3 weeks ago
Bharat Forge slips to Rs 90 crore loss on restructuring
Bharat Forge is a big company in India that makes strong metal parts for cars and for defence.
In the three months from April to June, the company lost 90 crore rupees.
In the same months last year, it had earned a profit of 284 crore rupees.
The main reason for the loss is a factory the company owns in Germany.
That factory is facing tough market conditions and costs too much to run.
So the company decided to make big changes there, called restructuring, which cost a lot of money this quarter.
Even with the loss, the company sold more products than before.
Its sales went up by about 19 percent to 4,640 crore rupees.
But the profit from each sale got smaller, so overall it ended up losing money.
The company's leaders also approved a plan to raise money to help the business grow.
Bharat Forge reported a consolidated net loss of Rs 90 crore for Q1 FY27, compared with a Rs 284 crore profit a year earlier.
The loss was driven by restructuring at its German subsidiary Bharat Forge CDP GmbH, including a Rs 330.4 crore provision.
Revenue from operations rose 18.7% year-on-year to Rs 4,640 crore.
EBITDA grew 5.5% to Rs 710 crore, but margins narrowed to 15.3% from 17.2%.
The board approved the results and cleared a proposal to raise funds through equity or debt-linked securities, subject to approvals.
- Who
- Bharat Forge Limited, a Pune-based engineering company, and its German subsidiary Bharat Forge CDP GmbH
- What
- Reported a consolidated net loss of Rs 90 crore for Q1 FY27 due to restructuring costs
- Where
- India (Pune-based company operations) and Germany (the subsidiary undergoing restructuring)
- When
- In the June quarter (Q1 FY27), with results approved by the board on August 10
- Why
- Restructuring at its German subsidiary due to adverse market conditions and structural cost disadvantages, plus incidental restructuring and voluntary retirement scheme expenses
Key facts
- Consolidated net loss (Q1 FY27)
- Rs 90 crore
- Net profit (Q1 FY26)
- Rs 284 crore
- Revenue from operations
- Rs 4,640 crore (up 18.7%)
- EBITDA
- Rs 710 crore (up 5.5%)
- EBITDA margin
- 15.3% versus 17.2%
- Restructuring provision
- Rs 330.4 crore
- Restructuring expenses
- Rs 26.7 crore
- Voluntary retirement scheme expense
- Rs 8.9 crore








