Bharat Forge, a key player in the defense equipment sector led by Chairman Baba Kalyani, has surprised investors by declaring a dividend despite reporting a loss. In the fourth quarter of the fiscal year 2025-26, the company's profit fell by 17% to ₹233.45 crore, down from ₹282.62 crore in the same quarter of the previous fiscal year.

Company's Disclosure to the Stock Market

On Thursday, Bharat Forge informed the stock market that its operational revenue for the reviewed quarter increased to ₹4,528.04 crore, compared to ₹3,852.6 crore in the same quarter last year. However, total expenses rose from ₹3,483.04 crore to ₹4,089.33 crore during this period.

Reasons for the Company's Loss

According to a statement from Bharat Forge, the company incurred an extraordinary expense of ₹98.73 crore in the fourth quarter. This included reduced investments in subsidiaries, the impact of labor laws, and unexpected costs related to the restructuring of its German subsidiary, Bharat Forge CDP GmbH, which contributed to the losses.

Dividend Announcement for Investors

Despite the losses, Bharat Forge has announced a dividend for its investors. The board of directors has recommended a final dividend of ₹6.5 per share with a face value of ₹2 for the fiscal year 2025-26, pending approval at the upcoming annual general meeting. For the entire fiscal year 2025-26, the company's consolidated net profit stood at ₹1,089.4 crore, an increase from ₹913.28 crore in 2024-25, while revenue rose from ₹15,122.8 crore to ₹16,811.65 crore. Companies are currently releasing their fourth-quarter results, and Bharat Forge is among them.