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Bharat Forge standalone revenues for the quarter came in at Rs 2347 crore

ICICIdirect Research 11 Aug 2026 DISCLAIMER

News: Bharat Forge standalone revenues for the quarter came in at ₹ 2,347 crore (up 11.5% YoY), amidst an 8% growth in tonnage at 66,787 tonnes. Standalone EBITDA in Q1FY27 stood at ₹ 586 crore, with consequent margins placed at 25%, down ~240 bps QoQ. On consolidated basis, EBITDA margins stood at 15.3% (down 190 bps QoQ) while reported a loss for the quarter which stood at ₹ ~90 crore, affected by one-time exceptional cost of ₹358 crores.

View: Management commentary reinforces confidence that Bharat Forge is entering a stronger growth phase supported by expanding opportunities across defense, aerospace, semiconductors, marine systems and power generation. The company has built a robust defense order book of over ₹11,000 crore, plans ₹1,800 crore of organic capex alongside a proposed ₹2,500 crore fund raise, and expects aerospace and energy-related businesses to double over the next 2–4 years. Temporary headwinds from energy inflation, logistics costs and overseas operational disruptions appear transitory, with sequential improvement expected as customer cost recoveries, U.S. operational normalization and new manufacturing facilities commence production. In addition, the planned transfer of production from Germany to India, commencement of ATAGS deliveries, expansion into naval systems and increasing export opportunities should strengthen profitability and improve the company's business mix over the medium term. Overall, management remains confident of a significantly stronger second half of FY27, with momentum expected to continue into FY28 as new capacities ramp up.

Impact: Neutral

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