Bharat Forge reports strong Q2 FY27 performance with standalone revenue growth of 30%. The company is bolstered by a massive Rs 10,950 crore defense order book and active brownfield expansion in Baramati. While India operations remain a key growth engine, investors should track the turnaround of the US subsidiary, which reported negative EBITDA this quarter.
Bharat Forge Reports Strong Q2 FY27 Growth
Standalone Revenue: Rs 2,526 crore | Consolidated Revenue: Rs 4,870 crore
Reader Takeaway: Strong defense order visibility offsets US operational hurdles; look for margin recovery in H2.
What just happened
Bharat Forge Limited delivered a robust performance for the quarter ended September 30, 2026. The company recorded a 30% YoY growth in standalone revenue to Rs 2,526 crore and a 21% growth in consolidated revenue to Rs 4,870 crore. The standalone EBITDA margin stood at 25.9%, while consolidated margins were at 16%.
Why this matters
The company is scaling its defense segment, with an unexecuted order book of Rs 10,950 crore. Crucially, the firm secured bulk production clearance for its ATAGS program, with deliveries slated to commence in Q1 FY28. This provides long-term revenue visibility over the next four years.
Expansion and Capex
Bharat Forge is currently executing a Rs 1,300 crore brownfield expansion in Baramati. This facility aims to add 100,000 tons of forging capacity alongside significant machining capabilities. Production trials are scheduled for the January-March 2027 quarter.
Risks to watch
The US subsidiary remains a point of concern, reporting negative EBITDA of Rs 6.7 crore during the quarter, attributed to one-time mechanical breakdowns and cost overruns. Management has set a goal to reach break-even in the US by December 2026. Additionally, defense revenue realization remains dependent on client induction and training schedules, which could cause quarter-to-quarter volatility.
What to track next
Management anticipates a stronger H2 performance, driven by margin improvements in the India manufacturing business and the ramp-up of its new semiconductor venture. The company aims to scale its India manufacturing sales to over Rs 5,000 crore by the end of next year, with expected margin expansion of 200-250 basis points.