Bharat Forge Limited has received an income tax appellate order from the Commissioner of Income-tax (Appeals), Income Tax Department, with a reduction of penalty to Rs. 85,29,661 for under-reporting of income for the financial year 2016-17. The order was passed under Section 250 of the Income Tax Act, 1961, dated May 11, 2026, and received by the company on May 12, 2026. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Details of the Appellate Order

The following table summarises the relevant details of the order as disclosed by the company under Regulation 30 of the Listing Regulations:

Company's Response and Financial Impact

Bharat Forge has indicated that the appellate order is subject to further appeal, and the company is in the process of filing an appeal before the Income Tax Appellate Tribunal (ITAT), Pune, against the said penalty. The company has explicitly stated that there is no material impact on its financials, operations, or other activities as a result of this order. The intimation was signed by Tejaswini Chaudhari, Company Secretary and Compliance Officer, on May 13, 2026.

Bharat Forge , a global leader in advanced forging and precision engineering, has secured a long-term contract with Embraer, the Brazilian aerospace manufacturer, for the manufacturing and supply of critical landing gear forgings — becoming the first Indian supplier of forged components to enter Embraer's global aerospace supply chain. The agreement was announced on May 11, 2026, and marks a significant milestone for India's advanced manufacturing sector.

A Landmark Aerospace Contract

Under the long-term agreement, Bharat Forge will supply high-integrity forged components for landing gear systems across Embraer's commercial and defence aircraft programs. The contract reflects a shared commitment to quality, reliability, and long-term collaboration, while underscoring Bharat Forge's capabilities in delivering forged products that meet stringent global certification standards.

Leadership Commentary

Commenting on the development, Mr. Amit B Kalyani, Vice Chairman & Joint MD, Bharat Forge Limited, stated: "The fact that BFL is the first Indian supplier of forged components for Embraer is a proud moment & a testament to the capabilities we have built in the Aerospace business and we thank them for the trust they have reimposed on BFL. We look forward to growing and adding value to our association with Embraer in the coming years. These contracts will enable to create scale for critical structural components complementing the scale built in the Aero Engine components space."

Embraer also acknowledged the strategic importance of the partnership, noting that this first contract signed with an Indian company reflects its commitment to advancing the aerospace ecosystem in India and creating long-term value across the entire supply chain. The development comes as Embraer continues to expand its presence in India and maintain active dialogue with local industry leaders and government stakeholders.

Significance for India's Aerospace Supply Chain

This agreement establishes a precedent for Indian manufacturers supplying safety-critical forged components to global aerospace original equipment manufacturers. Bharat Forge's Aerospace Division is dedicated to the design, development, and manufacturing of critical aerospace components, with deep expertise in forging, precision machining, and sub-assembly integration. The contract reinforces Bharat Forge's expanding role in the global aerospace supply chain and strengthens its position as a trusted partner for complex, safety-critical components.