Bharat Forge (500493) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 standalone revenues rose 7% sequentially to INR 20,837 million, with EBITDA up 4.6% to INR 5,694 million and margin at 27.3%, driven by domestic automotive and defense, despite North America truck market destocking impacting exports.

• Consolidated Q3 FY26 revenues reached INR 43,429.34 million, with EBITDA at INR 7,502 million and margin at 17.3%.

• Major new business wins of INR 2,388 crore, including a significant defense contract for CQB Carbines, and Premji Invest acquired a 23% stake in JSA at a valuation of INR 4,300 crore.

• Interim dividend of Rs. 2 per share declared, and key restructuring moves included the acquisition of AAM India (K Drive Mobility) and internal transfer of defense assets.

• Approved merger of Ferrovia Transrail Solutions into BF Infrastructure Limited as part of group restructuring.

Financial highlights

• Standalone Q3 FY26 EBITDA at INR 569 crore, margin 27.3%, with a one-time INR 487 million impact from Labour Code changes.

• Standalone Q3 FY26 net profit: INR 2,880.41 million; consolidated Q3 FY26 net profit: INR 2,728.02 million.

• Standalone nine-month revenue at INR 6,135 crore, EBITDA margin 27.7%; consolidated nine-month revenue at INR 12,284 crore, EBITDA margin 17.5%.

• Net debt-to-equity improved to 0.15 standalone and 0.41 consolidated; ROCE at 14.5% standalone and 15.5% consolidated.

• Standalone long-term debt reduced to Rs 6,597 million from Rs 12,865 million YoY.

Outlook and guidance

• Domestic CV sector expected to remain strong in Q4 and into next year, with defense business projected to grow 30-40%+ and aerospace set for strong growth.

• Management expects the worst is over for the North American CV market, with recovery signs in net orders and backlog.

• High double-digit topline growth and improved profitability anticipated in FY27, supported by new long-term orders and ATAGS execution.

• Board continues to monitor the impact of new Labour Codes and will evaluate further effects on employee benefits.