Bharat Forge reported a mixed set of consolidated fourth-quarter results for FY26, with revenue growing strongly but net profit declining sharply year-on-year as exceptional losses weighed heavily on the reported bottom line.
The Q4 FY26 numbers
| Metric | Q4 FY26 | Q4 FY25 | YoY | QoQ |
|---|---|---|---|---|
| Revenue from Operations | Rs 4,528 Cr | Rs 3,852.6 Cr | +17.5% | +4.3% |
| Total Income | Rs 4,581 Cr | Rs 3,914.7 Cr | +17.0% | +4.5% |
| Profit before exceptional items and tax | Rs 490.9 Cr | Rs 429.4 Cr | +14.3% | +6.1% |
| Exceptional items (loss) | Rs 98.7 Cr | Rs 5.3 Cr | — | — |
| Profit before tax | Rs 392.1 Cr | Rs 424.1 Cr | -7.5% | -3.7% |
| Net Profit | Rs 233.4 Cr | Rs 282.6 Cr | -17.4% | -14.4% |
Full year FY26
| Metric | FY26 | FY25 | YoY |
|---|---|---|---|
| Revenue from Operations | Rs 16,811.7 Cr | Rs 15,122.8 Cr | +11.2% |
| Total Income | Rs 17,010.3 Cr | Rs 15,336.6 Cr | +10.9% |
| Profit before exceptional items and tax | Rs 1,821.6 Cr | Rs 1,612.9 Cr | +12.9% |
| Net Profit | Rs 1,089.4 Cr | Rs 913.3 Cr | +19.3% |
What drove the quarterly disconnect
The core operating business delivered a solid quarter — revenue grew 17.5% and profit before exceptional items and tax grew 14.3% — indicating healthy demand across Bharat Forge’s domestic and international forging businesses spanning automotive, industrial, aerospace and defence segments.
The problem was below the operating line. Exceptional losses of Rs 98.7 crore in Q4 FY26 — against just Rs 5.3 crore in Q4 FY25 — converted what would have been a profit growth quarter into a profit decline. The cumulative exceptional losses for the full year FY26 stood at Rs 154.4 crore, compared to Rs 157.1 crore in FY25. These exceptional items are likely linked to restructuring costs, impairments or write-downs at overseas subsidiaries — a recurring feature in Bharat Forge’s consolidated results given its global manufacturing footprint.
Income tax expense for Q4 also rose to Rs 158.7 crore from Rs 141.5 crore sequentially, adding further pressure at the net profit level.
The full year — a better picture
Stripping out the quarterly noise, the full year FY26 tells a healthier story. Revenue grew 11.2% to Rs 16,812 crore from Rs 15,123 crore. Net profit improved 19.3% to Rs 1,089 crore from Rs 913 crore — a meaningful improvement driven by operating leverage and the growing contribution of high-margin defence and aerospace segments to the revenue mix.
Raw material costs — the largest expense line — grew 20.8% year-on-year to Rs 7,778 crore for the full year, reflecting commodity cost pressure. Employee costs rose 12.5% to Rs 2,103 crore. But the company managed to grow operating profit faster than revenue, indicating margin improvement at the core forging business level.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making investment decisions.