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% QoQ at INR 5,694 million and margin of 27.3%, driven by domestic automotive and defense, despite North American CV market destocking impacting exports.

• Consolidated Q3 revenues reached INR 43,429 million, with EBITDA at INR 7,502 million and margin at 17.3%.

• Major new orders worth INR 2,388 crore were secured, including a significant defense contract for CQB Carbines; defense order book stood at INR 11,130 crore as of Dec 31, 2025.

• Interim dividend of Rs. 2 per share declared, with key restructuring moves including the acquisition of AAM India (K Drive Mobility) and internal business transfers.

• Premji Invest acquired a 23% stake in JS Auto Cast at a valuation of INR 4,300 crore, reflecting a 3.5x-4x return on initial investment.

Financial highlights

• Standalone Q3 FY26 revenue: INR 20,836.60 million; net profit: INR 2,880.41 million; nine months net profit: INR 9,364.98 million.

• Consolidated Q3 FY26 revenue: INR 43,429.34 million; net profit: INR 2,728.02 million; nine months net profit: INR 8,559.50 million.

• Standalone nine-month revenue: INR 6,135 crore, EBITDA margin: 27.7%.

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

• Exceptional items in Q3 FY26: INR 487.26 million (standalone) and INR 557.15 million (consolidated) due to new Labour Codes.

Outlook and guidance

• Management expects the worst is behind 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 strong domestic and export demand and commencement of ATAGS execution.

• Defense business projected to grow 30-40%+ next year, with aerospace also set for strong growth.

• New long-term orders in strategic sectors will drive capacity additions.

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