Bharat Forge Limited
Bharat Forge is engaged in the manufacturing and selling of forged and machined Compoundant for auto and industry sector.The company belongs to the Kalyani Group which has an annual turnover of more than USD 3 Billion. Apart from the forging Industry, the group has a presence in engineering steel, automotive, industrial, renewable energy, urban infrastructure, and specialty chemicals and maintains a leading position in various business segments.
Business Segments:
Forgings (85% in FY24 vs 96% in FY22): The company produces steel forgings, finished machined crankshafts, front axles assembly and components, road wheel, transmission parts, seal rings, clamp, hub, lightweight components, etc for automotive and industrial sectors.
Defense & Others (15% in FY24 vs 4% in FY22%): The defense arm, Kalyani Strategic Systems Limited (KSSL), offers artillery systems, protected vehicles, armored vehicles upgrades, ammunition, air defense solutions.
Shareholding Pattern (December 2025):
Financial Summary:
| Particular | Mar-21 | Mar-22 | Mar-23 | Mar-24 | Mar-25 |
| Sales – | 6,336 | 10,461 | 12,910 | 15,682 | 15,123 |
| Sales Growth % | -21.35% | 65.10% | 23.41% | 21.47% | -3.57% |
| Expenses + | 5,504 | 8,478 | 11,174 | 13,121 | 12,431 |
| Operating Profit | 832 | 1,983 | 1,737 | 2,562 | 2,692 |
| OPM % | 13% | 19% | 13% | 16% | 18% |
| Net Profit + | -127 | 1,077 | 508 | 910 | 913 |
| EPS in Rs | -2.71 | 23.23 | 11.35 | 20.43 | 19.69 |
| Dividend Payout % | -74% | 30% | 62% | 44% | 43% |
Synopsis of Financials:
Financial performance (Q3 FY26 and 9M FY26):
Q3 revenue: INR 4,343 cr; EBITDA margin 17.3%
Drivers cited: “Stable performance in overseas subsidiaries and improving execution in defense”
9M revenue: INR 12,284 cr; EBITDA margin 17.5%
Final Outlook:
Bharat Forge is a strong engineering and manufacturing company with global presence. After a difficult period in FY21, the company has shown good recovery in revenue and profits. Margins have improved and the company is expanding into defence and aerospace, which could become an important growth driver. However, the business is still partly dependent on the automotive cycle, which can cause fluctuations in earnings.
Final Verdict: HOLD
Bharat Forge has stable growth prospects, especially from defence and global manufacturing demand. However, the stock already reflects much of the future growth and the auto cycle remains uncertain.
👉 HOLD for long-term investors. Fresh buying may be better at lower levels or during market corrections.
