Bharat Forge Subsidiary JS Auto Cast Secures ₹300 Crore Investment from Premji Invest

Bharat Forge Limited announced on February 2, 2026, that its step-down subsidiary, JS Auto Cast Foundry India Private Limited, has secured a significant equity investment from Premji Invest. The deal involves a primary capital infusion of ₹300 crore, marking a strategic move to scale operations in the ferrous casting sector. Following the announcement, shares of Bharat Forge witnessed a sharp uptick, reflecting investor confidence in the subsidiary's growth trajectory.

Strategic Equity Infusion

The investment was facilitated through a primary infusion into JS Auto Cast, with Premji Invest acquiring a 23% stake on a fully diluted basis. The transaction was executed through the PI Opportunities Fund I Scheme II, an affiliate of the Premji Invest Group. This partnership is designed to support JS Auto Cast in its next phase of expansion, focusing on both organic growth and strategic market consolidation. PwC Investment Banking served as the sole financial advisor to Bharat Forge for this transaction.

Details of the Transaction

Under the definitive agreements, the investor will subscribe to equity shares and compulsorily convertible preference shares (CCPS). The deal is subject to customary regulatory and closing conditions, with an expected completion date by March 31, 2026. JS Auto Cast has been a part of the Bharat Forge group since 2022 and has emerged as a critical contributor to the parent company’s consolidated financials. As of March 31, 2025, the subsidiary contributed approximately 4.61% to Bharat Forge’s consolidated income, amounting to ₹697.07 crore.

Strategic Roadmap for Capital Utilization

The fresh capital of ₹300 crore is earmarked for several key initiatives. JS Auto Cast plans to accelerate its growth by expanding existing casting capacities and investing in medium casting capabilities. Furthermore, a portion of the funds will be utilized for potential acquisitions aimed at consolidating the currently fragmented ferrous casting industry in India. This move aligns with Bharat Forge's broader strategy to strengthen its industrial and automotive application offerings.

Financial Performance of JS Auto Cast

Since its acquisition by Bharat Forge in 2022, JS Auto Cast has demonstrated robust financial health. The company has reported consistent growth across various metrics, driven by a diversified product mix and an expanding international customer base. The subsidiary's focus on critical ferrous castings for industrial and automotive sectors has allowed it to maintain high profitability margins while scaling its export operations.

Leadership Perspectives on the Partnership

Amit Kalyani, Vice Chairman and Joint Managing Director of Bharat Forge, noted that the partnership with Premji Invest marks a pivotal moment for JS Auto Cast. He emphasized that the investment would provide the necessary leverage to scale operations and solidify the company's market position. Manoj Jaiswal, Partner at Premji Invest, highlighted that collaborating with leading conglomerates like Bharat Forge is a strategic pillar for their fund, aiming to build a premier ferrous casting platform in the country.

Market Response and Stock Performance

The equity market reacted positively to the news, with Bharat Forge shares surging over 5% during Monday's trading session. Although the stock pared some gains toward the end of the day, it closed 4.65% higher at ₹1,441.60. Over the past six months, the stock has gained approximately 22.44%, outperforming several sectoral benchmarks. Investors appear to be pricing in the long-term benefits of the capital infusion and the potential for higher margins from the subsidiary's expansion.

Recent Operational Milestones

Beyond the equity deal, Bharat Forge has been active in the defence sector. Last month, the company secured contracts worth approximately ₹300 crore under the government’s Emergency Procurement-VI framework. these contracts involve the supply of indigenous unmanned systems, including Intelligence, Surveillance, and Reconnaissance (ISR) platforms like Omega One and Bayonet, for the Indian Army and Navy. This diversification into high-tech defence systems complements the company's traditional forging and casting business.

Financial Health of Bharat Forge

Bharat Forge reported a consolidated net profit of ₹299.27 crore in Q2 FY26, a 23% increase compared to the same period in the previous year. Revenue from operations for the quarter ended September 30, 2025, rose by 9.31% to ₹4,031.92 crore. The company continues to maintain a strong market capitalization, which stood at approximately ₹69,022 crore following the latest share price movement.

Industry Consolidation and Outlook

The ferrous casting industry in India remains highly fragmented, providing significant opportunities for organized players to gain market share through acquisitions. By partnering with Premji Invest, JS Auto Cast is well-positioned to lead this consolidation. The focus on medium casting capabilities is particularly relevant as automotive and industrial manufacturers seek more complex and reliable components for modern applications.

Conclusion and Closing Timeline

The transaction is on track to close by the end of the current fiscal year. The primary infusion of ₹300 crore will not only strengthen JS Auto Cast’s balance sheet but also allow Bharat Forge to focus its internal accruals on other high-growth segments like aerospace and renewable energy. As the company moves toward the March 31 deadline, market participants will be watching for the final regulatory approvals and the subsequent deployment of capital into new projects.