Bharat Forge Limited announced its Q3FY26 financial results for the quarter ended December 31, 2025, revealing a mixed performance with standalone profit declining while consolidated operations showed growth. The engineering and forging major reported results that reflect both operational challenges and strategic progress across its diversified business segments.

Standalone Financial Performance

The company's standalone operations faced headwinds during Q3FY26, with several key metrics showing year-on-year decline:

Despite the revenue decline being marginal at 0.6%, the company experienced a significant 16.7% drop in net profit, primarily attributed to exceptional items and operational challenges. The profit before exceptional items stood at ₹4,403.04 million compared to ₹4,735.26 million in the previous year.

Consolidated Results Show Growth

In contrast to standalone performance, Bharat Forge's consolidated results demonstrated robust growth across key parameters:

The consolidated revenue growth of 25.0% reflects the company's successful expansion strategy and improved performance across its global operations and subsidiary companies.

Segment-wise Performance Analysis

Bharat Forge's diversified business model spans three key segments, each contributing differently to overall performance:

The Defence segment emerged as a standout performer with revenue more than doubling year-on-year, while the Others segment, which includes various strategic initiatives beyond forging and defence, showed exceptional growth of 158.8%.

Exceptional Items Impact Results

The company's financial performance was significantly affected by exceptional items totaling ₹487.26 million in standalone results and ₹557.15 million in consolidated results. These charges primarily stemmed from the implementation of India's new Labour Codes, which consolidated twenty-nine existing labour laws into a unified framework. The company evaluated the impact of these changes and recorded increased gratuity and leave liabilities as exceptional items.

Corporate Actions and Leadership Changes

Bharat Forge's board approved several significant corporate actions during the quarter:

The board also noted the cessation of Mr. Sumeet Banga as Senior Management Personnel and approved the merger of subsidiary Ferrovia Transrail Solutions Private Limited with BF Infrastructure Limited as part of internal restructuring.

Nine-Month Performance Overview

For the nine months ended December 31, 2025, Bharat Forge showed resilient performance despite challenging market conditions:

The nine-month consolidated results highlight the company's strategic diversification benefits, with consolidated net profit growing 35.7% despite standalone challenges.

Bharat Forge Limited addressed material price movement in its equity shares through an official clarification to stock exchanges on February 4, 2026. The company responded to widespread media reports regarding its participation in India's Advanced Medium Combat Aircraft programme.

Stock Exchange Notification

The company filed its clarification under Regulation 30(11) of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, with both BSE Limited and National Stock Exchange of India Limited. Bharat Forge confirmed that while material price movement was observed on February 4, 2026, there is no undisclosed price-sensitive information or impending corporate action that could influence the stock's price or volume behaviour.

AMCA Programme Participation Details

The clarification addressed media reports, particularly an Economic Times article titled "AMCA fighter jet programme: Tata, L&T, Bharat Forge in fighter jet race; HAL out." The company provided specific details about its involvement in the defence programme:

Company's Official Position

Bharat Forge confirmed that its participation in the AMCA programme bid represents factually correct information. However, the company clarified that it has not received any additional communication from the Aeronautical Development Agency or the Ministry of Defence beyond the original collaboration agreement.

The company emphasized that the equity share price movement is purely market-driven and attributed to prevailing market conditions rather than any specific corporate developments or undisclosed information.

Regulatory Compliance

The clarification was signed by Tejaswini Chaudhari, Company Secretary and Compliance Officer, ensuring full transparency with stakeholders and preventing potential misinformation regarding the company's defence sector involvement. The company had previously informed exchanges about the tripartite MoU on September 26, 2025, maintaining consistent disclosure practices.