Bharat Forge shares extend gains on strong North American Class 8 truck orders

Shares of Bharat Forge Ltd. extended gains for the thirdconsecutive day on Friday, June 5 as the North American Class 8 truck demand remained robust in May, with preliminary net orders rising to 26,600 units, as per data released by FTR a day prior.

The figure was up 4% sequentially and surged 124% from the previous year, marking the fourth consecutive month of more than 120% annual growth.

The May order tally was also significantly above historical trends, standing 56% higher than the 10-year average for the month of 17,046 units.

Vocational truck demand drove most of the sequential increase, while on-highway truck orders remained broadly stable. The strong order intake has further strengthened visibility for truck manufacturers, with industry experts indicating that remaining production slots for 2026 are likely to be filled earlier than usual. Total Class 8 orders over the past 12 months now stand at nearly 3.13 lakh units.

The momentum has been particularly evident through the first five months of the year. The orders are running 112% higher, this year-so far, than the corresponding period last year, while orders booked during the 2026 order season are up 28%.

According to FTR, several factors continue to support demand, including fleet replacement requirements, improving freight rates, higher equipment utilisation levels and tightening industry capacity. In addition, some fleets are accelerating purchases ahead of the implementation of tougher EPA 2027 emissions regulations, contributing to moderate pre-buy activity.

For Indian markets, Bharat Forge is under the radar, given its significant exposure to the North American commercial vehicle segment through supplies of forged and machined components to leading truck OEMs. A sustained recovery in Class 8 truck demand and stronger production schedules typically translate into improved order flows and better capacity utilization for the company.

Dan Moyer, Senior Analyst, Commercial Vehicles at FTR, said the latest data confirms that demand conditions remain healthy, though the pace of orders could moderate in the coming months as summer seasonality takes hold and available production slots become increasingly limited.

The focus is now shifting from demand to execution. With backlogs strengthening, truck manufacturers will need to demonstrate their ability to convert orders into production. Supplier readiness, labour availability, production efficiency and timely deliveries will become critical factors as the industry moves through 2026.

Despite the encouraging demand backdrop, risks remain. FTR cautioned that any slowdown in freight market recovery, continued financing pressures, geopolitical uncertainties or unexpected changes to emissions regulations could result in order deferrals or cancellations by fleet operators. Even so, May's stronger-than-expected order intake suggests that the North American heavy-truck cycle continues to improve.

While order growth is expected to normalise as seasonal factors emerge, current trends indicate that fleet replacement demand and improving freight fundamentals are providing meaningful support to the industry, reinforcing confidence in production schedules and revenue visibility for truck manufacturers and suppliers such as Bharat Forge over the coming quarters.

Bharat Forge shares were up 0.5% at 1,946.9 apiece at 11.50 am on Friday. The stock has gained 4.4% in the past month and 33% this year, so far.

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