Bharat Forge Q1 Result: Net profit rises 40%, firm says FY26 likely to be a challenging period

The auto components major’s revenue from operations, however, declined 5% YoY for the quarter at ₹3,909 crore as compared to ₹4,106 crore in Q1 FY25.

“During the quarter, the company faced challenging market conditions in our export markets caused by tariff & regulatory uncertainties,” Bharat Forge said.

On the operation level, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter were at ₹673 crore, marking a 7% growth YoY from ₹629 crore.

The EBITDA margin for Q1 FY26 stood at 17.2% in contrast to 15.3% YoY.

“Given the recent tariff announcement by the US government and changes to emission regulation in North America, we are cautious on the outlook for the US export business for the remainder of the fiscal year. FY26 is likely to be a challenging period, given where we are in the overall cycle and our geographical exposure,” the company further said.

In Q1 FY26, the company secured new orders worth ₹847 crore, including ₹269 crore in defence. The defence order book stood at ₹9,463 crores.

“For the defence vertical, based on the project/platforms we have participated in, we expect to secure new orders in this fiscal year, generating more revenue visibility for the future years, the company further said.

Bharat Forge’s US and European operations witnessed meaningful improvement in financial performance in the June quarter and are generating cash profit. Review of the European steel manufacturing footprint is on track, and the company expects to have concrete steps in place by the end of this year.

The company’s commercial vehicle (CV) exports to Europe saw some revival post the lows seen last year, while North American CV revenues saw a decline due to a pause in the emission norm change and the ongoing trade policy flux in the US.

Meanwhile, the passenger vehicle exports had a benign performance driven partly by our diversification efforts beyond North America.

In the reporting quarter, the industrial segment saw weak performance driven by slower growth in HHP Engines, construction mining and the seasonality impact in the aerospace business.

The domestic industrial business had a strong quarter driven by better execution in defence and small one-time orders for machine tools.

Following the earnings, shares of Bharat Forge were trading at ₹1,137.90 apiece on the National Stock Exchange, tumbling 1.95%.