Bharat Forge Ltd. has recommended a final dividend of Rs 6.50 per equity share, representing 325 percent of the face value of Rs 2 each, for the financial year concluded on March 31, 2026 (FY26). This dividend is contingent on shareholder approval at the upcoming Annual General Meeting (AGM).
The company has officially set July 3, 2026, as the record date for determining eligible shareholders for the dividend. Subject to approval at the AGM scheduled for Tuesday, August 11, 2026, the dividend payment, after tax deductions, will be disbursed on or after Friday, August 14, 2026.
Stock Performance and Analyst Outlook
Shares of Bharat Forge closed at Rs 1,932 on Thursday, reflecting a marginal dip of 0.18 percent. Despite this, the stock has demonstrated significant growth, rallying 38.64 percent over the past six months.
Brokerage firms have offered mixed views on Bharat Forge's stock. JM Financial maintained its 'Buy' rating and raised its target price to Rs 2,315 from Rs 2,085. The firm noted Bharat Forge's Q4 FY26 consolidated EBITDA margin of 17.2 percent, which aligned with its estimates. JM Financial highlighted a healthy defence order book of approximately Rs 10,960 crore and projected defence revenue growth exceeding 50 percent in FY27. Additionally, the brokerage expects over 25 percent expansion in the Indian manufacturing business, with aerospace leading as the fastest-growing segment.
Conversely, Nuvama Institutional Equities downgraded Bharat Forge's stock to 'Reduce' from 'Hold', despite raising its target price slightly to Rs 1,650 from Rs 1,620. Nuvama cited a lack of valuation comfort, noting the stock trades at 29x/24x FY27E/FY28E EV/EBITDA following its recent surge.
Business Segment Projections
- Defence: Order book at around Rs 10,960 crore (Q4 FY26). Expected revenue growth of over 50 percent in FY27.
- Indian Manufacturing: Anticipated expansion of more than 25 percent, with aerospace, defence, and components driving growth.
- Aerospace: Projected to be the fastest-growing segment.