Bharat Forge, one of India’s leading automotive component suppliers, has demonstrated resilience in its standalone financial performance for the fourth quarter and full fiscal year 2025, navigating global headwinds while capitalising on robust growth in its defence sector business.  The company showcased a steady performance despite challenges in certain international markets.

For Q4 FY2025, Bharat Forge recorded standalone revenues of INR 21 billion, with an EBITDA of INR 6 billion, translating to a healthy EBITDA margin of 29.1 percent. The company also reported a Profit Before Tax (PBT) of INR 4.9 billion.

For FY2025, Bharat Forge reported standalone revenues of INR 88 billion, a marginal dip of 1.4 percent compared to the INR 89 billion recorded in FY2024. Despite this slight decrease in revenue, the company managed to improve its profitability, with EBITDA at INR 25 billion (EBITDA margin of 28.5 percent) and PBT at INR 19 billion, both showing a marginal improvement compared to the previous fiscal year. The company also highlighted a strong balance sheet with cash on books of INR 26 billion.

The company stated that FY25 Revenues remained flat despite weakness in European CVs, mixed performance in export PV business. Oil & Gas recouped from the lows of FY24 while Defence displayed steady growth.

At a consolidated level, Bharat Forge reported revenues of INR 15.1 billion in FY2025, remaining relatively flat compared to the INR 15.6 billion in FY24. However, the company saw a significant improvement in consolidated EBITDA margins, rising from 16.4 percent to 18.2 percent.

A significant highlight of the year was the strong order inflow, particularly in the defence sector. During Q4 FY25, the company secured new orders worth INR 43 billion, including a substantial INR 34 billion towards the ATAGS order. As of March 2025, the defence order book stood at a robust INR 94 billion. For the entire fiscal year, the Bharat Forge group secured new orders worth INR 69 billion, with the defence sector accounting for an impressive 70 percent of these new wins.

The company also highlighted the strong performance of its ferrous castings business, which witnessed significant growth with revenues increasing by 23 percent, EBITDA by 35 percent, and a doubling of profits compared to FY2024. Key return ratios for this segment exceeded 20 percent.

Looking ahead to FY2026, Bharat Forge outlined its strategic focus on improving consolidated profitability through several internal actions. These include reducing losses in the e-mobility vertical, evaluating options for the steel business in Europe, improving operational performance in the aluminium business, leveraging North American manufacturing footprint and focusing on new business wins across traditional forgings, defence, aerospace and castings. The company also anticipates the integration of the AAM India business in FY2026, which is expected to further enhance its product portfolio and presence in the Indian market.

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Bosch, the flagship entity of the Bosch Group in India, has announced its intention to acquire 100 percent of Bosch Chassis Systems India. The transaction is structured as a cash deal combined with the issuance of equity shares on a preferential basis.

The acquisition integrates the Vehicle Motion business into Bosch’s portfolio. This move is designed to unify the company’s mobility offerings, shifting from the supply of individual components to the delivery of integrated platform solutions.

Bosch Chassis Systems India specialises in automotive safety systems. Its product range includes:

• Active Safety: Antilock braking systems (ABS), electronic stability control (ESC) and advanced braking systems.
• Passive Safety: Airbag electronic control units (ECUs) and sensors.
• Actuation Systems: Braking hardware for passenger cars, two-wheelers and commercial vehicles.

The realignment allows Bosch to expand its investment in safety and braking technologies alongside its existing operations in power solutions.

Following the acquisition, Bosch Chassis Systems India will operate as an independent entity, with its governance overseen by Bosch. The boards of the Bosch Group, Bosch and Bosch Chassis Systems India have approved the transaction. The deal remains subject to approval from Bosch shareholders, after which the unit will become a wholly-owned subsidiary.

Guruprasad Mudlapur, President, Bosch Group in India and MD, Bosch, said, “Adding Bosch Chassis Systems India, with a future-fit vehicle motion solutions business into Bosch Limited, demonstrates our organisational belief in enhancing the company’s growth trajectory through portfolio diversification. This transaction further solidifies our leadership presence within mobility, enabling us to utilise our strengths and deliver solutions backed by local research and development and local manufacturing.”

Sandeep Nelamangala, Joint Managing Director of Bosch and President of Bosch Mobility India, added, “In India, we expect the mobility landscape to evolve radically by 2030 and beyond with sustainable, safe and exciting technologies. To foster a customer- first mindset and pivot from supplying individual components to delivering future- ready platform solutions, it is imperative to unite our forces and adopt an integrated approach. This transaction empowers Bosch to drive growth with a wider portfolio and combined offerings across the mobility tech stack.”

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Sona BLW Precision Forgings (Sona Comstar) has announced the achievement of two production milestones: manufacturing 500 million differential gears and 10 million differential assemblies since its inception. The company provides mobility technology solutions for battery electric vehicles (BEVs), passenger vehicles, commercial vehicles and off-highway vehicles.

According to the company, Sona Comstar has an 8.7 percent global market share in differential gears in 2025, an increase from 4.5 percent in 2019. It operates manufacturing facilities in Gurugram, Pune and Manesar.

The company commenced production of differential gears in Gurugram in 1999. It reached 100 million units in 2013 and 400 million in 2024. the most recent 100 million units were produced within a two-year period.

For differential assemblies the production began in 2008. It crossed 5 million unit production milestone in 2023, with the subsequent 5 million units manufactured in less than three years.

The company designs and manufactures precision-forged gears and driveline components. Its growth trajectory is linked to the expansion of both conventional and electric mobility platforms. The facility in Manesar, opened in 2019, supports the production of differential assemblies specifically for the global BEV market.

Vivek Vikram Singh, Group CEO, Sona Comstar, said, “We are proud to celebrate these important milestones of our Driveline Business. They reflect the scale we have built over the years, our commitment to engineering excellence, and the trust our customers have placed in us globally. I thank our customers, suppliers, and employees for their continued support and contribution to this achievement. As mobility continues to evolve, we remain focused on innovation, expanding our integrated driveline capabilities, and delivering high-quality solutions that meet the changing needs of our customers across EV and conventional platforms.”

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Ludhiana-based auto components manufacturer Kay Jay Forgings has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The proposed INR 3.6 billion initial public offering (IPO) consists of a fresh issue of equity shares up to INR 3 billion and an offer for sale (OFS) of up to INR 600 million by existing shareholders.

The company plans to deploy the net proceeds from the fresh issue for capital expenditure and debt reduction. It aims to invest INR 1.18 billion towards a new forging facility, a machining facility and a solar power plant. INR 900 million towards debt repayment and the remaining funds to be utilised for operational purposes.

The company may also consider a pre-IPO placement of up to INR 400 million, which would reduce the size of the fresh issue accordingly.

Kay Jay Forgings is a precision engineering company manufacturing machined components for automotive original equipment manufacturers (OEMs). It also serves the farm equipment, mining, and home appliance sectors with a portfolio of 286 products.

The company claims it is the largest supplier of crankshafts and crankshaft assemblies to two-wheeler OEMs in India, with an estimated 36 percent domestic market share in FY2025. It operates 6 manufacturing units in Ludhiana, Punjab, and Hosur, Tamil Nadu. The company reported a customer rejection rate of less than 1 percent for the 6-month period ended 30 September 2025.

It maintains long-term relationships with several manufacturers, including a 37-year partnership with TVS Motor Company. Other clients include Honda Motorcycle & Scooter India, Mahindra & Mahindra and Bajajsons.

Future strategies focus on diversifying into lightweight aluminium forged and machined components. These powertrain-agnostic parts are intended to help OEMs meet emission norms and improve fuel efficiency.

In terms of financial performance, the company reported revenue of INR 7.5 billion in FY2025, up 12 percent YoY, as against INR 6.72 billion a year ago. Net profit for FY2025 came at INR 290 million, up 20 percent YoY, as against INR 240 million a year ago.

For H1 FY2026, the company reported a net profit of INR 213 million. The global automotive forging market is projected to grow from USD 45.1 billion in 2025 to USD 65.8 billion by 2030, representing a CAGR of 7–9 percent.

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Avendus Capital has released a report on the Indian auto component industry, identifying a structural shift in global supply chains. The study projects that India’s automotive metal forming market – comprising casting, forging, stamping, and machining – will grow at a 12 percent CAGR to reach USD 90–95 billion by FY2030.

The report indicates that value within the global automotive supply chain is shifting toward process specialists rather than diversified product suppliers. These specialists rely on metallurgical expertise and precision tooling, creating high entry barriers.

The Indian auto component sector surpassed USD 80 billion in FY2025. India has transitioned to a net exporter, with exports reaching approximately USD 23 billion. Original Equipment Manufacturers (OEMs) and Tier-1 suppliers are diversifying sourcing bases to India due to geopolitical factors and cost competitiveness.

Core metal-forming processes remain essential for both Internal Combustion Engine (ICE) and Electric Vehicle (EV) platforms. As global suppliers reallocate capital toward electrification, the report suggests India holds a ‘last man standing’ advantage in ICE components.

India is positioned to fill the supply gap for critical drivetrain components, including crankshafts, gears and axles. With a global fleet of over 1.5 billion ICE vehicles, the segment also presents substantial opportunities in the aftermarket.

The sector is experiencing a consolidation cycle led by capabilities rather than just scale. Recent deal activity shows increased participation from global private equity firms and strategic acquirers focusing on export-oriented platforms with deep process expertise.

Koushik Bhattacharyya, Managing Director and Head, Industrials Investment Banking, Avendus Capital, stated, “The Indian auto component sector is moving beyond a scale-driven growth phase into a capability-led consolidation cycle. We are seeing a clear shift in value toward process specialists, where deep manufacturing expertise and operational precision are becoming the key differentiators. As global supply chains evolve, India is uniquely positioned to capture this opportunity, particularly in core metal-forming segments. We expect this to translate into sustained deal activity, as investors look to build scaled, capability-led platforms in the sector.”

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