Bharat Forge (500493) Corporate presentation summary

Business overview and strategy

• Operates a scaled, multi-industry advanced manufacturing platform with 36 facilities across India, Europe, and North America, serving automotive, defence, aerospace, and high-growth industrial sectors.

• Focuses on moving up the value chain from components to complete systems, supported by integrated engineering and advanced manufacturing.

• Diversified product offerings include steel and aluminum forging, ductile iron casting, machining, and assembly for sectors such as automotive, defence, aerospace, semiconductors, and data centres.

• Strategic investments and selective acquisitions have expanded capabilities in castings, axle systems, and machining, enhancing value chain presence and content per vehicle.

• Emphasizes innovation through proprietary IP, advanced R&D, and collaborations, with over 150 patents filed and a dedicated 162-member R&D team.

Market opportunities and growth platforms

• Capitalizes on India's strong GDP growth, government focus on manufacturing, and PLI schemes supporting investment and export competitiveness.

• Expanding into high-growth sectors such as aerospace, semiconductors, and data centres, leveraging engineering and manufacturing expertise.

• Defence business is scaling with a robust order book, multi-year visibility, and a portfolio spanning artillery, armoured vehicles, naval systems, and energetics.

• Investments in new verticals and continuous capability upgrades drive diversification and addressable market expansion.

Financial performance and value creation

• Consolidated revenue from operations reached INR 168,117MM in FY26, with diversification and acquisitions supporting recovery amid export headwinds.

• Adjusted EBITDA margin improved to 17.4% in FY26, with PAT margin at 6.5% and ROCE at 13.5%.

• Maintains a strong balance sheet with net debt/equity at 0.5x and AA+ (Stable) credit rating.

• Growth capex of INR 18,000MM planned across businesses to support manufacturing expansion and move up the value chain.