Bharat Forge stock trading steady today after Q2 results; brokerages mixed on export weakness, near-term profits

Shares of Bharat Forge Ltd were steady around Rs 1,400 on Wednesday after a strong rebound in the previous session, as investors weighed robust July-September quarter results against management’s warning of softer North American demand in the second half of FY26. Brokerages offered mixed views -- Nomura said export weakness may be nearing its bottom, while InCred remained cautious on near-term profits.

Bharat Forge shares traded nearly flat at Rs 1,400 on Wednesday, after rising 5.5 percent in the previous session to Rs 1,402 post-results. The stock has gained about 3 percent over the past year.

Q2 results summary

Bharat Forge reported a 23 percent rise in consolidated net profit to Rs 299 crore for the July–September quarter, exceeding Street estimates of Rs 236 crore. Revenue climbed 9.3 percent year-on-year to Rs 4,032 crore, also above expectations. EBITDA rose 12.1 percent to Rs 726 crore, with margins expanding 50 basis points to 18 percent — all ahead of CNBC-TV18’s poll projections.

The company said exports to North America are expected to weaken further in H2 FY26, but added that domestic industrial growth, non-US exports, and the ramp-up of its defence business would offset the softness. Bharat Forge secured new orders worth Rs 1,582 crore in H1, including Rs 559 crore in defence, taking its total defence order book to Rs 9,467 crore.

• Also read | BSE stock jumps over 5% today after Q2 profit rises 61%; Jefferies bullish, Goldman neutral

Brokerage views

Nomura maintained a neutral rating with a target price of Rs 1,553 per share, noting that while export demand remains weak, the cycle appears close to its bottom. It said the commercial vehicle downcycle may turn around by H2 FY27 and that an India-US trade deal could help ease tariff-related overhangs.

InCred gave a hold call with a target price of Rs 1,209 per share, observing that Q2 EBITDA fell 12 percent year-on-year due to weak US commercial vehicle demand. It said the company’s passenger vehicle and industrial segments supported margins at 28.3 percent but warned that challenging North American conditions and a tightening global environment could weigh on short-term profitability.

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