Engineering giant Bharat Forge Limited (BFL) reported a mixed performance in the second quarter of FY26, with weaker export markets offset by solid growth in its domestic and defence businesses.
The company’s standalone revenue fell 7.5% quarter-on-quarter to ₹1,947 crore, mainly due to a slowdown in North American commercial vehicle (CV) demand. EBITDA came in at ₹545 crore with a margin of 28%, while profit before tax was ₹432 crore, down 7.2% sequentially. Net profit stood at ₹310 crore versus ₹339 crore in the previous quarter.
On a consolidated level, Bharat Forge’s revenue rose to ₹4,032 crore from ₹3,909 crore in Q1 FY26, supported by strong momentum in the Indian manufacturing and defence segments. Consolidated EBITDA stood at ₹715 crore, reflecting a margin of 17.7%.
During the first half of FY26, the company bagged new orders worth ₹1,582 crore, including ₹559 crore from the defence sector, taking its total defence order book to ₹9,467 crore.
Bharat Forge also transferred all its defence-dedicated assets to Kalyani Strategic Systems Limited (KSSL) — a wholly owned subsidiary — to sharpen focus on the fast-growing defence vertical.
Commenting on the results, Chairman and Managing Director Baba Kalyani said:
“The quarter was impacted by a sharp decline in North American truck production, but our diversification helped cushion the blow. Despite exports falling 48% sequentially to North America, we maintained stable margins at 28%.”
He added that Bharat Forge’s Indian manufacturing operations — covering defence, aerospace, castings, and aggregates — continue to perform strongly, generating ₹2,746 crore in revenue and ₹676 crore in EBITDA this quarter.
The company closed the quarter with a cash balance of ₹2,309 crore and a ROCE (net) of 15.5%. Bharat Forge said its review of European operations is on track, with restructuring plans expected by year-end.
Looking ahead, the company expects domestic industrial demand, non-US exports, and defence expansion to drive growth in the second half of FY26, even as North American markets remain subdued.
