Bharat Forge · Annual Report · FY 2025-26 Download Full Report

Every phase of industrial growth has its own demands. Some reward capacity. Some reward cost leadership. The phase ahead will reward capability, technology ownership, speed and the courage to build before demand fully unfolds. Bharat Forge understands this shift. We have been through cycles, entered new domains ahead of time and built the depth required to participate in opportunities that are now beginning to scale.

Industrial growth represented through tree rings

Dear Shareholders,

The world around us was unsettled in ways that had little to do with normal industrial cycles. Tariff actions in major economies and unrest in the Middle East added to uncertainty and reinforced the fragility of global supply chains. Neither of these was in our control, nor was it within anyone’s forecast.

Our positioning allowed us to absorb these shocks without losing direction.

Manufacturing order is being rewritten.

The larger change around us is more structural. Manufacturing across the world is being reconsidered in a way many would have not envisaged. Trade is being repriced. Companies are reassessing supply chains, not only for cost but also for concentration risk, proximity to markets, resilience and trust. The question before global industry is where it can produce with reliability, scale, skill, stability and speed.

India is among the best placed countries to benefit from this shift. The country has scale, an expanding industrial base, a deepening technology ecosystem and policy continuity.

Our positioning allowed us to absorb these shocks without losing direction.
Abstract industrial artwork

Bharat Forge 2.0: The natural progression

In July 2026, Bharat Forge completes 60 years of manufacturing operations. This milestone is important, to recognize the natural progression of our Company. For most of our history, Bharat Forge was known as a capable components manufacturer. That description was accurate, but it is no longer complete.

Over the years, we have moved from components alone to a combination of components, and finished products. We have built businesses that draw strength from a common engineering foundation but now operate within their own customer segments, technologies and growth trajectories. This is the Company which is now a sum of the parts of various technologies and capabilities which we now refer to as Bharat Forge 2.0.

Bharat Forge 2.0 is the working form of a company that has transformed from a largely forging-led enterprise into a diversified advanced manufacturing group.

Forging: proof of breadth

Our core forging business remains the largest part of the Company. The North American commercial vehicle market moved through a sharp cyclical correction during FY2026, yet our standalone revenue contracted marginally due to the strength of our passenger vehicle, industrial business as well as diversification in new markets. The breadth we have spent a decade building visibly earned its place this year.

Moving up the value chain

Our defense business, housed in Kalyani Strategic Systems Limited, delivered the kind of year that a long period of patience and investment was meant to produce. We won the CQB Carbines contract; Along with the order for Advanced Towed Artillery Gun Systems this helped our defense order pipeline increase to ₹10,961 crore as of FY2026. We co-developed the Vikram VT21, an 8x8 armored platform with a 30mm turret capable of firing at 550 rounds per minute, in partnership with DRDO. We entered integrated platform management systems for naval ships and broke ground on our maiden Defense Explosives manufacturing facility.

Our ongoing product development programs, supported by in-house technology, are intended to deliver customized solutions to the Armed Forces at speed, scale with design ownership residing in India. Step by step, we are growing from a manufacturer of weapons into a supplier of defense platforms across land, naval and air applications.

When a nation can build its own carbines, its own artillery, its own armored platforms and its own mission-critical systems, it stands more securely on its own feet. That is Aatmanirbhar Bharat in action. Bharat Forge intends to be one of the companies that gives this idea its industrial weight.

When a nation can build its own carbines, its own artillery, its own armored platforms and its own mission-critical systems, it stands more securely on its own feet. That is Aatmanirbhar Bharat in action.

Another business with a long gestation period is the aerospace business. It has compounded significantly with revenue becoming almost 5x over FY21–26, driven entirely by exports. During the year, we became the first supplier-partner to Embraer from India. Our aerospace capabilities have expanded from complex engine components to landing gear systems and aircraft structural parts for several marquee customers. This is a vertical where credibility is built slowly, qualification cycles are long and trust compounds over time. We have invested in that patience, and the opportunity ahead is now becoming more visible.

Our castings business, JS Auto Cast, continued to demonstrate the value of disciplined acquisition and integration. Since acquisition, the business has grown revenue at a 15% CAGR, with profits rising even faster as the mix has become broader and deeper. Premji Invest’s ₹300 crore investment for a 23% stake validates both the progress made and the growth potential ahead.

Our purchase of K Drive Mobility adds axle design and assembly to our range. This strengthens our position in products for SUVs, LCVs, buses and electric platforms. It also supports our ambition to become a full-spectrum axle supplier across mobility categories.

Agility reflected in performance

The year began with external uncertainty in our largest export market. At its sharpest point, our North American commercial vehicle exports fell 75% y-o-y. In our earlier configuration, a disruption of this scale could have set us back materially. This time, it did not.

Our consolidated revenue stood at ₹16,812 crore, up 11% y-o-y. Consolidated EBITDA stood at ₹2,911 crore, with a margin of 17.3%. We ended the year with consolidated cash of ₹2,931 crore on the balance sheet.

The story behind these numbers is the story of the transition we have been building. The businesses tested through the past cycle held firm and delivered. Our financial profile is now broader, and stronger than at any time in our history.

Manufacturing and nature illustrating the next growth cycle

FY2026 demonstrated that the Company is increasingly defined by the breadth of opportunities it has created for itself.

Building for the next growth cycle

We also made modest progress towards entering the semiconductor equipment supply chain through the supply of forged and machined components. This is an early engagement, but one that can open significant opportunities over time as India builds greater depth in high-precision manufacturing and technology-led industrial supply chains.

Another emerging area is data centres. As the world builds more digital infrastructure, the demand for reliable back-up power is rising sharply. We are working closely with customers in this domain for the supply of engine components that support standby power plants.

To support these emerging businesses, we have embarked on an ambitious capex program. This includes an advanced ring mill and closed-die forging-cum-machining complex at Baramati. Designed as fungible capacities, these investments will create new avenues for complex and mission-critical products across energy, data centres, aerospace, defense and semiconductors.

Resilience through portfolio discipline

A resilient company must also know when to change course. This year, we made some clear and deliberate choices.

In Europe, where cost structures and market conditions have remained difficult, we are streamlining our manufacturing footprint and restructuring Bharat Forge CDP. We expect to complete this process by the end of CY2027. At the same time, we are exploring new industrial opportunities for our remaining European assets, alongside their existing automotive work.

In electric mobility, where the market outside China has evolved differently from earlier expectations, we are repositioning Kalyani Powertrain to build on the strengths developed over the past few years.

Backing the future and stepping back from what no longer fits are two sides of the same discipline.

Sustainability at the core

Sustainability at Bharat Forge is embedded in how we use energy, materials, technology and process improvement. Over the past six years, we have reduced carbon generated per ton, covering Scope 1 and Scope 2 emissions, by 31%. Our external sustainability ratings continue to improve, and industry recognition for our work has strengthened. We will share more as our targets mature into measurable outcomes.

Ready for the next industrial chapter

Every few years, Bharat Forge expands its horizon. We did it in industrial products in 2008. In passenger vehicles on scale in 2014. Defense in 2019. Aerospace in 2025. Each move looked bold at the onset but obvious in hindsight.

FY2026 marks another such transition. It opens the next chapter of Bharat Forge’s evolution. Over the next five years, we aim to grow our India manufacturing operations at 15% CAGR, with profits rising faster. We have already put the products, the capital and the people in place. We have invested ahead of the demand we believe is coming.

As we complete 60 years of manufacturing operations, I see the milestone less as a commemoration of what has been achieved and more as a platform for what must now be built. The foundation is deep. The progression is natural. The opportunity is larger than at any point in our history.

I want to thank our shareholders, customers, partners, colleagues and the Government of India for the trust and support that have made this journey possible. The years ahead will ask a great deal of us, and I welcome that. With six decades of metallurgical excellence, engineering strength and manufacturing discipline behind us, Bharat Forge is ready for the next chapter.

Warm regards,

B. N. Kalyani

Chairman & Managing Director
Bharat Forge Limited