Bharat Forge Q1FY26 Results: Standalone PAT Rises 25.6% YoY; Consolidated Revenue Marginally Down

Pune, August 6, 2025: Bharat Forge, a leading company in the manufacturing sector, has reported its financial results for the first quarter of the year. The company saw its standalone net profit go up by 25.6% compared to the same period last year. However, its overall revenue from operations on a consolidated basis saw a slight decrease of 4.8%.

Bharat Forge Ltd. is a major global provider of forged and machined components for a wide range of industries, including automotive, defence, railways, and industrial sectors. As a part of the Kalyani Group, the company is headquartered in Pune, India. It is listed on the NSE and BSE with the ticker symbol BHARATFORG and operates a global network of manufacturing facilities.

Key Financial Highlights

Standalone Performance (₹ in million)

 On a standalone basis, Bharat Forge’s revenue from operations for Q1 FY26 stood at ₹21,047.07 million. This marks a 10.0% decrease compared to the ₹23,380.95 million reported in Q1 FY25, and a 2.7% sequential drop from ₹21,630.29 million in Q4 FY25. The total income for the quarter was ₹21,469.00 million, down 9.9% year-on-year and 2.9% quarter-on-quarter. Despite the dip in revenue, the company’s Profit Before Tax (PBT) saw a healthy increase of 21.2% year-on-year, reaching ₹4,492.75 million, although it was down 5.1% from the previous quarter. The Net Profit (PAT) was ₹3,385.21 million, a notable 25.6% rise compared to ₹2,694.23 million in Q1 FY25, though it slightly decreased by 2.1% from Q4 FY25. Consequently, the Earnings Per Share (EPS) for the standalone business was ₹7.08. The operating margin for the standalone business was 27.17% in Q1 FY26, a slight decrease from 27.86% in Q1 FY25, while the net profit margin significantly improved to 16.08% from 11.52% in the same period last year.

Consolidated Performance (₹ in million)

Looking at the consolidated figures, Bharat Forge’s revenue from operations was ₹39,087.49 million in Q1 FY26. This represents a 4.8% decrease compared to the ₹41,061.46 million in Q1 FY25, but a slight 1.5% increase from ₹38,526.04 million in Q4 FY25. The total income for the group was ₹39,584.72 million, down 4.8% year-on-year but up 1.1% quarter-on-quarter. The Profit Before Tax (PBT) on a consolidated basis showed a strong growth of 37.2% year-on-year, reaching ₹4,109.89 million, despite a 3.1% decline from Q4 FY25. The Net Profit (PAT) for the consolidated entity saw a massive jump of 62.6% year-on-year, amounting to ₹2,838.70 million, and was marginally up by 0.4% from the previous quarter. The EPS for the consolidated business stood at ₹5.93.

Operational and Strategic Highlights

The Forgings segment remains the most important part of the business, contributing ₹35,579.67 million in revenue. The company also completed the acquisition of AAM India Manufacturing Corporation Pvt. Ltd. in July, which is expected to strengthen its commercial vehicle business. As part of an internal reorganisation, the company also moved its defence business assets and liabilities to its subsidiary, Kalyani Strategic Systems Limited.

Commenting on the results, B.N. Kalyani, Chairman & Managing Director, noted that the company has delivered a resilient performance despite global challenges, and the AAM India acquisition will be key for future growth.

Key Corporate Updates

• AAM India Acquisition: Bharat Forge completed the acquisition of AAM India Manufacturing Corporation Pvt. Ltd. on July 1, 2025, using the ₹5,500 million raised via QIP in FY25.
• Defence Business Transfer: The company transferred identified assets and liabilities of its Defence business to its subsidiary, Kalyani Strategic Systems Limited, as part of an internal restructuring, effective August 6, 2025.

Financial Health Check

The company’s financial health remains strong. The interest coverage ratio, which shows the company’s ability to pay interest on its debt, was a healthy 11.13x on a standalone basis and 8.28x on a consolidated basis. The debt-to-equity ratio was 0.34x for the standalone business and 0.67x for the consolidated business, indicating a manageable level of debt. The net worth on a standalone basis was ₹111,858.78 million, and on a consolidated basis, it was ₹94,355.61 million. The current ratio, which indicates short-term liquidity, was 1.57x for standalone operations and 1.19x for consolidated operations.

Insights For Investors

Profit is Up, Even if Revenue is Down

• Bharat Forge’s profit grew well this quarter, especially on a year-on-year basis.
• Even though sales were slightly lower, the company managed to earn more by controlling costs and improving margins.

Strong Standalone Performance

• On a standalone basis, profit went up by over 25% compared to last year.
• Operating margins stayed healthy at over 27%, showing the core business is doing well.

Consolidated Business Also Improving

• The group’s overall profit jumped by over 60% year-on-year.
• This shows strength not just in India but across all its global operations.

AAM India Acquisition Could Be a Game Changer

• Bharat Forge bought AAM India to boost its commercial vehicle segment.
• This move is expected to help future growth and make the business stronger.

Defence Business Shifted to Subsidiary

• The company moved its defence assets to a specialised arm — Kalyani Strategic Systems.
• This could help sharpen focus and improve performance in defence manufacturing.

Debt Levels are Under Control

• The company’s debt-to-equity ratio shows it is not over-borrowed.
• It also has a good current ratio, which means it can handle short-term payments easily.

What Investors Should Watch

• How well the AAM India acquisition adds to revenue and profits in the coming quarters.
• Demand trends in the auto and defence sectors.
• Any new orders or business expansion, especially in exports or electric vehicle components.

REF:https://nsearchives.nseindia.com/corporate/ANILSHINDE_06082025125949_SEIntimationBMfinal.pdf

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