SYNOPSIS: Bharat Forge reported Q2 FY26 revenue of Rs. 4,032 crore, up 3 percent QoQ and 9 percent YoY, with net profit at Rs. 299 crore. Strong domestic and defence growth offset weak North American demand; order book stood at Rs. 9,467 crores.
During Thursday’s trading session, shares of a technology-driven global leader in providing safety-critical components and solutions for several sectors, including automotive, rail, marine, defence & aerospace and more, surged nearly 6 percent on BSE, after reporting Q2 FY26 financial results.
At 03:08 p.m., shares of Bharat Forge Limited were trading in the green at Rs. 1,398.45 on BSE, up by around 5.4 percent, as compared to its previous closing price of Rs. 1,327.15, with a market cap of Rs. 66,643 crores.
So far in 2025, the stock has delivered positive returns of 8 percent in one year, and has gained by more than 14 percent in the last one month.
What’s the News:
Bharat Forge Limited announced the financial results for the second quarter of FY26 on Tuesday during market hours, as per the latest regulatory filings with the stock exchanges.
For Q2 FY26, the company posted a consolidated revenue from operations of Rs. 4,032 crores, reflecting a sequential rise of around 3 percent QoQ compared to Rs. 3,908.7 crores in Q1 FY26, and a year-on-year marginal increase of over 9 percent from Rs. 3,688.5 crores recorded in Q2 FY25.
During the same period, Bharat Forge’s net profit stood at Rs. 299.3 crores, representing a marginal increase of nearly 5.4 percent QoQ from Rs. 284 crores, as well as a significant growth of around 23 percent YoY from Rs. 243.3 crores.
The quarterly performance was partially impacted by lower North American truck production and subsequent inventory destocking. Standalone revenue declined 7.5 percent sequentially to Rs. 1,947 crore, primarily due to a 16 percent fall in revenue from North America. Commercial vehicle (CV) exports to the region fell 48 percent QoQ and 63 percent YoY.
The company maintained a strong balance sheet, with cash reserves of Rs. 2,309 crore and a net return on capital employed (ROCE) of 15.5 percent. Its Indian manufacturing operations, a key growth driver, reported revenues of Rs. 2,746 crore and an EBITDA of Rs. 676 crore.
For the quarter ended September 30, 2025, the company reported a total segment revenue of Rs. 4,337.8 crore. The Forgings segment contributed the majority share with Rs. 3,355.53 crore, accounting for around 77 percent of the total revenue.
The Defence segment generated Rs. 394.51 crore, representing about 9 percent, while the Others segment added Rs. 587.76 crore, contributing roughly 14 percent. After adjusting for inter-segment revenue of Rs. 305.88 crore, the company’s revenue from operations stood at Rs. 4,032 crore for the quarter.
During H1 FY26, Bharat Forge secured new orders worth Rs. 1,582 crore, including Rs. 559 crore from the Defence segment. As of H1 FY26, its Defence order book stood at Rs. 9,467 crore. Management indicated expectations of additional order wins in ongoing Defence platforms and projects in the coming quarters.
In international markets, the company’s US and European operations experienced weakness, impacted by seasonality and subdued market sentiment. The review of its European steel manufacturing footprint is progressing as planned, with definitive restructuring measures expected by the end of FY26.
Looking ahead, the company anticipates continued weakness in exports to North America during H2 FY26, given the challenging demand environment. However, this is expected to be offset by strong growth in India’s industrial business, expanding exports to non-US geographies, and the ramp-up in the Defence segment.
The company’s India manufacturing operations, focusing on opportunities in Defence, Aerospace, Castings, and Aggregates, continue to show steady progress, reinforcing Bharat Forge’s long-term growth trajectory and diversified business model.
Bharat Forge Limited is a global leader in high‑performance, safety-critical components and solutions across a wide spectrum of industries, including automotive, aerospace, defence, railways, marine, oil & gas, construction, and industrial equipment.
As India’s largest auto component exporter and one of the world’s foremost manufacturers of powertrain and chassis systems, the company combines advanced design capabilities, dual-shore manufacturing, and end-to-end supply solutions. Bharat Forge leverages deep expertise in steel and aluminium across forgings and castings to deliver reliable, precision-engineered products to global markets.
Written by Shivani Singh
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