Bharat Forge Faces Profit Dip Amid Financial Restructuring

Bharat Forge Ltd reported a 17% drop in Q4 net profit, affected by new labor codes and investment impairments. The company's revenue grew year-over-year, but costs also rose. An exceptional financial burden affected the results, and a Rs 6.5 per share dividend for FY26 is proposed.

Bharat Forge Ltd, a key player in the forgings and defense equipment industry, experienced a 17% decline in consolidated net profit during the fourth quarter, totaling Rs 233.45 crore. This dip is attributed to a significant exceptional outgo stemming from the new labor code and the impairment of investment in a subsidiary.

The company reported in its regulatory filing that while the revenue from operations in Q4 rose to Rs 4,528.04 crore from Rs 3,852.6 crore a year prior, the total expenses climbed to Rs 4,089.33 crore compared to the previous year. The exceptional financial hit amounted to Rs 98.73 crore, impacted by restructuring activities, including its German subsidiary Bharat Forge CDP GmbH.

Despite the hurdles, Bharat Forge proposed a dividend of Rs 6.5 per equity share for FY26, pending shareholder approval. Overall, the fiscal year 2026 saw an increase in both consolidated net profit, reaching Rs 1,089.4 crore, and revenue, which stood at Rs 16,811.65 crore compared to FY25.