Bharat Forge reports 7.4% revenue dip in Q4 but posts higher profit and strong defence orders

Bharat Forge Ltd. , the auto-to-defence equipment manufacturer, reported a 7.4% decline in its revenue from operations for the January–March quarter (Q4 FY25), with revenue falling to ₹3,852.60 crore from ₹4,164.20 crore in the same quarter last year. For the full year FY25, the total consolidated income stood at ₹15,336.57 crore, down 3.6% from ₹15,909.49 crore in the previous fiscal.

The results, released on Thursday, led to a sharp drop in the company’s stock, which fell as much as 4.7% to ₹1,086.20 from the previous close of ₹1,140.90.

Despite the decline in revenue, the company posted a consolidated net profit of ₹282.62 crore, up from ₹227.12 crore in Q4 FY24. The company also announced a final dividend of ₹6 per share. Bharat Forge recorded a standalone EBITDA of ₹629 crore in the quarter, resulting in a strong EBITDA margin of 29.1%. However, full-year EBITDA rose to ₹2,524 crore with a robust margin of 28.5%, reflecting improved cost efficiencies and operational discipline.

A key highlight of the quarter was the company’s strong order inflow. During Q4, Bharat Forge secured fresh orders worth ₹4,343 crore, including ₹3,417 crore under the Advanced Towed Artillery Gun System (ATAGS) programme. As of March 2025, the defence order book stood at ₹9,420 crore. For the entire fiscal year, the company booked ₹6,959 crore in new orders, with defence-related contracts accounting for 70% of the total.

The ferrous castings business emerged as a standout performer in FY25. It posted revenue growth of 23%, EBITDA growth of 35%, and saw profits double over the previous year. Key return ratios for the division exceeded 20%. Bharat Forge’s joint venture, JSA, continued gaining market share in the small castings segment, supported by efforts to broaden its product range and enhance productivity.

On the export front, Bharat Forge witnessed a sequential recovery in Q4, although year-on-year figures were still slightly lower. Total export revenue on a standalone basis rose to ₹1,232.10 crore in Q4 FY25 from ₹1,151 crore in Q3 but remained below ₹1,248.8 crore reported in Q4 FY24. Export revenue from Commercial Vehicles (CVs) increased to ₹446.40 crore from ₹408.7 crore in Q3, while Passenger Vehicle (PV) exports rose to ₹321.7 crore from ₹242.8 crore. The industrial segment held steady at ₹464.1 crore.

Region-wise, the Americas remained Bharat Forge’s most resilient export market, contributing ₹816.1 crore in Q4, supported by steady demand. Europe showed notable sequential recovery with exports increasing to ₹320.4 crore from ₹233.3 crore in the previous quarter, though still down year-on-year. The Asia Pacific region contributed ₹95.60 crore, marking an improvement over Q3. For the full year FY25, total exports stood at ₹472.81 crore, slightly below ₹492.83 crore in FY24, largely due to weaker demand from Europe and Asia Pacific, although resilience in the Americas helped offset the decline.