Company Overview

Bharat Forge Limited (BSE: 500493, NSE: BHARATFORG) reported comprehensive financial and operational results for FY2025-26, showcasing robust performance across its forging, defense, and industrial segments.

Financial Performance

Standalone Results: Revenue of ₹83,957 million (-5.07% YoY) with PAT of ₹8,187 million (-38.08% YoY). EBITDA margin remained strong at 27.54%.

Consolidated Performance: Total revenue reached ₹168,117 million (+11.2% YoY) with PAT growth of 19.28% to ₹10,894 million. The company maintained healthy cash position of ₹2,931 million.

Segment Breakdown: Forgings contributed ₹139,286 million (79.5% of revenue), Defense ₹17,572 million (10.0%), and Others ₹21,698 million (12.4%).

Dividend and Corporate Actions

The Board recommended final dividend of ₹6.50 per share (325%) totaling ₹3,108 million, following interim dividend of ₹2 per share already paid. Total dividend outflow for FY26 amounts to ₹4,064 million. The 65th AGM is scheduled for August 11, 2026 to seek shareholder approval for financial statements, dividend declaration, and reappointment of Mr. Ashish Bharat Ram as Non-Executive Director.

ESG and Sustainability Disclosures

Comprehensive BRSR reporting revealed:

  • Environmental: Energy consumption of 27.70 million GJ (19.2% renewable), water withdrawal of 865,814 kiloliters, and total GHG emissions of 424,611 tCO2e with zero liquid discharge across all facilities.
  • Social: 100% human rights training coverage for 2,849 employees and 7,774 workers, with only 2 sexual harassment complaints under investigation.
  • Governance: Established Board ESG Committee with ₹360.20 million CSR expenditure covering 131 villages in Maharashtra.

Corporate Developments and Investments

Acquisitions: Completed acquisition of K Drive Mobility Solutions for ₹7,474 million, contributing ₹9,578 million to revenue. Acquired Zorya Mashproekt India with 64.94% equity interest.

Restructuring: Transferred defense business assets to Kalyani Strategic Systems Limited for ₹4,533 million settled via preference shares. Recorded impairment of ₹4,997 million on Kalyani Powertrain investment.

Subsidiary Performance: Mixed results with Kalyani Rafael reporting profit of ₹215.51 million while Tork Motors accumulated losses of ₹1,620 million.

Financial Position and Risk Management

Capital Structure: Net debt-to-equity ratio maintained at 0.20 with borrowings of ₹37,644 million and cash equivalents of ₹3,591 million.

Related Party Transactions: Significant investments in subsidiaries totaling ₹60.75 billion and guarantees given of ₹10.34 billion.

Risk Exposure: Managed foreign exchange risk with USD 322 million and EUR 87.58 million hedges. 86.50% of long-term borrowings at floating rates.

Regulatory Compliance and Governance

Full compliance with SEBI Listing Regulations, Companies Act 2013, and BRSR framework requirements. Unmodified audit opinions from BSR & Co. LLP and KPMG on financial statements and sustainability reporting. Detailed disclosures of managerial remuneration totaling ₹585 million payable to key personnel including Chairman B.N. Kalyani.

Outlook and Commitments

Capital commitments of ₹5.69 billion for property, plant and equipment. Continued focus on defense and e-mobility segments through strategic investments. Maintained capital management policy targeting net debt-to-equity below 1.00 while pursuing growth opportunities in core forging and emerging defense businesses.