Bharat Forge slips after recording loss of Rs 89 crore for Q1 FY27
Revenue for the period under review was Rs 4,639.94 crore, up 18.7% YoY. On the segmental front, revenue from Forgings vertical was Rs 3,831.14 crore (up 7.7% YoY) while that from the Defence business was Rs 495.68 crore (up 87.5% YoY). Revenue reported under the 'Others' segment was Rs 627.86 crore (up 125% YoY).
Total operating expenditure increased by 32.7% to Rs 4,299.75 crore in Q1 FY27 over Q1 FY26, primarily due to higher raw material costs (up 22.5% YoY), higher employee expenses (up 15.5% YoY) and higher other expenses (up 59.1% YoY).
Bharat Forge has recorded an exceptional charge of Rs 358 crore in the June'26 quarter.
The company said that one of its German subsidiary companies, Bharat Forge CDP GmbH (BF CDP) is facing market challenges and associated cost disadvantages The company has initiated actions for restructuring of BF CDP. In relation to restructuring of BF CDP, the company has recorded incidental expenses of Rs 26.69 crore in the consolidated financial results for the quarter ended 30 June 2026.
In conjunction with the said restructuring, BF CDP has reached an in principal understanding with the Works Council for implementation of a social plan. The Group has recorded a restructuring provision of Rs 330.42 crore in the consolidated financial results for the quarter ended 30 June 2026.
The company has recorded an expense of Rs 0.89 crore related to the Voluntary Retirement Scheme (VRS) in the consolidated financial results for the quarter ended 30 June 2026.
Profit before tax in Q1 FY27 stood at Rs 44.44 crore, down 89.2% from Rs 410.99 crore in Q1 FY26.
Seperately, Bharat Forge said that its board has approved a fund-raising plan of up to Rs 2,500 crore through equity shares, debt securities, convertible securities or a combination thereof, subject to shareholder and regulatory approvals. The Investment Committee ? Strategic Business has been authorised to determine the issue structure, size, pricing, timing and other terms of the fund raise.
Pune-based Bharat Forge is a technology-driven global leader in providing high-performance, innovative safety-critical components and solutions for several sectors, including automotive, power, oil and gas, construction & mining, rail, marine, defense, and aerospace. The company has a global manufacturing footprint with a presence across five countries.
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