Bharat Forge Q4: Net profit falls 11.6%, revenue down 7% YoY; board recommends dividend of ₹6 per share

The auto components major’s revenue from operations also declined 7.1% YoY for the quarter at ₹2,163 crore as against ₹2,329 crore in Q4 FY24.

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter were reported at ₹616.7 crore, marking a 7% decline YoY from ₹659 crore. Margin for Q4 FY25 stood at 28.5% in contrast to 28.3% YoY.

Bharat Forge’s board has recommended a final dividend of ₹6 per equity share with a face value of ₹2 each of the company (at the rate of 300%) for the financial year ended March 31, 2025, subject to approval of the members at the ensuing Annual General Meeting of the firm.

The final dividend, if approved by the members, will be paid on or after Tuesday, August 12, 2025.

Following the earnings announcement, shares of Bharat Forge tumbled 3.41% on the NSE to trade at ₹1,102 apiece.

During the quarter the company secured new orders worth ₹4,343 crore, including ₹3,417 crore towards the ATAGS order. As of March 2025, the defence order book stood at ₹9,420 crores. Bharat Forge Group secured new orders worth ₹6,959 crore in FY25, with defence accounting for 70% of those.

Bharat Forge said that the ferrous castings business has had a strong year, with revenues growing by 23%, EBITDA by 35% and profits doubling as compared to FY24, with key return ratios exceeding 20%.

“For FY26, as of now, we are refraining from providing any outlook for the export business (30% of consolidated revenues) due to volatility & lack of visibility caused by the tariff situation. Our focus will be on improving the consolidated profitability driven by the following internal actions: reducing losses in the E-Mobility vertical; evaluating options for the steel business in Europe," said B.N. Kalyani, Chairman & Managing Director of Bharat Forge.

He further said improving operational performance in the aluminium business leading to meaningful reduction in losses; and leveraging our manufacturing footprint in North America to garner new business will remain in focus as well.

“Focus on new business wins in traditional forgings, defence, aerospace & castings business to ensure continuation of momentum. The integration of AAM India business will occur in FY26, and we will leverage that platform to further our product portfolio and presence in India,” Kalyani said.

Bharat Forge’s commercial vehicle (CV) exports to Europe saw some revival post the lows seen in Q3 FY25. North America CV revenues have seen a decline in line with the weakness in the Class 8 markets.

The company further said that the industry saw strong performance driven by contributions from HHP Engines and Aerospace. Aerospace sector contribution to industrial exports stands at 24% in the quarter and at 14% for FY25.

FY25 was a flat year for the commercial vehicles business in the context of flat industry volumes in the US and the economic struggles in Europe, Bharat Forge said. With the potential deferment of emission norms changes in North America and continued weakness in the EU, we expect the CV business to witness a decline in FY26.

“PV business posted an impressive YoY performance driven by new business acquisitions across customers and products. Going ahead, we expect to consolidate these gains and grow in line with the overall industry average,” the company said.