Baba Kalyani's company suffered losses but still gave a gift to investors

Bharat Forge, a key player in the defense equipment sector and headed by its chairman, Baba Kalyani, has rewarded investors with a dividend despite incurring losses. 

Bharat Forge Limited, a leading defense equipment company, reported a 17 percent decline in profit to ₹233.45 crore in the fourth quarter of fiscal year 2025-26. Previously, the company had reported a profit of ₹282.62 crore in the fourth quarter (January-March) of 2024-25.

The company informed the stock market

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Baba Kalyani's company Bharat Forge reported in a stock exchange filing on Thursday that operating income rose to Rs 4,528.04 crore in the quarter under review from Rs 3,852.6 crore in the year-ago quarter. Total expenses rose to Rs 4,089.33 crore from Rs 3,483.04 crore.

Why did the company suffer losses?

Bharat Forge said in a statement that it incurred extraordinary expenses totaling ₹987.3 million in the fourth quarter, including a reduction in investment in a subsidiary, 

the impact of labor codes, and contingencies related to the restructuring of its German unit, Bharat Forge CDP GmbH. These factors led to the company's loss in the fourth quarter.

Dividend gift given to investors

Despite suffering losses, this defense sector company has announced a dividend gift to investors. The company stated that its board of directors has recommended a final dividend of ₹6.5 per share of ₹2 face value for 2025-26. 

This is subject to shareholder approval at the upcoming annual general meeting. For the full fiscal year 2025-26, the company's consolidated net profit during this period was ₹1,089.4 crore, compared to ₹913.28 crore in 2024-25. 

Revenue increased from ₹15,122.8 crore to ₹16,811.65 crore. Companies are currently releasing their fourth-quarter results. In this series, Baba Kalyani's company, Bharat Forge, has also released its quarterly results.