Pune-based Bharat Forge Ltd reported a consolidated net loss of ₹90 crore for the first quarter of FY27, compared with a profit of ₹284 crore in the year-ago period, as restructuring costs at its German subsidiary weighed heavily on the company’s bottomline.
The loss came despite a 19% year-on-year increase in revenue from operations during the quarter. Revenue growth was led by an 8% increase in the forgings business, an 88% jump in defence revenue and a 125% rise in the others segment. The sharp deterioration in the bottom line was primarily driven by exceptional items related to the restructuring of Bharat Forge CDP GmbH (BF CDP), its German subsidiary, which is facing market challenges and associated cost disadvantages.
Bharat Forge said it has initiated restructuring measures at BF CDP and recorded incidental restructuring-related expenses of ₹26.69 crore in its consolidated financial results for the quarter ended June 30, 2026. More significantly, the group recognised a restructuring provision of ₹330.42 crore in the consolidated results after BF CDP reached an in-principle understanding with its Works Council for implementation of a social plan. The company also recognised an expense of ₹0.89 crore related to a voluntary retirement scheme during the quarter.
