Bharat Forge Q3: Net profits surge 28%, order book and revenue from defence sector explained

Synopsis: Bharat Forge shares rose over 4% after Q3FY26 results, with strong YoY revenue (+25%) and profit growth, a robust defence order book of Rs. 11,130 cr, and optimism for FY27, including ATAGS execution and double-digit growth.

The shares of the company that are engaged in the manufacturing and selling of forged and machined components for the auto and industry sector are in the spotlight after it rose by 4% following Q3 results with 25% revenue growth and a strong defence order book.

With a market capitalisation of Rs. 81,636 cr, the shares of Bharat Forge Ltd were trading at Rs. 1,707.55 per share, increasing over 4% in today’s market session, making a high of Rs. 1,750, up from its previous close of Rs. 1,676.70 per share. 

Q3 FY26 Results

Revenue increased from Rs. 3,475.5 cr in Q3 FY25 to Rs. 4,342.8 cr in Q3 FY26, a growth of 25% YoY. EBITDA grew from Rs. 637.7 cr to Rs. 750.2 cr, up 18% YoY, while PBT before exceptional items rose from Rs. 352.2 cr to Rs. 460 cr, marking a 31% YoY improvement. Net profit increased by 28% from Rs. 212.7 cr to Rs. 272.8 cr over the same period.

Revenue improved from Rs. 4,032 cr in Q2 FY26 to Rs. 4,342.8 cr in Q3 FY26, showing a 8% QoQ increase. EBITDA increased from Rs. 715.4 cr to Rs. 750.2 cr, a 5% QoQ rise, and PBT before exceptional items moved up from Rs. 445.2 cr to Rs. 460 cr, up 3% QoQ. Net profit decreased by 9% from Rs. 299.2 cr to Rs. 272.8 cr over the same period.

The company has declared an interim dividend of Rs. 2 per equity share, and the dividend will be paid on or before Thursday, March 12, 2026 to shareholders whose names appear in the Register of Members or in the depository records as beneficial owners on the Record Date, Wednesday, February 18, 2026.

For Q3FY26, the company reported a total segment revenue of Rs. 4,619.1 cr. Of this, Forgings contributed Rs. 3,367 cr, Defence Rs. 681.9 cr, and Others Rs. 570 cr. After deducting inter-segment revenue of Rs. 276.2 cr, the revenue from operations was Rs. 4,342.9 cr

As of December 31, 2025, the Defence order book stood at Rs. 11,130 crore. In Q3, the company secured new orders totalling Rs. 2,388 crore, of which Rs. 1,878 crore came from the Defence segment. It signed the CQB Carbine contract with the Ministry of Defence for the supply of over 250,000 units to the Indian Armed Forces. This order paves the way for substantial growth opportunities for the Small Arms vertical within the Defence business.

For Q3FY26, Bharat Forge’s total export revenue stood at Rs. 909.7 crore, compared to Rs. 1,151 crore in Q3FY25, marking a year-on-year decline of approximately 21%. The overall reduction was largely driven by lower shipments in the Commercial Vehicles segment, especially to North America.

The Commercial Vehicles (CV) segment saw revenue drop sharply from Rs. 499.3 crore in Q3FY25 to Rs. 246.3 crore in Q3FY26, a decline of nearly 51%, primarily due to lower production and inventory de-stocking. Early indicators, such as net orders and a rising order backlog, suggest that the worst of the downturn in North American truck exports may be over.

The Passenger Vehicles (PV) segment performed relatively well in a seasonally weak quarter, with exports increasing from Rs. 242.8 crore to Rs. 259.8 crore. This was supported by improving consumer confidence as trade disputes subside, which is expected to drive higher personal mobility spend.

The Industrial segment showed mixed performance, with revenue marginally declining from Rs. 408.9 crore to Rs. 403.6 crore. Stronger execution in HHP engines and Aerospace helped offset weakness in the Oil & Gas sector, which continued to be affected by low crude prices.

Export Segmentation by Geography 

For Q3 FY26, the company’s export revenue was Rs. 909.7 crore, compared to Rs. 1,151 crore in Q3 FY25, showing a year-on-year decline. By geography, exports to the Americas decreased from Rs. 854.0 crore to Rs. 535.5 crore, while Europe rose from Rs. 233.3 crore to Rs. 298.8 crore, and Asia Pacific increased from Rs. 63.7 crore to Rs. 75.4 crore. Overall, total exports fell YoY, primarily due to lower shipments to the Americas, partially offset by growth in Europe and the Asia Pacific.

Looking ahead to Q4 and FY27, Chairman Baba Kalyani expressed optimism, noting that the company has passed its most challenging phase. He highlighted robust demand in both domestic and international markets across sectors. 

The execution of the ATAGS project is set to begin in the second half of FY27, and the company anticipates strong double-digit revenue growth along with a proportional improvement in profitability.

Bharat Forge Ltd is a leading Indian multinational company specialising in manufacturing forged and machined components for the automotive, industrial, and defence sectors. It serves global markets, offering high-quality solutions in commercial and passenger vehicles, aerospace, and defence equipment.

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