Bharat Forge (500493) Q1 26/27 earnings summary

Executive summary

• Standalone Q1 FY27 revenue rose 11.5% YoY to INR 23,474 crore, driven by broad-based export performance and strong execution in industrial exports, especially HHP Engines and Aerospace.

• Consolidated Q1 FY27 revenue grew 18.7% YoY to INR 46,399 crore; EBITDA up 10.3% YoY to INR 7,516 crore, margin at 16.2%.

• Strong performance in Indian subsidiaries, especially defense (Kalyani Strategic Systems) and castings (JS Autocast); Indian operations secured new orders worth INR 1,352 crore, including a major naval order.

• Export recovery continued for the second straight quarter; defense order book at INR 11,196 crore.

• Board approved raising up to INR 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, mainly due to restructuring costs in Europe.

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

• Exceptional item of INR 24 crore for consultancy charges related to German steel business restructuring.

Outlook and guidance

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

• Margin recovery expected as cost escalations are negotiated and U.S. plant resumes; gradual improvement in EBITDA margin anticipated through FY27.

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

• Board authorized fund raising to support growth and strategic initiatives, including expansion into semiconductors via a new Malaysian subsidiary.