Staff Writer
Pune: Bharat Forge reported a 23% year-on-year (YoY) jump in its consolidated net profit, November 11, at ₹299 crore for the quarter ended September 30 of the financial year 2025-26. Its net profit for the same quarter last fiscal year was at ₹243.5 crore.
The auto components major’s revenue from operations increased 9.3% YoY for the quarter at ₹4,032 crore as compared to ₹3,689 crore in Q2 FY25. On the operation level, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter were at ₹726 crore, marking a 12% growth YoY from ₹648 crore.
The EBITDA margin for Q2 FY26 stood at 18%, in contrast to 17.5% YoY. “Outside of standalone business, QoQ revenue and EBITDA were impacted by the first-time consolidation of K-Drive Mobility (erstwhile AAM India Mfg Corp’s CV business) and improved execution in the defence business,” the defence firm said in a statement.
Along with the earnings, Bharat Forge’s Board of Directors also gave the nod to raise funds of up to ₹2,000 crore through term loans, non-convertible debentures (NCDs), or other debt instruments.
Chairman and Managing Director Baba Kalyani noted that the company’s quarterly performance reflected the impact of declining truck production in North America and subsequent inventory destocking by customers. He said the company’s efforts to diversify and de-risk its business helped cushion the impact of the export slowdown. Indian manufacturing remained a key driver during the quarter, contributing ₹2,746 crore in revenue and ₹676 crore in EBITDA.
Kalyani added that the company expects further order closures in defence platforms and projects where it has already submitted bids. While demand conditions in the United States and Europe remain challenging, and exports to North America are expected to dip further in the second half of the fiscal year, the company anticipates that growth in industrial business within India, exports to other global markets and a ramp-up in defence operations will offset the weakness.
He also noted that the review of the company’s European steel manufacturing footprint is progressing as planned and that more concrete measures will be decided by the end of the fiscal. Overall, Bharat Forge remains focused on scaling opportunities across defence, aerospace, castings and aggregates in both domestic and international markets.
