Bharat Forge Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Bharat Forge Ltd filed with BSE on 13 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Bharat Forge reported standalone Q1 FY27 revenue of Rs 2,347 crore, up 11.5% YoY, with EBITDA margin of 26.2% impacted by energy and logistics cost escalation, while consolidated revenue grew 18.7% YoY to Rs 4,640 crore. Management highlighted a new marine gas turbine order for Kolkata class ships, growth in the defense order book to Rs 11,196 crore, and announced a fundraise of up to Rs 2,500 crore for growth capex. The company also discussed a restructuring of its German steel subsidiary Bharat Forge CDP and a breakdown of presses at its US steel operations that caused an EBITDA loss in that business.
Numbers mentioned
Standalone revenue: Rs 2,347 crores (Q1 FY27)
p. 3
“In quarter 1 the standalone revenues were at INR2,347 crores.”
Kedar Dixit, page 3 of the filed PDF · View the filing
Standalone EBITDA: Rs 614 crores (Q1 FY27)
p. 3
“EBITDA stood at INR614 crores, which was up 4.5% YoY, resulting in EBITDA margin of 26.2%.”
Kedar Dixit, page 3 of the filed PDF · View the filing
Cost impact on EBITDA margin: 160 basis points (Q1 FY27)
p. 3
“The overall cost impact of these costs was about 160 basis points on our EBITDA margin”
Kedar Dixit, page 3 of the filed PDF · View the filing
Normalized EBITDA margin: almost 28% (Q1 FY27)
p. 3
“Normalized for this hit, our EBITDA margin would have been stood at almost 28% in quarter 1.”
Kedar Dixit, page 3 of the filed PDF · View the filing
Exceptional item: Rs 24 crores (Q1 FY27)
p. 3
“Q1 standalone also included exceptional item of INR24 crores towards consultancy charges for the BF CDP restructuring exercise which we have initiated.”
Kedar Dixit, page 3 of the filed PDF · View the filing
Consolidated revenue: Rs 4,640 crores (Q1 FY27)
p. 3
“Q1 27 consolidated revenues stood at INR4,640 crores which was up 18.7% on a YoY basis.”
Kedar Dixit, page 3 of the filed PDF · View the filing
Consolidated EBITDA: Rs 752 crores (Q1 FY27)
p. 3
“EBITDA was at INR752 crores, 10.3% up vis-a-vis last year same quarter at EBITDA margins of 16.2%.”
Kedar Dixit, page 3 of the filed PDF · View the filing
Net debt to equity: 0.45x (Q1 FY27)
p. 3
“Consol balance sheet remains strong with net debt to equity ratio of 0.45x.”
Kedar Dixit, page 3 of the filed PDF · View the filing
Defense order book: Rs 11,196 crores (as of end of Q1 FY27)
p. 3
“The outstanding order book in defense now stands at INR11,196 crores as of end of the quarter.”
Kedar Dixit, page 3 of the filed PDF · View the filing
European business revenue: Rs 1,074 crores (Q1 FY27)
p. 3
“It saw revenue of INR1,074 crores and EBITDA of INR30 crores resulting in a margin of around 3%.”
Kedar Dixit, page 3 of the filed PDF · View the filing
US revenue: Rs 461 crores (Q1 FY27)
p. 3
“US revenues were at INR461 crores with a EBITDA loss of INR4 crores.”
Kedar Dixit, page 3 of the filed PDF · View the filing
Restructuring impact: EUR 30 million
p. 4
“We have taken an impact of about EUR 30 million towards the said restructuring.”
Kedar Dixit, page 4 of the filed PDF · View the filing
Aerospace business revenue: Rs 400 crores
p. 9
“It's about INR400 crores right now.”
Amit Kalyani, page 9 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Consolidated capex plan — Rs 1,800-odd crores · FY27
stated firmly by Amit Kalyani
p. 6
“The overall capex will be in the INR1,800-odd crores range.”
Amit Kalyani, page 6 of the filed PDF · View the filing
Fundraise for growth capex — up to Rs 2,500 crores · next 18 months
stated firmly by Amit Kalyani
p. 5
“And the fundraise of up to INR2,500 crores is basically for growth capex.”
Amit Kalyani, page 5 of the filed PDF · View the filing
Defense business EBITDA margin — 22% to 23% · full-year
stated as an aspiration by Amit Kalyani
p. 8
“The margins are all a result of the product mix. But as we have mentioned, the margins on a steady state annual basis we are targeting in the 22% to 23% or so range.”
Amit Kalyani, page 8 of the filed PDF · View the filing
Aerospace business revenue — double · next 2 years
stated as an aspiration by Amit Kalyani
p. 9
“On aerospace, we will double our business in the next 2 years or so.”
Amit Kalyani, page 9 of the filed PDF · View the filing
Semiconductor business revenue — 30 to 40 million of business · next 2 years
stated as an aspiration by Amit Kalyani
p. 9
“And then on the semiconductor side, I think we are aiming, for something in the region of 30, 40 million of business in the next 2 years organically”
Amit Kalyani, page 9 of the filed PDF · View the filing
Data centre/energy business revenue — double · next four years
stated as an aspiration by Subodh Tandale
p. 9
“We expect to double in the next four years.”
Subodh Tandale, page 9 of the filed PDF · View the filing
CDP restructuring completion — end of calendar 27
stated firmly by Kedar Dixit
p. 4
“On the restructuring process of Bharat Forge CDP, which is a steel business in Germany, is on track and we estimate to complete the restructuring by end of calendar 27.”
Kedar Dixit, page 4 of the filed PDF · View the filing
CDP closure timeline — Q3 calendar 2027
stated firmly by Amit Kalyani
p. 15
“Our timeline for the closure is between second to third week, or third quarter of next year, or Q3 of ’27, calendar quarters.”
Amit Kalyani, page 15 of the filed PDF · View the filing
FY27 outlook — FY27
stated conditionally by Amit Kalyani
p. 5
“So I think barring any major new geopolitical upheavals or supply chain shocks, we expect '27 to be a very good year with the second half being driven more robustly with some of these interruptions behind us and both across exports and the commencement of deliveries for the domestic defense orders of ATAGS and carbines.”
Amit Kalyani, page 5 of the filed PDF · View the filing
FY28 outlook — FY28
stated as an aspiration by Amit Kalyani
p. 13
“I would say based on what we see right now, I think '28 should also be a strong year.”
Amit Kalyani, page 13 of the filed PDF · View the filing
Q2 margin recovery — Q2 FY27
stated conditionally by Amit Kalyani
p. 14
“Yes, so Q2 would be better than Q1, considering the discussion with customers on the price increase and the volumes”
Amit Kalyani, page 14 of the filed PDF · View the filing
US steel and aluminum EBITDA margins — steel about 12%, aluminum 15-16% · next year
stated as an aspiration by Amit Kalyani
p. 17
“See, the steel will be at about 12% and the aluminum EBITDA margin can be in the 15%, 16%.”
Amit Kalyani, page 17 of the filed PDF · View the filing
Odisha mega site first plant — about 2.5 years after approvals
stated conditionally by Amit Kalyani
p. 13
“I think once we get all the approvals, you know, we can have our first plant running in about 2.5 years.”
Amit Kalyani, page 13 of the filed PDF · View the filing
Capex asset turnover — above 1.5
stated firmly by Amit Kalyani
p. 7
“I think it will be above 1.5.”
Amit Kalyani, page 7 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the Rs 1,800 crore capex spans forging, machining and ring rolling with accretive returns, plus the energetics plant in Andhra Pradesh.
Answered by Amit Kalyani
Asked by Kapil Singh: What kind of asset turns, margins or return on capital for new capex businesses and overall capex plan?
p. 6
“They will have a significantly, let's say, accretive capital output ratio and very good margins.”
Amit Kalyani, page 6 of the filed PDF · View the filing
Management attributed the range to procedural testing delays, not demand issues.
Answered by Amit Kalyani
Asked by Kapil Singh: Was there a delay in ATAGS approvals given the change in India-linked growth guidance range?
p. 7
“You know, the ATAGS approval once it comes, then in two to three months we will start. There is still testing going on of both the suppliers.”
Amit Kalyani, page 7 of the filed PDF · View the filing
Management said they prefer conservative cash levels and see M&A opportunities.
Answered by Amit Kalyani
Asked by Amyn Pirani: Why raise funds given the strong balance sheet?
p. 8
“No, because we are very conservative when it comes to our financials. We like to have cash on the balance sheet, at least INR2,000-odd crores of cash on the balance sheet.”
Amit Kalyani, page 8 of the filed PDF · View the filing
Management said recovery would be gradual due to denominator and numerator effects on EBITDA margin.
Answered by Amit Kalyani
Asked by Gunjan: Does the 160 bps margin impact reverse immediately next quarter?
p. 10
“So it would be better than quarter 1, but also you need to mention sorry you need to consider one specific point is as we start getting recoveries from the customer optimally it has an impact on EBITDA.”
Amit Kalyani, page 10 of the filed PDF · View the filing
Management said the entity will cease to exist with orders transferred to India-based operations at better margins.
Answered by Amit Kalyani
Asked by Arvind Sharma: What happens to CDP Bharat Forge post restructuring?
p. 12
“So, post the end of the restructuring that entity will not survive. It will not exist and part of their orders are going to be transferred to us, and that will be provided shifted out from India at a good margin.”
Amit Kalyani, page 12 of the filed PDF · View the filing
Management said labour supply was around 70-75% of normal and fuel situation was under control barring an energy price hike in Maharashtra.
Answered by Amit Kalyani
Asked by Chandramouli Muthiah: Has manpower and fuel supply returned to normal after the disruptions?
p. 15
“Almost. Not, not fully, I would say we're back to about 70% to 75% of normalcy.”
Amit Kalyani, page 15 of the filed PDF · View the filing
Management gave target margin ranges for steel and aluminum operations, noting aluminum tariffs as a constraint.
Answered by Amit Kalyani
Asked by Kapil Singh: What margins can be expected once US operations normalize?
p. 17
“See, the steel will be at about 12% and the aluminum EBITDA margin can be in the 15%, 16%.”
Amit Kalyani, page 17 of the filed PDF · View the filing
Management attributed the loss to a major maintenance breakdown halting production for about three months.
Answered by Amit Kalyani
Asked by Abhishek Jain: What caused the US EBITDA loss despite higher revenue?
p. 18
“So the reason is that, our steel forging business had a major maintenance breakdown, and we had no production for almost 3 months.”
Amit Kalyani, page 18 of the filed PDF · View the filing
Risks flagged
Escalation in energy prices and input/logistics costs impacting EBITDA margin
p. 3
“This 26.2% bore the impact of escalation in energy prices and other input cost and logistics.”
Kedar Dixit, page 3 of the filed PDF · View the filing
Manpower shortages from migrant labour returning home due to Iran war and LPG crisis
p. 4
“a lot of the contract and migrant labour all travelled back to their home locations and this is not so much of an direct impact on us but a lot on steel companies and other sub-suppliers, etc. faced a lot of issues because of this”
Amit Kalyani, page 4 of the filed PDF · View the filing
Press breakdown at US steel operations causing production halt and EBITDA loss
p. 4
“This was impacted mainly because of the breakdown of a couple of presses in our steel operations.”
Kedar Dixit, page 4 of the filed PDF · View the filing
Tariffs on raw aluminum affecting US margins
p. 17
“I want to explain one problem in the US and that is the tariff on aluminum, on raw aluminum is 50%, because it all comes from Canada.”
Amit Kalyani, page 17 of the filed PDF · View the filing
Delay in environmental clearance for the new mega site
p. 12
“there was some, you know, unique circumstances which were not there on paper which were happened to be there, you know, which we found out later on. So, some infrastructure that needed to be moved and stuff, high tension lines, etcetera. So those take time.”
Amit Kalyani, page 12 of the filed PDF · View the filing
Potential geopolitical upheavals or supply chain shocks affecting FY27 outlook
p. 5
“So I think barring any major new geopolitical upheavals or supply chain shocks, we expect '27 to be a very good year”
Amit Kalyani, page 5 of the filed PDF · View the filing
Energy price hike in Maharashtra
p. 16
“The fuel situation is under control. Only problem is in Maharashtra there is an energy price hike.”
Amit Kalyani, page 16 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.