Bharat Forge Q1 FY27 Results: Revenue Rises 18.7% to ₹4,640 Crore; Defence Orders and ₹1,800 Crore Capex Drive Growth Outlook

Bharat Forge Limited reported a strong operating performance for the first quarter of FY27, with consolidated revenue rising 18.7% year-on-year to ₹4,640 crore. The company said growth was supported by strong performance in its Indian operations, exports and Defence business, although higher energy and input costs continued to put pressure on margins.

The company also highlighted a significant Defence order pipeline, new investments in sunrise sectors such as aerospace and semiconductors, and plans to invest around ₹1,800 crore over the next 12–18 months to expand dedicated forging and machining capabilities.

For FY27, Bharat Forge continues to target 20–25% growth in its Indian manufacturing business, with management expecting growth to become more pronounced in the second half of the financial year.

Bharat Forge Q1 FY27: Key Highlights

Figures rounded from the company’s reported ₹ million figures.

Consolidated Revenue Grows 18.7%

Bharat Forge’s consolidated revenue from operations increased to ₹46.40 billion (₹4,640 crore) in Q1 FY27, compared with ₹39.09 billion in Q1 FY26.

Consolidated EBITDA increased 10.2% YoY to ₹7.52 billion (₹752 crore), while EBITDA margin stood at 16.2%.

Consolidated PBT before exchange gains/losses and exceptional items stood at ₹4.56 billion, compared with ₹4.23 billion in the year-ago quarter.

The company noted that standalone exports and Defence were major contributors to the year-on-year improvement. Better realizations and product mix also helped improve margins at KSSL.

Standalone Revenue Rises 11.5%

Bharat Forge’s standalone revenue from operations increased 11.5% YoY to ₹2,347 crore from ₹2,105 crore in Q1 FY26.

Standalone EBITDA stood at ₹614 crore, up 4.5% from ₹588 crore in the corresponding quarter. EBITDA margin was 26.2%, compared with 27.9% in Q1 FY26.

Management said the margin was impacted by higher energy and input costs. On a normalized basis, adjusting for the increase in input costs, EBITDA margin was around 28%.

Standalone PBT before exceptional items and exchange gains/losses increased 5.4% to ₹490 crore.

Export Business Remains a Major Growth Driver

Exports continued to play an important role in Bharat Forge’s performance.

Export revenue increased to ₹1,205 crore in Q1 FY27, compared with ₹1,075 crore in Q1 FY26, representing approximately 12% YoY growth.

The company attributed the performance to inventory restocking and a recovery in North American truck production volumes.

Passenger vehicle exports also recorded a strong quarter, supported by growth across North America and Europe.

The industrial export business delivered a solid year-on-year performance despite weakness in Oil & Gas. Strong traction in Heavy Horsepower (HHP) engines and Aerospace supported the industrial segment.

Management expects HHP momentum to strengthen in H2 FY27, while aerospace is expected to see a material improvement as recently won orders move into production.

Export Revenue by Geography

The Americas remained the largest export market, contributing roughly two-thirds of total export revenue.

Domestic Business: Defence Supports Growth

Bharat Forge’s domestic business generated revenue of approximately ₹1,017 crore during Q1 FY27, compared with ₹916 crore in Q1 FY26.

The Commercial Vehicle business remained steady, although growth was affected by lower volumes in some vehicle models supplied by the company.

Passenger Cars recorded stable performance despite mixed industry conditions.

The standout performer was the Industrial business, where sustained Defence execution drove strong year-on-year growth.

Defence Order Book Crosses ₹11,000 Crore

Defence continues to emerge as one of Bharat Forge’s key long-term growth engines.

During Q1 FY27, the company’s Indian operations secured new orders worth ₹1,352 crore, including ₹681 crore from Defence.

As of June 30, 2026, Bharat Forge’s Defence order book stood at approximately ₹11,196 crore.

One of the major highlights during the quarter was the signing of the company’s largest naval order for 12 Marine Gas Turbine Generator sets with the Ministry of Defence.

The large Defence pipeline provides the company with significant revenue visibility over the coming years.

₹1,800 Crore Investment Plan for New Growth Areas

Bharat Forge is expanding beyond its traditional automotive business into several high-growth sectors.

The company plans to invest approximately ₹1,800 crore over the next 12–18 months in dedicated forging and machining capabilities.

The investments are aimed at supporting growth in sectors including:

• Defence
• Aerospace
• Data Centres
• Semiconductors
• Energetics
• Other emerging industrial applications

The company is also setting up an energetics plant in Andhra Pradesh.

Management expects these investments to generate incremental revenues in the coming years once the new facilities are commissioned.

₹2,500 Crore Fund Raise Proposed

Bharat Forge’s Board has approved, subject to shareholder approval, a proposal to raise up to ₹2,500 crore.

The proposed fund raising could be undertaken through:

• Equity shares
• Convertible securities
• Other eligible securities
• Qualified Institutional Placement (QIP)
• Preferential allotment
• Other permissible methods

The proposed fund raising could provide additional financial flexibility as Bharat Forge accelerates investments in new manufacturing capabilities and growth businesses.

KSSL Delivers Strong Improvement

KSSL, one of Bharat Forge’s Indian subsidiaries, reported a significant improvement in profitability.

The sharp improvement in EBITDA was supported by better realizations and product mix.

K-Drive Mobility Performance

K-Drive Mobility reported Q1 FY27 revenue of ₹310 crore, compared with ₹367 crore in Q4 FY26.

EBITDA stood at ₹10 crore, resulting in an EBITDA margin of 3.2%.

K-Drive Mobility has been consolidated into Bharat Forge’s Indian operations from July 1, 2025, meaning the year-on-year comparison with Q1 FY26 is not directly comparable.

Overseas Operations Remain a Challenge

While Indian operations delivered strong growth, overseas manufacturing businesses continued to face profitability challenges.

European manufacturing operations generated revenue of approximately ₹1,074 crore, with EBITDA of ₹30 crore and an EBITDA margin of only 2.8%.

PBT before exchange gain/loss remained negative at approximately ₹44 crore.

The US manufacturing operations generated revenue of around ₹462 crore, but EBITDA was negative at approximately ₹4 crore.

PBT before exchange gain/loss stood at a loss of approximately ₹76 crore.

Overseas Manufacturing Performance

The company said it continues to evaluate its global manufacturing footprint, particularly businesses where achieving profitability in the medium term remains challenging.

EV and German Forging Businesses Under Review

Bharat Forge has already taken restructuring actions in its EV business and German Forging business.

Management indicated that it continues to reassess its global manufacturing footprint and will evaluate other businesses where the path to sustainable profitability remains difficult.

This restructuring could become an important factor for the company’s future margins and capital allocation.

Balance Sheet and Leverage

Bharat Forge’s consolidated balance sheet remained relatively stable during the quarter.

Standalone net debt/EBITDA was significantly lower at 0.85x, while standalone net debt/equity remained at 0.18x.

Management Maintains 20–25% FY27 Growth Outlook

Bharat Forge management maintained its 20–25% growth outlook for FY27 for the Indian manufacturing business.

The company expects the growth trajectory to become more pronounced during the second half of FY27.

The outlook is supported by:

1. Strong Defence order execution
2. Recovery in export markets
3. HHP engine growth
4. Aerospace order wins
5. Expansion into data centres and semiconductors
6. New manufacturing investments
7. Growth in emerging Defence and energetics businesses