Bharat Forge (500493) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 standalone revenue rose 29.8% YoY to ₹25,263.57 million; consolidated revenue increased 20.8% to ₹48,699.66 million.

• Indian manufacturing revenue grew 24.6% to ₹3,422 crore; FY27 growth guidance remains 20–25%.

• H2 FY27 is expected to outperform H1 as new programs ramp and customer recovery of price and input-cost increases catches up.

Financial highlights

• Standalone EBITDA rose 20.2% to ₹6,546 million; margin was 25.9%, down 30 bps QoQ.

• Consolidated EBITDA increased 8.8% to ₹7,780 million at ~16% margin; Q2 PAT was ₹2,786.81 million versus ₹2,992.78 million YoY.

• Standalone PBT before exceptional items rose 20.5% to ₹5,200 million and PAT increased to ₹3,708.25 million from ₹3,099.36 million.

• H1 standalone revenue rose 20.3% to ₹48,737.73 million; consolidated H1 revenue was ₹95,099.07 million and PAT ₹1,887.93 million, including a Q1 restructuring provision.

Outlook and guidance

• H2 is expected to outperform H1; excluding 2%–3% revenue inflation, EBITDA growth is expected to track or slightly exceed top-line growth.

• India manufacturing sales are expected to exceed ₹5,000 crore per quarter by end of next year, versus a ₹3,000–3,400 crore run rate; margin accretion of 200–250 bps is expected.

• ATAGS revenue recognition is expected from Q1 FY28 after Bulk Production Clearance; 184 guns are scheduled for delivery over four years, subject to customer absorption and deployment.

• K-Drive targets annual revenue growth of at least 20%–25% and double-digit EBITDA margins within two years.

• More than ₹2,000 crore of capex is expected online in phases over 12–18 months; H2 programs include aerospace, semicon, industrial exports, CVs, passenger-car exports, marine, JSA and K-Drive.