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Bharat Forge gained nearly 7% after reporting Q4 earnings and projecting a strong 25% revenue growth ahead.
The numbers:
Note: at first glance, the profit decline looked weak. But there’s a catch. The company took a one-time loss of nearly ₹99 crore, which dragged the bottom line lower. Excluding that, the operational performance was relatively stable.
The real excitement came from management commentary.
Bharat Forge said it remains confident of delivering 25% revenue growth going forward, signalling strong demand visibility across its businesses.
The company is also restructuring the steel business of CDP Bharat Forge, with the process expected to finish by 2027, while exploring new opportunities in Europe to better utilise its factories there.
Zoom out: a big part of Bharat Forge’s future now depends on defence and heavy engineering and that opportunity is getting massive.
India’s defence production touched a record ₹1.27 lakh crore in FY24, while exports crossed ₹21,000 crore, both all-time highs. The government now wants defence production to hit ₹3 lakh crore by 2029, with exports targeted at ₹50,000 crore.
