Bharat Forge Ltd has taken a ₹450-crore impairment on its investment in KPTL’s e-mobility division, signalling a reassessment of its electric vehicle strategy at a time when global EV adoption has become more uneven than initially expected.

“The Rs 450 Crores impairment during the quarter of our investments in KPTL (E-mobility division) is an acceptance of the need to take a fresh look at how we address the EV opportunity as the EV adoption globally has changed significantly,” Baba Kalyani, Chairman and Managing Director, of Bharat Forge said.

The write-down comes as several global automakers recalibrate their electrification plans amid slower-than-expected adoption in some markets, policy uncertainty and rising competition from Chinese EV makers.

In an analyst call held to discuss Bharat Forge’s financial performance, Amit Kalyani, Vice-Chairman and Joint Managing Director, said the company had decided to write off investments where it does not see immediate revenue or business ramp-up.

“As you are aware, globally, the electric vehicle adoption has taken different trajectory as compared to what was originally envisaged,” he said, adding that there has been a “recalibration of everybody's EV strategy globally, except the Chinese.” 

However, Bharat Forge is not stepping away from mobility electrification altogether. The company said K-Drive Mobility is making progress in reorienting its product portfolio, with new order wins beyond medium and heavy commercial vehicles, including four EV platforms for light commercial vehicles

Alongside the EV impairment, Bharat Forge has begun restructuring the steel business of CDP Bharat Forge in Europe. The company expects the process to conclude by the end of 2027.

“The US & European operations reported modest operating profits despite weak demand. We have initiated the restructuring of the steel business of CDP Bharat Forge and we expect this process to conclude by end of CY27. The management is pursuing various alternative business opportunities in Europe to leverage its scaled down manufacturing footprint,” Baba Kalyani said. 

On the conference call, the management said the restructuring process would take around 15 to 18 months and would involve meeting customer requirements while carrying out a liquidation of the company. It also indicated that overseas subsidiary losses should reduce as CDP-related losses are addressed through the restructuring process. 

Financial Performance 

Bharat Forge reported a sequential recovery in Q4FY26, led largely by export revival and steady domestic demand. On a standalone basis, revenue rose 8.5% quarter-on-quarter to ₹2,260.5 crore, while EBITDA grew 7.2% to ₹610.3 crore, translating into an EBITDA margin of 27%. Profit before exceptional items rose 9.7% sequentially to ₹486.2 crore. However, on a full-year basis, standalone revenue declined 5.1% to ₹8,395.8 crore, while EBITDA fell 8.4% to ₹2,312.1 crore, reflecting weakness in export markets, particularly North American trucks. 

The domestic business remained more resilient. Q4 domestic revenue stood at ₹1,063.4 crore, broadly flat sequentially but sharply higher than ₹803.4 crore in Q4FY25. Growth was supported by higher commercial vehicle production, GST-led demand tailwinds and healthy passenger vehicle production. For FY26, domestic revenue rose to ₹3,956.8 crore from ₹3,653.1 crore in FY25, helped by commercial vehicle replacement demand, utility vehicle-led passenger car momentum and steady industrial demand across power, construction and mining, agriculture and machine tools. 

Exports showed a clear sequential rebound in Q4FY26. Export revenue rose 19.2% quarter-on-quarter to ₹1,084.4 crore, driven by inventory restocking and recovery in North American truck production after a weak Q3. Passenger vehicle exports were strong in North and Central America, while aerospace execution improved. However, FY26 export revenue declined 15.2% to ₹4,011.4 crore from ₹4,728.1 crore in FY25, mainly due to inventory destocking in the North American truck market and weakness in oil and gas on subdued fracking capex. 

On a consolidated basis, Q4FY26 revenue stood at ₹4,528.3 crore, with EBITDA of ₹773.5 crore and PBT before exceptional items of ₹486.9 crore. For FY26, consolidated revenue rose 11.2% to ₹16,811.6 crore, while EBITDA increased 5.9% to ₹2,920.7 crore. The company said standalone exports drove most of the sequential improvement in Q4, while K Drive Mobility also posted strong topline performance, partly offset by lower defence execution. 

FY27 Outlook 

Despite the EV impairment and overseas restructuring, Bharat Forge remains optimistic about FY27.

“Looking ahead into FY27, barring any geopolitical crisis and its impact of demand, we are optimistic of achieving 25% revenue growth with a commensurate increase in EBITDA & profitability for the Indian manufacturing operations driven by execution of orders across business and recovery in the export market,” Kalyani said. 

The company said its ongoing capital expenditure across forging, castings and product platforms would be around ₹800-850 crore over a 15-18 month period. It is also evaluating further M&A opportunities in India in high-growth sectors that complement its existing businesses.