Bharat Forge shares jump on Q3 results, Rs 2 interim dividend as Kalyani says “worst is behind us”

MUMBAI, Feb 12, 2026, 14:44 (IST)

• Bharat Forge stock climbed roughly 4% after the company posted a 25% revenue jump and a 28% profit increase for the December quarter.
• The board has cleared an interim dividend of 2 rupees a share, with Feb. 18 set as the record date.
• Management cites defence orders and some relief from overseas pressures, following a period when North America “de-stocking” weighed on demand.

Bharat Forge shares jumped nearly 4% on Thursday, with the auto parts giant clocking stronger profit and revenue for the December quarter, laying out a more upbeat forecast, and announcing an interim dividend. 1

Investors are watching closely for any hint that the export slump is letting up, with months of “de-stocking” still weighing on North America’s commercial vehicle market as customers burn through inventory instead of making new purchases. To keep growth on track, Bharat Forge has leaned more heavily on domestic sales and its defence orders.

Defence is playing a larger role now; it’s no longer just a footnote for the company. Management flagged that ATAGS — its Advanced Towed Artillery Gun System — should move into execution mode in the second half of fiscal 2027. They also highlighted fresh orders, which boost visibility across several quarters.

Revenue jumped 25% year-on-year to 4,343 crore rupees on a consolidated basis, according to NDTV Profit, with net profit moving up 28.2% to 273 crore rupees. EBITDA, or earnings before interest, tax, depreciation and amortisation, posted a 20% increase at 750 crore rupees. The margin, though, slipped to 17.3% from 18% after factoring in a one-off charge of 55.7 crore rupees. 2

Standalone numbers didn’t hold up. Net profit dropped 16.8% to 288 crore rupees, and revenue edged down 0.6% to 2,083.7 crore rupees. EBITDA came in 7% lower at 566.5 crore rupees, with margin tightening to 27.2%, according to ET Now. 3

B. N. Kalyani, Chairman and Managing Director, pointed to ongoing de-stocking in the North American CV space weighing on the quarter, but said domestic auto momentum and defense orders offered some buffer. “Looking ahead, the worst is behind us,” he said. Kalyani projected “high double-digit” revenue expansion, along with improved profitability. 4

Bharat Forge reported a 7% uptick in standalone revenue from the previous quarter, reaching 2,084 crore rupees. EBITDA moved up 4.6% to 569 crore rupees, pushing margin to 27.3%. Export revenue dropped 3% on a sequential basis—auto exports slid 13%, but industrial exports climbed 11%, according to the company.

The company reported fresh orders totaling 2,388 crore rupees for the quarter, with defence making up 1,878 crore rupees of that sum. Its defence order book stood at 11,130 crore rupees as of Dec. 31, 2025. Bharat Forge also announced a contract with India’s Ministry of Defence for close-quarter battle (CQB) carbines—over 250,000 units headed to the armed forces.

The board has approved an interim dividend of 2 rupees per share, marking Feb. 18 as the record date. According to the company, shareholders can expect the payout by March 12 at the latest.

Still, the immediate outlook is anything but straightforward. The company itself signals that North America’s CV demand hinges on the pace of customer inventory reductions. Export auto volumes? They’re not shaking off the pressure yet. Defence programmes come with their own unpredictability—volatile timing, plus the risk of schedule slips on ATAGS or rising costs, could squeeze margins further.

Bharat Forge, which belongs to the Kalyani Group, supplies forged and machined components to automakers and industrial clients both in India and abroad. The company has been moving into defence and aerospace lately. On some deals, it finds itself up against Ramkrishna Forgings, another local competitor. Its drive into defence comes as bigger players such as Larsen & Toubro look to secure large, long-duration contracts as well.