Bharat Forge shares traded close to flat after reaching a 52-week high in early trading on Friday, following the company’s earnings report for the March quarter. Investors are particularly focused on the company’s strong operational growth and positive outlook in the defence, aerospace, and export sectors.
As of 12:09 PM, the stock was priced at ₹2,002.90, having peaked at ₹2,044 earlier in the day, reflecting a 2.5 percent increase from the previous close of ₹1,992.90.
On a consolidated basis, Bharat Forge reported a revenue from operations increase of 17.5 percent year-on-year, reaching ₹4,528 crore in Q4 FY26, up from ₹3,853 crore the previous year. Consolidated EBITDA rose to ₹774 crore, compared to ₹671 crore, benefiting from stronger export performance and enhanced operational efficiency across various business segments.
In a related update, global brokerage Jefferies has maintained its buy rating on Bharat Forge, raising the target price to ₹2,500 from ₹2,150. The firm noted an improvement in outlook due to a recovery in the defence and aerospace sectors and a strengthening US truck market. They also upgraded earnings estimates for FY27 and FY28 by 4-10 percent and anticipate a 42 percent compound annual growth rate (CAGR) in earnings per share from FY26 to FY28.
Morgan Stanley has upheld its overweight rating on the stock, assigning a target price of ₹1,978. The brokerage pointed out that while consolidated EBITDA fell 3 percent below expectations, standalone EBITDA exceeded projections. Bharat Forge is projecting a 25 percent revenue growth alongside a similar rise in EBITDA for FY27 and aims to complete the restructuring of the loss-making CDP Bharat Forge unit by the end of 2027.
Citi has retained its sell rating but increased its target price to ₹1,060. They observed that Q4 results slightly exceeded expectations, driven by strong export performance, although domestic revenue fell short. Citi believes aerospace and defence could be significant growth drivers, but cautioned that they would wait for revenue recognition in the second half of the year due to previous delays in defence orders.
Kotak Securities reiterated their sell recommendation and raised the target price to ₹1,300 from ₹1,250. The firm expressed concerns over weak execution and noted that stock valuations offer limited appeal despite an expected acceleration in revenue growth. However, they acknowledged improving demand in domestic auto markets following GST cuts and potential signs of recovery in the US and European commercial vehicle cycles.
Motilal Oswal stated that the GST rate cut has revitalized the domestic auto market and that the Class 8 truck cycle in the US shows early signs of a recovery. They expect defence, aerospace, and JSA businesses to be key growth drivers, forecasting a CAGR of 16 percent in revenue, 22 percent in EBITDA, and 39 percent in profit after tax over FY26-28E. However, they cautioned that most positive factors seem to be already reflected in the stock price after its recent rally, recommending a neutral stance with a target price of ₹1,835, citing high valuations.
Published on May 8, 2026.
