Bharat Forge sets record date for FY26 dividend payment; check details

Bharat Forge Ltd recommended a final dividend of Rs 6.50 per equity share of face value Rs 2 each (325 per cent) for the financial year ended March 31, 2026 (FY26), subject to shareholders' approval at the ensuing Annual General Meeting (AGM).

Following this, the company on Thursday fixed July 3, 2026, as the record date for the dividend purpose.

"If the final dividend as recommended by the Board of Directors is approved at the ensuing AGM of the Company to be held on Tuesday, August 11, 2026, payment of such dividend, subject to deduction of tax at source, will be made on or after Friday, August 14, 2026," Bharat Forge said in a regulatory filing.

Meanwhile, JM Financial said Bharat Forge "reported a Q4 FY26 consolidated EBITDA margin of 17.2 per cent (-50 bps YoY/-10 bps QoQ), in line with its estimates." The brokerage noted that the defence order book remained healthy at around Rs 10,960 crore, compared with Rs 11,100 crore in Q3 FY26.

The brokerage said the company expects defence revenue to grow more than 50 per cent in FY27. Management has also guided for over 25 per cent expansion in the Indian manufacturing business, with aerospace expected to be the fastest-growing segment, followed by defence and components, alongside a similar improvement in profitability.

The brokerage said it factors in 70 per cent and 50 per cent year-on-year (YoY) revenue growth in the aerospace and defence standalone business, respectively, and estimates revenue from Indian operations to rise 24.8 per cent and 24.9 per cent in FY27 and FY28.

JM Financial maintained its 'Buy' rating on the stock and raised its target price. "Accordingly, we are revising EPS estimates by +7.3 per cent/+2.9 per cent for FY27/FY28E. We apply 42x (from 39x earlier) P/E to FY28E EPS, which yields a TP of Rs 2,315 (earlier Rs 2,085); we maintain BUY," it said.

In contrast, Nuvama Institutional Equities said valuation comfort was missing, as the stock trades at 29x/24x FY27E/FY28E EV/EBITDA following the recent run-up.

The brokerage downgraded the stock to 'Reduce' from 'Hold' and raised its target price to Rs 1,650 from Rs 1,620.

"Downgrade to 'REDUCE' (earlier 'HOLD') with a TP of Rs 1,650 (from Rs 1,620), based on 35x/15x FY28E EV/EBITDA for defence/other businesses," it stated.

Stock performance

Shares of Bharat Forge shed 0.18 per cent to close at Rs 1,932 on Thursday. At this level, the stock has rallied 38.64 per cent over the last six months.