Our Bureau
New Delhi
Bharat Forge Ltd reported a consolidated net loss of ₹90 crore for the first quarter of FY27, reversing a net profit of ₹284 crore recorded in the corresponding quarter last year, as exceptional one-time costs related to the restructuring of its German operations weighed heavily on the bottom line.
The company’s shares fell following the results, reflecting investor concerns over the impact of the exceptional charges. The company, however, reported a 19% year-on-year increase in revenue during the quarter, indicating continued growth in its underlying operations.
The quarterly loss was primarily attributed to exceptional items amounting to around ₹358 crore. The charges were linked largely to restructuring and related costs associated with Bharat Forge’s German subsidiary, Bharat Forge CDP GmbH.
The German unit, based in Ennepetal, manufactures forged and machined components for commercial vehicles, passenger vehicles and industrial applications. Bharat Forge had earlier approved an in-principle proposal for a phased restructuring of the unit’s steel forging operations, which could include an orderly wind-down and solvent liquidation under German laws.
Despite the setback at the net-profit level, the revenue growth suggests that the company’s core business remained resilient during the quarter. Investors are likely to focus on whether the German restructuring can reduce losses from overseas operations and improve profitability in subsequent quarters.
The results also underline the contrasting performance of Bharat Forge’s operating business and its international restructuring costs, with the latter emerging as a significant drag on consolidated earnings.