Conference Call with Bharat Forge Management and Analysts on Q2FY26 Performance and Outlook. Listen to the full earnings transcript.
Castings & Forgings company Bharat Forge announced Q2FY26 results Revenue from Operations: Rs 40,319 million against Rs 36,886 million during Q2FY25. EBITDA: Rs 7,154 million against Rs 6,895 million during Q2FY25. PBT: Rs 4,582 million against Rs 3,857 million during Q2FY25. B.N. Kalyani, Chairman & Managing Director, said: “The quarterly performance was impacted by the sharp decline in the North American truck production and the resulting inventory destocking. Standalone Revenues declined by 7.5% sequentially to Rs 1,947 crore, impacted by 16% drop in revenues to North America. CV exports to North America declined by 48% sequentially and 63% on a YoY basis. Because of the constant endeavor towards de-risking the business, the impact was minimized with EBITDA coming in at Rs 545 crore (EBITDA margins of 28%) and PBT of Rs 432 crore. Consolidated revenue & EBITDA in Q2 came in at Rs 4,032 crore and Rs 715 crore respectively. The balance sheet remains robust with Cash of Rs 2,309 crore and ROCE (net) of 15.5%. Indian manufacturing, a key focus area and growth driver for the company registered revenues of Rs 2,746 crore and EBITDA of Rs 676 crore. The company secured new orders worth Rs 1,582 crore including Rs 559 crore in Defence in H1FY26. As of H1FY26, the defence order book stood at Rs 9,467 crore. We have transferred all the Defence dedicated assets of Bharat Forge to our wholly owned subsidiary KSSL. On the business front we expect to conclude more order wins for platforms/ projects we have participated in. The US & European operations saw weakness driven by seasonality and prevailing sentiments. Review of the European steel manufacturing footprint is on track, and we expect to have concrete measures in place by the end of this fiscal. Given the challenging demand conditions in North America, we are witnessing exports into that region declining further in H2FY26. However, we expect the industrial business across India, exports to non-US geographies and ramp up in defence business to more than offset the weakness in US exports. Our India manufacturing operations focusing on capturing opportunities in Defence, Aerospace, Castings and Aggregates across markets continue to make steady progress in their journey.” Result PDF