Bharat Forge revenue rose 29.8% on truck-demand rebound

Bharat Forge Limited reported Q2 FY27 standalone revenue of Rs 252.64 crore, up 29.8% year on year, as commercial-vehicle export revenue rose 96.2% and domestic commercial-vehicle production increased. Export revenue reached Rs 130.88 crore, while domestic revenue including other operating revenue was Rs 121.76 crore.

What drove Bharat Forge’s 29.8% standalone revenue growth?

Bharat Forge’s Q2 FY27 standalone revenue growth was driven by a rebound in North American truck demand, stronger domestic commercial-vehicle demand and improved exports. Revenue from operations increased to Rs 252.64 crore from Rs 194.69 crore in Q2 FY26 and Rs 234.74 crore in Q1 FY27. That represented growth of 29.8% year on year and 7.6% quarter on quarter.

Sale tonnage increased 25.2% year on year to 70,703 tonnes in Q2 FY27 from 56,458 tonnes in Q2 FY26. The company reported export revenue of Rs 130.88 crore and domestic revenue of Rs 121.76 crore in its standalone profit and loss statement. The domestic figure includes Rs 13.72 crore of other operating revenue, while the domestic segment review reports Rs 108.04 crore of segment revenue.

For H1 FY27, Bharat Forge reported standalone revenue from operations of Rs 487.38 crore, up 20.3% from Rs 405.16 crore in H1 FY26. Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 12.0% to Rs 126.87 crore, while profit before tax, or PBT, before exceptional items increased 12.6% to Rs 101.03 crore. Both profit measures increased more slowly than revenue during the half year.

How much did exports contribute to Bharat Forge’s quarter?

Bharat Forge’s export revenue rose 38.9% year on year to Rs 130.88 crore in Q2 FY27, led by commercial vehicles. Commercial-vehicle exports increased 96.2% to Rs 55.80 crore from Rs 28.44 crore in Q2 FY26 and were 16.5% above Rs 47.91 crore in Q1 FY27. Bharat Forge attributed this performance to inventory restocking, a rebound in North American truck volumes, and modest volume and market-share gains in Europe.

Passenger-vehicle exports increased 20.0% year on year to Rs 35.40 crore, supported by broad-based growth in North America and Europe. Industrial exports rose 9.5% to Rs 39.68 crore. Bharat Forge said industrial growth was primarily supported by oil and gas and stable growth in new business verticals, although construction and mining had a weak quarter.

The Americas generated Rs 85.50 crore, or 65.3% of Q2 FY27 exports, and recorded 47.4% year-on-year growth. Europe contributed Rs 37.65 crore, or 28.8% of exports, after growing 31.3%, while Asia Pacific generated Rs 7.73 crore and grew 2.7%. The Americas added Rs 27.50 crore of revenue from Q2 FY26, compared with Europe’s Rs 8.98 crore increase.

How did Bharat Forge’s domestic business perform?

Bharat Forge’s domestic segment revenue increased 19.3% year on year to Rs 108.04 crore in Q2 FY27, with commercial vehicles and passenger vehicles posting the fastest gains. Domestic commercial-vehicle revenue rose 43.9% to Rs 32.09 crore from Rs 22.31 crore in Q2 FY26. It also increased 28.3% from Rs 25.01 crore in Q1 FY27 as higher industry production lifted demand.

Passenger-vehicle revenue reached Rs 12.04 crore, rising 32.0% year on year and 16.0% sequentially. Bharat Forge said passenger-car industry production ramped up ahead of festive demand. Commercial vehicles and passenger vehicles together added Rs 12.01 crore of year-on-year segment revenue, compared with a Rs 4.75 crore increase in industrial revenue.

Domestic industrial revenue was Rs 63.90 crore, up 8.0% from Rs 59.15 crore in Q2 FY26 but down 3.6% from Rs 66.31 crore in Q1 FY27. Bharat Forge attributed the year-on-year increase to execution in non-defence industrial activities, including heavy-horsepower engines and farm equipment. Management said commercial-vehicle growth rates could revert to more modest levels in H2 because of a higher year-on-year base.

What happened to Bharat Forge’s profitability and margins?

Bharat Forge’s standalone EBITDA increased 20.2% year on year to Rs 65.46 crore in Q2 FY27, while EBITDA margin declined to 25.9% from 28.0% in Q2 FY26. The margin was also 30 basis points below 26.2% in Q1 FY27. Bharat Forge attributed the sequential margin decline to higher energy, freight and manufacturing costs.

PBT before exceptional items rose 20.5% year on year to Rs 52.00 crore, with the company citing improved export performance. Exceptional items were a loss of Rs 2.06 crore, compared with a Rs 0.79 crore loss in Q2 FY26. An exchange loss of Rs 0.22 crore compared with an exchange gain of Rs 0.64 crore a year earlier, leaving reported PBT at Rs 49.72 crore.

Profit after tax was Rs 37.08 crore in Q2 FY27, compared with Rs 30.99 crore in Q2 FY26 and Rs 32.14 crore in Q1 FY27. On a consolidated basis, revenue rose 20.8% year on year to Rs 487.00 crore, while EBITDA increased 8.8% to Rs 77.80 crore. Bharat Forge said standalone automotive exports and non-defence industrial operations drove most sales improvement, while higher energy and manufacturing inputs affected consolidated margins.

Conclusion

Bharat Forge’s Q2 FY27 standalone growth was led by commercial-vehicle exports, which reached Rs 55.80 crore after a 96.2% year-on-year increase, and by domestic commercial vehicles, which rose 43.9%. The Americas accounted for 65.3% of exports, while EBITDA margin declined from 28.0% a year earlier to 25.9% amid higher energy, freight and manufacturing costs.

Management continues to expect Indian manufacturing revenue growth of 20% to 25% in FY27. It said ATAGS manufacturing will begin in FY27, with revenue recognition expected from Q1 FY28 after Bulk Production Clearance, while its more than Rs 2,000 crore capital-expenditure programme is scheduled to come online in phases over 12 to 18 months and is expected by management to drive growth from FY29. Management is also conducting a strategic review of overseas operations, whose performance it said remains below expectations.