The decision follows ongoing market challenges and cost disadvantages faced by the subsidiary in Germany.

To support the restructuring process, the Board has approved a financing arrangement of up to EUR 30 million.

The company further said that the board has delegated authority to a sub-committee to oversee further evaluation and implementation.

Bharat Forge manufactures an extensive array of critical and safety components for several sectors, including automobiles (across commercial & passenger vehicles), oil & gas, aerospace, locomotives, marine, energy (across renewable and non-renewable sources), construction, mining, and general engineering.

The company’s consolidated net profit rallied 28.21% to Rs 272.80 crore in Q3 FY26 as against Rs 212.78 crore posted in Q3 FY25. Revenue from operations soared 24.96% YoY to Rs 4,342.93 crore in the quarter ended 31 December 2025.

The scrip fell 1.55% to currently trade at Rs 1753 on the BSE.