Q2 FY27 results analysis · November 05, 2026
Bharat Forge Q2 FY27 Results Analysis: PAT Falls 8%, Margin Compresses 232 bps (BHARATFORG)
−6.9%PAT year on year, Rs. 278.68 Cr
Source: Quarterly results filing (BSE)
Quick summary
Bharat Forge Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 4,869.97 Cr (+20.79% YoY) and PAT growth of -6.90% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 05, 2026 |
|---|---|
| Revenue (Q2) | Rs. 4,869.97 Cr (+20.79% YoY) |
| PAT (Q2) | Rs. 278.68 Cr (-6.90% YoY) |
| EBITDA margin | 15.64% (-232 bps YoY) |
| EPS (Q2) | Rs. 5.77 (-7.83% YoY) |
Quarter Snapshot
Consolidated revenue grew 20.79% YoY with standalone up 29.77%, but consolidated PAT fell 7.80% as input-cost inflation compressed EBITDA margin 232 bps YoY to 15.64%. The Rs.2,000 Cr QIP cut net debt to Rs.4,531.78 Cr and margins showed a first sequential uptick, but defence margins (2.90% EBIT vs 22–23% guided EBITDA) and a Rs.94.96 Cr subsidiary drag are key H2 swing factors against the ~25% India growth guidance.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue "likely ahead" on SIAM/FADA/Class-8 tailwinds | demand recovery flows into dispatches | Consolidated revenue +20.79% YoY; standalone +29.77% YoY | Played out |
| Margin rebound toward ~28% standalone depends on customer recoveries landing | recoveries affect both revenue and cost | Standalone margin 25.83%, +88 bps QoQ — partial | Partially |
| QIP mechanically improves Sep-30 cash/leverage | Rs.2,000 Cr raise inside the window | Cash Rs.2,679.08 vs Rs.847.89; net debt Rs.4,531.78 vs Rs.5,884.68 | Played out |
| Watch BF CDP provisions beyond the Rs.330.42 Cr Q1 social-plan charge | any escalation | Q2 exceptional only Rs.24.57 Cr incidental; no new provision — favorable | No escalation |
| Watch US operations EBITDA swing ("verification quarter") | press breakdowns fixed | US block not disclosed in this filing — open for the call | Not observable |
| Watch tariff drag quantification | fresh Sep 18 overhang | Not quantified in the filing | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| India business growth ~25% FY27 (20–25%, H2-weighted) | Q4 FY26 / Q1 FY27 earnings calls | H1 standalone revenue +20.3% YoY; hitting ~25% for FY27 now requires H2 of ~Rs.5,620.8 Cr, i.e. +29.4% YoY vs FY26 H2 — H2-dependent | On Track |
| Defence EBITDA margin 22–23% FY27 | Q4 FY26 earnings call | Q2 defence segment EBIT margin 2.90% (Q1: 7.61%); segment EBITDA not disclosed | Too Early |
| Defence revenue "better than this year" | Q4 FY26 earnings call | H1 defence revenue +47.0% YoY | On Track |
| India organic capex ~Rs.1,800 Cr FY27 | Q1 FY27 earnings call | H1 consolidated capex Rs.982.49 Cr | On Track |
| BF CDP restructuring completion by end-CY2027; EUR ~30 Mn impact | Q1 FY27 earnings call | Only Rs.24.57 Cr incidental expenses in Q2; no new provision | On Track |
| Fundraise up to Rs.2,500 Cr | Q1 FY27 earnings call | Rs.2,000 Cr QIP completed Sep 17–22, 2026 | On Track |
Key Investment Insights
Key Positives
- Consolidated revenue grew 20.79% YoY to Rs.4,869.97 Cr; standalone revenue grew 29.77% YoY
- Standalone PAT grew 19.65% YoY to Rs.370.82 Cr with EPS of Rs.7.74 vs Rs.6.48
- Standalone EBITDA margin improved 88 bps QoQ to 25.83%, the first sequential uptick after successive declines
- Defence revenue grew 47.0% YoY in H1 to Rs.968.41 Cr; Board approved up to Rs.290.51 Cr additional investment in KSSL
- Rs.2,000 Cr QIP completed; net debt reduced to Rs.4,531.78 Cr from Rs.5,884.68 Cr; consolidated D/E improved to 0.64x from 0.72x
- No new BF CDP social-plan provision in Q2; exceptional limited to Rs.24.57 Cr of incidental expenses
- Others segment revenue grew 27.9% YoY with margin expanding to 7.20% from 6.33%
Risk Factors
- Consolidated PAT-to-owners fell 7.80% YoY despite 20.79% revenue growth; normalized consolidated PAT still −1.4% YoY
- Forgings segment margin fell 249 bps YoY to 12.77% with segment result down 2.8% YoY on input-cost squeeze
- Defence segment EBIT margin fell to 2.90% (Q1: 7.61%), far below management's 22–23% FY27 EBITDA-margin guidance, with no explanation in the filing
- Subsidiaries dragged consolidated PAT Rs.94.96 Cr below standalone PAT; cumulative NCI is negative Rs.19.96 Cr
- Working-capital build: inventories +Rs.639.83 Cr since March; consolidated CFO only 0.25x H1 EBITDA; H1 FCF negative at Rs.(616.22) Cr
- Reaching ~25% FY27 India growth guidance requires H2 growth of ~29.4% YoY vs 20.3% in H1
Ask about this
Ask Cofacto a question about this result. Answers cite filings and company data.
Companies on this page
Related
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.