Q4 Results: Bharat Forge Hits 52-Week High As Growth Forecast Eclipses Profit Decline

Mumbai, May 7:Shares of Bharat Forge surged on Thursday after the auto components and defence major posted its March-quarter earnings and projected strong growth for FY27, helping the stock hit a fresh 52-week high.

The stock climbed as much as7% intraday to touch a one-year high of around Rs 2,027 after management forecast 25% revenue growth in its Indian manufacturing operations in FY27, driven by strong execution across defence, aerospace and industrial businesses as well as a recovery in export markets.

Stock surged on Thursday despite profit decline. Source: NSE

At the time of writing, the stock was up 5% at Rs 1,966.

Upbeat Sentiment

Investor sentiment remained upbeat despite a decline in quarterly profit, with the Street focusing instead on strong revenue growth, rising order inflows and robust long-term demand visibility.

Bharat Forge reported a 17.5% year-on-year decline in consolidated net profit to around Rs 233 crore for the March quarter, impacted by an exceptional loss of nearly Rs 99 crore during the period. Revenue from operations, however, rose 17.5% to Rs 4,528 crore, while EBITDA increased 14% to Rs 778 crore.

The company also recommended a final dividend of Rs 6.50 per share for FY26.

Cheery Commentary

Markets appeared encouraged by management commentary highlighting improving business momentum across multiple segments. Chairman and Managing Director Baba Kalyani said the company secured new orders worth Rs 4,814 crore during FY26, including Rs 2,816 crore from the defence business. The defence order book stood at Rs 10,961 crore at the end of FY26, underlining the company’s growing presence in India’s defence manufacturing ecosystem.

Ongoing Diversification

Bharat Forge continues to benefit from diversification beyond its traditional automotive business, with defence, aerospace, industrials and energy increasingly contributing to growth. The company has also been expanding its presence in high-value precision manufacturing segments, which investors believe could support margin expansion over the long term.

Management’s FY27 guidance was stronger than expected and indicated confidence in both domestic manufacturing demand and recovery in overseas markets, especially North America. Also improving export demand and a rebound in commercial vehicle orders globally are positive triggers for the stock.

The rally in Bharat Forge also reflected broader investor appetite for capital goods, defence and manufacturing-linked stocks, which have remained among the market’s strongest-performing themes amid expectations of sustained government infrastructure spending, localisation initiatives and rising private sector capex.

Despite Thursday’s rally, some cautioned that geopolitical risks and global demand uncertainty remain key monitorables for the company, particularly given its sizeable export exposure. Management too noted that its growth outlook for FY27 remains subject to the absence of any major geopolitical disruption.

Source:

• https://www.nseindia.com/get-quote/equity/BHARATFORG/Bharat-Forge-Limited