Bharat Forge Limited Board Approves New Malaysian Subsidiary and Reviews Qended June Financials
Bharat Forge Limited’s Board of Directors reviewed the company's unaudited financial results for the quarter ended June 30, 2026, alongside key strategic initiatives. The board approved plans for potential fundraising through various securities issues and sanctioned the incorporation of a new subsidiary in Malaysia aimed at semi-conductor and allied activities.The review covered both standalone and consolidated financial statements, including segmental performance analysis and corporate acquisitions during the quarter.
Financial Performance Highlights (Standalone)
The company reported results for the quarter ended June 30, 2026. For the Standalone entity, revenue from operations stood at 23,474.16 Million. Total income reached 23,816.70 Million.Key financial metrics and ratios for the standalone segment are detailed below:
| Metric | June 30, 2026 (Unaudited) | March 31, 2026 (Audited) | June 30, 2025 (Unaudited) |
|---|---|---|---|
| Revenue from Operations | 23,474.16 Million | 22,604.49 Million | 21,047.07 Million |
| Total Income | 23,816.70 Million | 22,889.33 Million | 21,469.00 Million |
| Profit before Tax (Standalone) | 4,372.64 Million | 2.31 Million | 4,492.75 Million |
Consolidated Segment Revenue and Results
The Group's business operates across three segments: Forgings, Defence, and Others.Consolidated figures for the quarter ended June 30, 2026 demonstrate significant segment activity:
| Segment | Revenue from Operations (Million) | Total Profit Before Tax (Million) |
|---|---|---|
| Forgings | 38,311.49 | 4,349.82 |
| Defence | 4,956.84 | 377.40 |
| Others | 6,278.63 | 269.52 |
| Total | 46,399.41 | 4,996.74 |
Strategic Investments and Corporate Transactions
The board reviewed several significant operational developments related to the company’s subsidiaries and associates during the quarter:- Acquisition of RSAL: BF Industrial Solutions Limited (a wholly owned subsidiary) acquired a 90% stake in RS Aerostructures Limited for a consideration of 36,00 million.
- Investment in FEPL: The Company acquired a 30% stake in Fortuna Engineering Private Limited, which manufactures components for automotive and off-road applications.
- JV Transfer: Kalyani Powertrain Limited (KPTL), a wholly owned subsidiary, along with the Company, executed an agreement to sell its entire 50% equity stake in REFU Drive GmbH to REFU Elektronik GmbH for EUR 12,500.00.
Future Fundraising and Subsidiary Plans
The board discussed potential avenues for capital raising, which are subject to shareholder approval and necessary regulatory clearances. The Company's Investment Committee - Strategic Business has been delegated the authority to decide the structure, form of issuance, price, and terms related to fundraising.Potential methods of fund raising include:
- Equity shares issue;
- Debt issue or other securities convertible into equity shares;
- Further public offer, rights issue, American Depository Receipts/Global Depository Receipts/Foreign Currency Convertible Bonds (FCCB), qualified institutions placement, preferential issue, or any other permitted method.
The planned total number of securities proposed to be issued is up to Rs. 25,000 million (Rupees Twenty-Five Thousand Million).
Additionally, the board approved the incorporation of a new subsidiary in Malaysia, which will focus on undertakings in the semi-conductor and allied sectors, subject to completing necessary formalities.
BHARATFORG Stock Price Movement
Shares of Bharat Forge Limited are shedding 3.18% in live trading as of 2:16 PM, sliding to ₹2193.1 amid ongoing market activity. Despite the decline,the company continues trading with a volume of 1.27 million shares, staying close to its 52-week high.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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