Bharat Forge Ltd on Thursday signalled a reset in its electric mobility strategy after taking a ₹450 crore impairment linked to its EV business and Tork Motors, even as the company projected around 25 per cent revenue growth in FY27 driven by recovering exports, a defence order book of ₹10,961 crore and aerospace momentum.
The forging and industrial major reported a standalone net loss of ₹258.8 crore in Q4 FY26 against a profit of ₹319.6 crore in Q4 FY25, largely due to the exceptional impairment charge tied to investments in Kalyani Powertrain Ltd’s e-mobility division.
“The ₹450 crore impairment during the quarter of our investments in KPTL is an acceptance of the need to take a fresh look at how we address the EV opportunity as the EV adoption globally has changed significantly,” Chairman and Managing Director BN Kalyani said in the investor presentation.
Export recovery and North America rebound aid Q4 operations
Operationally, however, the quarter showed signs of recovery.
On a consolidated basis, Bharat Forge reported revenue from operations of ₹4,528 crore in Q4 FY26, up 17.5 per cent from ₹3,853 crore in the year-ago quarter. Consolidated EBITDA rose to ₹774 crore from ₹671 crore, supported by improving exports and stronger operational performance across businesses.
On a standalone basis, revenue from operations rose 4.5 per cent year-on-year to ₹2,260 crore in Q4 FY26 from ₹2,163 crore a year earlier, while revenue improved 8.5 per cent sequentially from ₹2,083 crore in Q3 FY26. EBITDA stood at ₹610 crore compared with ₹629 crore in Q4 FY25, while EBITDA margin narrowed to 27 per cent from 29.1 per cent due to changes in product mix.
Profit before tax before exceptional items rose 9.7 per cent sequentially to ₹486 crore, supported by improving export performance.
Management said Q4 performance was driven by inventory restocking and a rebound in North American truck production volumes after the cyclical bottom seen in Q3 FY26. Passenger vehicle exports also improved on strong momentum in North and Central America, while aerospace execution strengthened during the quarter.
Defence orders and aerospace business power growth pipeline
“The order wins across businesses reflect a resurgence in business momentum including in aerospace with onboarding of new customers across Engine, Structural and Landing Gear components,” Kalyani said.
The company secured new orders worth ₹4,814 crore during FY26, including ₹2,816 crore in defence orders. Bharat Forge’s defence order book stood at ₹10,961 crore at the end of FY26, providing visibility for future growth.
Domestic operations remained relatively resilient during FY26, supported by strong demand from commercial vehicles, power, construction, mining and agriculture sectors. Management said domestic commercial vehicle performance benefited from replacement demand, while passenger vehicle operations were aided by utility vehicle-led mix improvement.
FY26 hit by export slowdown and Europe restructuring
For the full year FY26, Bharat Forge’s standalone revenue declined 5.1 per cent to ₹8,396 crore from ₹8,844 crore in FY25 as global commercial vehicle demand and exports remained weak for most of the year. Export revenue for FY26 fell 15.2 per cent to ₹4,011 crore from ₹4,728 crore in FY25 as North American Class 8 truck customers reduced inventories through much of the year.
Standalone EBITDA declined 8.4 per cent to ₹2,312 crore from ₹2,524 crore, while EBITDA margin narrowed to 27.5 per cent from 28.5 per cent. Profit before tax before exceptional items declined 8.3 per cent to ₹1,826 crore from ₹1,992 crore.
On a consolidated basis, Bharat Forge reported FY26 revenue of ₹16,812 crore, up 11.2 per cent from ₹15,123 crore in FY25, while EBITDA increased 5.9 per cent to ₹2,921 crore. Consolidated profit after tax declined from the previous year due to exceptional items and cost pressures.
The company also highlighted continuing stress in Europe. Bharat Forge said it had initiated restructuring of the steel business of CDP Bharat Forge and expects the process to conclude by the end of calendar year 2027, while also exploring alternative industrial opportunities using its scaled-down manufacturing footprint in the region.
Company eyes 25% FY27 growth on defence and export recovery
“Despite demand challenges and regulatory volatility, the company on a consolidated basis has recorded revenues of Rs 16,812 crores and EBITDA of Rs 2,921 crores. Looking ahead into FY27, barring any geopolitical crisis and its impact on demand, we are optimistic of achieving 25 per cent revenue growth with a commensurate increase in EBITDA and profitability for the Indian manufacturing operations driven by execution of orders across business and recovery in the export market,” Kalyani said.
The board recommended a final dividend of ₹6.5 per equity share for FY26.