This major Indian forging and defence manufacturer, renowned for heavy-duty components, is on track for a significant military advancement. It has signed an MoU with a French partner to jointly offer the new drone system to the Indian armed forces, marking a key step in indigenous defence capability.
Bharat Forge Limited’s stock, with a market capitalisation of Rs. 62,457 crores, rose to Rs. 1,321.10, hitting high of up to 1.5 percent from its previous closing price of Rs. 1,300.50. However, the stock over the past year has given a negative return of 23 percent.
MOU Insights
Indian company Bharat Forge signed an MOU with a French company, Turgis Gaillard, to offer a new military drone called AAROK to the Indian armed forces. The AAROK is a type of UAV (unmanned aerial vehicle), also known as a drone, that can fly at high altitudes for over 24 hours. It is used mainly for surveillance watching over borders, oceans, and enemy areas without putting soldiers in danger. It can also carry weapons and strike targets from a safe distance, helping the military take action without being directly on the battlefield.
Bharat Forge will build this drone in India, which means the country will have full control over its production, repairs, and upgrades important for national security. This drone is expected to strengthen India’s defence capabilities, both on land and at sea.
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Defense industry
India has the world’s fourth strongest military, according to the Global Power Index. Their score is 0.0979. The country also has big plans to boost its own defence manufacturing. By the year 2029, the government aims to produce Rs. 3,00,000 crore (about $34.7 billion) worth of defence equipment within India.
India is already selling more defence products to other countries. In 2024, these exports reached Rs. 21,000 crore (about $2.43 billion), and the goal is to hit Rs. 50,000 crore (about $5.8 billion) by 2029. While India still buys some military equipment from abroad (around $463-$470 million annually in recent years), it’s working hard to become a major global supplier. It even sold defence items to 42 countries back in 2019, making it the world’s 19th largest defence exporter. Now, India is targeting $5 billion (Rs. 35,000 crore) in exports over the next five years.
Financial Highlight
In Q4FY25, the company reported revenue of Rs. 3,853 crore, marking a 10.8 percent QoQ growth from Rs. 3,476 crore in Q3FY25. However, on a YoY basis, revenue declined by 7.5 percent compared to Rs. 4,164 crore in Q4FY24. Over the past three years, the company has achieved a healthy sales CAGR of 13 percent, reflecting consistent top-line momentum.
Net profit for Q4FY25 stood at Rs. 283 crore, up 25 percent YoY from Rs. 227 crore and 33 percent QoQ from Rs. 213 crore. The company’s 3-year profit CAGR remains modest at 3 percent, while the return on equity (ROE) has grown at a 3-year CAGR of 11 percent.
Written By Fazal Ul Vahab C H
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