Bharat Forge Q2 Result: Net profit rises 23% YoY; board gives nod to raise funds of up to ₹2,000 crore via NCDs

The auto components major’s revenue from operations increased 9.3% YoY for the quarter at ₹4,032 crore as compared to ₹3,689 crore in Q2 FY25.

On the operation level, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter were at ₹726 crore, marking a 12% growth YoY from ₹648 crore.

The EBITDA margin for Q2 FY26 stood at 18%, in contrast to 17.5% YoY.

“Outside of standalone business, QoQ revenue and EBITDA were impacted by the first-time consolidation of K-Drive Mobility (erstwhile AAM India Mfg Corp’s CV business) and improved execution in the defence business,” the defence firm said in a statement.

Along with the earnings, Bharat Forge’s Board of Directors also gave the nod to raise funds of up to ₹2,000 crore through term loans, non-convertible debentures (NCDs), or other debt instruments.

Other updates

Bharat Forge said its quarterly performance was affected by a sharp decline in North American truck production, leading to inventory destocking. The company reported a 7.5% sequential drop in standalone revenue to ₹1,947 crore, driven by a 16% fall in revenue from North America. Commercial vehicle exports to the region were down 48% sequentially and 63% year-on-year.

However, Bharat Forge noted that its continued efforts to de-risk the business helped cushion the impact, with EBITDA at ₹545 crore (EBITDA margin of 28%) and profit before tax at ₹432 crore.

The company said its balance sheet remains strong, with cash reserves of ₹2,309 crore and a net ROCE of 15.5%. Its Indian manufacturing segment, a key focus area and growth driver, recorded revenues of ₹2,746 crore and EBITDA of ₹676 crore.

Order book

Bharat Forge has secured new orders worth ₹1,582 crore, including ₹559 crore in defence in H1 FY26. As of H1 FY26, the defence order book stood at ₹9,467 crore. “We have transferred all the Defence-dedicated assets of Bharat Forge to our wholly owned subsidiary KSSL. On the business front we expect to conclude more order wins for platforms/projects we have participated in,” the company further said.

The auto components and equipment maker said its US and European operations experienced weakness during the quarter, largely due to seasonality and subdued market sentiment. The company added that its review of the European steel manufacturing footprint is progressing as planned, with concrete actions expected by the end of the current fiscal year.

The firm noted that demand challenges in North America are likely to persist, leading to a further decline in exports to the region in the second half of FY26. However, it expects growth in its industrial business within India, stronger exports to non-US markets, and the continued ramp-up of its defence segment to offset this weakness.

Bharat Forge also highlighted that its India manufacturing operations continue to make steady progress, particularly in the areas of defence, aerospace, castings, and aggregates, as it focuses on capturing emerging opportunities across both domestic and international markets.

On Tuesday, shares of Bharat Forge closed at ₹1,403 apiece on the National Stock Exchange, gaining 5.62%.