Company Overview
Bharat Gears Limited reported exceptional financial performance for FY 2025-26 with record revenue and significant profit growth, alongside important corporate governance developments.
Financial Performance Highlights
Bharat Gears achieved remarkable financial results in FY26 with total income of ₹790.50 crore, representing 21.60% YoY growth. The company reported operating revenue of ₹784.17 crore, EBITDA of ₹58.59 crore (110.68% growth), and PAT of ₹16.50 crore (417.24% growth). EBITDA margins improved significantly to 7.47% from 4.28% in FY25, while PAT margins reached 3%. The company strengthened its balance sheet by reducing total borrowings to ₹58.16 crore and improving debt-equity ratio to 0.44 from 0.54.
Corporate Actions and AGM Details
The 54th Annual General Meeting is scheduled for 13 August 2026 through video conference. Key agenda items include declaration of ₹1.00 per share dividend (record date: 6 August 2026), appointment of Mr. Naresh Kumar Verma as Executive Director-Operations with ₹1.08 crore annual remuneration, and ratification of cost auditor remuneration. The board proposed a total dividend payout of ₹1.54 crore.
Operational and Business Highlights
The company operates three manufacturing plants in Mumbra, Lonand, and Faridabad with 1,107 employees. Export revenue contributed 30% of total revenue at ₹240.36 crore, spanning 14 countries including Europe, USA, and Mexico. The company maintained all plant certifications (IATF 16949, ISO 14001:2015, ISO 45001:2018) and implemented ESG initiatives including solar power installation and CO2 emission reduction of 1,100 tons.
Key Management Changes
Mr. Sameer Kanwar's tenure as Joint Managing Director expired on 31 May 2026 and was not extended. Mr. Naresh Kumar Verma was appointed effective 1 June 2026. The company also saw changes in its independent director composition during the year.
Subsequent Events and Regulatory Matters
The Chairman and Managing Director, Mr. Surinder Paul Kanwar, received communication from Regional Passport Office regarding revocation of his passport after year-end, against which he has filed an appeal. The company maintained compliance with SEBI and MCA regulations for AGM conduct and e-voting arrangements.
Financial Position and Ratios
The company improved key financial ratios with return on equity reaching 14.00% (from 3.00% in FY25), debt service coverage ratio nearly doubling to 1.85 times, and maintaining current ratio of 1.23. Cash from operating activities stood at ₹29.45 crore, though net cash decreased by ₹9.50 crore due to investing and financing activities.
Auditor and Compliance Information
Deloitte Haskins & Sells LLP served as statutory auditors, while M/s TVA & Co. LLP and M/s M.K. Kulshrestha & Associates handled secretarial and cost auditing respectively. The company exercised option under section 115BAA of Income Tax Act, recognizing current tax expense of ₹5.22 crore.