Bharat Forge’s standalone net sales stood at Rs 19.5 billion (-13% YoY/-7.5% QoQ); 5% below brokerage’s estimate. Total tonnage stood at ~56.5kt (-12% YoY/-9% QoQ). Realisation was -2% YoY/+1% QoQ. Reported standalone Ebitda margin was 28.3% (+50bps YoY/+110bps QoQ), 200bps above brokerage’s estimate led by favourable mix (value-added biz.) and astute cost controls.
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ICICI Securities Report
Bharat Forge Ltd.'s consolidated revenue growth was a positive surprise led by ramp-up in defence, aerospace and casting biz.
While standalone growth undershot our estimate amid weak commercial vehicle exports, Ebitda was in-line led by richer mix and astute cost controls.
We believe, Bharat Forge’s medium-to-long-term growth prospects remain healthy with further expansion in newer verticals (defence /aerospace /casting; supported by order book).
Weakness in U.S. commercial vehicle exports is expected to remain a nearto-medium-term drag. Sustained improvement in profitability of overseas subsidiaries and new business opportunities for US manufacturing operations (owing to US-tariff) remain key monitorables.
We raise FY26–28E revenue/ EPS by 3–5%/11–13% on strong ramp-up in defence. Retain Add; target price revised to Rs 1,550 (vs. INR 1,375) based on 35x FY28E EPS.
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