Bharat Forge Q1 Results: Management says FY26 to be a ‘challenging period’; Stock slides

Shares of Bharat Forge Ltd. fell to the lows of the day on Wednesday, August 6, in response to the management commentary after its June quarter results, which said that the current financial year would be a “challenging period” for the company.The company also remains cautious on the US export business for the remainder of the financial year. It attributed this caution to the recent tariff announcements and regulatory changes to emission norms in North America.

On a standalone basis, Bharat Forge’s standalone revenue declined 10% from last year to ₹2,105 crore, which was marginally lower than the ₹2,173 crore figure projected in the CNBC-TV18 poll. The drop in the company’s standalone revenue was due to a decline in exports.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter declined by 12.4% from last year to ₹571 crore, which was lower than the CNBC-TV18 poll of ₹616 crore.
EBITDA margin narrowed to 27.1% from 27.9% last year, and also lower than the 28% estimate.For the Defence business, Bharat Forge expects to secure new orders in the ongoing fiscal. It also added that the review of the European Steel Manufacturing footprint is on track and concrete steps are likely to be in place by the end of the year.

Operations in the US and Europe witnessed meaningful improvement in the June quarter and also generated cash profit.

Bharat Forge secured new orders worth ₹847 crore during the quarter, of which, ₹269 crore are from the defence space.

Shares of Bharat Forge fell to the lows of the day after the management commentary, currently trading 1.8% lower at ₹1,139.9. The stock has declined 11% in the last one month.