Bharat Forge Ltd., a global leader in engineering and manufacturing, reported a resilient performance in the first quarter of FY26, demonstrating strong domestic demand and strategic order wins despite a challenging global export environment.
The company posted consolidated revenue of ₹3,909 crore, with an EBITDA of ₹682 crore and margins at 17.5%. During the quarter, Bharat Forge secured new orders worth ₹847 crore, including ₹269 crore in the defence segment, taking the company’s defence order book to ₹9,463 crore.
Key Standalone Highlights – Q1 FY26:
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Revenue: ₹2,105 crore (down 2.7% QoQ)
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EBITDA: ₹588 crore (EBITDA margin: 27.9%)
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Profit Before Tax (PBT): ₹465 crore
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Profit After Tax (PAT): ₹339 crore
Exports declined 12.7% quarter-on-quarter, impacted by tariff announcements and emission norm rollbacks in North America. However, domestic operations remained robust, with strong contributions from the passenger vehicle, industrial, and defence segments.
Chairman and Managing Director Baba Kalyani said:
“During the quarter, the company secured new orders worth Rs 847 Crores including Rs 269 Crores in Defence. As of Q1FY26, the defence order book stood at Rs 9,463 Crores. For the defence vertical, based on the project / platforms we have participated in, we expect to secure new orders in this fiscal year generating more revenue visibility for the future years.
The US & European operations witnessed meaningful improvement in financial performance in the Apr – Jun quarter and are generating cash profit. Review of the European steel manufacturing footprint is on track, and we expect to have concrete steps in place by the end of this year.
Given the recent tariff announcement by the US government and changes to emission regulation in North America, we are cautious on the outlook for the US export business for the reminder of the fiscal. FY26 is likely to be a challenging period, given where we are in the overall cycle and our geographical exposure. Our focus is on capturing opportunities in businesses & geographies which are relatively unaffected and work simultaneously on cost optimization to minimize impact of operating deleverage.”
Segmental Overview:
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Domestic Business: Strong momentum in passenger vehicles, industrials, and defence execution.
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Exports: Softened by North American policy volatility; CV exports to Europe showed early signs of recovery.
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International Operations: The US and Europe reported improved EBITDA and cash profits; aluminium operations showed better execution. The European steel restructuring process is progressing.
Despite global headwinds, Bharat Forge continues to strengthen its fundamentals through diversification, operational efficiency, and strategic sectoral focus—with defence remaining a key growth driver in the years ahead.
