This Defence stock, engaged in manufacturing high-performance forged and machined components for various industries, including automotive, defence, aerospace, and energy, offering innovative solutions across global markets, is in focus after the company announced its Defence business is expected to grow by 15-20 percent in FY26.
With a market capitalization of Rs. 56,701.31 crore, the shares of Bharat Forge Limited were currently trading at Rs. 1,189.15 per equity share, rising nearly 1.98 percent from its previous day’s close price of Rs. 1,166.05.
Bharat Forge, established in 1961, is a leading global provider of forged and machined components. Headquartered in India, it serves the automotive, defence, aerospace, energy, and industrial sectors, offering innovative engineering and metal-forming solutions worldwide.
Bharat Forge has ramped up its Defence sales and expects significant growth in the coming years. With the execution of the advanced towed artillery gun systems (ATAGS) order set to begin in the next few months, Baba Kalyani, Chairman of Bharat Forge, expects the company’s Defence business to grow by 15–20 percent in FY26. Currently, Bharat Forge has a robust Defence order book exceeding Rs. 9,500 crore, which is expected to be executed over the next three to four years.
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Bharat Forge secured new orders worth Rs. 6,959 crore across all its main business areas. Out of this, Rs. 5,000 crore came from the Defence sector, Rs. 1,685 crore from its regular standalone operations, and Rs. 245 crore from its joint venture, JS Auto, in FY25. The company’s management has highlighted that many new opportunities are coming up, both in India and globally.
In FY25, Bharat Forge allocated Rs. 750 crore for capital expenditure (CAPEX) in India, completed its overseas greenfield project for aluminum in the US. For FY26, the expected CAPEX guidance for both standalone and consolidated operations is around Rs. 500 crore, with no major overseas CAPEX plans for FY26.
Bharat Forge operates 15 manufacturing facilities across India, Germany, Sweden, France, and North America. The company has a production capacity of 643,750 MTPA for steel forging, 52,400 MTPA for aluminum casting, and 77,760 MTPA for iron casting.
Coming into the financial highlights, Bharat Forge Limited’s revenue has decreased from Rs. 4,164 crore in Q4 FY24 to Rs. 3,853 crore in Q4 FY25, which is a decrease of 7.47 percent. The net profit has grown by 24.67 percent from Rs. 227 crore in Q4 FY24 to Rs. 283 crore in Q4 FY25.
Bharat Forge Limited’s revenue and net profit have grown at a CAGR of 13.42 percent and 21.21 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE should be 13.1 percent and 12.3 percent, respectively. Bharat Forge Limited has an earnings per share (EPS) of Rs. 19.7, and its debt-to-equity ratio is 0.72x.
Written By – Nikhil Naik
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