Bharat Forge Ltd., India’s leading auto and defense component manufacturer, reported its Q4 FY25 earnings, highlighting strong revenue growth but potential challenges in its defense business and tariff impact on exports.
Financial Performance
- Revenue: ₹2,328.5 crore, up 16.6% YoY.
- Net Profit: ₹389.6 crore, marking a 59.3% increase from ₹244.5 crore in Q4 FY24.
- EBITDA: ₹659 crore, reflecting a 35.1% rise, with margins improving to 28.3%.
Challenges in Defence and Export Segments
Despite overall growth, Bharat Forge’s defense business may drag domestic revenue, while the passenger vehicle segment could partially offset weaknesses in the commercial vehicle sector.
Additionally, the impact of U.S. auto tariffs and a decline in Class 8 truck orders in North America remain key concerns for the company.
Market Reaction and Outlook
- Stock Performance: Bharat Forge shares fell 0.9% to ₹1,131 ahead of the results announcement.
- Dividend: The company declared a final dividend of ₹6.50 per share, subject to shareholder approval.
- Future Growth: Bharat Forge expects FY26 to be driven by defense, industrials, and castings, with continued capacity utilization improvements in its overseas business.
With geopolitical uncertainties and trade policy shifts, Bharat Forge remains focused on navigating market challenges while leveraging its diversified business mix for sustained growth.
