Bharat Forge Q2 FY26 Financial Review & Business Outlook

Bharat Forge Ltd. has delivered a robust financial performance for the second quarter of FY26, significantly outperforming consensus estimates across key metrics. Q2 FY26 Financial Highlights (Consolidated): Net Profit: The company reported a 23% year-on-year increase in consolidated net profit, reaching ₹299 crore. This figure substantially exceeded the CNBC-TV18 poll estimate of ₹236 crore. Revenue from Operations: Revenue grew by 9.3% YoY to ₹4,032 crore, surpassing the market expectation of ₹3,748 crore. EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) rose by 12.1% YoY to ₹726 crore, well above the ₹612 crore consensus poll. Margin Expansion: EBITDA margins expanded by 50 basis points (0.50%) year-on-year to 18.0%, demonstrating strong operational efficiency and beating the poll projection of 16.3%. Business Outlook & Strategic Commentary: While management acknowledged a challenging demand environment leading to an anticipated decline in exports to North America in H2 FY26, they provided a strong compensatory outlook. The company confidently stated that this weakness will be more than offset by robust growth drivers, including: A strong ramp-up in the domestic industrial business. Growth in exports to geographies outside the US. Significant acceleration in the Defence business. Defence Sector Momentum: The Defence business continues to be a key strategic growth pillar. During the first half of FY26, Bharat Forge secured new orders valued at ₹1,582 crore, with the defence segment contributing ₹559 crore. This brings the total defence order book to a substantial ₹9,467 crore. In a strategic move to consolidate this vertical, all defence assets of the parent company have been transferred to its wholly-owned subsidiary, Kalyani Strategic Systems Ltd. (KSSL).