Automotive and aerospace forging firm Bharat Forge has completed the merger of its German subsidiary Bharat Forge Holding GmbH (BFH) with Bharat Forge Global Holding GmbH (BFGH), consolidating the two entities as part of a restructuring of its German operations. According to reports from CNBC TV18, the merger took effect on August 25, 2026, after it was entered in Germany's commercial registry. Bharat Forge received the final registry extracts on Thursday (September 10) and disclosed the completion to the stock exchanges the same day. The merger agreement was dated August 18, 2026, with both entities serving as wholly-owned subsidiaries of the listed Indian firm. Following the completion, BFH has ceased to exist as a separate legal entity, while Bharat Forge Aluminiumtechnik GmbH, which was previously a subsidiary of BFH, has consequently become a direct subsidiary of BFGH.
According to CNBC TV18, the merger was undertaken to simplify Bharat Forge's legal structure in Germany and would have no financial impact on the company. The company stated that there would be no change in Bharat Forge's shareholding pattern, and there would be no implication for its standalone or consolidated financial statements. The merger is classified as a related party transaction between direct or indirect wholly-owned subsidiaries but does not attract provisions under the Companies Act, 2013, or Listing Regulations as it does not involve the listed entity directly. The transaction does not involve any cash consideration or issuance of shares, as BFH was wholly owned by BFGH, and the merger does not alter the ownership structure of the parent company. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/II/3762/2026 dated January 30, 2026.
Following the merger, BFH has ceased to exist as a separate legal entity, while Bharat Forge Aluminiumtechnik GmbH, which was previously a subsidiary of BFH, has consequently become a direct subsidiary of BFGH. As reported by CNBC TV18, both BFGH and BFH are holding companies involved in acquiring and holding interests in other companies, as well as controlling and managing those investments. The target entity reported nil revenue from operations for the year ended December 31, 2025, while the acquiring entity recorded €6,086,504.36 revenue for the same period. Since the target is a wholly-owned subsidiary of the acquirer, no consideration was paid, and no shares were issued during the process.
Bharat Forge reported its June-quarter results on August 10, posting a net loss of ₹90 crore compared with a net profit of ₹284 crore in the year-ago quarter. As reported by CNBC TV18, the loss was primarily due to multiple one-off items, which led to an exceptional loss of ₹358 crore during the quarter. Revenue rose 18.7% year-on-year to ₹4,640 crore, while EBITDA increased to ₹709.4 crore from ₹670 crore in the same quarter last year, though the EBITDA margin narrowed by 170 basis points to 15.29%.
Shares of Bharat Forge closed at ₹1,946 on Thursday, down 1.7% from the previous close, according to CNBC TV18. The company's German subsidiaries BFGH and BFH reported revenue from operations of €6.09 million and no revenue respectively for the year ended December 31, 2025, as disclosed in the filing. Historical stock returns show the stock has gained +65.43% over one year and +152.62% over five years, despite recent volatility with a -13.70% decline over the past month.
