The shares of the Kalyani Group company which is engaged in the manufacturing and selling of forged and machined Compoundant for auto and industry sector, gained 3 percent in today’s trade after its subsidiary partnered with a Taiwan-based company for manufacturing servers in India.
Price Action
The shares of Bharat Forge Ltd, with a total market capitalization of Rs 52,090 Crores, reached an Intraday high of Rs 1,089.80 per share, gaining around 3 percent on Thursday’s trade. As of 1:30 pm, the shares were trading at Rs 1086.5 per share which was 2.8 percent higher than the previous closing price of Rs 1,057.
What Happened
Bharat Forge Ltd announced that Kalyani Powertrain, a wholly-owned subsidiary of the company has entered into a Technology licensing agreement with Compal Electronics Inc, a Taiwanese company that designs, manufactures, and sells consumer electronics. This strategic partnership is for manufacturing of X86 platform Servers in India.
The two parties have entered into an MOU to develop server business using locally manufactured solution in India, in line with the Indian government’s “Make in India” policy. Through this partnership Compal Electronics Inc will provide KPTL with technological support related to servers, including overseeing local production, assembly, testing activities, and final sales.
Furthermore, the electronics division of Kalyani Powertrain announced the launch of “Made in India servers” from their state of art manufacturing facility at Pune, Maharashtra in February 2025. The company stated that the factory is well positioned to stimulate local businesses, attract, and contribute significantly to the region’s manufacturing potential.
Management Commentary
Mr Amit Kalyani, Vice Chairman & Jt MD of Bharat Forge Ltd commented that this partnership will give a strong push to India’s manufacturing competitiveness and are pleased to partner with a global leader of technological products ‘Compal’ for manufacturing servers in India. Additionally, the CEO of Compal stated that Compal is actively advancing its server business and establishing multiple partnerships and is optimistic about Kalyani Powertrain’s extensive experience in the Indian market.
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India’s AI, Cloud & Data Centre Ecosystem
This partnership plays an important role in boosting India’s Make in India initiative by stimulating local manufacturing and reducing dependency on imports. Through this collaboration enterprises, cloud providers, hyperscalers, and government organizations will be empowered to provide high-performance, cost-efficient server solutions tailored for AI workloads, cloud computing, and large-scale data processing.
How will Locally Manufactured Servers help various sectors?
Locally manufactured servers can boost cloud services, telecommunications, and data management while reducing import costs. Additionally, advanced processors support high-performance needs in sectors like automotive for AI and autonomous systems. They also enhance digital infrastructure in railways, improving operational efficiency. Furthermore, they ensure data security and sovereignty for initiatives like RailCloud.
Financials
The company reported a decline in revenue from operations of 10 percent YoY, from Rs 3,866 Crores in Q3FY24 to Rs 3,475 Crores in Q3FY25. Similarly, Its Net Profits declined by 16 percent YoY from Rs 254 Crores to Rs 213 Crores over the same period.
About Bharat Forge Ltd
Bharat Forge Ltd is a global leader in high-performance, safety-critical components for industries like automotive, defense, aerospace, and more. With a global manufacturing presence and extensive metallurgical expertise, BFL provides end-to-end solutions, from concept to design, engineering, manufacturing, testing, and validation, to its global clientele.
Written By Adhvaitha Nayani
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