The stock gained after its subsidiary secured over ₹250 crore in defence contracts from the Ministry of Defence. Strong financial performance, expanding order book, and focus on defence exports highlight robust growth prospects despite near-term weakness in North American demand and export challenges.
The shares of the global leader in high-performance components manufacturing gained up to 2 percent from the day’s low after its subsidiary secured over Rs 250 crore in defence contracts from the Indian Ministry of Defence.
With a market capitalisation of Rs 66,557.11 crore, the shares of Bharat Forge Ltd were trading at Rs 1,393.50 per share, decreasing around 0.59 percent as compared to the previous closing price of Rs 1,401.80 apiece.
Significant order
Kalyani Strategic Systems Ltd (KSSL), a subsidiary of Bharat Forge, has secured over Rs 250 crore in defence contracts from the Indian Ministry of Defence for supplying underwater systems. The deliveries, due by November 2026, highlight KSSL’s growing strength in unmanned marine technology. The company continues to expand capabilities to meet the Indian Navy’s mission-critical requirements.
Financial & Operational Highlights
The company showcased a healthy financial performance in Q2FY26, with revenue rising 9% year-on-year to Rs 4,032 crore, reflecting steady business momentum. Net profit grew 23% to Rs 299 crore, indicating improved operational efficiency and margin expansion. This growth highlights strong demand recovery and effective cost management across key business segments.
Bharat Forge’s exports in Q2FY26 stood at Rs 9,420 million, down from Rs 10,753 million in Q1FY26 and Rs 11,749 million in Q2FY25. The Americas contributed Rs 5,800 million, showing weakness in demand, while Europe remained stable at Rs 2,867 million. The Asia-Pacific region improved to Rs 753 million, reflecting gradual recovery from a lower base last year.
Bharat Forge’s Q2FY26 performance was impacted by weak North American truck demand and inventory destocking, causing a 7.5% revenue decline to Rs 1,947 crore. Despite this, EBITDA stood at Rs 545 crore with a margin of 28%, supported by efforts to de-risk business and maintain profitability.
The company secured new orders worth Rs 1,582 crore, including Rs 559 crore from defence, with a strong order book of Rs 9,467 crore in H1FY26. While US and Europe saw sluggish trends, Bharat Forge expects industrial and defence exports to non-US markets to drive growth, supported by robust Indian manufacturing and strategic diversification.
Bharat Forge Limited, part of the Kalyani Group, is a global leader in metal forming and engineering solutions. Headquartered in Pune, it serves diverse sectors including automotive, defence, aerospace, and energy. Known for innovation and advanced manufacturing, Bharat Forge continues to strengthen its global presence through technology-driven, sustainable growth.
Written by Abhishek Singh
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