500493 Q3 2026 Earnings Presentation

Page 1

Page 2

Management Commentary: Q3 FY26 Performance BFL 3 Month Report: “The quarterly performance continued to be impacted by the de-stocking in the North American CV market. Standalone Revenues was up 7.0% sequentially to Rs 2,084 crores and EBITDA at Rs 569 Crore was up 4.6% QoQ translating in an EBITDA margin of 27.3%. The performance was aided by the strong growth in the Domestic automotive business and execution of defence orderbook. Export revenues witnessed a 3% sequential decline with auto sector down 13% and industrials showing a 11% increase. In Q3, the company secured new orders worth Rs 2,388 Crores including Rs 1,878 crores in Defence. As of Dec 31st 2025, the defence order book stood at Rs 11,130 crores. We signed the CQB Carbine contract with the Ministry of Defence for supply of more than 250,000 units to the Indian armed forces. This order unlocks significant growth opportunities for our Small Arms vertical within the Defence business. In the quarter gone by, JS Autocast (JSA) recorded revenue of Rs 203 Crore and EBITDA of Rs 32 Crore (15.7% EBITDA margin) representing a 22% and 39% YoY jump respectively. K-Drive mobility, a supplier of axle assembly across segments witnessed a muted topline but a sharp jump in their profitability with EBITDA margins moving up from 3.1% in Q2 FY26 to 5.1% in this quarter. We expect the margin profile to continue to improve over a 3-year time frame. The US & European operations reported modest operating profits despite seasonal weakness in the PV market. Review of the European steel manufacturing footprint is on track, and we expect to have concrete measures in place by the end of this fiscal. Looking ahead into Q4 FY26 and FY27, it is fair to say that the worst is behind us and things are starting to look up. With both domestic and exports markets looking strong across sectors, and the commencement of ATAGS execution in H2 FY27, we expect high double digit top line growth and commensurate impact on profitability.” B.N. Kalyani, Chairman & Managing Director

Page 3

Standalone Financial Highlights Q3 FY26 5,694 5,446 5,894 Q3 FY26 Q2 FY26 Q3 FY25 EBITDA 4,433 4,316 4,531 Q3 FY26 Q2 FY26 Q3 FY25 PBT before Ex. Gain/ Loss Q3 FY26 Revenues at Rs 20,837 million saw QoQ improvement supported by higher Domestic Auto revenues and improved Defence execution. EBITDA margin at 27.3% in Q3FY26 down 70bps QoQ, was impacted by product mix changes and increase in tariff cost. PBT before Exchange gain/ (loss) came in at Rs 4,433 million for Q3 FY26 up 2.7% QoQ as better topline performance drove profitability. 3 Rs million 20,837 19,469 20,959 Q3 FY26 Q2 FY26 Q3 FY25 EBITDA

Page 4

4 Review of Export Business – Q3 FY26 • Lower production and inventory de-stocking impacted the CV exports into North America sharply. NA truck revenues declined by 51% in Q3 FY26 vis-à-vis Q3 FY25. Early indicators such as net orders and increasing order backlog give comfort that the worst may be over for the trucking sector. • Passenger car export performed well in a seasonally weak quarter. As trade disputes subside, we anticipate a recovery in consumer confidence leading to higher personal mobility spend • Industrial segment saw mixed performance; HHP engines and Aerospace saw better performance driven by improved execution; while Oil & Gas continued to suffer from weak crude prices. Rs million Revenue – Rs 9,097 million Revenue – Rs 9,420 million Revenue – Rs 11,510 million 2,463 2,598 4,036 Q3 FY26 Commercial Vehicles Passenger Vehicles Industrial 2,844 2,951 3,625 Q2 FY26 Commercial Vehicles Passenger Vehicles Industrial 4,993 2,428 4,089 Q3 FY25 Commercial Vehicles Passenger Vehicles Industrial

Page 5

5 Review of Domestic Business – Q3 FY26 • CV business performance was driven by higher production volumes in Q3 across OEMs as benefits of GST rates cuts percolated in lower TCO to the end-users. • Passenger Car segment saw GST related benefits result in higher demand. We expect these tailwinds to support demand in the near term. In the longer term the expanding per capita car ownership will drive meaningful growth in this sector. • Domestic Industrial business saw strong performance driven by better execution in Defence and good traction for Heavy Horse-power engines Rs million Other Revenue was Rs 1,021 million in Q3FY26 Revenue – Rs 8,391 millionRevenue – Rs 9,058 millionRevenue – Rs 10,719 million 2,231 912 5,915 Q2 FY26 Commercial Vehicles Passenger Vehicles Industrial 2,279 985 5,126 Q3 FY25 Commercial Vehicles Passenger Vehicles Industrial 2,614 1,022 7,083 Q3 FY26 Commercial Vehicles Passenger Vehicles Industrial

Page 6

Export Break up by Geography In Rs million Q3 FY26 Q2 FY26 Q3 FY25 9M FY26 9M FY25 Americas 5,355 5,800 8,540 18,088 25,007 Europe 2,988 2,867 2,333 8,791 8,159 Asia Pacific 754 753 637 2,391 1,795 Total 9,097 9,420 11,510 29,270 34,960

Page 7

7 Consolidated Financial Highlights – Q3 FY26 7,502 7,154 6,377 Q3 FY26 Q2 FY26 Q3 FY25 EBITDA 43,428 40,320 34,755 Q3 FY26 Q2 FY26 Q3 FY25 RevenueRs million 4,600 4,452 3,522 Q3 FY26 Q2 FY26 Q3 FY25 PBT before Ex. Gain/ Loss • QoQ Revenue saw growth driven by Defence. YoY Revenue and EBITDA was impacted by consolidation of K-Drive Mobility (erstwhile AAM India Mfg Corp’s CV business) In Rs million Q3 FY26 FY25 Long term Debt 13,616 19,839 WC Loans & Bill Discounting 46,622 43,044 Equity 96,292 92,206 Cash 20,566 30,952 RoCE (Net) 15.5% 15.4% Debt/ Equity (Net) 0.41 0.35 Net Debt/ EBITDA 1.39 1.16

Page 8

Financials Annexures

Page 9

9 Standalone P&L Highlights – Q3 & 9MFY26 In Rs million Q3 FY26 Q2 FY26 QoQ (%) Q3 FY25 YoY (%) 9M FY26 9M FY25 YoY (%) Sale Tonnage (TBU) 57,859 56,458 2.5% 61,507 -5.9% 1,76,174 1,93,106 -8.8% Domestic 11,740 10,049 16.8% 9,450 24.2% 32,083 31,847 0.7% Export 9,097 9,420 -3.4% 11,510 -21.0% 29,270 34,960 -16.3% Revenue from Operations 20,837 19,469 7.0% 20,959 -0.6% 61,353 66,808 -8.2% EBITDA 5,694 5,446 4.6% 5,894 -3.4% 17,018 18,947 -10.2% EBITDA (%) 27.3% 28.0% 28.1% 27.7% 28.4% PBT before Exceptional Items 4,433 4,316 2.7% 4,531 -2.2% 13,402 14,864 -9.8% Exceptional Items (487) (79) (9) (566) (1,331) Exchange Gain/ (Loss) (29) 64 205 (125) (79) PBT 3,917 4,301 4,727 12,711 13,454 Tax 1,035 1,202 1,266 3,344 3,687 PAT 2,881 3,099 3,461 9,366 9,767

Page 10

10 Standalone B/S Highlights – Q3 FY26 In Rs million Q3 FY26 FY25 Long term Debt 6,597 12,865 WC Loans & Bill Discounting 24,325 26,770 Equity 1,13,427 1,09,643 Cash 13,973 20,728 RoCE (Net) 14.5% 18.1% Debt/ Equity (Net) 0.15 0.17 Net Debt/ EBITDA 0.75 0.75

Page 11

1111 Consolidated Financials Reconciliation Rs million Q3FY26 Indian Operations includes Revenue and EBITDA impact of Rs 2,941 million and Rs 147 million from K-Drive Mobility (erstwhile AAM Indian Mfg Corp’s CV assets). K Drive Mobility is a wholly owned subsidiary of Bharat Forge w.e.f 1st July 2025 Q3 FY26 Indian Operations Overseas Operations E-Mobility Consolidated Revenue from Operations 30,452 12,912 64 43,428 EBITDA 7,109 491 -98 7,502 EBITDA (%) 23.3% 3.8% - 17.3% PBT (incl Other Income) 5,650 -917 -132 4,600 Exchange Gain / (Loss) -18 84 - 66 Exceptional Items -553 - -4 -557 PBT after Exceptional Items 5,080 -834 -136 4,110 Q3 FY25 Indian Operations Overseas Operations E-Mobility Consolidated Revenue from Operations 23,770 10,979 6 34,755 EBITDA 6,463 35 -120 6,377 EBITDA (%) 27.2% 0.3% - 18.3% PBT (incl Other Income) 5,029 -1,343 -164 3,522 Exchange Gain / (Loss) 100 -137 2 -36 Exceptional Items - - 0 0 PBT after Exceptional Items 5,129 -1,480 -162 3,487

Page 12

12 Overseas Financial Highlights – Q3 & 9MFY26 Rs million European Mfg Operations Q3 FY26 Q2 FY26 Q3 FY25 9M FY26 9M FY25 Revenue from Operations 9,078 8,865 8,889 28,462 29,027 EBITDA 386 322 98 1,037 844 EBITDA (%) 4.3% 3.6% 1.1% 3.6% 2.9% PBT before Exchange Gain/ (Loss) -539 -526 -916 -1,555 -1,972 US Mfg Operations Q3 FY26 Q2 FY26 Q3 FY25 9M FY26 9M FY25 Revenue from Operations 3,834 3,812 2,090 11,425 6,599 EBITDA 105 159 -63 493 -514 EBITDA (%) 2.7% 4.2% - 4.3% - PBT before Exchange Gain/ (Loss) -379 -289 -427 -833 -1,676 Overseas Mfg Operations Q3 FY26 Q2 FY26 Q3 FY25 9M FY26 9M FY25 Steel Forgings 7,499 (58%) 7,010 (55%) 6,301 (57%) 22,502 (56%) 19,844 (56%) Al Forgings 5,413 (42%) 5,667 (45%) 4,678 (43%) 17,385 (44%) 15,782 (44%) Total 12,912 12,677 10,979 39,887 35,626

Page 13

13 Indian Subsidiary Financials – Q3 & 9MFY26 Rs million KSSL Q3 FY26 Q2 FY26 Q3 FY25 9M FY26 9M FY25 Revenue from Operations 5,472 3,990 3,195 11,932 12,912 EBITDA 636 427 184 1,233 847 EBITDA (%) 11.6% 10.7% 5.7% 10.3% 6.6% PBT before Exchange Gain/ (Loss) 604 398 241 1,162 1,006 KPTL Q3 FY26 Q2 FY26 Q3 FY25 9M FY26 9M FY25 Revenue from Operations 64 185 6 885 65 EBITDA -98 -85 -120 -241 -441 EBITDA (%) - - - - - PBT before Exchange Gain/ (Loss) -132 -113 -164 -337 -485 BFISL Q3 FY26 Q2 FY26 Q3 FY25 9M FY26 9M FY25 Revenue from Operations 2,354 2,213 1,915 6,373 5,690 EBITDA 351 304 250 867 708 EBITDA (%) 14.9% 13.7% 13.0% 13.6% 12.4% PBT before Exchange Gain/ (Loss) 224 180 122 496 325

Page 14

Slides