There is further good possibilities for Bharat Forge. However, the results of the company’s fourth quarter were not good. Standelone revenue has seen a decline. However, the company’s American aluminum business has become Abidta positive for the first time. Defense and aerospace segments have also been good. The e-mobile business is also seen coming out of the loss. It seems that the company is moving towards long bicycle and high-margin verticals.
Standelone volume rises by 2 percent
Bharat forge The Standelone Volume of the fourth quarter rose 2 per cent to 67,309 tonnes in the fourth quarter. But on a year after year, revenue fell 7.1 percent to Rs 2,163 crore. It has a major hand to decline a 9 per cent decline in the average realization due to weak pricing of automotive. The company’s domestic commercial vehicle (CV) business saw 9.8 per cent growth year -on -year basis. It has good demand for trucks. But due to weak demand in class 8 markets in Europe, CV’s exports decreased by 11.8 percent.
Ebitda margin 98 basis points increased
Revenue of domestic passenger vehicles increased by 14.6 percent year after year. It had a good demand for premium utility vehicles. Defense Excision in Standelone Industrial Warticle served as buffer for order flow. This led to the company’s Ebitda margin in the fourth quarter increased 98 basis points to 29.1 per cent on a year -on -year basis. The company’s focus is on cost control. The company has also benefited from better product mix in more margin segments.
CV and PV Business performance well
Talking about the domestic market, the growth of CV and PV business remains good. However, the management says that growth can be from flat to positive. The contribution of the defense segment in FY25 was Rs 1,700 crore. The orderbook of this segment is Rs 9,420 crore. It has an order of Rs 3,417 crore and only Advance Todd Artillery Gun Systems (ATAGS) artillery gun order.
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Should you invest?
FY26 for Bharat Forge can be the year of change. Defense and aerospace are expected to perform better. E-mobile business can also come out of loss. However, there are some challenges for the company in the short term. Especially the picture is not clear about exports and tariffs in America. The company’s shares are trading at 44 times the estimated Earnings of FY27. Investors can increase investment in this stock if there is a decline in this stock.
