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Bharat Forge cuts FY27 growth outlook as margins stay pressured
The maker of forged components saw its June-quarter margins weigh on performance, with EBITDA per tonne down 5.4% year on year despite an 8% rise in volume to 66,787 tonnes.
Bharat Forge revised its FY27 revenue growth guidance for its Indian manufacturing business, moving the target to 20% to 25%, down from 25% in Q4FY26, signaling improving traction expected in H2FY27. LiveMint Markets said the outlook change, combined with valuation concerns around the stock trading at nearly 57 times consensus FY27 earnings, has dampened investor sentiment.
The company’s June-quarter results reflected margin pressure from elevated energy and input costs. In standalone operations, Bharat Forge reported sales volume rising 8% year on year to 66,787 tonnes in Q1FY27, while EBITDA per tonne fell 5.4% to ₹87,694.
LiveMint Markets also noted that some brokerages have cut FY27 earnings per share estimates following the guidance tweak. It added that management expects profit per tonne to recover even if profitability remains low as cost pressure eases.
Beyond standalone forging, Bharat Forge’s Indian manufacturing subsidiaries include KSSL for defence, K Drive for axles, and BFISL for castings. LiveMint Markets said KSSL’s defence revenue rose 71% year on year in the June quarter, and KSSL reported an order book of ₹11,196 crore as of June-end, with a target steady-state margin of 22% to 23% for the defence business while flagging execution and revenue recognition risks.