Transcript of Investor Meet
BHARATFORG · price
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Bharat Forge reported FY26 consolidated revenue of INR 16,812 crores (up 11%) and EBITDA of INR 2,921 crores (up 6%). Standalone revenue declined 5% to INR 8,396 crores due to North America regulatory headwinds and weak US commercial vehicle demand. However, Q4 showed sequential recovery with 8.5% QoQ growth. The company won new businesses worth INR 4,814 crores including INR 2,816 crores in defence. Defence order book stands at approximately INR 11,000 crores for the next 3-4 years. Aerospace contributed INR 400 crores in FY26 (26% of Q4 non-auto exports) with margins above company average. Management guided for ~25% growth for India operations in FY27, with highest growth expected in aerospace, followed by defence and components. The company is restructuring its German steel forging business (CDP) over 15-18 months, which should reduce overseas losses. Capex of INR 800-850 crores is planned over the next 15-18 months. Management also wrote off certain e-mobility investments citing slower-than-expected EV adoption globally.
The 25% growth guidance for FY27 and robust defence order book provide strong visibility. However, weakness in standalone business due to North America challenges and ongoing European restructuring losses may keep near-term profitability under pressure. The strong momentum in aerospace and defence positions Bharat Forge as an emerging engineering conglomerate beyond traditional automotive components.