365telugu.com online news, November 12th,2025: Bharat Forge Limited (BFL) has released its financial outcomes for the second quarter of fiscal year 2026, ending September 30, 2025. The company continues to maintain a robust strategic stance, bolstered by a diverse portfolio, a solid defence sector order backlog, and a resilient financial position.
Despite ongoing challenges in export markets, leadership highlights the potential of domestic industrial and defence sectors to fuel expansion through the rest of FY26.
Key Standalone Highlights for Q2 FY26
- Revenue: ₹1,947 crore, reflecting a 7.5% sequential decline, primarily due to subdued demand in North American commercial vehicle (CV) markets.
- EBITDA: ₹545 crore, with margins holding steady at 28%—a slight 10 basis points improvement quarter-over-quarter, thanks to an optimized product mix.
- PBT (excluding exceptional items): ₹432 crore, down 7.2% QoQ amid softer export activity.
- PAT: ₹310 crore, versus ₹339 crore in Q1 FY26.
Consolidated Highlights for Q2 FY26
- Revenue: ₹4,032 crore, marking an increase from ₹3,909 crore in the prior quarter, driven by robust contributions from India’s manufacturing and defence units.
- EBITDA: ₹715 crore, achieving a margin of 17.7%.
- PBT (excluding exceptional items): ₹445 crore.
Notable Business Updates
- New Orders in H1 FY26: Totaling ₹1,582 crore, with ₹559 crore attributed to defence initiatives.
- Defence Order Book as of H1 FY26: Valued at ₹9,467 crore.
- Strategic Restructuring: Bharat Forge has successfully transferred its defence-specific assets to its wholly owned subsidiary, Kalyani Strategic Systems Limited (KSSL), enhancing its specialized focus on defence operations.
Insights from Chairman and Managing Director, Mr. Baba Kalyani
“The quarter’s results were tempered by a steep downturn in North American truck output and subsequent inventory reductions. On a standalone basis, revenues fell 7.5% quarter-on-quarter to ₹1,947 crore, with a 16% revenue dip to North America. Exports of CVs to the region dropped 48% sequentially and 63% year-over-year. Through proactive de-risking strategies, we limited the fallout, delivering EBITDA of ₹545 crore (28% margins) and PBT of ₹432 crore.
Consolidated figures for Q2 reached ₹4,032 crore in revenue and ₹715 crore in EBITDA. Our balance sheet stays strong, with ₹2,309 crore in cash reserves and a net ROCE of 15.5%. India’s manufacturing arm—a core growth pillar—generated ₹2,746 crore in revenues and ₹676 crore in EBITDA.
In H1 FY26, we clinched new orders worth ₹1,582 crore, including ₹559 crore in defence, pushing the defence order book to ₹9,467 crore. All defence-related assets from Bharat Forge have now moved to KSSL. We anticipate additional wins in ongoing platform and project bids.
US and European units faced headwinds from seasonal factors and market moods. Efforts to optimize our European steel production network are progressing, with firm actions slated by fiscal year-end.
While North American exports may soften more in H2 FY26, we foresee offsets from Indian industrial growth, exports to non-US markets, and accelerated defence momentum. Our India-based operations in defence, aerospace, castings, and aggregates are advancing steadily across global opportunities.”