Analyst / Investor call - Transcripts

B H A R A T F O R G E August 13, 2026 BSE Limited National Stock Exchange of India Limited Corporate Relations Department Listing Department Phiroze Jeejeebhoy Towers Exchange Plaza, Plot No. C/1, G Block Dalal Street, Fort, Mumbai 400 001 Bandra Kurla Complex, Bandra (East) Maharashtra, India Mumbai 400 051, Maharashtra, India Scrip Code: 500493 Symbol: BHARATFORG Sub.: Transcript of the Analyst / Investor Conference Call on Unaudited Financial Results (Standalone and Consolidated) for the Quarter ended June 30, 2026. Ref.: Regulation 30 and 46 (2) of the of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’). Dear Sir / Madam, Please find enclosed herewith the transcript of the Analyst / Investor Conference call, which took place on Monday, August 10, 2026, after announcement of the Unaudited Financial Results (Standalone and Consolidated) for the Quarter ended June 30, 2026. The same is also available on the website of the Company at: https://www.bharatforge.com/investors/reports/analyst-conference-calls Kindly take the same on record. Thanking you, Yours faithfully, For Bharat Forge Limited Tejaswini Chaudhari Company Secretary and Compliance Officer Membership No.: A18907 Encl: As above CIN L25209PN1961PLC012046 BHARAT FORGE LIMITED, MUNDHWA, PUNE 411 036, MAHARASHTRA, INDIA. PHONE: + 91 20 6704 2476 6704 2451 6704 2544 (Secretarial) Fax 020 2682 2163 Email: secretarial@bharatforge.com WEBSITE: www.bharatforge.com “Bharat Forge Limited Q1 FY '27 Earnings Conference Call” August 10, 2026 MANAGEMENT: MR. AMIT KALYANI – VICE CHAIRMAN AND JOINT MANAGING DIRECTOR – BHARAT FORGE LIMITED MR. KEDAR DIXIT – CHIEF FINANCIAL OFFICER – BHARAT FORGE LIMITED MR. SUBODH TANDALE – EXECUTIVE DIRECTOR – BHARAT FORGE LIMITED MR. S RAJHAGOPALAN – HEAD, INVESTOR RELATIONS – BHARAT FORGE LIMITED Page 1 of 17 Bharat Forge Limited August 10, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Q1 FY27 Earnings Conference Call hosted by Bharat Forge Limited. As a reminder, all participant lines will remain in the listen-only mode, and there will be an opportunity for you to ask questions after the management's opening remarks. Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touch-tone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Amit Kalyani, Vice Chairman and Joint Managing Director, Bharat Forge Limited. Thank you, and over to you, sir. Amit Kalyani: Good afternoon ladies and gentlemen, and thank you for participating in our analyst call. I have with me Kedar Dixit, Rajhagopalan, Subodh Tandale, and Amitabh, and Chinmay. So we are here to answer your questions and I'll first request Kedar to take you through the commentary of the quarter and then we can move to Q&A. Kedar Dixit: Good afternoon everyone. I'll just take you through the highlights for the quarter. In quarter 1 the standalone revenues were at INR2,347 crores. It was up by 11.5%. EBITDA stood at INR614 crores, which was up 4.5% YoY, resulting in EBITDA margin of 26.2%. This 26.2% bore the impact of escalation in energy prices and other input cost and logistics. The overall cost impact of these costs was about 160 basis points on our EBITDA margin and we continue to work on the recovery of these indirect cost increases with our customers. Normalized for this hit, our EBITDA margin would have been stood at almost 28% in quarter 1. Q1 standalone also included exceptional item of INR24 crores towards consultancy charges for the BF CDP restructuring exercise which we have initiated. The YoY performance saw an all- around improvement in exports and strong execution in defense. Q1 FY27 was the second straight quarter of recovery in export revenue and this momentum continues. Q1 27 consolidated revenues stood at INR4,640 crores which was up 18.7% on a YoY basis. EBITDA was at INR752 crores, 10.3% up vis-a-vis last year same quarter at EBITDA margins of 16.2%. Our Indian subsidiaries posted a strong performance during this quarter. Kalyani Strategic Systems, which is our defense arm, recorded a strong operating performance driven by higher realization and better product mix. JS Auto Cast, which is our casting outfit, has also had a good quarter with revenue and EBITDA growing 27% and 30% respectively on a YoY basis. Consol balance sheet remains strong with net debt to equity ratio of 0.45x. During the quarter company has secured new orders across business with forging business recording new orders of INR522 crores, defense INR681 crores and ferrous casting of around INR150 crores during the quarter. The outstanding order book in defense now stands at INR11,196 crores as of end of the quarter. Talking about overseas business, despite a difficult quarter, the European business recorded a positive EBITDA. It saw revenue of INR1,074 crores and EBITDA of INR30 crores resulting in a margin of around 3%. US revenues were at INR461 crores with a EBITDA loss of INR4 Page 2 of 17 Bharat Forge Limited August 10, 2026 crores. This was impacted mainly because of the breakdown of a couple of presses in our steel operations. Now those it has been fixed and recovery is expected in this quarter which is Q2. On the restructuring process of Bharat Forge CDP, which is a steel business in Germany, is on track and we estimate to complete the restructuring by end of calendar 27. We have taken an impact of about EUR 30 million towards the said restructuring. This is not a cash outflow; the cash outflow will happen post 12 months only and we are on track as far as our restructuring exercise is concerned. Now I'll hand over to Amit sir for his comments. Amit Kalyani: So ladies and gentlemen, on the whole I would say Q1 was a reasonable quarter given the operating environment we were in. There were a lot of challenges, especially the most unexpected and difficult challenge was the one on manpower, which once the Iran war started and the LPG crisis hit, a lot of the contract and migrant labour all travelled back to their home locations and this is not so much of an direct impact on us but a lot on steel companies and other sub-suppliers, etc. faced a lot of issues because of this. I think despite this and the challenges even on energy our teams managed the production schedules quite well. We've had a strong business sentiment in North America driven by higher corporate capex which is boosting demand for construction, mining and data centre and power systems businesses. This morning the US government and the president announced a massive plan to restart the mining economy in the US, starting right from setting up programs for training people for these kinds of businesses in community colleges and universities. So this should be something that gives a sustained boom to the US if it continues. On the defense side, you know I would say that we have been present on land systems and on aerial systems and now we have made a big breakthrough on the marine systems. We won a large new order for marine gas turbine generators for the Kolkata class ships with the Ministry of Defence and the naval shipyards. This is the largest order we have won to date on naval systems and as our product range in turbines grows and especially on the complementary naval systems side, we expect the navy to become a very large customer for us, especially with the announcement of the 140 new ships that are going to be built. We expect the defense business to expand its breadth and depth across many more products with many more applications rolling out. Our new defense facility will enter serial production this year and it will play a major role in the deliveries of ATAGS and CQB carbine to the Indian armed forces. On the aerospace side, our business saw record wins in '26. Our team was at the Farnborough Air Show where we had a lot of positive engagement and I think once our ring mill [Showing first 8,000 characters — download PDF for full document]