BHARATFORG · Automobile and Auto Components · filed 5 Nov 2026
Bharat Forge Ltd. reported revenue of ₹4,870 cr for July to September 2026, +20.8% on the year and +5.0% on the quarter. That is faster than this quarter has grown in recent years (+3.5% on average), so the year-on-year number is not just the season. It is the highest quarterly revenue in the last 12 quarters on record. Over the last four quarters revenue comes to ₹18,381 cr, +20.4% on the four before.
Operating profit (EBITDA) was ₹768 cr, a margin of 15.8%, −223 bps on the year and +47 bps on the quarter. Over the last 8 quarters the margin has ranged from 15.3% to 18.0%, averaging 17.0%. Operating costs grew +24.1%, faster than revenue at +20.8%, so operating profit grew less than sales.
Net profit was ₹279 cr, −6.9% on the year and — on the quarter, with earnings per share of ₹5.77. Profit before other income, one-offs and tax grew faster, at −2.1%; other income, one-offs or tax held the headline back. The tax rate of 33% is in line with its recent average. Profit over the last four quarters totals ₹695 cr, −35.6% on the four before.
Of the 22 companies in Automobiles and components that have reported Q2 FY27 so far, Bharat Forge Ltd. ranks 18th on revenue growth; the sector median is +27.4%. Its margin moved −223 bps on the year against a sector median of −91 bps.
A vehicle maker's revenue is volumes times average price, and its margin moves with steel, aluminium and rubber costs and with the share of exports and premium models.
On earnings per share of ₹14.28 over the last four quarters, the stock at ₹1,832.00 trades at 128.3 times trailing earnings.
No check fired. That is a statement about the checks below, not a verdict on the company.
Profit is backed by cash: operating cash flow exceeded profit.
Source: Cash flow statement
Operating margin slipped on the year.
Source: Results filing
Could not run on this quarter: Related-party transactions, Promoter pledges and allotments, Earlier promises against delivery. The filing did not carry these lines.
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Balance sheet | Sep '26 | Last year end | Change |
|---|---|---|---|
| Trade receivables | ₹4,078 cr | ₹3,927 cr | ▲ 3.9% |
| Inventory | ₹4,693 cr | ₹4,053 cr | ▲ 15.8% |
| Cash | ₹2,679 cr | ₹848 cr | ▲ 216.0% |
| Bank balances | ₹180 cr | ₹142 cr | ▲ 26.9% |
| Long-term borrowings | ₹1,704 cr | ₹1,812 cr | ▼ 6.0% |
| Short-term borrowings | ₹5,687 cr | ₹5,062 cr | ▲ 12.4% |
| Trade payables | ₹3,269 cr | ₹2,996 cr | ▲ 9.1% |
| Net block | ₹7,401 cr | ₹7,258 cr | ▲ 2.0% |
| Capital work in progress | ₹1,343 cr | ₹1,251 cr | ▲ 7.3% |
| Equity | ₹11,506 cr | ₹9,580 cr | ▲ 20.1% |
| Total assets | ₹25,259 cr | ₹22,260 cr | ▲ 13.5% |
| Cash flow, year to date | This year | Last year |
|---|---|---|
| Operating cash flow | ₹366 cr | ₹999 cr |
| Capital expenditure | −₹982 cr | −₹565 cr |
| Investing cash flow | −₹504 cr | −₹71.7 cr |
| Financing cash flow | ₹1,978 cr | −₹862 cr |
| Dividends paid | −₹315 cr | −₹279 cr |
Operating cash flow was 1.94× profit. Receivables at 78 days of sales (−7 days against the last year end). Inventory at 90 days of sales (+2 days).
Other matter 1: “We did not review the interim financial information of three Subsidiaries included in the Statement, whose interim financial information reflect total assets (before consolidation adjustments) of Rs. 37,138 million as at 30 September 2026 and total revenues (before consolidation adjustments)… Read in full
We did not review the interim financial information of three Subsidiaries included in the Statement, whose interim financial information reflect total assets (before consolidation adjustments) of Rs. 37,138 million as at 30 September 2026 and total revenues (before consolidation adjustments) of Rs. 9,441 million and Rs. 19,336 million, total net profit / (loss) after tax (net) (before consolidation adjustments) of Rs. 66 million and Rs. (3,559) million and total comprehensive income I (loss) (net) (before consolidation adjustments) of Rs. 74 million and Rs. (3,515) million, for the quarter ended 30 September 2026 and for the period from 1 April 2026 to 30 September 2026 respectively, and cash outflows (net) (before consolidation adjustments) of Rs. 558 million for the period from 1 April 2026 to 30 September 2026. as considered in the Statement. This interim financial information have been reviewed by other auditors whose reports have been furnished to us by the Parent's management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 3 above.
Other matter 2: “The Statement includes the interim financial information of 23 Subsidiaries which have not been reviewed, whose interim financial information reflect total assets (before consolidation adjustments) of Rs. 26,319 million as at 30 September 2026 and total revenues (before consolidation adjustments)… Read in full
The Statement includes the interim financial information of 23 Subsidiaries which have not been reviewed, whose interim financial information reflect total assets (before consolidation adjustments) of Rs. 26,319 million as at 30 September 2026 and total revenues (before consolidation adjustments) of Rs. 1,953 million and Rs. 3,741 million, total net loss after tax (net) (before consolidation adjustments) of Rs. 247 million and Rs. 383 million and total comprehensive loss (net) (before consolidation adjustments) of Rs. 238 million and Rs. 378 million, for the quarter ended 30 September 2026 and for the period from 01 April 2026 to 30 September 2026 respectively, and cash outflows (net) (before consolidation adjustments) of Rs. 731 million for the period from 1 April 2026 to 30 September 2026. as considered in the Statement. The Statement also includes the Group's share of net loss after tax (net) of Rs. 52 million and Rs. 169 million and total comprehensive loss (net) of Rs. 61 million and Rs. 173 million, for the quarter ended 30 September 2026 and for the period from 01 April 2026 to 30 September 2026 respectively as considered in the Statement, in respect of five associates and three joint ventures, based on their interim financial information which have not been reviewed. According to the information and explanations given to us by the Parent's management, this interim financial information is not material to the Group.
Filing p. consolidated limited review report p.1-2
₹1,932 cr still unused. “Out of ₹2,000.00 crore raised via QIP by issuing 10,582,010 equity shares at ₹1,890 per share, ₹68.33 crore was utilised for purchase of equipment, machinery and QIP expenses, and unspent amount of ₹1,931.67 crore is placed with bank deposits.”
Board approved further investment of an amount not exceeding ₹290.51 crore (Rs 2,905.08 million) in wholly-owned subsidiary Kalyani Strategic Systems Limited (KSSL). (p. outcome letter p.1, Annexure 2)
Tax: Consolidated tax expense of ₹139.20 crore (current tax ₹161.67 crore, deferred tax credit ₹22.47 crore) on Profit before tax of ₹417.88 crore for Q2 FY27
| Metric | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| Volumes (units) | 70,703 | 66,787 | 56,458 |
| Realisation per unit (₹) | 357,320 | 351,479 | 344,834 |
| Export share | 51.8% | 51.32% | 48.38% |
| Defence Order Book (₹ crore) | 10,960 | — | — |
Worked out from filed numbers. Standalone Export Revenue Share: Export Revenue (₹1,308.80 crore) / Total Standalone Revenue (₹2,526.36 crore) * 100 = 51.80% · Standalone Realisation per Tonne: Calculated as Standalone Operational Revenue (₹2,526.36 crore * 10^7) / Sale Tonnage (70,703 MT) = ₹3,57,319.66 per MT
Dealer inventory levels in days are not explicitly disclosed in the quarterly filing or presentation; consolidated inventories stood at ₹4,692.61 crore as of September 30, 2026 (90.06 inventory days on annualised H1 FY27 revenue).
Dealer-specific inventory days metrics are omitted from quarterly earnings disclosures.
Consolidated cost of raw materials and components consumed (including stock changes) stood at ₹2,234.58 crore in Q2 FY27 (45.88% of operational revenue ₹4,869.97 crore) compared to ₹1,767.44 crore in Q2 FY26 (43.84%). Standalone sale tonnage increased 25.2% YoY to 70,703 MT with realisation per MT at ₹3,57,319.66.
Raw material cost ratio increased 204 bps YoY due to higher input and energy prices, partly offset by higher tonnage realisation.
Read using the Automobiles and components framework (named in the filing read). Primary valuation lens: P/E through the cycle.
Read more closely in this sector: Dealer inventory days · Raw material cost against realisation.
| Metric | Guidance | For | Against earlier guidance |
|---|---|---|---|
| Indian Manufacturing Business Revenue Growth Target | 20–25 % | FY2026-27 | unchanged or first given |
| Capex Programme across Verticals | 2000.00 | over 12-18 months | unchanged or first given |
| ATAGS Order Revenue Recognition Start | Q1 FY2028 | FY2027-28 | unchanged or first given |
Held for next quarter's said-then-did check.
| Segment | Revenue | YoY | Result | YoY |
|---|---|---|---|---|
| Forgings | ₹3,894 cr | ▲ 16.0% | ₹497 cr | ▼ 2.9% |
| Defence | ₹473 cr | ▲ 19.8% | ₹13.7 cr | ▲ 11.7% |
| Others | ₹752 cr | ▲ 28.0% | ₹54.2 cr | ▲ 45.8% |
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹3,866 cr | ₹4,164 cr | ₹4,106 cr | ₹3,689 cr | ₹3,476 cr | ₹3,853 cr | ₹3,909 cr | ₹4,032 cr | ₹4,343 cr | ₹4,528 cr | ₹4,640 cr | ₹4,870 cr |
| YoY | — | — | +6% | −2% | −10% | −7% | −5% | +9% | +25% | +18% | +19% | +21% |
| EBITDA margin | 18.1% | 15.4% | 18.0% | 17.5% | 17.9% | 17.6% | 17.1% | 18.0% | 17.2% | 17.2% | 15.3% | 15.8% |
| Other income, % of PBT | 15% | 12% | −33% | 16% | 11% | 13% | 12% | 12% | −3% | −12% | 129% | 11% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | −₹358 cr | −₹24.6 cr |
| Tax rate | 36% | 38% | 42% | 37% | 39% | 33% | 31% | 34% | 33% | 40% | — | 33% |
| Net profit | ₹254 cr | ₹227 cr | ₹175 cr | ₹243 cr | ₹213 cr | ₹283 cr | ₹284 cr | ₹299 cr | ₹273 cr | ₹233 cr | −₹89.9 cr | ₹279 cr |
| YoY | — | — | −18% | +13% | −16% | +25% | +62% | +23% | +28% | −18% | −132% | −7% |
| Core profit YoY | — | — | +46% | +13% | −8% | +14% | −10% | +25% | +36% | +19% | −4% | −2% |
| EPS | ₹5.68 | ₹5.07 | ₹4.36 | ₹5.23 | ₹4.45 | ₹5.90 | ₹5.93 | ₹6.26 | ₹5.53 | ₹4.86 | −₹1.88 | ₹5.77 |
| Flags | · | · | ✓ | ✓ | ✓ | ✓ | 1 | ✓ | ✓ | ✓ | 3 | ✓ |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Bharat Forge Ltd. reported revenue of ₹4,870 cr (+20.8% on the year) and net profit of ₹279 cr (−6.9% on the year) for July to September 2026.
Profit before other income, exceptional items and tax moved −2.1% on the year, against −6.9% for reported profit.
None of the 16 checks that could run raised a question.
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