Bharat Forge has categorically denied involvement in any recent meetings in Russia, clarifying that no company representative has visited the country since 2021. The engineering and automotive components manufacturer issued this statement to address speculation surrounding potential business activities in Russia.

Company's Official Position

The company has taken a clear stance on the matter, emphasizing that it has maintained no business presence or engagement in Russia over the past few years. This clarification appears to be in response to reports or speculation about corporate meetings or business activities involving the company in Russian territory.

Timeline and Context

According to the company's statement, the last visit by any Bharat Forge representative to Russia occurred in 2021. Since then, the company maintains it has had no involvement in meetings or business activities in the country. This timeline is significant given the evolving geopolitical landscape and increased scrutiny of international business relationships.

Industry Implications

The clarification comes at a time when companies across various sectors are facing questions about their international operations and business relationships. Bharat Forge's proactive approach in addressing these concerns demonstrates the company's commitment to transparency regarding its global business activities.

Corporate Transparency

By issuing this clarification, Bharat Forge has sought to maintain transparency with stakeholders and address any concerns about potential involvement in activities that could attract regulatory or public scrutiny. The company's clear denial and specific timeline reference suggest a deliberate effort to set the record straight on its Russian connections.

Bharat Forge , a leading Indian multinational company, reported a challenging second quarter for the fiscal year 2026, with standalone revenues declining amidst significant market pressures. The company's financial performance reflects the ongoing volatility in the global automotive sector, particularly in North America.

Revenue and Market Challenges

Bharat Forge experienced a 7.5% sequential drop in standalone revenues, which stood at INR 1,947 crores for Q2 FY26. This decline was primarily attributed to two key factors:

1. Rapid degrowth in the North American Commercial Vehicle (CV) market
2. Inventory destocking across segments

The impact of these challenges is starkly evident in the company's export figures to North America:

Resilience in Profitability

Despite the revenue setback, Bharat Forge demonstrated resilience in maintaining its profitability:

• EBITDA Margin: 28%

The company's ability to sustain its EBITDA margin in the face of significant market headwinds underscores its operational efficiency and cost management capabilities.

New Business Acquisitions

In a positive development, Bharat Forge secured new business worth INR 1,582 crores across various segments. This achievement highlights the company's continued focus on diversification and growth, even in challenging market conditions.

Future Outlook and Strategic Initiatives

Looking ahead, Bharat Forge has outlined several strategic moves:

1. Q3 FY26 Expectations: The company anticipates a performance similar to Q2 in the upcoming quarter.
2. Potential Recovery: Signs of improvement are expected in Q4 of FY26.
3. Capital Raising Plans: Bharat Forge has announced intentions to raise up to INR 2,000 crores. This capital is earmarked for:
   • Organic growth initiatives in India
   • Potential inorganic growth opportunities

Conclusion

Bharat Forge's Q2 FY26 results reflect the company's resilience in the face of significant market challenges, particularly in the North American CV sector. While revenues have taken a hit, the maintenance of healthy EBITDA margins and substantial new business acquisitions indicate the company's underlying strength. The announced capital raising plans suggest a forward-looking approach, positioning Bharat Forge for potential growth opportunities as market conditions evolve.

Investors and industry observers will likely keep a close watch on Bharat Forge's performance in the coming quarters, particularly for signs of the anticipated recovery in Q4 FY26 and the impact of its strategic initiatives.