Bharat Forge (500493) Q1 26/27 earnings summary

Executive summary

• Standalone Q1 FY27 revenue rose 11.5% YoY to INR 23,474 crore; EBITDA up 4.5% YoY at INR 614 crore, margin at 26.2% despite energy and input cost pressures.

• Consolidated Q1 revenue grew 18.7% YoY to INR 46,399 crore; EBITDA up 10.3% YoY at INR 7,516 million, margin at 16.2%.

• Indian operations secured new orders worth INR 1,352 crore, including INR 681 crore from Defence, and signed a major naval order for 12 Marine Gas Turbine Generator sets.

• Strong performance in Indian subsidiaries, especially defense (Kalyani Strategic Systems) and castings (JS Autocast).

• Board approved raising up to INR 2,500 crore (₹25,000 million) via equity, debt, or convertible securities, subject to approvals.

Financial highlights

• Standalone EBITDA margin was 26.2%, impacted by higher energy and input costs; normalized margin would be ~28%.

• Standalone net profit for Q1 FY27 was INR 3,213.99 million, compared to a loss of INR 1,177.57 million in Q4 FY26.

• Consolidated net loss for Q1 FY27 was INR 898.88 million, compared to a profit of INR 2,838.70 million in Q1 FY26, due to restructuring costs in Europe.

• Export revenue grew 12% YoY to INR 12,047 million, with strong growth in Americas and Asia Pacific.

• European business posted positive EBITDA (INR 30 crore on INR 1,074 crore revenue, 3% margin); US business had EBITDA loss of INR 4 crore on INR 461 crore revenue due to steel press breakdown.

Outlook and guidance

• Outlook remains strong across all segments and geographies, with India and US particularly robust.

• Margin recovery expected as cost escalations are negotiated and US plant resumes; gradual improvement in EBITDA margin anticipated through the year.

• Aerospace and semiconductor businesses expected to double in size over the next two years; energy/data center business to double in four years.

• Growth outlook for Indian manufacturing business maintained at 20-25% for FY27, with stronger performance expected in H2.

• Expansion into semiconductor sector via new Malaysian subsidiary.