Shares of Bharat Forge Ltd are likely to remain in focus after the company announced its entry into the semiconductor ecosystem and outlined plans to deepen its presence in defence manufacturing.
The stock rose as much as 2.6% on Wednesday to an intraday high of ₹1,974, compared with the previous close of ₹1,925.55. The company has a market capitalisation of ₹93,053 crore.
The stock has gained around 46% over the past year.
Entry into semiconductor manufacturing
Speaking about the company’s latest initiatives, Chairman Baba Kalyani said Bharat Forge has begun working with three of the world’s five largest semiconductor companies.
The company is participating in a semiconductor project and has started manufacturing components used in lithography machines, which are critical for chip production.
Why it matters
Lithography systems are among the most important pieces of equipment used in semiconductor manufacturing.
Bharat Forge’s move comes as India seeks to develop a domestic semiconductor ecosystem under the India Semiconductor Mission.
According to the company, the programme has already attracted investment commitments of more than ₹1.65 lakh crore across chip fabrication and packaging projects.
The initiative also aims to develop:
- Semiconductor equipment.
- Materials.
- Indigenous technologies.
Defence business gaining momentum
Baba Kalyani said reforms in the defence sector have expanded opportunities beyond supplying components to participating in complete platforms.
He expects India’s defence industry to witness strong growth over the next five years.
Defence exports remain important
Exports contribute nearly 40% of Bharat Forge’s defence revenue.
The company sees opportunities arising from rising defence spending across:
- India.
- The United States.
- Europe.
Largest-ever army carbine order
Bharat Forge has also secured its largest army carbine order, which management expects to support long-term growth.
Kalyani highlighted the need for stronger partnerships between Indian and global companies and said India should increasingly move towards becoming a product-driven economy.
About Bharat Forge
Bharat Forge Limited, the flagship company of the Kalyani Group, is a Pune-based multinational engineering company.
It operates one of the world’s largest single-location forging facilities and supplies critical components to:
- Automotive manufacturers.
- Defence companies.
- Industrial customers.
- Aerospace players.
Q4 FY26 financial performance
The company reported higher revenue during the quarter.
Revenue
- Q4 FY25: ₹3,853 crore.
- Q4 FY26: ₹4,528 crore.
Growth stood at 18%.
EBITDA
- Q4 FY25: ₹679 crore.
- Q4 FY26: ₹777 crore.
EBITDA increased by 14%.
Net profit
- Q4 FY25: ₹283 crore.
- Q4 FY26: ₹233 crore.
Net profit declined despite revenue growth.
- Q4 FY25: ₹5.90.
- Q4 FY26: ₹4.86.
EPS fell by 18% year-on-year.
Key takeaways
Bharat Forge’s latest developments include:
- Entry into the semiconductor industry.
- Collaboration with three of the world’s top five chipmakers.
- Manufacturing components for lithography equipment.
- Strong defence export opportunities.
- Receipt of its largest army carbine order.
These developments add new growth avenues alongside the company’s established automotive and industrial businesses.
TL;DR
Bharat Forge has entered the semiconductor ecosystem and is working with three of the world’s five largest chipmakers. The company is also seeing strong growth opportunities in defence, where exports account for around 40% of defence sales.
AI Summary
- Bharat Forge has entered the semiconductor business.
- It is working with three of the world’s five largest chipmakers.
- The company is manufacturing components for lithography machines.
- Defence exports contribute about 40% of defence revenue.
- Q4 FY26 revenue rose 18% to ₹4,528 crore.
