- Bharat Forge reported a 5% year-on-year (YoY) fall in its standalone profit to ₹321.4 crore for Q1FY27, missing estimates of ₹338.5 crore.
- The company's revenue increased 11.5% to ₹2,347 crore in Q1FY27, compared to ₹2,105 crore in Q1FY26.
- Bharat Forge's board has approved a fund raise of up to ₹2,500 crore through various methods, subject to shareholder and regulatory approvals.
- The company also announced the incorporation of a subsidiary in Malaysia to engage in semiconductor activities.
- Bharat Forge shares fell as much as 8% following the announcement of its Q1 results.
- In the same quarter last year, the company's profit was ₹338.5 crore.
- Consolidated revenue for the June quarter was reported at ₹4,640 crore, up 18.7% YoY.
- Consolidated net profit was reported at ₹90 crore, impacted by a one-time loss of ₹358 crore.
Bharat Forge reported a 5% year-on-year decline in standalone profit to ₹321 crore for Q1FY27, missing estimates of ₹338.5 crore. Despite this, the company saw a 11.5% increase in revenue to ₹2,347 crore compared to ₹2,105 crore in Q1FY26.16
On a consolidated basis, Bharat Forge reported a loss of nearly ₹90 crore due to a one-time loss of ₹358 crore. Consolidated revenue surged 18.7% year-on-year to ₹4,640 crore, with EBITDA rising 5.4% to ₹709.4 crore and an EBITDA margin of 15.29%, down from 17% a year earlier.78
The company’s board has approved a fund raise of up to ₹2,500 crore through various methods, including equity shares and debt securities, pending shareholder and regulatory approvals. The specific route for the fund raise has not yet been finalized.3
Additionally, Bharat Forge plans to incorporate a subsidiary in Malaysia to engage in semiconductor activities, subject to necessary approvals. The stock fell nearly 8% following the profit announcement, reflecting investor concerns over profitability challenges, as noted by CMD Baba Kalyani, who stated, "the medium-term focus of achieving profitability may continue to be challenging."
Despite the current challenges, Kalyani maintains a growth outlook of 20-25% for the Indian manufacturing business in FY27, particularly in the second half of the fiscal year.
“Consolidated net profit was ₹90 crore, hit by a one-time loss of ₹358 crore, while revenue rose 18.7% to ₹4,640 crore. CMD Baba Kalyani said medium-term profitability may remain challenging, though FY27 growth outlook for Indian manufacturing stays at 20-25%.”
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