Bharat Forge shares have surged to an all‑time high, powered by a ₹425 crore naval contract and a defence order book worth ₹10,961 crore, alongside strong momentum in North American truck demand. 

The company’s defence revenues are projected to reach ₹2,500–3,500 crore by FY27–28, with margins of 18–22%, reinforcing its role in India’s self‑reliance drive.

The ₹425 crore contract signed with the Ministry of Defence for marine gas turbine generators adds to a robust pipeline of naval propulsion systems, strengthening the Indian Navy’s Kolkata‑class ships. This contract was signed under the Buy (Indian) category, ensuring indigenous production and lifecycle support.

The defence order book now stands at ₹10,961 crore, with execution planned over the next four years. This provides strong revenue visibility and aligns with India’s Aatmanirbhar Bharat initiative. Bharat Forge’s defence subsidiary, Kalyani Strategic Systems Limited, has expanded its global footprint through a partnership with US‑based AM General.

Together, they are targeting exports of mounted artillery gun systems and bidding for the US Army’s Mobile Tactical Cannon programme. These collaborations highlight Bharat Forge’s transition from component supply to full platform delivery, a reform that has reshaped India’s defence industry.

Management has guided defence revenues of ₹2,500–3,500 crore in FY27–28, with profit margins between 18% and 22%. The artillery gun programs are expected to ramp up in the second half of FY27, marking a critical milestone in India’s indigenous artillery capability.

Bharat Forge has also secured new defence orders worth ₹2,816 crore in FY26, reinforcing its position as a key player in India’s defence modernisation. The company’s strong export performance, with nearly 40% of defence sales going overseas, underscores its growing global competitiveness.

Beyond defence, Bharat Forge’s commercial vehicle segment is experiencing a sharp rebound. Net orders for Class 8 trucks in North America grew by 124% year‑on‑year, marking the fourth consecutive month of triple‑digit growth.

This surge in demand is driving export sales, which form a major part of the company’s revenue mix. While domestic demand is expected to grow more moderately, the US and European markets are providing a strong tailwind for Bharat Forge’s automotive business.

Risks remain in the execution of large defence contracts, which can face delays or cost overruns. Additionally, reliance on North American truck demand exposes the company to cyclical risks.

A slowdown in fleet purchases due to economic shifts could impact capacity utilisation. Investors will closely monitor the commissioning timelines of artillery programmes and the consistency of North American truck orders in upcoming reports.

Overall, Bharat Forge’s dual thrust into defence and commercial vehicles reflects a strategic vision aligned with India’s national priorities. The company is not only strengthening India’s defence self‑reliance but also leveraging global demand in heavy vehicles to sustain growth through FY27 and FY28.

Agencies