Defence stock jumps 10% after company expects to increase its exports by 100%

Synopsis:- Shares surged 10% after management projected exports to nearly double from $400 million to $800 million next year. Sequential growth of 20–25% is expected over the next two quarters, while defence exports stand at $30 million per quarter, supported by a new Andhra Pradesh facility.

The shares of the high-performance components manufacturer gained up to 10 percent in today’s trading session after the company’s managing director expects exports may double next year.

With a market capitalisation of Rs 73,506.13 crore, the shares of Bharat Forge Ltd were trading at Rs 1,537.60 per share, increasing around 6.49 percent as compared to the previous closing price of Rs 1,443 apiece.

US Trade Deal

The shares of Bharat Forge Ltd have seen positive movement after it expects exports to surge nearly 100% year-on-year, rising from $400 million this fiscal to $800 million next year. Chairman Baba Kalyani highlighted that North America historically contributed 50% of revenue, and improving demand, along with the India–US trade deal, is driving this sharp export rebound.

Baba Kalyani said the new trade policy could significantly boost growth, with most of the company’s exports likely to fall under a uniform 18% tariff regime. He added that discussions are ongoing to extend the same 18% rate to products under Section 232 tariffs, which would further benefit its passenger vehicle components business.

Bharat Forge Limited expects a meaningful boost from the evolving trade policy framework. Chairman Baba Kalyani said most products may shift to a uniform 18% tariff, improving competitiveness. Ongoing talks to extend similar treatment to Section 232 products could further support growth in passenger vehicle components exports.

Further, the company is witnessing a sharp recovery in exports, with management guiding for a 20–25% sequential rise in the coming quarter, followed by another 20–25% increase thereafter. Demand is expected to return to 100% of earlier anticipated levels within two quarters.

On the defence front, Chairman Baba Kalyani said exports currently stand at around $30 million per quarter. The company is setting up a new facility in Andhra Pradesh to expand capacity, though further outlook details remain limited due to the ongoing silent period.

Financials

The company delivered a solid Q2FY26 performance, with revenue growing 9% year-on-year to  Rs 4,032 crore, signalling steady momentum. Net profit surged 23% to  Rs 299 crore, reflecting better operational efficiency and margin expansion. The results underline strong demand recovery and disciplined cost control across core segments.

Bharat Forge’s Q2FY26 exports declined to  Rs 9,420 million from  Rs 10,753 million in Q1FY26 and  Rs 11,749 million a year earlier. The Americas weakened at  Rs 5,800 million, Europe stayed stable at  Rs 2,867 million, while Asia-Pacific improved to  Rs 753 million, indicating a gradual recovery from a low base.

Bharat Forge Limited, part of the Kalyani Group, is a global leader in metal forming and engineering solutions. Headquartered in Pune, it serves diverse sectors including automotive, defence, aerospace, and energy. Known for innovation and advanced manufacturing, Bharat Forge continues to strengthen its global presence through technology-driven, sustainable growth.

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