Any current/future new fundraising through debt or equity?

Bharat Forge Limited is currently raising funds through a combination of debt and Non-Convertible Debentures (NCDs). The total enabling approval for fundraising is up to INR 2,000 crores. The raised funds will be used for both organic and inorganic growth initiatives within India. The company plans to leverage these funds to capitalize on growth opportunities and possibly make acquisitions. The timing for utilizing these funds will depend on when the market conditions and opportunities are right.

Any current/future capex/capital investment/strategic investment?

Bharat Forge is raising funds up to INR 2,000 crores through a combination of debt and non-convertible debentures (NCDs). The raised capital is intended for both organic growth and inorganic acquisitions within India. The company aims to focus on acquisitions related to its current lines of business and areas with growth opportunities in India but remains open to opportunities depending on circumstances. They are taking fundamental steps to implement a growth strategy to increase their share in the rapidly growing Indian market. The company is also evaluating restructuring options for its Euro

Future growth expectations in sales/revenue/volumes?

Defense business execution expected to ramp up, with major orders like ATAG spread over 3-4 years starting FY 2026, leading to growth in defense revenues. Aerospace business growing rapidly, from ~INR 250 crore last year to over INR 350 crore expected this year, with similar or higher growth for the next 3-4 years. JS Auto showing strong growth: Q2 sales up 26%, EBITDA up 44%, with improved profitability expected in second half. Indian manufacturing (forging, defense, casting, axle aggregates) now ~2/3 of consolidated revenues and geared to tap into growing global OEM sourcing from India

Future growth expectations in earnings/operating earnings/profits/EPS?

The Company has an aggressive growth plan, targeting improvement in topline, bottomline, and cash flow over the next 3-5 years (Page 13). Aerospace business is expected to grow at a rate exceeding INR 350 crores annually, with this momentum to continue for 3-4 years (Page 10). Defense revenues poised for sharp scale-up starting FY26, with large orders like ATAG and carbines executing over 3-4 years (Pages 15-16). JS Auto businesses showing strong growth with Q2 sales growth at 26% and EBITDA growth of 44%, expected to improve further (Page 6). Margin improvement focus with product mix shift an

Current/ Expected Orderbook/ Pending Orders?

The defense order book is approximately INR 11,000 crores as of November 2025. Recent orders include an underwater systems supply contract for over INR 250 crores to the Navy, to be delivered within one year. The ATAG order consists of 187 guns, expected to be executed starting in 2026 over about 3 to 4 years. Initial deliveries will be about 15 guns in the first year, ramping up thereafter. A carbine order valued at around INR 1,400 crores is pending signing; execution is expected over 4 years post finalization and FOPM process. Defense order execution typically begins 6 to 9 months a

Bharat Forge LtdQ3 FY26Auto Components

Bharat Forge Ltd Q3 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹2,088P/E: 93.1Market Cap: ₹1.1L CrSector: Auto Components

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Defense business execution expected to ramp up, with major orders like ATAG spread over 3-4 years starting FY 2026, leading to growth in defense revenues.
→Aerospace business growing rapidly, from ~INR 250 crore last year to over INR 350 crore expected this year, with similar or higher growth for the next 3-4 years.
→JS Auto showing strong growth: Q2 sales up 26%, EBITDA up 44%, with improved profitability expected in second half.
→Indian manufacturing (forging, defense, casting, axle aggregates) now ~2/3 of consolidated revenues and geared to tap into growing global OEM sourcing from India.
→Overall aggressive growth plan in place focused on balancing return on capital employed, cash flow, topline, and bottom line.
→New avenues like server manufacturing under evaluation but too early for size and margin guidance.
→Continued addition of new defense orders and business, with a long-term growth outlook enhanced by domestic market focus and selective acquisitions.

Margin guidance

Category 3

→The Company has an aggressive growth plan, targeting improvement in topline, bottomline, and cash flow over the next 3-5 years (Page 13).
→Aerospace business is expected to grow at a rate exceeding INR 350 crores annually, with this momentum to continue for 3-4 years (Page 10).
→Defense revenues poised for sharp scale-up starting FY26, with large orders like ATAG and carbines executing over 3-4 years (Pages 15-16).
→JS Auto businesses showing strong growth with Q2 sales growth at 26% and EBITDA growth of 44%, expected to improve further (Page 6).
→Margin improvement focus with product mix shift and cost optimization underway; standalone EBITDA margin stood at 28% in Q2 (Pages 13 and 6).
→Continued new order wins and diversifying business mix expected to lead to sustainable earnings growth amid market uncertainties (Pages 6, 8, 13).
→Funding initiatives underway (INR 2000 crore) for organic and inorganic expansion in India to catalyze growth (Page 6).

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Fundraise plans

Yes

→Bharat Forge Limited is currently raising funds through a combination of debt and Non-Convertible Debentures (NCDs).
→The total enabling approval for fundraising is up to INR 2,000 crores.
→The raised funds will be used for both organic and inorganic growth initiatives within India.
→The company plans to leverage these funds to capitalize on growth opportunities and possibly make acquisitions.
→The timing for utilizing these funds will depend on when the market conditions and opportunities are right.

Order book

Yes

→The defense order book is approximately INR 11,000 crores as of November 2025.
→Recent orders include an underwater systems supply contract for over INR 250 crores to the Navy, to be delivered within one year.
→The ATAG order consists of 187 guns, expected to be executed starting in 2026 over about 3 to 4 years. Initial deliveries will be about 15 guns in the first year, ramping up thereafter.
→A carbine order valued at around INR 1,400 crores is pending signing; execution is expected over 4 years post finalization and FOPM process.
→Defense order execution typically begins 6 to 9 months after final order approval due to processes like FOPM, with revenue recognition staggered accordingly.
→The company anticipates continuous new wins and additions to the defense order book, supporting future growth.

Capex plans

Yes

→Bharat Forge is raising funds up to INR 2,000 crores through a combination of debt and non-convertible debentures (NCDs).
→The raised capital is intended for both organic growth and inorganic acquisitions within India.
→The company aims to focus on acquisitions related to its current lines of business and areas with growth opportunities in India but remains open to opportunities depending on circumstances.
→They are taking fundamental steps to implement a growth strategy to increase their share in the rapidly growing Indian market.
→The company is also evaluating restructuring options for its European steel operations, with an update expected by the end of the fiscal year.
→Capacity expansions are underway in India to address opportunities in aerospace, engineering, and other sectors, supplemented by inorganic growth.

How does Bharat Forge Ltd rank vs peers in Auto Components?

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1Bharat Forge Ltd

Rev 3Mar 3

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