Q3 2026 Bharat Forge Ltd Earnings Call Transcript
Key Points
- Bharat Forge Ltd (BOM:500493) reported a 7% sequential increase in stand-alone revenues, reaching INR2,084 crores, with an EBITDA growth of 4.6% quarter on quarter.
- The company experienced strong growth in its domestic automotive business and defense order execution, contributing positively to its performance.
- Indian subsidiaries performed well, with JSA's top line and EBITDA growing by 22% and 39%, respectively.
- The company secured new business worth INR2,388 crores across key sectors, including defense and components.
- Bharat Forge Ltd (BOM:500493) has a strong balance sheet with a low debt-to-equity ratio of 0.15, and plans to reduce long-term debt to INR600 crores by year-end.
- Export revenues were adversely impacted by continued destocking in the North American truck market, with revenues down 51% compared to the previous year.
- The company faced a one-time impact of INR487 million due to changes in labor code, affecting gratuity provisions for past services.
- The European operations experienced patchy demand due to the holiday season, with utilization levels at 60% to 65%.
- The US aluminum business faced profitability challenges due to tariffs, with current utilization levels at about 65%.
- Bharat Forge Ltd (BOM:500493) is evaluating restructuring operations for its European steel business due to ongoing challenges in the region.
Ladies and gentlemen, good day, and welcome to Bharat Forge Limited Q3 and nine months FY26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Amit Kalyani, Vice Chairman and Joint Managing Director, Bharat Forge Limited. Thank you, and over to you, Mr. Kalyani.
Thank you. Good afternoon, ladies and gentlemen, and thank you for your time and interest in joining our earnings call for the third quarter FY26. I trust that you've seen the numbers and gone through what we've put out. Before that, I'll introduce you to the team that I have with us. I have my colleague from the Board, Subodh; I have our Group CFO; I have our CFO, Kedar; our Head of Investor Relations, Raj and his colleague, Chinmay.
And we are happy to take you through our quarter and answer whatever questions you have. So over to Kedar, and he'll take you through our synopsis.
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