Bharat Forge Q1 FY27 result: Firm reports net loss of ₹90 crore YoY; board gives nod to raise funds of up to ₹2,500 crore

On a standalone basis, the forged and machined components manufacturer also posted a 5% decline in net profit at ₹321 crore for Q1 FY27. It has reported a net profit of ₹339 crore in the same period a year ago.

Bharat Forge, in an investors' presentation, said that its Q1 performance was driven by a combination of inventory restocking and a rebound in NA truck production volumes driven by cycle recovery. Passenger car exports had a strong quarter YoY driven by broad-based growth across North America and Europe.

The auto components major’s revenue from operations, however, increased 19% year-on-year (YoY) for the quarter at ₹4,640 crore as against ₹3,909 crore in Q1 FY26.

On the operation level, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter came in at ₹710 crore, marking a 6% growth YoY from ₹673 crore reported in the corresponding quarter of the previous financial year.

The EBITDA margin contracted to 15.3% in the reporting quarter in contrast to 17.21% YoY.

“Despite spiraling energy prices and geopolitical uncertainty, the standalone business recorded sharp YoY topline growth of 11.5% with EBITDA margins at a healthy 26.2% despite the cost pressure. EBITDA margins normalized for input cost increase were at 28%,” said B.N. Kalyani, Chairman & Managing Director, Bharat Forge.

Kalyani said the company’s Indian operations secured new orders worth ₹1,352 crore in Q1 FY27, including ₹681 crore from the defence segment, with the defence order book standing at ₹11,196 crore as of June 30, 2026. He added that a key highlight for the quarter was the signing of its largest naval order for 12 marine gas turbine generator sets with the Ministry of Defence.

Fundraising updates

In a regulatory filing, Bharat Forge said its board of directors have approved fundraising plans of up to ₹2,500 crore through the issuance of equity shares, convertible securities, or any other securities via qualified institutional placement, preferential allotment, or any other method as approved under the shareholder approval in accordance with applicable law.

The company said that the exact type of issuance will be decided by its Investment Committee—Strategic Business.

Segment updates

Barring a weak quarter in oil & gas, Bharat Forge’s industrial segment delivered a solid YoY performance driven by strong traction in HHP engines and aerospace. The company expects the momentum in the HHP segment to pick up in H2 FY27. Aerospace too will see material improvement in YoY performance as recent orders won gradually enter production, the company said.

Bharat Forge said its commercial vehicle (CV) business registered a steady performance during the quarter, with the lukewarm outcome attributed to low growth in select models that the company supplies. The passenger vehicle segment also delivered a stable performance despite a mixed trend across the broader industry.

The company added that sustained execution momentum in the defence segment supported robust year-on-year growth in its industrial business during the quarter.

“In the Indian manufacturing business portfolio within BFL, with new sectors such as Defence, Aerospace, Data Centers & semiconductors starting to contribute to the revenue mix, we are in the process of setting up dedicated forging & machining capabilities with an investment outlay of around ₹1,800 crore over 12-18 month for various sunrise sectors including the energetics plant in Andhra Pradesh,” said Kalyani.

He also added that these investments are expected to generate incremental revenues in the coming years post-commissioning.

FY27 outlook

Kalyani said Bharat Forge continues to maintain a growth outlook of 20–25% for its Indian manufacturing business in FY27, with the expansion expected to be more pronounced in the second half of the fiscal year.

He added that following the recent restructuring actions in its EV business and German forging operations, the company is re-evaluating its global manufacturing footprint, particularly in segments where achieving medium-term profitability may remain challenging.

Though shares of Bharat Forge jumped 1.3% to hit a 52-week high of ₹2,295 on Monday, the stock later slipped. Following the earnings, the stock was trading at ₹2,108 apiece, declining 6.94%. It had touched an intraday low of ₹2,056.10 per share on the National Stock Exchange. At close, the stock settled at ₹2,093.10 per shares on NSE, losing 7.6%.

According to NSE data, as of August 10, 2026, Bharat Forge has a total market capitalisation of ₹1 lakh crore.