Pune-based Bharat Forge reported a 17.5 per cent year-on-year decline in consolidated net profit to Rs 232.5 crore for Q4 FY26, even as revenue from operations grew by 17.5 per cent to Rs 4,528 crore.
The fall in profit was primarily due to one-time expenses linked to the rollout of the Centre’s four labour codes, which increased gratuity and leave-related liabilities during the financial year.
For the full year, the company posted a 14.7 per cent rise in net profit to Rs 1,079.6 crore, with revenue increasing 11 per cent to Rs 16,811.6 crore.
Shares of the company hit an all-time high during trading, closing 6.2 per cent higher at Rs 1,991 on the BSE.
Chairman and Managing Director Baba Kalyani said performance was driven by strong execution and improved export demand in the second half. The firm secured new orders worth Rs 4,814 crore in FY26, including Rs 2,816 crore from defence, with the defence order book standing at Rs 10,961 crore.
The company also reported a Rs 450 crore impairment on its investment in KPTL, citing slower global adoption of electric vehicles as a reason to reassess its EV strategy. While overseas operations in the US and Europe remained marginally profitable amid weak demand, restructuring of its steel business is underway and expected to be completed by CY27.
Looking ahead, the company is exploring new opportunities in Europe to optimise its manufacturing footprint and expects around 25 per cent revenue growth in FY27, supported by stronger order execution and export recovery, alongside continued diversification across key sectors. |
