Pune: Bharat Forge Ltd, the flagship company of the Kalyani Group, has witnessed a 17.4% decline in net profit from ₹282 crore in Q4 FY25 to ₹233 crore this time on account on demand challenges in North American and European markets, along with regulatory changes. This comes at a time when the company’s revenues from operations have actually increased 17.5% to ₹4,528 crore from the same period last year. The company has declared a ₹6.5 final dividend for the financial year ended March 31, 2026 subject to board approval.
Performance Breakdown: Revenue vs. Profit
Despite the challenges in the international markets, the domestic markets have remained a bright spot, especially its industrial and passenger vehicle segments. The company’s renewed focus on its defence and aerospace division has also helped it bag high value orders, offering a hedge against the cyclical nature of the auto sector.
The engineering company also faced challenges with elevated raw material costs along with an increase in interest expenses have contributed to the decline in its net profit, even as the company continues to scale its global manufacturing footprint.
Key Financial Snapshot (Q4 FY26)
| Metric | Q4 FY26 Performance | YoY Change |
| Consolidated Revenue | ₹4,528.3 Crore | ▲ 17.5% |
| Consolidated Net Profit | ₹233.0 Crore | ▼ 17.0% |
| Final Dividend | ₹6.50 per share | 💰 Declared |
“The company secured new orders worth Rs 4,814 Crores in FY26 including Rs 2,816 crores in Defence. The order book for Defence stood at Rs 10,961 crores as of FY26. The order wins across businesses reflect a resurgence in business momentum including in aerospace with onboarding of new customers across Engine, Structural and Landing Gear components.
The US & European operations reported modest operating profits despite weak demand. We have initiated the restructuring of the steel business of CDP Bharat Forge and we expect this process to conclude by end of CY27. The management is pursuing various alternative business opportunities in Europe to leverage its scaled down manufacturing footprint.
Looking ahead into FY27, barring any geopolitical crisis and its impact of demand, we are optimistic of achieving 25% revenue growth with a commensurate increase in EBITDA & profitability for the Indian manufacturing operations driven by execution of orders across business and recovery in the export market.” Baba Kalyani, Chairman and Managing Director, Bharat Forge, said in a press release.
