Key Metrics of Bharat Gears
About Bharat Gears
Sectors
Company details
- Website
- bharatgears.com
- Registered office
- 20 K M Mathura Road, P O Amar Nagar Faridabad, Faridabad, In-hr, 121003
- Listed
- NSE: BHARATGEAR · ₹96.63
Operational Areas of Bharat Gears
Company summary
Entity details
Compliance
Industry classification
Financials, ratios and risk analysis
Revenue, EBITDA, net profit, net worth, debt and assets for every filing year, 15+ ratios, the financial health score, shareholding, charges and peer comparison are part of the premium plan.
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Due dates follow the Companies Act: AGM within six months of the year end, AOC-4 within 30 days and MGT-7 within 60 days of the AGM. A filing made but not yet uploaded here shows as pending.
Vendor checks & payment capacity
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Credit ratings
PositiveUpgraded by CARE on 24 Mar 2026 (from BBB-)
Rating history
Rating actions
| Date | Agency | Action | Long term | Short term | Outlook | Rated amount | Rationale |
|---|---|---|---|---|---|---|---|
| 01 Jul 2026 | CARE | Reaffirmed | BBB | A3+ | Stable | ₹225 Cr | View |
| 24 Mar 2026 | CARE | Upgraded (from BBB-) | BBB | A3+ | Stable | ₹225 Cr | View |
| 07 Jul 2025 | CARE | Reaffirmed | BBB- | A3 | Stable | ₹225 Cr | View |
| 19 Sep 2024 | CARE | Reaffirmed | BBB- | A3 | Stable | ₹225 Cr | View |
| 08 Feb 2024 | CARE | Revised (from BBB) | BBB- | A3 | Stable | ₹225 Cr | View |
| 03 Oct 2023 | CARE | Reaffirmed | BBB | A3+ | Stable | ₹225 Cr | View |
| 26 Sep 2022 | CARE | Assigned | BBB | A3+ | Stable | ₹225 Cr | View |
Credit strengths (CARE, Jul 2026)
+ Healthy order book from reputed clientele
BGL has long-standing relationships with leading original equipment manufacturers (OEMs) and auto ancillary companies, including John Deere group, Carraro India Limited, Eaton Corporation Limited, Escorts Kubota Limited, CNH Industrial (India) Private Limited, Mahindra & Mahindra Limited (rated CARE AAA; Stable / CARE A1+), and BRP Rotax GmBH, among others, with a track record of repeat business, indicating customer stickiness. BGL’s gears find application across tractors, utility vehicles, comm
+ Adequate capital structure and debt coverage metrics
The company’s capital structure remains adequate as indicated by improvement in overall gearing and total outside liabilities/ tangible net worth (TOL/TNW) of 0.98x and 2.10x, respectively, as on March 31, 2026 , against 1.43x and 2.50x, respectively, as on March 31, 2024 , driven by planned prepayment of debt worth ~ ₹9.5 crore in Q4FY25 , funded by sale of non -core land and improved accruals in FY26 , led by rising profitability. The company’s debt coverage metrics also improved with PBILDT i
+ Experienced promoters with long track record of operations
BGL is managed by Surinder Paul Kanwar (Chairman and Managing Director) and Sameer Kanwar, Joint Managing Director, who hold rich and vast experience of over four decades in the industry and are involved in the company’s overall business operations, and five other board of directors, and a strong professional management team in place. Apart from this, BGL’s key management team comprises five well-experienced and qualified personnel holding experience of over three decades, who are instrumental i
Credit challenges
− Profitability exposed to volatile raw material prices, high fixed overheads, and evolving tariffs
BGL’s operating profitability remained volatile in the last five years, with PBILDT margins ranging between 3.45-8.98%, which imparts uncertainty to sustainability of operating cash flows. Its profitability witnessed a notable improvement in FY26, with PBILDT margins strengthening to 6.77%, supported by better absorption of fixed costs on growing scale of operations. While gross profit margin remained relatively stable, elevated employee expenses at 18–19% of operating income continue to weigh o
− Customer concentration risks
BGL’s revenue profile remains exposed to customer concentration risk, with the largest customer, the John Deere group, accounting for over 30% of revenues, while top 10 customers together contribute over 50% of revenues in the last five years. However, this risk is mitigated to a considerable extent by long tenure of customer relationships, extended product approval cycles, and the company’s demonstrated track record of consistent repeat business.
− Inherent cyclicality of the auto component and end-user industry
BGL derives major portion of its revenue from OEMs in automobile and agricultural tractor sectors, specifically from heavy, medium, and light commercial vehicles, utility vehicles, tractors, and off-highway vehicles. These end-user segments are inherently cyclical and closely linked to broader economic trends, making BGL’s revenue susceptible to demand fluctuations. Growing global preference for environmentally friendly vehicles and regulatory pressure to reduce carbon emissions are gradually
Could lead to an upgrade
Factors that could individually or collectively lead to positive rating action/upgrade: • Significant growth in revenue driven by healthy order book and improving business diversification while sustaining PBILDT margin above 6.5% translating into healthy cash flow from operations. • Improvement in TD/PBILDT below 2.0x on a sustained basis.
Could lead to a downgrade
Factors that could individually or collectively lead to negative rating action/downgrade: • Decline in scale of operations below ₹600 crore and PBILDT margin below 3.5% on a sustained basis. • Deterioration in PBILDT interest cover below 2.0x and overall gearing above 1.50x. • Large debt-funded capex and/or significant increase in the operating cycle leading to pressure on
Agency-reported financials (CARE, 01 Jul 2026)
| Metric | March 31, 2025 | March 31, 2026 |
|---|---|---|
| Total operating income | ₹647 Cr | ₹789 Cr |
| PBILDT* | ₹24.28 Cr | ₹56.62 Cr |
| Profit after tax (PAT) | ₹3.19 Cr | ₹16.50 Cr |
| Overall gearing (x) | 1.12× | 0.98× |
| Interest coverage (x) | 1.42× | 4.12× |
| Revenue growth (YoY) | — | 22.0% |
| PAT margin | 0.5% | 2.1% |
Borrowings & rated debt
Rated limits over time
Facility mix
Rated facilities
| Facility | Type | Previous | Current | Change | Rating | Action | Agency |
|---|---|---|---|---|---|---|---|
| Long-term bank facilities | Working capital & bank lines | — | ₹90.5 Cr | — | BBB (Stable) | Reaffirmed | CARE |
| Long-term Short-term bank facilities | Working capital & bank lines | — | ₹45.0 Cr | — | BBB / A3+ (Stable) | Reaffirmed | CARE |
| Short-term bank facilities | Working capital & bank lines | — | ₹89.6 Cr | — | A3+ | Reaffirmed | CARE |
CARE ratings on record (checked 27 Oct 2026)
| Instrument | Amount | Rating |
|---|---|---|
| BG/LC | ₹75.0 Cr | CARE A3+ |
| Proposed fund based limits | ₹62.0 Cr | CARE BBB; Stable |
| Proposed non fund based limits | ₹14.6 Cr | CARE A3+ |
| Term Loan | ₹28.5 Cr | CARE BBB; Stable |
| Working Capital Limits | ₹45.0 Cr | CARE BBB; Stable / CARE A3+ |
Lenders
| Fund-based - LT | Proposed fund based limits | Proposed |
| Fund-based - LT | Term Loan | Aditya Birla Finance Ltd. |
| Fund-based - LT | Term Loan | IDBI Bank Ltd. |
| Fund-based - LT | Term Loan | State Bank of India |
| Fund-based - LT | Term Loan | Tata Capital Financial Services Ltd. |
| Fund-based - LT/ ST | Working Capital Limits | IDBI Bank Ltd. |
| Fund-based - LT/ ST | Working Capital Limits | State Bank of India |
| Non-fund-based - ST | BG/LC | IDBI Bank Ltd. |
| Non-fund-based - ST | BG/LC | State Bank of India |
| Non-fund-based - ST | Proposed non fund based limits | Proposed |
Credit assessment · Auto components
Rating Methodology – Auto Components and Equipment (Oct 2026) · Standalone accounts · FY 2025-26
Ratios, pillar scores and the indicative rating are part of Premium.
Rating status
| Default | No default on record |
| Issuer cooperation | Cooperating |
| Credit enhancement | None – standalone rating |
| Next action stable or better (model) | 54% |
| Information on file | 78% · missing: Capex / investment plans, Auditor details |
Indicative assessment from public data using the published methodology factors; not a credit rating.
Borrowing & funding lifecycle
- Credit outlook model: 54% chance the next rating action is stable or better
- Current rating BBB (investment grade)
- Interest coverage 4.12×
- Working-capital limits 65% utilised on average
Rated limits by facility
Timeline
From the report
Adequate capital structure and debt coverage metrics The company’s capital structure remains adequate as indicated by improvement in overall gearing and total outside liabilities/ tangible net worth (TOL/TNW) of 0.98x and 2.10x, respectively, as on March 31, 2026 , against 1.43x and 2.50x, respectively, as on March 31, 2024 , driven by planned prepayment of debt worth ~ ₹9.5 crore in Q4FY25 , funded by sale of non -core land and improved accruals in FY26 , led by rising profitability.
From the report
As on March 31, 2026, BGL had free cash and liquid investments of ₹1.44 crore with average utilisation of sanctioned fund-based working capital facilities at ~65% for 12 month ended April 2026, providing adequate liquidity buffer.
From the report
As on March 31, 2026, BGL had free cash and liquid investments of ₹1.44 crore with average utilisation of sanctioned fund-based working capital facilities at ~65% for 12 month ended April 2026, providing adequate liquidity buffer.
From the report
As on March 31, 2026, BGL had free cash and liquid investments of ₹1.44 crore with average utilisation of sanctioned fund-based working capital facilities at ~65% for 12 month ended April 2026, providing adequate liquidity buffer.
From the report
Key weaknesses Moderate financial risk profile BGL’s capital structure remains adequate with overall gearing expected to improve to ~1x as on March 31, 2026 against 1.12x as on March 31, 2025, supported by prepayment of term loans and no new debt-funded capex planned.
From the report
As on December 31, 2025, BGL had free cash and liquid investments of ₹1.44 crore.
From the report
The company’s average utilisation of sanctioned fund-based working capital facilities stood at ~63% for 12 month ended December 2025, providing adequate liquidity buffer.
From the report
The company’s average utilisation of sanctioned fund-based working capital facilities stood at ~63% for 12 month ended December 2025, providing adequate liquidity buffer.
From the report
Key weaknesses Moderate financial risk profile with weak debt coverage metrics The company’s capital structure remains adequate with overall gearing improving to 1.12x as on March 31, 2025 (PY: 1.43x), aided by prepayment of term loans.
From the report
Going forward, with expectations of reduced interest cost owing to prepayment of loans, coverage ratios are likely to improve and remain a key monitorable.
From the report
Liquidity: Adequate BGL's liquidity position remains adequate with projected annual GCA of ₹25–35 crore p.a. over the next 2-3 years against scheduled debt repayment obligations of ₹12 crore in FY26 and ~₹20 crore each in FY27 and FY28 and maintenance capex of ₹8–10 crore p.a.
From the report
As on March 31, 2025, the company had free cash and liquid investments of ₹1.36 crore with average fund- based limit utilisation at 56% in the last 12-months ending March 31, 2025, providing adequate liquidity buffer.
From the report
The average fund-based utilization for past 14 months ending July 2024 stood at 51.25% and non- fund-based limit utilization was 70.82% for the past fourteen months ending July 2024.
From the report
The average utilization of the cash credit facility for past 12 months ending January 2024 stood around 40% which provides significant liquidity backup and LC utilization remained high at 89% for past twelve months ending January 2024.
From the report
Liquidity: Stretched The company has term loan principal repayment obligations of Rs. 16 crore in FY24 and Rs. 20 crore in FY25 and the company has achieved gross cash accruals of Rs. 8.89 crores during 9MFY24.The gross cash accruals in FY24 are expected to barely meet the repayment obligations.
From the report
Liquidity: Stretched The company has term loan principal repayment obligations of Rs. 16 crore in FY24 and Rs. 20 crore in FY25 and the company has achieved gross cash accruals of Rs. 8.89 crores during 9MFY24.The gross cash accruals in FY24 are expected to barely meet the repayment obligations.
From the report
However, the average fund-based utilization for past 12 months ending January-24 stood around 40 % which provides significant liquidity backup and non-fund-based limit utilization was 89% for the past twelve months ending January 2024.
From the report
Liquidity: Adequate The company has repayment obligations of Rs. 16 crore in FY24 and Rs. 20 crore in FY25 and cash accruals is expected to be sufficient to meet the same.
From the report
Moderate capital structure and comfortable debt protection metrics BGL’s capital structure improved from 2.28x as on March 31, 2021 to 1.42 times as on March 31, 2022 and remained at moderate levels owing to reduction in the debt level on the back of repayment of term loans along with improvement in the tangible net worth base from Rs. 71.76 crore as on March 31, 2021 to Rs. 107.38 crore a s on March 31, 2022 backed by accretion of profits to reserves.
From the report
The company’s average fund-based utilization for past 12 months ending June 2022 stood at 73.67% as compared to the sanctioned non-fund- based limit utilization of 96% for the past twelve months ending June 2022.
From the report
The company’s average fund-based utilization for past 12 months ending June 2022 stood at 73.67% as compared to the sanctioned non-fund- based limit utilization of 96% for the past twelve months ending June 2022.
From the report
Also, cash flow from operating activities remained positive at Rs. 22.39 crore in FY22 vis-à-vis positive cash flow operations at Rs. 55.18 crore in FY21.
From the report
The company has gross cash accruals of Rs. 50.46 crore to fund the repayment obligations of Rs. 28.39 crore in FY22 and is projecting better debt service coverage ratio during the next three years.
From the report
The company has gross cash accruals of Rs. 50.46 crore to fund the repayment obligations of Rs. 28.39 crore in FY22 and is projecting better debt service coverage ratio during the next three years.
Lender names, bank charges and audited borrowings are part of Premium.
Built from MCA charges, ICRA/CARE rating reports and audited accounts. The borrowing view is an estimate, not a lender's credit decision.
Registered office and contact
Directors and key people
Directors are read from the MGT-7 annual return and AOC-4 signatories.
Competitors of Bharat Gears
Top competitors by location
| Company | Description | Domain | Founded | Location |
|---|---|---|---|---|
| Gears & Transmissions · Auto Components, Forging & Casting | elecon.com | 1951 | Vallabh Vidyanagar, India | |
 Shanthi Gears |
Gears & Transmissions · Auto Components, Forging & Casting | shanthigears.com | — | Coimbatore, India |
 Sona Comstar |
Casting & Die Casting (India) · Auto Components, Forging & Casting | sonacomstar.com | — | Gurgaon, India |
 ZF India |
Gears & Transmissions · Auto Components, Forging & Casting | zf.com | — | Pune, India |
 GKN Driveline India |
Part of GKN Automotive. | gknautomotive.com | — | Faridabad, India |
Similar companies
Charges (secured borrowings)
0 registered charges. Lenders, amounts and dates are part of the premium plan.
Statutory auditors
Auditors are read from the AOC-4 auditor's report section.
Business activities and related parties
Automotive gears
Filings
No filings on record yet.