Bharat Forge shares surged 8.15% on Thursday to an intraday high of ₹2,026.60, after the auto and engineering major reported a strong rise in quarterly revenue and EBITDA. The stock move came even though net profit fell year on year, as investors focused on the company’s operating performance, dividend announcement and upbeat management commentary.

Revenue and EBITDA improve

For Q4 FY26, Bharat Forge reported consolidated revenue of ₹4,528 crore, up 17.5% year on year, while EBITDA rose 14.3% to ₹778 crore. EBITDA margin came in at 17.2%, slightly lower than 17.7% in the year-ago quarter, showing some pressure on profitability but still reflecting healthy execution.

Profit hit by one-time charge

Net profit declined 17.4% year on year to ₹233 crore from ₹282.6 crore, mainly because of an exceptional one-time loss of ₹98.7 crore. The company said the quarter was affected by impairment, restructuring and other exceptional costs, even as its core business delivered a stronger operating performance.

Management highlights recovery

Bharat Forge said Q4 marked a strong sequential recovery, supported by improved export demand, resilient domestic automotive performance and continued momentum in industrial and defence businesses. Chairman and managing director Baba Kalyani said the company delivered a resilient FY26 performance despite demand challenges and regulatory volatility. “Despite demand challenges and regulatory volatility, Bharat Forge delivered a resilient performance in FY26 supported by strong execution across businesses and improving export demand in the second half of the year,” he said.

Kalyani added that Bharat Forge secured new orders worth ₹4,814 crore in FY26, including ₹2,816 crore from defence, taking the defence order book to ₹10,961 crore. He said the order wins reflected “a resurgence in business momentum,” including in aerospace, where the company onboarded new customers across engine, structural and landing gear components.

Dividend and outlook

The board recommended a final dividend of ₹6.50 per equity share for FY26, subject to shareholder approval. The company said the payout reflects confidence in its financial position and cash generation.

Looking ahead, Kalyani said Bharat Forge is optimistic of achieving 25% revenue growth in FY27, barring geopolitical shocks. He said the outlook is supported by order execution, export recovery and improving profitability in the Indian manufacturing operations.

Shares of Bharat Forge have risen over 74% in the past year, outperforming the Nifty Midcap 50 index, which gained nearly 14% during the same period.