Bharat Forge turns cautious on US exports, tariffs making FY26 a 'challenging' year

Auto ancillary major Bharat Forge has turned cautious on the outlook for US exports for the rest of the fiscal and sees FY26 to likely be a 'challenging period', the management said on August 6, after posting lower year-on-year net profit and revenue on consolidated basis, with even margins taking a bit to fall to 17.2 percent in the June quarter.

Chairman and Managing Director BN Kalyani said, "Given the recent tariff announcement by the US government and changes to emission regulation in North America, we are cautious on the outlook for the US export business for the reminder of the fiscal. FY26 is likely to be a challenging period, given where we are in the overall cycle and our geographical exposure."

"During the quarter, the company faced challenging market conditions in our export markets caused by tariff & regulatory uncertainties," said Kalyani, adding that the management plans to capture opportunities in businesses and geographies that are 'relatively unaffected', and will work towards cost optimization, going forward.

Shares of Bharat Forge have been under pressure, slipping to day's low after the earnings and management comments. The company posted a consolidated net profit of Rs 284 crore, which is lower by 13 percent on year, while the revenue fell 4.8 percent on year at Rs 3,909 crore. The margin came in at 17.2 percent compared to 18.1 percent a year ago.