Bharat Forge Q3 Net Profit ₹2,880 Cr; Interim Dividend Rs. 2 per Share Declared
_announced_the_outcomes_of_its_Board_.jpg&w=1920&q=75)
Mumbai: Bharat Forge Limited, the flagship company of the Kalyani Group, reported its unaudited standalone financial results for the quarter ended December 31, 2025, with net profit declining 17% year-on-year amid one-time exceptional costs related to labour code implementations.
Financial Highlights (Standalone, Q3 FY26):
Net Profit: ₹2,880.41 crore (vs. ₹3,460.40 crore in Q3 FY25) — down 16.8% YoY
Revenue from Operations: ₹20,836.60 crore (vs. ₹20,959.39 crore in Q3 FY25)
Profit Before Tax (PBT): ₹3,915.78 crore (vs. ₹4,726.09 crore in Q3 FY25)
Earnings Per Share (EPS): ₹6.03 (vs. ₹7.38 in Q3 FY25)
Nine-Month Performance (Standalone, Apr-Dec 2025):
Net Profit: ₹9,364.98 crore (vs. ₹9,766.26 crore in 9M FY25)
Revenue from Operations: ₹61,352.29 crore (vs. ₹66,807.01 crore in 9M FY25)
Also Read: HAL Q3 FY26 Results: Net Profit Soars 29% to ₹1,852 Cr
Consolidated Performance (Q3 FY26):
Consolidated Net Profit: ₹2,728.02 crore (vs. ₹2,127.80 crore in Q3 FY25) — up 28.2% YoY
Consolidated Revenue: ₹43,429.34 crore (vs. ₹34,755.45 crore in Q3 FY25) — up 25% YoY
Consolidated EPS: ₹5.53 (vs. ₹4.54 in Q3 FY25)
Nine-Month Consolidated (Apr-Dec 2025):
Consolidated Net Profit: ₹8,559.50 crore (vs. ₹6,306.51 crore in 9M FY25) — up 35.7% YoY
Consolidated Revenue: ₹1,22,836.10 crore (vs. ₹1,12,701.99 crore in 9M FY25) — up 9% YoY
Segment Performance (Q3 FY26 Consolidated):
Forgings Segment:
Revenue at ₹33,670.90 crore — up 10% YoY
Segment Profit at ₹4,797.98 crore — up 9% YoY
Defence Segment:
Revenue at ₹6,819.98 crore — up 102.4% YoY
Segment Profit at ₹451.52 crore — up 56.8% YoY
Others Segment:
Revenue at ₹5,700.59 crore — up 158.8% YoY
Segment Profit at ₹200.86 crore — up 329.7% YoY
Exceptional Items: One-Time Labour Code Impact
The company recorded an exceptional loss of ₹487.26 crore (standalone) and ₹557.15 crore (consolidated) during the quarter on account of increase in gratuity liability attributable to past service costs and increase in leave liability following the notification of four Labour Codes by the Government of India on November 21, 2025. The Group has accounted for these changes using actuarial valuation as per ICAI guidance.
Shareholder Reward: 100% Interim Dividend Declared
The Board of Directors declared a 100% interim dividend of ₹2 per equity share (face value ₹2 each) for FY 2025-26.
Record Date: Wednesday, February 18, 2026
Payment Date: On or before Thursday, March 12, 2026
Key Leadership Changes
Reappointment of Executive Directors:
The Board approved the reappointment of Mr. B. P. Kalyani (DIN: 00267202) and Mr. S. E. Tandale (DIN: 00266833) as Whole-Time Directors, designated as Executive Directors, for a further period of 5 years from May 23, 2026 to May 22, 2031, subject to shareholder approval via Postal Ballot.
Mr. B. P. Kalyani, an alumnus of Columbia University and New York University, has been with the company for over three decades and was honored with the 'Forge Master Award' by the Association of Indian Forging Industry in 2016.
Mr. S. E. Tandale, associated with the company since 1991, has led the Component Forging Business Unit and continues to drive global operations strategy in Europe and the USA.
Senior Management Transition:
Mr. Sumeet Banga, President and CEO – Industrial Business, has ceased to be Senior Management Personnel effective February 12, 2026, pursuant to his transfer to the company's wholly-owned subsidiary J S Auto Cast Foundry India Private Limited (JSA) as part of strategic internal leadership restructuring.
Corporate Actions: Merger Approval
The Board approved the merger of Ferrovia Transrail Solutions Private Limited (FTSPL) , a step-down wholly owned subsidiary, with BF Infrastructure Limited (BFIL) , a wholly owned subsidiary of the company and holding company of FTSPL.
Transferor Company: Ferrovia Transrail Solutions Private Limited (FTSPL) — NIL turnover in FY25
Transferee Company: BF Infrastructure Limited (BFIL) — Turnover of ₹2.92 lakh in FY25
Since FTSPL is a 100% subsidiary of BFIL, no consideration or shares will be issued pursuant to the merger. The merger is part of the group's restructuring and consolidation strategy and will have no impact on the shareholding pattern of the listed entity.
Other Key Developments
QIP Proceeds Utilization:
The company had raised ₹16,500 crore via Qualified Institutional Placement (QIP) in December 2024. The unspent amount of ₹5,500.39 crore was utilized during the current period for the acquisition of AAM India Manufacturing Corporation Private Limited (renamed as K Drive Mobility Solutions Private Limited) on July 1, 2025 for a consideration of ₹7,474.16 crore, resulting in goodwill of ₹1,224.28 crore on a provisional basis.
Investment Impairment:
A provision for impairment of investment in Kalyani Powertrain Limited (KPTL) of ₹492.50 crore was recorded in standalone results for the quarter ended September 30, 2025. This has no impact on consolidated financial results.
Defence Business Restructuring:
During the quarter ended September 30, 2025, the company completed the transfer of identified assets and liabilities of its Defence Business to Kalyani Strategic Systems Limited (KSSL) , a wholly owned subsidiary, recording a net gain of ₹413.55 crore.
JS Auto Stake Sale:
BF Industrial Solutions Limited (BFISL) and J S Auto Cast Foundry India Private Limited (JS Auto) entered into a Definitive Transaction Agreement with PI Opportunities Fund I Scheme II on February 2, 2026, for acquisition of a 23% stake in JS Auto at a consideration of around ₹3,000 crore.
Voluntary Retirement Scheme:
The Voluntary Retirement Scheme (VRS) declared on January 13, 2023 for employees at the Mundhwa Plant has been extended up to March 31, 2026.
Auditors' Report
BSR & Co. LLP, Statutory Auditors, have issued an unmodified limited review report on the standalone and consolidated financial results.
Board Meeting Details
The Board Meeting commenced at 11:00 AM and concluded at 12:55 PM on February 12, 2026.
About Bharat Forge Limited
Bharat Forge Limited (CIN: L25209PN1961PLC012046) is a global leader in metal forming technologies with manufacturing locations across India, Germany, Sweden, France, USA, and the UK. The company serves automotive, industrial, defence, and aerospace sectors with high-performance engineered solutions.