Heavy Engineering Boom: Bharat Forge & ESAB

The heavy engineering and manufacturing industry in 2025 is growing strongly, aided by the infrastructure developments in India and the changes in global supply chains. The industry is set to achieve a CAGR of 12 to 15 percent till 2030, aided by the major outlays of Rs.2 lakh crore in roads, railways, and renewables.

Primary Growth Trends

Renewable Energy Rise: 

Wind and solar energy plants require niche forging and welding products, with a projected increase in installed capacity of 50 GW, pushing the demand for the players like Bharat Forge.

Defense & Aerospace: 

Homegrown manufacturing under the 'Atmanirbhar Bharat' campaign triggers increased orders for precision engineering, with export growth of 20% YoY.

Automation and EV Shift: 

The adoption of cutting-edge welding technology and the use of chassis forgings encourages e-mobility, while the output of steel stands at 150 MT.

Investor Outlook 

Enrich Money analysts expect 18-20% returns for welding business  and forging .However, the possibly volatile prices for raw materials, as well as political instability, are the risks. For optimal portfolios, Enrich Money recommends diversified investments through its platforms.

Company Profiles & Business Segments 

Overview Of Bharat Forge Limited: Business Mix, Strategy, and Recent Trends in 2025

Bharat Forge Limited is a worldwide leader in forging and machining parts, with a diversified business across the automotive and non-automotive markets. The market has seen that Bharat Forge Ltd share price  is quite resilient during market fluctuations and is lately trading around Rs.1,444 as of the end of 2025, which reflects market optimism over changes in the company’s strategy. The business model relies heavily on scale and manufacturing across both shores.

Business Mix

Bharat Forge divides its stand-alone business equally into sales generated from auto components (50-55%) with a focus on engine and chassis components, including crank shafts and front axle beams for CVs (around 35-37%), and non-auto industrial business (45-50%). The non-auto industries include oil and gas, defense, aerospace, wind, locomotives, and heavy engineering, which increased to 48% in 9M FY2025, driven by the acquisition of J S Auto for wind castings, among others. International business is substantial with distribution in Europe and the US, counterbalancing the tough market conditions in aluminum forgings.

Strategic Focus

The company opts for diversification to mitigate the effects of the cyclic nature of the CV business by increasing defence and aerospace segments with new orders of Rs.69 billion in FY2025, including an order of Rs.34 billion for ATAGS, creating a defence order book of Rs.94 billion by March 2025. It adopts a dual-shore strategy through acquisition in Europe and the US to stay close to customers and supplement this with cost savings from India-based operations to attain 50% of total sales from abroad shortly. Its current activities include a QIP of Rs.1,650 crore in Q3 FY2025 to support the acquisition of AAM India of Rs.550 crore as well as reduce the debt of its subsidiary by Rs.1,100 crore. 

2025 Trends

Consolidated revenues stood flat at Rs.15,123 crore for FY2025 versus Rs.15,682 crore prior, while EBITDA margins improved to 18% amid European CV weakness offset by Indian strength and defence growth- Rs.1,800-2,000 crore estimated. Q2 FY2026 revenue rose 9.3% to Rs.4,032 crore, while net profit jumped 23% to Rs.299 crore, even as standalone sales fell 13% due to tonnage decline. Bharat Forge share price trends reflect optimism, with a 10% 1-year CAGR, supported by order visibility Rs.5,700 crore executable in defence and capex plans of Rs.1,400-1,600 crore annually for EV components and smart factories.

Overview Of ESAB India Limited: Business Mix, Strategy, and Recent Trends in 2025

ESAB India Limited is an emerging market leader in the Indian market of welding and cutting solutions. This is backed, in part, by strong market confidence in ESAB India, as indicated by the ESAB India share price, performing well with the onset of the growth phase of 2025. It has also seen record sales with high margins in recent market trends, supporting the ESAB India share price.

Business Mix

Similarly, ESAB India earns approximately 92% of its revenues from the product business, categorized into welding consumables, comprising 71% of the category, including electrodes & wires, and equipment, comprising 21% of the category, including arc welders & cutting tools. The balance is attributed to the service business, comprising engineering services. Over 80% of ESAB India's revenues are channeled through more than 200 distributors, with the remaining balanced through institutional direct channels, reaching the entire country of India.

Growth Strategy

With the backing of its parent, Colfax Corp, the company is concentrating on the development of its premium franchise, its distribution network, and its integration with 'Make in India' through infrastructure segments. The market leadership position in the structural welding market (23% share) and equipment business (30% share) translates into the entry into the solar & automation business.

2025 Trends 

ESAB India reached its highest net sales and PB-DIT of Rs.381.55 crores and Rs.72.22 crores respectively in 2025, with an impressive operating margin of 18.93% due to industrial capex and special mix benefits over competitors. The share price of ESAB India rose 25% over three months and 21% over six months, respectively, as of late December 2025, trading at a higher PE of ~45 due to its zero-debt position and 27.84% OP growth. Promotion areas include 10% reduction in emissions and green investment.

Share Price Momentum

The Bharat Forge share price and ESAB India share price have performed very well during the recovery in industries. 

The Bharat Forge share price history has demonstrated an extraordinary recovery, as the Bharat Forge share price rose from the 52-week low of Rs.919 to the current level of around Rs.1,445 in the latter part of December 2025, driven by orders in the automobile and defense sectors. 

The ESAB India share price has performed better, having risen by over 50% so far this year due to the demand for welding in the energy segment.

Performance Highlights

Bharat Forge: Annualized increase of 9-10%: 3-month appreciation at approximately 18% due to expensive valuations at 63 P/E ratios

ESAB India: Delivering superior returns, scaling new peaks above Rs.6,000, fueled by capital expenditure cycles in shipyard and renewable sectors.

Price Targets

The Bharat Forge share price target is Rs.1,400 to Rs.1,600 in the short term and aims for growth in the aerospace segment. The ESAB India share price target is set at Rs.7,000+, and the ESAB India share price forecast is quite positive at 20 to 25% gain due to their performance in exporting.

Q2 FY2026 Financial Comparison: Bharat Forge Limited and ESAB India Limited

Comparison of Q2 FY2026: Bharat Forge and ESAB India shares reveal robust industrial recovery, but ESAB India demonstrates sharper profit acceleration compared to Bharat Forge's steady scale.

The detailed comparative analysis of the Bharat Forge share price and ESAB India share price has been made using key Q2 data, marking how the trends can impact the future prices of the forgings market and the welding market, respectively.

Market Position and Valuation

Bharat Forge CMP as of 29th December, 2025 stands at Rs.1,445 with the market cap at Rs.67,500 Cr for this company, far ahead of ESAB India with the market cap at only Rs.45,000 Cr and CMP as of 29th December, 2025 at Rs.6,200. PE Ratio for this company stands at 63, much higher than the 55 stands at ESAB India, indicating market preference.

Profitability and Capital Efficiency

ESAB India paces the list with RoCE of 28%, beating Bharat Forge's 18%, due to better profitability in welding consumables during a capex boom environment. Such effectiveness enhances ESAB India share price strengths, whereas size acts as a stabilizing factor in the long run for Bharat Forge share price.

Revenue Growth and Operating Performance

Bharat Forge's Q2 sales at Rs.4,950 Cr upto 12% QoQ growth whereas ESAB India, which has reportedly clocked Rs.850 Cr with an 18% increase. In profit, ESAB surges 450% QoQ, thus outpacing Bharat Forge's 120%, driven by export demand, as this might trigger upward revision in the ESAB India share price target.

Operating Profit and EBITDA 

Operating profit of ESAB India at Rs.280 Cr versus Bharat Forge at Rs.850 Cr, while EBITDA margin stands tall at 35% for ESAB against Bharat Forge at 22%. The higher margins give ESAB flexibility for dividends that help the ESAB India share price forecast amid volatility.

Depreciation, EBIT, and Pre-Tax Profits

Bharat Forge's depreciation of Rs.250 Cr is higher than ESAB's Rs.80 Cr due to its heavier assets. The EBIT of Bharat Forge is Rs.600 Cr in contrast to Rs.200 Cr for ESAB, and PBT is Rs.550 Cr and Rs.190 Cr respectively. The overall excellence of Bharat Forge reduces the risks for Bharat Forge .

Net Profit, PAT, and Earnings Quality

Bharat Forge registers PAT of Rs.420 Cr, which more than doubles ESAB's PAT of Rs.160 Cr, although the explosive rise of ESAB warrants leverage. This volatility works well with momentum investments for ESAB India share price, and Bharat Forge provides consistency.

Equity Base and Leverage 

Bharat Forge has an equity base of over 1,200 Cr, which is higher than ESAB’s 700 Cr equity base. This reduces the debt and is one of the reasons that contribute to the 

Holistic Analysis 

Bharat Forge stands out in size and stability in appealing to conservative investors interested in Bharat Forge share price trends, whereas growth in ESAB India pushes ESAB India share price target to Rs.7,500.

2026 Sector Growth Drivers & Headwinds

Key Driving Factors

Infrastructure Surge: Heavy fabrication and component demand are triggered due to massive government spending on roads, railways, and fresh urban projects that trigger sector expansion.

Green Energy Transition: Solar PV, wind turbines, EV batteries, and green hydrogen investments are driving demand for specialty equipment orders that place Bharat Forge share price in a strategic position to benefit from renewables.

Digital Automation Adoption: Industry 4.0 rollout with AI, robotics, and smart factories improves efficiency, presenting opportunities amid increasing capex cycles.

PLI Schemes Momentum: Incentives for production-linked initiatives target electronics, autos, high-tech components, and speed up domestic manufacturing hubs.

Defence and Export Diversification: Growing orders for aerospace and locomotives would continue to support growth in this segment, therefore dragging the share price of ESAB India due to its welding solutions.

Major Risks

Trade Tariff Volatility: US and EU changes impact input prices and export operations, putting pressure on margins, as evident from recent outlooks of companies such as Bharat Forge.

Raw Material Volatility: Volatility in the price of steel and other commodities because of geopolitical issues affects the profit margins of players operating in the forging and fabrication market.

Global Demand Slowdown: A slowdown in truck orders or the auto cycles in major markets, such as the US, may negatively impact revenues, thus share prices.

Supply Chain Disruptions: Geopolitics, risks, and problems with tier-2 suppliers are creating lead-time difficulties in inventory management.

Key Challenges

Shortage of Experienced Labor: The increasing talent gap in automation and AI expertise poses limitations in scalability, and this challenge can be further exacerbated by retirements by 2026.

Regulatory and ESG Compliance: More stringent standards of emissions and carbon laws require expenditure on a sustainability overhaul.

Working Capital Burden: High levels of inventory, combined with delays in execution of infra projects, cause cash constraints.

Cyber Security & Tech Integration: Fragmented systems in the digital environment are susceptible to risks when integrating OT and IT systems.

Conclusion

In the year 2025, the heavy engineering sector grows because of the infra capex and green energy shift, thereby propelling Bharat Forge share price to Rs.1,445 and ESAB India share price to Rs.6,200. Enrich Money encourages investors to track these resilient stocks for sustained growth.

Frequently Asked Questions

What propels the CAGR of the heavy engineering industry at 12-15% till 2030?

Rs.2 lakh crore spending on infrastructure in the sectors of road, rail, and renewables drives the demand for forging and welding, contributing to the ESAB India share price and Bharat Forge share price.

How Renewable Resources Affect Bharat Forge?

For the addition of 50 GW power in the wind and solar sectors, specialized forgings are required, thereby fixing the Bharat forge share price target tomorrow to gain from the green transition.

What are the return expectations of Enrich Money involved in these stocks?

A welding and forging sector return of 18-20% has been forecasted, suggesting a portfolio diversification investment in Enrich Money.

Why is the Bharat Forge share price today live seen to be resilient?

Trading at Rs.1,445 with 10% 1-year CAGR, driven by Rs.5,700 Cr defense orders and dual-shore strategy offsetting CV cycles in Bharat Forge stock analysis. 

What is special about the ESAB India performance in Q2 FY2026?

ESAB posted 450% QoQ profits and 35% EBITDA margins compared to the stable size of Bharat Forge, thus generating optimism in the Bharat Forge future share price in capex cycles.

Disclaimer:  This blog is dedicated exclusively for educational purposes. Please note that the securities and investments mentioned here are provided for informative purposes only and should not be construed as recommendations. Kindly ensure thorough research prior to making any investment decisions. Participation in the securities market carries inherent risks, and it's important to carefully review all associated documents before committing to investments. Please be aware that the attainment of investment objectives is not guaranteed. It's important to note that the past performance of securities and instruments does not reliably predict future performance.