Bharat Forge is the sort of company that forges not just steel but also investor patience—half in autos, half in defence, and fully in drama. With revenues of ₹15,123 Cr, an order book that looks like Amazon’s checkout cart, and patents piling up faster than government circulars, this Kalyani Group flagship wants to be the arms dealer of both trucks and tanks.
2. Introduction
Picture this: an Indian company that started life bending steel into crankshafts and now bends defence ministers into signing multi-thousand-crore contracts. Bharat Forge, part of the mighty Kalyani Group (USD 3 Billion club), is a cocktail of legacy auto components, ambitious defence dreams, and a smattering of aerospace fantasies.
It isn’t your sleepy forging shop. Instead, it’s a global network spread across India, Europe, North America, and the odd industrial estate where the chaiwala knows more about metallurgy than most analysts.
But investors aren’t here for the nostalgia of lathes and casting pits. They want to know: is Bharat Forge still just a crankshaft supplier or the “Lockheed Martin of Pune”?
Before you put this stock in your demat’s VIP section, remember: sales growth is -6% TTM, profit growth is basically playing lagori (flat at 0%), and the P/E at 55.8 is higher than most Bollywood remake budgets.
So let’s investigate: is Bharat Forge the real metal god or just a crankshafted dream?
3. Business Model – WTF Do They Even Do?
At its core, Bharat Forge makes stuff that makes other stuff move. Their bread-and-butter: steel forgings for auto and industrial use. Crankshafts, axles, wheels—basically everything your mechanic pretends to understand.
Then comes Defence: under Kalyani Strategic Systems (KSSL), they now churn out artillery systems, protected vehicles, air defence solutions, and apparently anything else that goes boom. Defence grew 280% between FY22–FY24, because when governments shop, they don’t look at discount coupons.
And let’s not forget JS Auto Cast, their foray into ferrous castings. Because if you can melt and pour, why not charge double?
Add a sprinkle of aerospace (Pratt & Whitney contract), UAV dreams (MoU with Turgis Gaillard), and AI-driven digital factories. Congratulations, you now have a company that wants to be everything from Maruti’s supplier to MoD’s darling.
Question for you: would you trust a crankshaft-maker to build your next drone?
4. Financials Overview
Metric
Latest Qtr (Jun ’25)
Same Qtr LY (Jun ’24)
Prev Qtr (Mar ’25)
YoY %
QoQ %
Revenue
3,909
4,106
3,853
-4.8%
1.5%
EBITDA
670
741
679
-9.6%
-1.3%
PAT
284
175
283
62.3%
0.4%
EPS (₹)
5.93
4.36
5.90
36.1%
0.5%
Commentary: Revenue shrank like a cotton kurta in hot wash, but PAT flexed thanks to defence margins. EPS annualised = ₹23.7 → P/E = 50.4. Expensive? Even Anil Kapoor’s skincare routine is cheaper.
5. Valuation – Fair Value Range Only
Method 1: P/E Method Industry median P/E = 27.7. Annualised EPS = ₹23.7. Fair Value Range = 23.7 × (25–30) = ₹592 – ₹711.
Method 2: EV/EBITDA EV = ₹62,613 Cr. EBITDA (TTM) = ₹2,618 Cr. Current EV/EBITDA = 23.9. Industry range = 12–18. Fair Value EV = ₹31,416 – ₹47,124 Cr → Equity Value ≈ ₹25,000 – ₹40,000 Cr → per share = ₹520 – ₹830.
