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Bharat Forge Ltd has recorded an impairment of 450 crore on its investment in the e-mobility division of KPTL, reflecting a strategic reassessment of its electric vehicle (EV) business amid slower-than-expected global EV adoption, policy uncertainties, and rising competition from Chinese automakers.
Chairman and Managing Director Baba Kalyani said the impairment highlights the need to take a fresh approach toward EV opportunities, as global adoption trends have evolved differently from earlier expectations. He noted that automakers worldwide are recalibrating their EV strategies, while Chinese companies continue to expand aggressively in the sector.
Despite the write-down, Bharat Forge clarified that it is not exiting the electric mobility space. Its subsidiary, K-Drive Mobility, is restructuring its product portfolio and has secured orders for four new EV platforms for light commercial vehicles, in addition to its medium and heavy commercial vehicle programs.
The company has also announced the restructuring of the steel business of CDP Bharat Forge in Europe. The process is expected to be completed within 15 to 18 months, with a target completion timeline by the end of 2027. According to the management, the restructuring aims to reduce operational costs in Europe while exploring alternative business opportunities.
On the financial front, Bharat Forge reported a strong recovery in Q4FY26. On a standalone basis, revenue increased 8.5% quarter-on-quarter to ₹2,260.5 crore, while EBITDA rose 7.2% to ₹610.3 crore. Growth was supported by strong commercial vehicle demand, GST-led consumption trends, and healthy passenger vehicle production in the domestic market.
Exports also showed improvement during the quarter, with export revenue rising 19.2% sequentially to 1,084.4 crore. However, full-year FY26 export revenue declined 15.2% due to weak demand in the North American truck market and subdued activity in the oil and gas sector.
Looking ahead, Bharat Forge remains optimistic about FY27. Baba Kalyani stated that, barring any major geopolitical disruptions, the company expects nearly 25% revenue growth in its Indian manufacturing operations, supported by improved profitability and export market recovery. The company also plans to invest around ₹800–850 crore over the next 15–18 months in forging, casting, and product platform expansion.
