MUMBAI
Leading engineering firm Bharat Forge Limited has reported a consolidated net loss of Rs 90 crore for the first quarter of financial year 2027. This marks a massive drop compared to a net profit of Rs 284 crore recorded during the same quarter in the previous year.
The primary reason behind this financial slump was a heavy one-time exceptional loss linked to structural changes at the company’s German subsidiary, Bharat Forge CDP GmbH. The German unit has been struggling with tough market conditions and high operational costs. To fix these issues, management worked out a social plan with the Works Council, recording a restructuring provision of Rs 330.4 crore, extra expenses of Rs 26.7 crore, and an additional Rs 8.9 crore for a voluntary retirement scheme.
Despite the bottom-line loss, the company’s revenue from operations showed positive growth. Consolidated revenue grew by 18.7 per cent to reach Rs 4,640 crore, rising from Rs 3,909 crore in the corresponding quarter last year.
Earnings before interest, taxes, depreciation, and amortisation also saw an increase of 5.5 per cent, moving up to Rs 710 crore compared to Rs 673 crore previously. However, operating margins experienced a slight contraction. The EBITDA margin dropped to 15.3 per cent down from 17.2 per cent, largely impacted by the ongoing overseas restructuring costs.
Bharat Forge operates across three main segments: Forgings, Defence, and Others. Along with releasing the quarterly financial statements, the company board approved a proposal to raise fresh funds via equity or debt-linked securities, pending shareholder and regulatory clearance.
