Bharat Forge shares slid 7.6% on Monday after the company posted a first‑quarter loss, making it the biggest loser on the Nifty Midcap 100. In early trade on Tuesday the stock was down about 1%, trading near Rs 2,072.
The company’s market capitalisation sits at roughly Rs 60,600 crore. Even though the share price has dipped, Bharat Forge has risen almost 43% this year, outperforming the Nifty 50’s 6% decline.
Nomura has kept a Neutral rating and set a target price of Rs 2,260, about 8% above Monday’s close. The brokerage said the Q1 miss was mainly due to transient factors, with a consolidated EBITDA margin of 16.2% versus the expected 17.8%.
CLSA also maintains a Hold, targeting Rs 2,106. It notes that after adjusting for foreign‑exchange losses, the standalone EBITDA margin of 25% was largely in line. Higher gas and commodity costs, along with labour shortages, eroded the margin by roughly 160 basis points.
InCred keeps a Hold call with a target of Rs 2,103. It highlighted a 9% year‑on‑year rise in normalised EBITDA to Rs 620 crore, while energy costs caused a one‑off margin hit of about 160 basis points.
MOSL stays Neutral, targeting Rs 1,931. The brokerage pointed out that Q1 adjusted earnings of Rs 340 crore were 12% below estimates, mainly due to weaker margins and losses in the US business.
For the June quarter, Bharat Forge reported a consolidated net loss of Rs 90 crore, compared with a profit of Rs 284 crore a year earlier. The loss was driven by one‑off items that added an exceptional hit of Rs 358 crore. Revenue rose 18.7% year‑on‑year to Rs 4,640 crore, ahead of the poll estimate of Rs 4,591 crore. EBITDA climbed to Rs 709.4 crore, while the margin slipped to 15.29%.
Looking ahead, the company has kept its FY27 standalone revenue growth guidance of 20‑25% and plans a Rs 2,500 crore raise, including Rs 1,800 crore for a new facility in Andhra Pradesh. Analysts expect margin recovery to about 28% and earnings per share growth of 22% over the remaining nine months of FY27, driven by defence, aerospace and the US Class 8 truck cycle.