7.2% sequentially, while net profit fell to ₹310 crore compared to ₹339 crore in the previous quarter.
On a consolidated basis, Bharat Forge reported revenue of ₹4,032 crore, up from ₹3,909 crore in Q1 FY26, driven by robust performance in Indian manufacturing and defence segments. Consolidated EBITDA stood at ₹715 crore, translating to a margin of 17.7%, while PBT before exceptional items was ₹445 crore.
The company secured new orders worth ₹1,582 crore during the first half of FY26, including ₹559 crore from defence projects. Bharat Forge’s defence order book now stands at a strong ₹9,467 crore. To strengthen focus in this vertical, all defence-related assets have been transferred to its wholly owned subsidiary, Kalyani Strategic Systems Limited (KSSL).
Commenting on the results, Chairman and Managing Director Baba Kalyani said the quarter’s performance was impacted by a sharp decline in North American truck production and inventory corrections. “Standalone revenues declined by 7.5% sequentially, impacted by a 48% drop in North American CV exports. However, due to our diversification efforts, the impact was limited, and margins remained stable at 28%,” he said.
Kalyani added that the company’s Indian manufacturing operations, a key growth driver, recorded revenues of ₹2,746 crore and EBITDA of ₹676 crore. He also noted that the firm expects new defence platform orders and continued growth in the industrial, aerospace, and casting businesses to offset export weakness in the second half of FY26.
Bharat Forge ended the quarter with a strong balance sheet, holding cash reserves of ₹2,309 crore and reporting a return on capital employed (ROCE) of 15.5%. The company said its review of the European steel manufacturing footprint is underway, with concrete actions expected by the end of the fiscal year.
Despite soft demand in the US and Europe, Bharat Forge remains confident that defence, Indian manufacturing, and non-US exports will drive growth in the coming quarters.
