Bharat Forge (500493) Q2 25/26 earnings summary

Executive summary

• Q2 revenues declined 7.5% sequentially to INR 1,947 crore, mainly due to a sharp drop in North American CV exports, while consolidated Q2 revenues reached INR 4,032 crore with EBITDA margin at 17.7%.

• The company secured new business worth INR 1,582 crore in H1, including INR 559 crore in Defence, and transferred all Defence assets to KSSL.

• Integration and first-time consolidation of KDrive Mobility (American Axle India) contributed to consolidated results.

• Board approved unaudited financial results for Q2 and H1 FY26 and received a clean limited review report.

• In-principle approval granted to raise up to INR 2,000 crore (₹20,000 million) via debt instruments for growth initiatives.

Financial highlights

• Standalone Q2 revenue was INR 1,947 crore (₹19,469 million), down 7.5% QoQ; standalone EBITDA margin improved to 28%.

• Consolidated Q2 revenue was INR 4,032 crore (₹40,319 million), with EBITDA at INR 715 crore (₹7,154 million); cash position at INR 2,309 crore.

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

• Standalone operating margin for Q2 FY26 was 28.3%; consolidated operating margin was 17.96%.

• JS Autocast reported Q2 sales growth of 26% and EBITDA growth of 44%.

Outlook and guidance

• Exports to North America are expected to decline further in H2 FY26 due to weak demand, but growth in industrial, defense, and Indian operations is expected to offset this.

• Defense segment momentum is expected to pick up in H2; aerospace is projected to record strong full-year growth.

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

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