At a Glance
Over the past five years, Bharat Forge has evolved from being just another heavyweight in auto components to a diversified beast in defense, aerospace, EVs, and even drones. But behind the flashy MoUs and UAV headlines, did the margins actually improve? Or is the P/E of 60+ just another classic case ofhope rally overdose? Let’s dissect this metal giant — one forging at a time.
📦 1. What Does Bharat ForgeActuallyDo?
- ✅Auto Components:Legacy business — crankshafts, axles, connecting rods.
- 🛡️Defense & Aerospace:Towed artillery guns, artillery systems, armored vehicles, and UAVs.
- 🔋EV & Green Energy:Focused on light-weighting, EV components, and green mobility.
- 🛰️Subsidiaries & Acquisitions:Kalyani Strategic Systems, Bharat Forge Aerospace, and the latest push into
- manufacturing drones in partnership with French firms.
From lorries to laser-guided munitions. Respect the pivot.
📉 2. 5-Year Financial Snapshot (FY20–FY25)
| â‚ą in Cr | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|
| Revenue | 8,056 | 6,336 | 10,461 | 12,910 | 15,682 | 15,123 |
| EBITDA | 1,072 | 832 | 1,983 | 1,737 | 2,562 | 2,690 |
| EBITDA % | 13% | 13% | 19% | 13% | 16% | 18% |
| Net Profit | 349 | -127 | 1,077 | 508 | 910 | 913 |
| Net Profit % | 4.3% | -2% | 10.3% | 3.9% | 5.8% | 6.0% |
| ROCE | 7% | 3% | 11% | 8% | 13% | 13% |
| ROE | 7.5% | -2.7% | 23.2% | 11.4% | 20.4% | 19.7% |
| Debt/Equity | 0.87x | 1.00x | 0.92x | 1.10x | 1.03x | 0.73x |
🔥2021 was the year Bharat forgot how to make profits.But the bounce-back since is undeniable.
🔍 3. Business Segments – Auto vs Defense vs Others
- đźš—Auto Segment (60%+ of revenue):
- Mostly cyclical, still their largest cash cow.
- Decline in commercial vehicle exports during FY25.
- 🛡️Defense + Aerospace (~15%):
- Key MoUs with French
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