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

Our approach enables us to identify emerging uncertainties, assess their potential impact and respond with structured mitigation measures across operations, technology, talent, sustainability and governance. Through disciplined oversight, proactive monitoring and accountability across functions, we aim to build a risk-aware organization that can navigate change with confidence while safeguarding stakeholder trust.

R1

Trade Policy Risk

Volatility may affect demand, revenue visibility and business performance across key sectors

Capitals impacted

Financial capital Manufactured capital

Material topics mapped

M1M10M11M13

Strategies mapped

S1S2S3S4S5

Mitigation measures

  • Continuously monitor changes in trade policies, customs duties, sanctions and non-tariff regulations
  • Strengthen regulatory compliance, product certification and documentation to minimize non-tariff barriers
  • Improve operational efficiency and productivity to offset increases in input, logistics and compliance costs
  • Diversify sourcing and manufacturing across geographies to reduce dependence on any single trade corridor or market
R2

Logistics & Supply Chain Risk

Uncertain shipping and operational disruptions may influence business continuity and structure

Capitals impacted

Financial capital Manufactured capital

Material topics mapped

M8M13

Strategies mapped

S3S5

Mitigation measures

  • Develop alternate logistics arrangements, including air, rail and road transport, for critical or time-sensitive shipments
  • Strengthen supply chain visibility through real-time shipment tracking and early-warning system
  • Source critical materials from multiple suppliers and geographies to reduce concentration risk
  • Periodically assess geopolitical, maritime security and port-related risks across major trade routes
  • Establish business continuity and emergency response plans to ensure timely action during prolonged disruptions
R3

Foreign Exchange Risk

Currency movements may affect profitability due to the Company’s export-linked revenue profile and foreign currency exposure

Capitals impacted

Financial capital

Material topics mapped

M1M10

Strategies mapped

S2S4S5

Mitigation measures

  • Rolling forward contracts are used to hedge currency exposure
  • Export revenues provide a natural hedge against foreign currency borrowings
R4

Technology Risk

Rapid changes in technology may affect competitiveness, product relevance and operating efficiency across business verticals

Capitals impacted

Financial capital Manufactured capital Intellectual capital

Material topics mapped

M4M5M6M8M9M12

Strategies mapped

S2S3S6

Mitigation measures

  • Early investments in E-mobility and lightweighting technologies
  • Strong in-house technology capabilities in Defense and Aerospace
  • Adoption of IIoT, Industry 4.0, digital thread, RPA and advanced data analytics
  • Scalable deployment of SAP ERP and automation tools to strengthen digital-readiness
R5

Equipment Risk

Failure to meet equipment performance may lead to customer dissatisfaction and business loss

Capitals impacted

Financial capital Manufactured capital Intellectual capital

Material topics mapped

M1M8M13

Strategies mapped

S2S3S5

Mitigation measures

  • Conduct preventive and predictive maintenance through technology-enabled monitoring systems
  • Provide regular technical and safety training to operators and maintenance personnel
  • Monitor equipment health through real-time data, sensors and early-warning systems
  • Track equipment availability, downtime and maintenance effectiveness through defined performance indicators
R6

Human Capital Risk

Gaps in attracting, developing or retaining skilled talent may affect innovation, operations and future growth readiness

Capitals impacted

Intellectual capital Human capital Social and relationship capital

Material topics mapped

M5M7M14

Strategies mapped

S2S3S6

Mitigation measures

  • Meritocratic and employee-centric culture supported by structured career development
  • Regular training across health, safety, engagement and future-ready capabilities
  • Continued focus on talent acquisition and performance-linked recognition
R7

Cybersecurity Risk

Increased digitalization may heighten exposure to cyber threats, data breaches and technology-led business disruptions

Capitals impacted

Financial capital Manufactured capital Intellectual capital

Material topics mapped

M6M9M12M14

Strategies mapped

S5S6

Mitigation measures

  • ISO 27001:2022-compliant cybersecurity framework
  • Real-time threat detection through next-generation tools and multi-layered security
  • Periodic third-party validations and VPAT assessments
  • Continuous employee awareness and cybersecurity training programmes
R8

Operational Safety Risk

Increased digitalization may heighten exposure to cyber threats, data breaches and technology-led business disruptions

Capitals impacted

Human capital Social and relationship capital

Material topics mapped

M1M2M7

Strategies mapped

S5

Mitigation measures

  • Conduct periodic safety audits, hazard identification and risk assessments
  • Provide regular safety training, toolbox talks and emergency-response drills for employees and contract workers
  • Ensure strict adherence to standard operating procedures and permit-to-work systems
  • Maintain emergency preparedness plans, medical facilities and trained response teams at operating locations
  • Conduct regular health check-ups and occupational health surveillance for employees
  • Strengthen contractor safety management through qualification, induction, supervision and performance reviews