• The document contains the transcript of an earnings conference call held on November 05, 2026, following the announcement of unaudited financial results for Q2 and H1 FY27 (quarter and half year ended September 30, 2026).
  • The conference call was hosted by Bharat Forge Limited management to discuss quarterly results and provide business updates.
  • Management participants included:
  • Mr. Amit Kalyani – Vice Chairman and Joint Managing Director
  • Mr. Kedar Dixit – Chief Financial Officer
  • Mr. Subodh Tandale – Board Member
  • The transcript is available on the company's website at: https://www.bharatforge.com/investors/reports/analyst-conference-calls

Financial Highlights Discussed

Standalone Performance (Q2 FY27):

  • Revenue: INR2,526 crores (up 30% YoY)
  • EBITDA: INR655 crores (up 20% YoY)
  • EBITDA Margin: 25.9%
  • Exceptional item: INR20 crores for consultancy charges related to European steel business restructuring

Consolidated Performance (Q2 FY27):

  • Revenue: INR4,870 crores (up 21% YoY)
  • EBITDA: INR778 crores (up 9% YoY)
  • EBITDA Margin: 16%

Subsidiary Performance:

  • JS Auto Cast: Revenue of INR220 crores (up 16% YoY), EBITDA margin of 14.2%
  • K-Drive: Strong performance noted

Balance Sheet & Orders:

  • Net debt-to-equity ratio: 0.45x
  • Cash position: INR4,158 crores post QIP fundraise
  • New orders in H1 FY27: INR2,100 crores across India manufacturing businesses
  • Defense order book: INR10,950 crores as of September 2026

Overseas Business:

  • Europe: Revenue INR931 crores, EBITDA INR29 crores (3.1% margin)
  • US: Revenue INR476 crores, EBITDA negative INR6.7 crores

Business Updates and Outlook

Acquisitions Growth:

  • JS Auto Cast and K-Drive have grown from ~INR400 crores quarterly at acquisition to ~INR600 crores quarterly (50% growth)
  • Expected to double this business with higher margins

Defense Business:

  • Received bulk production clearance for ATAGS artillery guns
  • Expected to start shipments from Q1 FY28
  • Plan to supply 184 guns over approximately 4 years

Aerospace Business:

  • Won significant new business on engine and landing gear components
  • Double-digit million dollar per year business over long period (~USD100-120 million lifecycle value)

Expansion Plans:

  • Investing INR1,300 crores in Baramati expansion
  • Adding 100,000 tons of forging capacity and large machining facility
  • Production trials expected to start January-March 2027
  • Facility will cater to aerospace, semiconductor, and industrial sectors

Semiconductor Business:

  • Currently at double-digit USD million per year run rate
  • Expecting to grow 2-3x with new facilities

Margin Outlook:

  • Expect India manufacturing business to grow from ~INR3,400 crores quarterly to over INR5,000 crores by end of next year
  • Expected margin accretion of 200-250 basis points
  • Defense business margins expected between 20-25%, potentially increasing by 200-300 basis points with more value-added products

H2 FY27 Outlook:

  • Management expects second half to be stronger than first half
  • Expect recovery of price increases and cost increases from customers
  • Ramp-up of new business in semiconductor space

Additional Notes Section

  • The document includes the full transcript of the earnings conference call with analyst Q&A
  • No financial attachments were included beyond the transcript
  • The company disclosed actual financial results and forward-looking guidance during the call
  • The event was a scheduled earnings conference call following results announcement