Bharat Forge Limited Earnings Summary — Q1 FY2027
Bharat Forge Reports Revenue Growth Driven by Defense Expansion Despite Restructuring Blow to Net Profit
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 7 consecutive quarters.
- Revenue of ₹4,640 Cr is 18.7% higher year-on-year.
- Revenue has compounded at 4.9% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹-90 Cr is 131.6% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -0.7% annualised across the period.
- Operating margin stands at 15.1% in Q1 FY2027.
- Operating margin compressed by 208 bps year-on-year.
- Over the last two years operating margin has contracted by 300 bps.
- PBT margin is 1.0%.
- Expenses grew 21.7% against revenue growth of 18.7%.
- Operating profit of ₹698 Cr is 4.3% higher year-on-year.
- Operating leverage has been under pressure recently.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 52/100 (Moderate) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 4,640 | 4,528 | 4,343 | 4,032 | 3,909 | 3,853 | 3,476 | 3,689 | 4,106 | 4,164 |
| Expenses | Stable | 3,942 | 3,751 | 3,597 | 3,308 | 3,239 | 3,174 | 2,853 | 3,042 | 3,365 | 3,521 |
| Operating Profit | Stable | 698 | 777 | 746 | 724 | 670 | 679 | 623 | 647 | 741 | 643 |
| Operating Margin | Stable | 15.1% | 17.2% | 17.2% | 18.0% | 17.1% | 17.6% | 17.9% | 17.5% | 18.1% | 15.4% |
| Other Income | Declining | -301 | -46 | -13 | 54 | 50 | 57 | 38 | 62 | -99 | 45 |
| Interest | Stable | 90 | 84 | 77 | 80 | 82 | 88 | 96 | 110 | 124 | 116 |
| Depreciation | Stable | 263 | 255 | 249 | 241 | 226 | 224 | 218 | 213 | 218 | 207 |
| Profit Before Tax | Declining | 44 | 392 | 407 | 457 | 411 | 424 | 347 | 385 | 300 | 366 |
| Tax | Stable | 134 | 159 | 134 | 158 | 127 | 141 | 134 | 142 | 125 | 139 |
| Net Profit | Volatile | -90 | 233 | 264 | 299 | 284 | 282 | 213 | 244 | 203 | 236 |
| Net Margin | Volatile | -1.9% | 5.1% | 6.1% | 7.4% | 7.3% | 7.3% | 6.1% | 6.6% | 4.9% | 5.7% |
Key Takeaways
- Consolidated revenue grew by 18.7% YoY to ₹46,399 million, driven by strong growth in the Forgings and Defense segments.
- The company reported a consolidated net loss of ₹899 million due to a massive ₹3,580 million exceptional item related to restructuring at its German subsidiary, Bharat Forge CDP GmbH.
- Restructuring at BF CDP included a social plan provision of ₹3,304 million and incidental expenses for redundancy.
- Defense segment revenue surged significantly to ₹4,957 million in Q1 FY2027 compared to ₹2,644 million in Q1 FY2026.
- The Board approved fund raising through various equity/debt instruments and the incorporation of a new semiconductor subsidiary in Malaysia.
- Consolidated operating margins contracted to 15.05% from 17.13% a year ago, reflecting cost disadvantages in European operations.
Management Guidance
Management has initiated comprehensive restructuring of European operations (specifically BF CDP) to address market challenges and cost disadvantages, while simultaneously expanding the strategic focus toward semiconductors and defense.
Sentiment Shift
Deteriorating
While top-line growth and defense segments remain robust, the significant restructuring costs in Europe and the resulting consolidated loss weigh heavily on near-term performance.
Outlook
The outlook is mixed; strong tailwinds in the domestic defense and industrial sectors are offset by operational headwinds in the German forging business which is currently undergoing painful restructuring.
From the Annual Report (Key Quotes)
“Bharat Forge CDP GmbH (BF CDP) is facing market challenges and associated cost disadvantages. The Company has initiated actions for restructuring.”
“Incorporation of a subsidiary in Malaysia, for undertaking activities in the field of semi-conductor and allied areas.”
“BF CDP has reached an in principal understanding with the Works Council for implementation of a social plan.”
Official Quarterly Documents
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This summary is AI-generated from Bharat Forge Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.