Bharat Forge shares drop as Q1FY27 standalone profit falls 5% to Rs 321 crore, misses estimates
AI Market Summary
Bharat Forge's Q1FY27 standalone net profit missed estimates and management flagged ongoing medium-term profitability challenges, driving an 8% intraday share drop. While revenue grew and guidance for Indian manufacturing was maintained, margin pressure from higher input costs and restructuring charges (notably in Germany) weighed on earnings quality. A proposed Rs 2,500 crore fundraise adds potential dilution/financing overhang, reinforcing near-term risk aversion.
Impact level
● Low
Affected assets
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▼ Bearish
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Bharat Forge reported Q1FY27 standalone net profit of Rs 321 crore for the quarter ended June 30, down 5% year on year and below CNBCTV18 estimates of Rs 338.5 crore. Revenue rose 11.5% to Rs 2,347 crore, while EBITDA increased 2.4% to Rs 585.6 crore with a margin of 24.95%. The company reiterated its FY27 growth outlook of 20%-25% for its Indian manufacturing business. On August 10, the stock closed 6.7% lower at Rs 2,112 after falling as much as 8% intraday.
