Kalyani Strategic Systems Limited, a wholly-owned subsidiary of Bharat Forge, currently holds a robust defence orderbook valued at approximately ₹10,000 crore, equivalent to about $1.1 billion. This substantial backlog reflects the company's growing prominence in India's defence manufacturing ecosystem, driven by indigenous development and export successes.

Projections indicate this figure could expand to ₹12,000–14,000 crore by the close of fiscal year 2025-26, bolstered by recent high-value contracts and anticipated inflows.

The orderbook's strength stems from a mix of domestic procurements and international deals, with the former emphasising self-reliance under the Atmanirbhar Bharat initiative. A landmark addition came on 30 December 2025, when Bharat Forge secured a ₹1,661.9 crore contract from the Ministry of Defence for 255,128 Close Quarter Battle (CQB) carbines, classified as an Indigenously Designed, Developed, and Manufactured (IDDM) product. Kalyani Strategic Systems anticipates receiving 60% of a larger ₹2,770 crore carbine order, enhancing its small arms portfolio which includes sniper rifles and protective carbines.

Artillery systems form another cornerstone, with ongoing execution of the Advanced Towed Artillery Gun System (ATAGS) and exports of 100 units to Armenia and a Middle Eastern nation under a $155 million deal.

The company's standalone orderbook stood at ₹5,900 crore as of March 2025, yielding a book-to-bill ratio of 4.72 times and ensuring medium-term revenue visibility. Fresh inflows, such as ₹2,311.5 crore over the prior 15 months, underscore a compound annual growth rate of 467% in the orderbook over five years.

Naval and underwater domains are gaining traction, exemplified by contracts exceeding ₹2,500 million signed on 11 November 2025 for unmanned marine systems, deliverable within a year under fast-track norms.

These align with the Indian Navy's priorities, building on prior supplies of autonomous underwater vehicles. Protected vehicles like the Kalyani M4, Maverick, and mine-protected variants further diversify the portfolio, positioning Kalyani as a leader in armoured mobility.

Exports contribute significantly, accounting for over 90% of FY24 defence revenue of ₹1,561 crore, with recent licences enabling production at the Jejuri facility. Partnerships, including Kalyani Rafael for missile systems (₹287.5 crore order) and intents with AM General for artillery cannons, amplify global reach. As of February 2025, the subsidiary's orderbook equated to $600 million, with potential in drones, naval guns, and ultra-light howitzers.

Government reforms, such as shortened procurement timelines and dedicated private-sector R&D funding, support this trajectory. The Ministry's rising capital outlay favours firms like Kalyani, which derives 66% of its orderbook from top five clients, primarily in artillery and small arms segments. Execution over 3–5 years across these orders promises scaled production, job creation in Pune, and reduced import dependence.

Financially, the defence vertical has propelled Bharat Forge's growth, with FY25 consolidated revenues at ₹1,565 crore and order inflows yielding a 10% year-on-year increase. Nomura forecasts sharp revenue ramp-up in FY25–26 from this backlog, estimating 20% EBITDA margins by FY26. Concentration risks persist, with top segments comprising 97% of unexecuted orders, yet diversification into naval and unmanned systems mitigates this.

Kalyani's ascent mirrors India's defence indigenisation push, with DPIIT licences for perpetuity across categories from small arms to protected vehicles. Baba Kalyani, Chairman of Bharat Forge, expressed confidence in scaling production for carbines and exports, eyeing ₹12,000–14,000 crore by FY26 end amid global demand. This positions the firm to capitalise on strategic partnerships and technological edge in precision manufacturing.

IDN (With Agency Inputs)