BHARAT FORGE LTD.

Bharat Forge Ltd announced the merger of its wholly-owned step-down subsidiary, Bharat Forge Holding GmbH (BFH), with its wholly-owned subsidiary, Bharat Forge Global Holding GmbH (BFGH). The merger, effective August 25, 2026, simplifies the legal structure of companies in Germany. Bharat Forge Aluminiumtechnik GmbH, previously a subsidiary of BFH, now becomes a direct subsidiary of BFGH. The company stated that this merger has no implication on its standalone or consolidated financial statements. BFGH reported a turnover of Euro 6,086,504.36 for the year ended December 31, 2025, while BFH had nil turnover. The transaction is not considered a related party transaction as per the Companies Act, 2013 and Listing Regulations.

Bharat Forge Limited's subsidiary, Kalyani Strategic Systems Ltd. (KSSL), has signed a Memorandum of Understanding (MoU) with FN Herstal, a subsidiary of FN Browning Group. This partnership aims to establish local manufacturing capabilities in India for small arms and counter-unmanned aerial systems (C-UAS). The collaboration will explore setting up a dedicated production center in India and potentially a joint venture, aligning with India's 'Make in India' initiative. The agreement leverages KSSL's engineering expertise and FN Herstal's global leadership in defence solutions, intending to enhance India's defence industrial base, ensure long-term security of supply, and promote strategic autonomy.

Bharat Forge Limited's subsidiary, Kalyani Strategic Systems Limited (KSSL), has signed a Strategic Alliance Agreement with Thales to establish advanced industrial capability for 70-mm rocket systems in India. This partnership aims to combine Thales' combat-proven rocket technologies with KSSL's manufacturing expertise to support both Indian and global markets. The alliance facilitates technology transfer, local production, and distribution of unguided and laser-guided rocket systems, positioning India as a manufacturing and export hub. The first fully assembled rocket produced in India is targeted for early 2027. This collaboration strengthens India-Belgium defence cooperation and aligns with India's 'Make in India' and 'Atmanirbhar Bharat' initiatives.

Bharat Forge Ltd, through its subsidiary Kalyani Powertrain Limited (KPTL), has completed the divestment of its entire 50% equity stake in the joint venture REFU Drive GmbH (REFU) to REFU Elektronik GmbH. Consequently, REFU is no longer a joint venture of KPTL. This action amends previous disclosures made on July 23, 2026, regarding the divestment. The company has taken this development on record.

Bharat Forge Limited's Board of Directors has approved a further investment of up to ₹2,400 million in its wholly-owned subsidiary, Kalyani Strategic Systems Limited (KSSL). The investment, to be made in one or more tranches at fair value, is in cash and will be completed by March 31, 2027. KSSL, which operates in the defense industry and had a turnover of ₹12,244.70 million in FY 2025-26, will use the funds to further its business, including potential investments in its own subsidiaries. This transaction is classified as a related party transaction but will be conducted on an arm's length basis.

Bharat Forge's Board of Directors, in a meeting held on August 10, 2026, approved the unaudited financial results for the quarter ended June 30, 2026. The board also greenlit a proposal to raise funds through various instruments like equity shares, debt, or convertible securities, subject to shareholder and regulatory approvals. Additionally, the company plans to incorporate a subsidiary in Malaysia for semiconductor-related activities. The Investment Committee - Strategic Business has been delegated powers to finalize the fund-raising structure and terms.

Bharat Forge's consolidated Q1 FY27 revenue rose to ₹4,639.9 Cr, up 18.7% YoY and 2.5% QoQ, but the consolidated bottom line swung to a loss of ₹89.9 Cr against profits of ₹283.9 Cr a year ago and ₹233.4 Cr last quarter. Consolidated EPS was -₹1.88 versus +₹5.93 YoY. Standalone (India-only) results stayed profitable — PAT ₹321.4 Cr on revenue ₹2,347.4 Cr, EPS ₹6.72 — so the loss is entirely a consolidation-level, Europe-driven event. The swing is driven by a ₹358.0 Cr consolidated exceptional charge tied to the restructuring of German subsidiary Bharat Forge CDP GmbH: a ₹330.4 Cr provision for a social plan agreed with the Works Council, plus ₹26.7 Cr of incidental restructuring costs and a small VRS charge (note 3). Standalone carried a much smaller ₹24.5 Cr exceptional hit for the same items. Stripping the exceptional charge out, consolidated pre-exceptional PBT was ₹402.4 Cr, and adjusted PAT (pre-exceptional PBT less the reported tax charge) works out to roughly ₹268 Cr — down about 5.6% YoY and 19.3% QoQ. So even excluding the one-off, underlying profitability softened, not just the headline; operating margin compressed to 15.05% from 17.13% YoY and 17.17% QoQ, and net margin fell to -1.94% from 7.26% YoY purely on the exceptional charge. This is the restructuring management had already flagged: on the May 2026 call it said it was "undertaking a strategic restructuring of its German steel forging business to improve consolidated profitability," delivered then in a confidently bullish tone. The charge materializing confirms that plan, though its size this quarter is a harder print than that framing implied. Segment-wise, growth is increasingly non-core: Defence revenue nearly doubled YoY to ₹495.7 Cr (from ₹264.4 Cr) and "Others" revenue rose to ₹627.9 Cr (from ₹279.0 Cr), while core Forgings grew a more modest 7.7% YoY to ₹3,831.1 Cr. Alongside results, the board approved raising up to ₹2,500 Cr via equity/debt instruments, incorporating a Malaysia subsidiary for semiconductor-related work, a 90% stake buy in RS Aerostructures (₹3.6 Cr) and a 30% stake in Fortuna Engineering (₹129.6 Cr, connecting rods/camshafts) — all consistent with the guided aerospace/defence push and complementary M&A. Separately, Kalyani Powertrain agreed to exit its loss-making JV stake in REFU Drive GmbH for a nominal EUR 12,500. No reliable brokerage consensus for this specific quarter could be confirmed via search, so the print's standing versus Street is unknown. On management's own guidance, standalone (India) revenue grew only 11.5% YoY (₹2,347.4 Cr vs ₹2,104.7 Cr) — well short of the ~25% FY27 India revenue growth guided in May 2026 — so this quarter is tracking behind that full-year pace, one quarter in. Whether growth accelerates through FY27, backed by the ₹800-850 Cr capex program, and whether the German restructuring provision proves to be a one-time hit rather than the first of several, are the two threads to watch into Q2.

Bharat Forge Limited has announced a board meeting scheduled for August 10, 2026. The primary agenda items include the consideration and approval of the Unaudited Financial Results (Standalone and Consolidated) for the quarter ended June 30, 2026. Additionally, the board will discuss potential fund-raising options through various instruments like equity shares, convertible securities, ADRs/GDRs, FCCBs, QIP, debt issues, or preferential issues, subject to shareholder and regulatory approvals. The trading window for designated persons will remain closed until August 13, 2026.

Bharat Forge Limited, through its wholly owned subsidiary Kalyani Powertrain Limited (KPTL), has entered into a definitive agreement to sell its entire 50% equity stake in the joint venture company, REFU Drive GmbH, to REFU Elektronik GmbH. The transaction is valued at EUR 12,500 and is expected to be completed within six weeks. This divestment will result in REFU Drive GmbH ceasing to be a joint venture of KPTL. The filing also provides details on the revenue and net worth contributed by REFU Drive GmbH in the last financial year, amounting to EUR 14,418,688 and EUR (3,226,560) respectively. The transaction is considered a related party transaction but has been conducted on an arm's length basis based on an independent valuation.

Bharat Forge Limited, through its Aerospace Division, has signed a Memorandum of Understanding (MoU) with FLYING WHALES, a French-Canadian company, to jointly develop and manufacture heavy-lift airships for India's defence and strategic applications. The partnership aims to establish indigenous production of next-generation airships, including the LCA60T platform capable of carrying 60 tonnes of cargo with vertical take-off and landing. This collaboration aligns with India's 'Aatmanirbhar Bharat' and 'Make in India' initiatives, fostering sovereign capabilities in aerospace and creating a new industrial ecosystem for strategic mobility and logistics.