Bharat Forge Shares: Management Cautions On US Headwinds, SEBI Analysts Flag More Pain Ahead

Defense equipment manufacturer Bharat Forge fell over 2% on Wednesday after its management cast a cautious outlook for the rest of the year, citing the company’s exposure to the US market. 

Recent tariff proposals by the US government and changes to emission regulations in North America are likely to affect the company’s US export business for the rest of the fiscal year. FY26 is expected to be a challenging period, given the overall cycle and geographical exposure, they said. 

Q1 Review

Bharat Forge reported a 13% dip in Q1FY26 net profit to ₹175 crore, dragged by a one-time impairment cost and other exceptional items. 

However, Revenue grew 6% to ₹4,106 crore, driven by stable volumes across its core forging and defence verticals.

The board has also approved fundraising of up to ₹2,000 crore, aimed at driving growth initiatives and optimizing debt.

SEBI-registered Financial Independence highlighted the company’s operational efficiency and strong performance in key segments, as seen in expanding margins.

Defense division stood out, clocking a massive 147% revenue surge to ₹642 crore, supported by new orders worth ₹980 crore, they said.

Technical Outlook

Technically, however, the stock seems to be in a firm downtrend on the daily chart, noted SEBI-registered analyst Deepak Pal.

The stock is trading below all major moving averages - 20-day, 50-day, 100-day, and 200-day EMA, a clear indication of sustained bearish sentiment. The Relative Strength Index (RSI) sits at 34.68, nearing oversold territory but offering no concrete signs of a reversal yet, Pal said.

Momentum indicators like the moving average convergence/divergence (MACD) remain in negative territory, while the Parabolic SAR continues to show selling pressure with dots forming above the price candles, Pal added.

The stock has breached important support levels and is now testing a crucial demand zone between ₹1,125 and ₹1,135. A breakdown below this range could lead to further downside toward ₹1,100 or even ₹1,075.

Long-term investors could look at staggered accumulation around this zone. However, short-term traders should stay cautious and await a decisive breakout above ₹1,180, preferably on strong volume, before entering fresh positions, Pal said.

Bharat Forge shares closed 2.37% lower at ₹1,136. YTD losses stood at 13%.

Retail sentiment on Stocktwits turned ‘bullish’ from ‘bearish’ a day earlier.

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