Bharat Forge reported a stellar fourth-quarter performance for FY25, with net profit growing 24.44% year-on-year to ₹282.62 crore, while revenue declined 7.48% to ₹3,852.60 crore. Profit before tax grew 23.99% to ₹429.4 crore, and EBITDA grew 2.71% to ₹671.1 crore. Total expenses declined 9.38% to ₹3,483.04 crore compared to last year.
The company’s core forgings business saw a modest revenue increase of 0.82% to ₹3,436.23 crore. However, the defense segment took a hit, with revenue falling 49.29% to ₹284.35 crore.
At the end of March, the defense order book stood at ₹9,420 crore. Bharat Forge bagged new orders worth ₹6,959 crore during FY25, with 70% of those from the defense sector.
Looking ahead to FY26, the company isn’t giving any guidance on exports, which make up about 30% of overall revenue. Chairman and MD B.N. Kalyani said the focus will be on improving overall profitability. Plans include cutting losses in the E-Mobility and Aluminum divisions, exploring options in the European steel business, and leveraging North American manufacturing to win new contracts. The company also aims to grow in areas like forgings, defense, aerospace, and castings.
The board has recommended a final dividend of ₹6 per share (300% of face value), pending shareholder approval at the upcoming AGM. If approved, the dividend will be paid on or after August 12, 2025.
Despite solid earnings, Bharat Forge shares closed 2.32% lower at ₹ 1,114 on the BSE on Thursday.
Disclaimer:
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a certified financial advisor before making any investment decisions. The performance of stocks and companies can fluctuate, and past performance is not indicative of future results.
