Bharat Forge standalone profit rises 20% as revenue gains

Bharat Forge Limited reported standalone net profit of Rs 370.83 crore for the quarter ended September 30, 2026, up 19.8% from Rs 309.94 crore a year earlier, as revenue from operations rose 29.8% to Rs 2,526.36 crore. Profit increased despite lower calculated pre-exceptional profit and net-profit margins.

How did Bharat Forge’s standalone September-quarter earnings change?

Bharat Forge’s standalone revenue from operations increased by Rs 579.50 crore year on year to Rs 2,526.36 crore in the quarter ended September 30, 2026, from Rs 1,946.86 crore in the corresponding quarter of 2025. Total income rose to Rs 2,557.23 crore from Rs 1,993.33 crore, while profit before exceptional items and tax increased to Rs 517.83 crore from Rs 438.04 crore.

Bharat Forge reported net profit of Rs 370.83 crore, compared with Rs 309.94 crore a year earlier and Rs 321.40 crore in the preceding quarter ended June 30, 2026. Basic and diluted earnings per share, not annualised, were Rs 7.74, compared with Rs 6.48 a year earlier and Rs 6.72 in the June quarter. The 18.2% increase in profit before exceptional items and tax was lower than the 29.8% growth in revenue.

Bharat Forge’s standalone revenue reached Rs 4,873.77 crore for the half year ended September 30, 2026, compared with Rs 4,051.57 crore in the prior-year half. Half-year net profit rose to Rs 692.22 crore from Rs 648.46 crore. The half-year comparison includes exceptional losses of Rs 45.05 crore in 2026, versus Rs 7.90 crore in the corresponding 2025 period.

Why did Bharat Forge’s margins decline despite higher profit?

Bharat Forge’s calculated pre-exceptional profit-before-tax margin declined to 20.2% in the September 2026 quarter from 22.0% a year earlier, based on profit before exceptional items and tax as a share of total income. Its calculated net-profit margin fell to 14.5% from 15.5% over the same comparison, even as quarterly net profit increased by Rs 60.89 crore.

Raw-material and component consumption increased to Rs 1,127.01 crore from Rs 810.29 crore, a rise of Rs 316.72 crore, while other expenses increased to Rs 667.80 crore from Rs 523.20 crore. Employee-benefit expense rose to Rs 187.48 crore from Rs 167.35 crore and depreciation and amortisation increased to Rs 117.02 crore from Rs 111.20 crore. Inventory changes provided a credit of Rs 108.37 crore, compared with a Rs 105.02 crore credit a year earlier.

Finance costs were nearly unchanged at Rs 48.48 crore in the September 2026 quarter, compared with Rs 48.29 crore a year before. Other income declined to Rs 30.87 crore from Rs 46.46 crore. Bharat Forge also recorded an exceptional loss of Rs 20.56 crore in the quarter, compared with Rs 7.90 crore in the previous-year quarter, reducing profit before tax to Rs 497.27 crore from Rs 430.14 crore.

The exceptional expense related to the restructuring of German subsidiary Bharat Forge CDP GmbH, which Bharat Forge said faces market challenges and associated cost disadvantages. Bharat Forge recorded restructuring-related incidental expenses of Rs 20.56 crore in the standalone September quarter and Rs 44.16 crore in the first half. A voluntary retirement scheme expense of Rs 0.89 crore was recorded in the June 2026 quarter.

How did Bharat Forge’s QIP change cash and net worth?

Bharat Forge’s September 2026 Qualified Institutional Placement, or QIP, raised Rs 2,000 crore through the issue of 1.06 crore equity shares at Rs 1,890 each. The proceeds helped lift standalone cash and cash equivalents to Rs 2,300.46 crore as of September 30, 2026, from Rs 359.06 crore at March 31, 2026.

Of the Rs 2,000 crore QIP proceeds, Bharat Forge said Rs 68.33 crore had been used during the period for equipment and machinery, general corporate purposes and issue-related expenses. The remaining Rs 1,931.67 crore was placed with banks. Directly attributable QIP transaction costs of Rs 35.57 crore were adjusted against securities premium, while the new shares were included in the September-quarter and half-year earnings-per-share calculation.

Standalone total equity increased to Rs 13,425.64 crore at September 30, 2026, from Rs 10,988.24 crore at March 31, 2026. Equity share capital rose to Rs 97.74 crore from Rs 95.63 crore, and other equity increased to Rs 13,327.90 crore from Rs 10,892.61 crore. Total assets rose to Rs 20,661.97 crore from Rs 17,527.90 crore, including a rise in current assets to Rs 10,104.86 crore from Rs 7,398.36 crore.

Bharat Forge generated standalone operating cash flow of Rs 1,019.76 crore in the half year ended September 30, 2026, compared with Rs 187.22 crore in the prior-year half. Investing activities used Rs 284.45 crore, against an inflow of Rs 261.31 crore a year earlier, while financing activities generated Rs 2,038.14 crore, compared with an outflow of Rs 117.05 crore. The financing change includes the Rs 2,000 crore QIP alongside dividend, interest and borrowing flows.

Conclusion

Bharat Forge delivered higher standalone revenue and net profit in the September 2026 quarter, with revenue increasing 29.8% and profit rising 19.8% year on year. The results also show lower calculated margins as raw-material costs, other expenses and restructuring charges increased, while the QIP substantially increased cash balances and standalone equity.

Next, investors can watch the deployment of Rs 1,931.67 crore of unspent QIP proceeds. Bharat Forge identified capital expenditure, repayment of buyers’ credit, investment in wholly owned subsidiary Kalyani Strategic Systems Limited, product and technology development, investment in Agneyastra Energetics Limited and general corporate purposes as QIP objectives; its board also approved further investment of up to Rs 290.51 crore in Kalyani Strategic Systems Limited in one or more tranches.