Bharat Forge Halves EV Strategy After ₹450 Cr Write-Down

Bharat Forge Ltd. has announced a strategic recalibration of its electric vehicle (EV) endeavors, prompted by a ₹450 crore impairment charge impacting its EV business and Tork Motors. This significant write-down, reported in Q4 FY26, contributed to a standalone net loss of ₹258.8 crore, a stark contrast to the ₹319.6 crore profit in the prior year's quarter. The company's Chairman and Managing Director, BN Kalyani, acknowledged the need for a fresh perspective on addressing the EV opportunity, citing altered global EV adoption patterns.

Despite the EV-related challenges, Bharat Forge demonstrated operational resilience. Consolidated revenue from operations in Q4 FY26 rose by 17.5% year-on-year to ₹4,528 crore, with EBITDA increasing to ₹774 crore. This growth was supported by improving export performance and a rebound in North American truck production. The company's defense order book remains strong, standing at ₹10,961 crore at the close of FY26, with new orders totaling ₹4,814 crore secured during the fiscal year, bolstering its future growth prospects.

Looking ahead, Bharat Forge is optimistic about achieving 25% revenue growth in FY27. This projection is primarily driven by the recovery in export markets, the execution of its significant defense orders, and continued momentum in its aerospace business. While FY26 saw a decline in standalone revenue due to export slowdowns and European restructuring, the company is poised for a resurgence, leveraging its diversified business segments and strong order pipeline to navigate market dynamics.