Bharat Forge Ramps Up ATAGS Production As Army Trials Near Completion

Bharat Forge has confirmed that the Advanced Towed Artillery Gun System (ATAGS) program is in its final stages of Field Acceptance Trials with the Indian Army, with production lines now ramping up and peak high-volume output expected within 15–18 months.
This positions the company to seamlessly execute the landmark domestic order pipeline of 184 guns, part of the 307‑unit contract signed in 2025.
The ATAGS program represents one of the most ambitious artillery modernisation efforts undertaken by India. Designed as a 155mm/52‑calibre towed gun system, it delivers ranges exceeding 48 kilometres with extended‑range ammunition and incorporates an all‑electric drive system for faster deployment and improved reliability.
Bharat Forge, alongside Tata Advanced Systems, secured the largest private‑sector artillery contract in Indian defence history, worth approximately ₹6,900 crore, with Bharat Forge responsible for 184 units and Tata for 123. The first regiment is scheduled to achieve operational readiness by early 2027, marking a decisive step in replacing ageing Soviet‑era artillery with indigenous platforms.
The company’s Q4 FY26 results highlighted strong defence momentum despite a 17% year‑on‑year decline in consolidated net profit to ₹233 crore, impacted by exceptional losses. Revenue grew by 18% to ₹4,528 crore, underpinned by defence orders worth ₹2,816 crore during the year.
Bharat Forge’s defence order book now stands at nearly ₹11,000 crore, reflecting robust demand across artillery, aerospace, and structural components. Management has guided for 25% revenue growth in FY27, driven by execution of defence contracts and recovery in export markets.
For ATAGS specifically, the program has endured years of rigorous trials, including high‑altitude and desert testing, to validate its performance under diverse operational conditions. The current Field Acceptance Trials are the final hurdle before induction, ensuring the system meets the Indian Army’s stringent requirements for accuracy, mobility, and sustained firepower.
With assembly lines being ramped up, Bharat Forge is investing in production infrastructure to meet delivery schedules, aiming to reach peak capacity within 15–18 months. This timeline aligns with the Army’s plan to induct the first operational regiment by February 2027.
The broader artillery modernisation drive also includes parallel induction of Dhanush howitzers and K9 Vajra‑T self‑propelled guns, but ATAGS stands out as a flagship indigenous system that combines range, automation, and survivability.
Its induction will significantly enhance India’s long‑range fire support capability along both western and northern borders, while also strengthening the domestic defence manufacturing ecosystem by embedding private‑sector expertise into frontline systems.
Financially, Bharat Forge remains resilient, with FY26 consolidated revenues of ₹16,812 crore and EBITDA of ₹2,921 crore. Defence now constitutes a growing share of its portfolio, complementing its traditional automotive and industrial businesses. The dividend of ₹6.50 per share recommended for FY26 underscores management’s confidence in sustaining shareholder returns even as capital expenditure rises to support defence production.
In strategic terms, the ATAGS program is more than a manufacturing milestone; it is a symbol of India’s transition towards self‑reliant firepower.
By combining indigenous design, private‑sector execution, and large‑scale orders, it sets a precedent for future artillery and missile programs. Bharat Forge’s ability to ramp up production capacity within the next 18 months will be critical in ensuring timely deliveries and reinforcing India’s deterrence posture.
Agencies
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