Bharat Forge (BHFC) posted standalone adjusted earnings of ₹3.4 billion for the first quarter of fiscal 2027. This figure is 12 percent lower than the ₹3.9 billion estimate that analysts had set. The shortfall was largely due to margins that were below expectations.
On the consolidated level, the company recorded a loss for the quarter. The loss was driven by a one‑off provision of ₹3.5 billion related to the restructuring of the Company Development Programme (CDP).
Looking ahead, the research team projects a compound annual growth rate of 17 percent for revenue, 24 percent for EBITDA, and 39 percent for profit after tax (PAT) for the period FY26‑FY28.
Following a recent rally, the market has priced in most of the positive outlook, with the stock trading at 64 times FY27 earnings per share and 44 times FY28 earnings per share. The target price remains at ₹1,931, which values the shares at roughly 40 times FY28 earnings per share.
The recommendation is to stay neutral on the stock, as the valuation and growth prospects are considered balanced.