Bharat Forge (500493) Q2 25/26 earnings summary

Executive summary

• Standalone Q2 revenues were INR 1,947 crore, down 7.5% quarter-over-quarter due to a sharp decline in North American CV exports, which fell 48% sequentially and 67% year-over-year.

• Consolidated Q2 revenues reached INR 4,032 crore with EBITDA at INR 715 crore; Indian manufacturing registered revenues of INR 2,746 crore and EBITDA of INR 676 crore.

• New business wins in H1 totaled INR 1,582 crore, including INR 559 crore in defense; the defense order book stood at INR 9,467 crore.

• All defense dedicated assets were transferred to the wholly owned subsidiary KSSL.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, and received a clean limited review report from auditors.

Financial highlights

• Standalone Q2 FY26 revenue was INR 19,469 million, down 7.5% QoQ and 13.3% YoY; EBITDA margin improved to 28%.

• Consolidated Q2 FY26 revenue was INR 40,319 million, up from INR 36,886 million YoY; EBITDA was INR 7,154 million.

• Standalone net profit for Q2 FY26 was INR 1,202.05 million; consolidated net profit was INR 2,991.99 million.

• Standalone EPS for the quarter was INR 6.48; consolidated EPS was INR 6.26.

• Standalone operating margin for Q2 FY26 was 28.30%; consolidated operating margin was 17.96%.

Outlook and guidance

• Exports to North America are expected to decline further in H2 FY26 due to challenging demand conditions.

• Growth in industrial business across India, exports to non-US geographies, and ramp-up in defense business are expected to offset US export weakness.

• Board approved fund-raising to support future growth and strategic initiatives.

• Management continues to focus on operational efficiency and business transformation.

• Review of the European steel manufacturing footprint is ongoing, with concrete measures expected by fiscal year-end.