Bharat Forge, Balkrishna Industries' EBITDA could be hit by 30% due to US tariffs: Morgan Stanley
Published on 29/08/2025 09:04 AM
Bharat Forge, Balkrishna Industries' EBITDA could be hit by 30% due to US tariffs: Morgan StanleyThe US accounted for 38% of Bharat Forge's standalone revenue and around 10% of Balkrishna Industries' FY25 topline.By Meghna Sen August 29, 2025, 9:04:41 AM IST (Published)1 Min ReadThe additional 25% tariff imposed by the Trump administration on Indian exports to the US came into effect on August 27, effectively doubling the overall levy to 50%.
Global brokerage firm Morgan Stanley, in a note on the auto sector, said it is reassessing the tariff exposure of Indian companies.
The US accounted for 38% of Bharat Forge's standalone revenue and around 10% of Balkrishna Industries' FY25 topline.
During the June quarter, both companies were already facing a 10% tariff on most of their product exports. At that time, they managed to partially pass on the impact to customers.
However, the sharp escalation now means 30% of Bharat Forge's standalone revenue and 10% of Balkrishna Industries' revenue will be subjected to a steep 50% tariff.
Morgan Stanley estimated that the additional duties could translate into an EBITDA hit of nearly 30% for Bharat Forge and around 10% for Balkrishna Industries.
On Thursday, shares of Bharat Forge ended 0.23% higher at ₹1,124.50, while Balkrishna Industries closed 0.16% lower at ₹2,320.40.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsBalkrishna IndustriesBharat Forge