Bharat Forge Limited 's Board of Directors, at its meeting held on May 7, 2026, approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, under Regulation 30 and 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board also recommended a final dividend and approved the re-appointment of a director, with the 65th Annual General Meeting of the Company scheduled for Tuesday, August 11, 2026. The board meeting commenced at 11:00 A.M. IST and concluded at 12:45 P.M. IST. Pursuant to Regulation 30 of the Listing Regulations, the audio recording of the Analyst / Investor Conference Call, which took place on May 07, 2026 following the announcement of the audited financial results, has been uploaded on the Company's website at bharatforge.com/investors/reports/analyst-conference-calls .

Consolidated Financial Performance

Bharat Forge's consolidated revenue from operations grew to ₹168,116.53 million in FY26 from ₹151,228.03 million in FY25, reflecting broad-based growth across its business segments. Consolidated profit before exceptional items and tax stood at ₹18,216.15 million for FY26 compared to ₹16,128.90 million in FY25. After accounting for exceptional items (loss) of ₹1,544.43 million, consolidated profit before tax was ₹16,671.72 million versus ₹14,558.25 million in the prior year. Consolidated net profit for FY26 came in at ₹10,893.98 million, up from ₹9,132.75 million in FY25. Basic and diluted earnings per share (consolidated, not annualised) for the full year stood at ₹22.58 compared to ₹20.05 in FY25.

The following table summarises key consolidated financial metrics:

For Q4 FY26 (quarter ended March 31, 2026), consolidated revenue from operations was ₹45,280.43 million versus ₹38,526.04 million in Q4 FY25. Consolidated net profit for Q4 FY26 stood at ₹2,334.48 million compared to ₹2,826.24 million in Q4 FY25, impacted by exceptional losses of ₹987.28 million in the quarter.

Standalone Financial Performance

On a standalone basis, revenue from operations for FY26 was ₹83,956.78 million, compared to ₹88,437.30 million in FY25. Standalone profit before exceptional items and tax for FY26 was ₹18,208.10 million versus ₹19,720.78 million in FY25. For Q4 FY26 specifically, standalone profit before exceptional items was ₹4.9 billion, in line with the year-ago period. However, exceptional items of ₹4.9 billion in Q4 FY26 significantly weighed on the quarter's standalone results. For the full year FY26, exceptional items (loss) of ₹5,495.85 million resulted in standalone profit before tax of ₹12,712.25 million compared to ₹18,187.64 million in FY25. Standalone net profit for FY26 was ₹8,187.41 million versus ₹13,222.51 million in the prior year. Basic and diluted EPS (standalone, not annualised) for FY26 was ₹17.12 compared to ₹28.16 in FY25.

For Q4 FY26, standalone revenue from operations was ₹22,604.49 million versus ₹21,630.29 million in Q4 FY25. The quarter recorded a standalone net loss of ₹1,177.57 million, compared to a net profit of ₹3,456.25 million in Q4 FY25, primarily due to exceptional items of ₹4,929.64 million in the quarter.

Segment-Wise Performance

The Group operates across three reporting segments: Forgings, Defence, and Others. The Forgings segment, which produces forged products and machined components for automotive and industrial sectors, remained the largest contributor to revenue. The Others segment saw a significant increase in revenue from ₹9,519.96 million in FY25 to ₹21,698.12 million in FY26. The following table presents consolidated segment revenue and results for FY26 and FY25:

Exceptional Items

The standalone and consolidated results were materially impacted by several exceptional items during FY26. The impairment of investment in Kalyani Powertrain Limited (KPTL), a wholly owned subsidiary engaged in the electric mobility business, amounted to ₹4,996.50 million in standalone results for FY26, of which ₹4,504.00 million was recorded in Q4 FY26. The Group also recorded a provision for impairment related to electric mobility assets of ₹404.99 million in consolidated results. Additionally, Bharat Forge CDP GmbH (BF CDP), a German subsidiary, is undergoing a phased restructuring, resulting in incidental expenses of ₹425.64 million and manpower optimisation costs of ₹156.65 million. The implementation of four Labour Codes notified by the Government of India on November 21, 2025 resulted in an exceptional charge of ₹487.26 million (standalone) and ₹557.15 million (consolidated). The key exceptional items are summarised below:

Dividend and Corporate Developments

The Board of Directors recommended a final dividend of ₹6.50 per equity share of face value ₹2 each (at the rate of 325%) for the financial year ended March 31, 2026, subject to approval of members at the ensuing Annual General Meeting. If approved, the final dividend will be paid on or after Friday, August 14, 2026. On the corporate development front, the Company acquired AAM India Manufacturing Corporation Private Limited (subsequently renamed K Drive Mobility Solutions Private Limited) on July 1, 2025, for a consideration of ₹7,474.16 million, resulting in recognition of technical know-how of ₹290.00 million and goodwill of ₹1,224.28 million. Additionally, BF Industrial Solutions Limited and JS Auto Cast Foundry India Private Limited entered into a Securities Subscription Agreement with PI Opportunities Fund I Scheme II on February 2, 2026, resulting in the investor acquiring a 23% stake in JS Auto on a fully diluted basis at a consideration of ₹3,000.00 million. The Company has also entered into a Share Purchase Agreement for the acquisition of a 30% stake in Fortuna Engineering Private Limited for an aggregate consideration of ₹1,296.00 million, with the ability to acquire additional stake of up to 20%+1 (majority) shareholding subject to fulfilment of certain conditions.

Board Appointment

Based on the recommendation of the Nomination and Remuneration Committee, the Board approved the re-appointment of Mr. Ashish Bharat Ram (DIN: 00671567) as Non-Executive Non-Independent Director for a term of five consecutive years with effect from September 1, 2026 to August 31, 2031, subject to member approval via Ordinary Resolution at the ensuing Annual General Meeting. Mr. Ashish Bharat Ram holds a degree in Economics from Hindu College, Delhi University, and an MBA in Corporate Strategy from The Johnson Graduate School of Management, Cornell University, USA. He has been a Director on the Company's Board since September 2023 and serves as Chairman and Managing Director of SRF Limited. He is not related to any Directors or Key Managerial Personnel of the Company and is not debarred from holding the office of Director by virtue of any SEBI order or any other authority.

Morgan Stanley has reiterated its Overweight rating on bharat forge with a target price of ₹1,978, reflecting confidence in the company's near-term and medium-term growth prospects. The rating is supported by a confluence of factors, including a sharp rebound in the US commercial vehicle segment and an expanding defence portfolio.

US Class 8 Truck Demand Signals Strong Recovery

A key driver behind Morgan Stanley's positive stance is the robust recovery in US Class 8 truck demand. April orders recorded a remarkable 201% year-on-year surge, signalling a meaningful upturn in the North American heavy commercial vehicle market. This recovery is further complemented by an improved production outlook, which bodes well for Bharat Forge's order pipeline and revenue visibility in the near term.

Defence Exposure Emerges as Key FY27 Earnings Driver

Beyond the commercial vehicle segment, Morgan Stanley identifies Bharat Forge's rising defence exposure as a critical catalyst for earnings growth in FY27. The company's increasing participation in the defence sector is expected to diversify its revenue base and provide a meaningful contribution to profitability over the medium term.

Monitoring Freight Trends and Tariff Developments

Despite the positive outlook, Morgan Stanley flags freight trends and tariff developments as factors warranting close monitoring. These variables could influence demand dynamics in the US trucking market and, by extension, Bharat Forge's export-linked revenues. The brokerage's assessment underscores the importance of tracking these macro and policy-level developments as they evolve.