The shares of the leading forging company gained up to 2 percent after the company inked a contract with the Ministry of Defence worth Rs 6,900 crore to boost the Indian gun manufacturing industry.
Price movement
With a market capitalization of Rs 56,780.20 crore, the shares of Bharat Forge Ltd were trading at Rs 1,187.65 per share, increasing by around 0.60 percent as compared to the previous closing price of Rs 1,182.25 apiece.
Reason for rise
According to the source, Bharat Forge Ltd has signed these contracts with the Ministry of Defence for the procurement of 155mm/52 Calibre Advanced Towed Artillery Gun Systems (ATAGS) and High Mobility Vehicle 6×6 Gun Towing Vehicles with Bharat Forge Limited and Tata Advanced Systems Limited, respectively.
Moreover, the MoD plans to upgrade the Indian Army’s artillery by replacing older, smaller-caliber guns with 155mm/52 caliber ATAGS. This modernization enhances operational readiness, improves firepower, and enables precise, long-range strikes, significantly strengthening the Army’s capabilities.
Additionally, this project will strengthen India’s gun manufacturing industry and the broader defense ecosystem. It will drive economic growth, create jobs, and align with the Make-in-India initiative, promoting self-reliance in defense production while boosting domestic capabilities.
Financial analysis
Examining the company’s financial performance, revenue plummeted by 10 percent from Rs 3,866 crore in Q3FY24 to Rs 3,476 crore in Q3FY25, during the same time frame, net profit fallen by 16 percent from Rs 254 crore to Rs 213 crore.
Also read: Infra stock jumps over 6% after securing ₹219 Cr order for construction project in Gujarat
Defense Business
The company’s defense business reported Q3 revenue of Rs 337 crores and nine-month revenue of Rs 1,488 crores, marking 49 percent YoY growth. The executable order book stands at Rs 5,700 crores, excluding future orders. Revenue recognition follows contractual timelines, resulting in performance variability.
New Developments
The company is excelling in new verticals like casting and aerospace. It approved investments in machining for landing gear and precision forgings for jet engines. Ferrous casting is projected to hit Rs 1,000 crore annually in 6-8 quarters, with a 250-300 basis point margin expansion over two years.
Market Outlook
The domestic commercial vehicle (CV) market is expected to see slight improvement in Q4, while FY26 remains flat. North America’s CV market may grow 10 percent in H2 FY26. Europe’s outlook remains uncertain due to political shifts and upcoming elections.
Defense & Aerospace Outlook
ATAGS contract signing is expected in 3-4 months, with deliveries in 15-18 months. Export contracts may bring faster revenue. Aerospace revenue, now Rs 50-60 Cr per quarter, may surpass Rs 100 Cr next year. Nuclear revenue ( Rs 50-100 Cr annually) remains steady with ongoing orders.
Company profile
Bharat Forge Limited is an India-based global provider of safety and critical components and solutions to various sectors, including automotive, railways, defence, construction and mining, aerospace, marine, and oil and gas. The Company’s segments include Forgings and Others.
Written by Abhishek Singh
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