Germany: Bharat Forge Reports 19% Year-on-year Increase in Revenue From Operations During the Quarter

Revenue growth was led by an 8% increase in the forgings business, an 88% jump in defence revenue and a 125% rise in the others segment. The sharp deterioration in the bottom line was primarily driven by exceptional items related to the restructuring of Bharat Forge CDP GmbH (BF CDP), its German subsidiary, which is facing market challenges and associated cost disadvantages. Bharat Forge said it has initiated restructuring measures at BF CDP and recorded incidental restructuring-related expenses of ₹26.69 crore in its consolidated financial results for the quarter ended June 30, 2026. More significantly, the group recognised a restructuring provision of ₹330.42 crore in the consolidated results after BF CDP reached an in-principle understanding with its Works Council for implementation of a social plan.

The company also recognised an expense of ₹0.89 crore related to a voluntary retirement scheme during the quarter. Taken together, the restructuring-related charges explain a substantial part of the swing in the consolidated bottom line. The reported loss, therefore, comes against a backdrop of continued growth in the company’s operating revenues, particularly in its Defence business.

Alongside the results, the company’s board approved a proposal to raise up to ₹2,500 crore, subject to shareholder and regulatory approvals. The proposed fundraise could take the form of equity shares, debt, securities convertible into equity shares, or a combination of such instruments. The company may undertake the issue through a further public offer, rights issue, ADRs/GDRs, FCCBs, qualified institutional placement, preferential issue or any other permitted route.

The board has authorised its Investment Committee – Strategic Business to decide the structure, form, pricing, timing and other terms of the proposed issue. The company has not yet specified the final instrument or the timing of the fundraise.