Engineering Stock Falls 2%; Subsidiary Completes Exit From German Joint Venture

On Wednesday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index falling 163.10 points (0.68 per cent) to 23,892.70. Amid the market movement, Bharat Forge share price fell 1.80 per cent to Rs 2,015.20 after its subsidiary Kalyani Powertrain Ltd completed the divestment of its entire 50 per cent equity stake in German joint venture REFU Drive GmbH.

The transaction marks the completion of Bharat Forge group's previously announced exit from REFU Drive GmbH. Following the transfer of shares, REFU Drive GmbH has ceased to remain a joint venture of Kalyani Powertrain Ltd.

Kalyani Powertrain Completes REFU Drive Divestment

Bharat Forge informed exchanges that Kalyani Powertrain has transferred its full 50 per cent equity interest in REFU Drive GmbH to REFU Elektronik GmbH. The company disclosed the completion of the transaction through an update dated September 2, 2026. The development follows Bharat Forge's earlier communication on July 23, 2026, regarding the proposed divestment of Kalyani Powertrain's stake in the German entity.

With the completion of the transfer, Bharat Forge said that the earlier disclosures made regarding the proposed transaction would stand amended to reflect the completed divestment.

REFU Drive GmbH No Longer a Joint Venture

Following the transfer of shares, REFU Drive GmbH will no longer be classified as a joint venture of Kalyani Powertrain. The latest update was limited to confirming the completion of the divestment and the resulting change in the relationship between the Bharat Forge group and the German entity.

The company did not disclose financial details related to the transaction, including the value of consideration received from the stake transfer. The filing also did not provide any additional operational impact, revised strategic plans or further terms associated with the divestment.

The completion of the transaction formally concludes Bharat Forge group's association with REFU Drive GmbH through the transfer of its entire holding in the venture.

Bharat Forge's Business Profile and Key Segments

Bharat Forge is an engineering-focused manufacturer of forged and machined components catering to automotive and industrial customers. The company operates across multiple global locations, including India, Germany, Sweden, France, the United States, the United Kingdom and Australia. Its capabilities include engineering, research and development, metallurgy, die manufacturing, forging and machining.

The company serves customers across sectors such as automotive, power, oil and gas, wind, rail, marine, aerospace, construction and mining, defence, agriculture, capital goods and semiconductors.

For FY2026, Bharat Forge's Forgings segment reported external segment revenue of Rs 13,928.58 crore, while the Defence segment contributed revenue of Rs 1,757.17 crore. The company's defence business had an order book of Rs 11,196 crore as of June 30, 2026. The company continues to focus on expanding into higher-value products, systems, digitalisation initiatives and selected subsidiary-led businesses.
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Disclaimer: The article is for informational purposes only and not investment advice.