Conference Call with Bharat Forge Management and Analysts on Q1FY26 Performance and Outlook. Listen to the full earnings transcript.
Castings & Forgings company Bharat Forge announced Q1FY26 results Revenue: Rs 21,047 million compared to Rs 23,381 million during Q1FY25. EBITDA: Rs 5,878 million compared to Rs 6,576 million during Q1FY25. EBITDA margin at 27.9% in Q1FY26, 120 bps lower QoQ, driven by tariff costs and unfavorable product mix. PBT before Exchange gain/ (loss) coming in at Rs 4,653 million for Q1FY26, 8% and 11% lower than Q4FY25 & Q1FY25 respectively. B.N. Kalyani, Chairman & Managing Director, said: “During the quarter, the company faced challenging market conditions in our export markets caused by tariff & regulatory uncertainties. Standalone Revenues declined by 2.7% sequentially to Rs 2,105 crore, impacted by 12.7% drop in Exports revenues. For the quarter, EBITDA came in at Rs 588 crore (EBITDA margins of 27.9%) and PBT of Rs 465 crore. Consolidated revenue was Rs 3,909 Crore and Consol EBITDA margin was 17.5%. During the quarter, the company secured new orders worth Rs 847 crore including Rs 269 crore in Defence. As of Q1FY26, the defence order book stood at Rs 9,463 crore. For the defence vertical, based on the project / platforms we have participated in, we expect to secure new orders in this fiscal year generating more revenue visibility for the future years. The US & European operations witnessed meaningful improvement in financial performance in the Apr – Jun quarter and are generating cash profit. Review of the European steel manufacturing footprint is on track, and we expect to have concrete steps in place by the end of this year. Given the recent tariff announcement by the US government and changes to emission regulation in North America, we are cautious on the outlook for the US export business for the reminder of the fiscal. FY26 is likely to be a challenging period, given where we are in the overall cycle and our geographical exposure. Our focus is on capturing opportunities in businesses & geographies which are relatively unaffected and work simultaneously on cost optimization to minimize impact of operating deleverage.” Result PDF