Auto ancillary stock in focus after signing LoI for supply of artillery cannons to US

Shares of a technology-driven global leader in providing high-performance, innovative safety critical components and solutions are in focus, after the company announced the signing of a Letter of Intent (LoI) for the supply of cannons to the U.S.

Price Movement

With a market capitalisation of Rs. 51,411.3 crores, the shares of Bharat Forge Limited moved up by nearly 0.6 percent to hit an intraday high at Rs. 1,082 on BSE, as against its previous closing price of Rs. 1,076.

The stock has delivered negative returns of around 4.4 percent in one year, as well as about 12 percent returns in one month.

What’s the News

According to the latest regulatory filings with the stock exchange, Kalyani Strategic Systems Limited (KSSL), a wholly-owned subsidiary of Bharat Forge Limited, and AM General, USA, have signed a Letter of Intent (LOI) at IDEX 2025 to supply Made in India advanced artillery cannons to the United States.

This marks the first-ever instance of an Indian defence manufacturer supplying artillery cannons to the United States, underscoring the growing defense collaboration between the two nations.

Also read: FII turns net buyer after 9 sessions of selling; Will this trend continue?

About the Partner Entity

AM General, a global leader in military vehicle platforms, has been exploring next-generation artillery solutions. The company manufactures and supports specialized vehicles for both military and commercial customers. 

With a diverse product portfolio that includes the iconic HUMVEE vehicles, Joint Light Tactical Vehicle A2 (JLTV A2), the next-generation HUMVEE Saber light tactical truck with enhanced protection, and revolutionary soft recoil technology for mobile platforms, AM General is committed to continuous improvement, ensuring its solutions are mission-ready and future-driven.

About the Subsidiary

Kalyani Strategic Systems Limited (KSSL), a wholly-owned subsidiary of Bharat Forge Limited), is a pioneer in India’s defence industry with a strong focus on research and development. KSSL has developed several indigenous weapon platforms, off-road protected mobility solutions, and high-tech military products. The company already exports its in-house designed and developed artillery systems, munitions, and mobility solutions to international markets.

Previous Orders

12th February: Bharat Forge and VEDA Aeronautics Pvt. Ltd. (VEDA), an Indian aerospace and defence company, signed a Memorandum of Understanding (MoU) to develop cutting-edge Unmanned Aerial Vehicles (UAVs) and other high-speed aerial weapon systems for battlefield use. 

While VEDA specializes in unmanned systems technology for defence applications, Bharat Forge will provide the micro jet engines used in these UAVs. This collaboration is expected to enhance India’s defence capabilities and contribute to the nation’s self-reliance in defence technologies.

Financials

Bharat Forge reported a decline in the revenue from operations, experiencing a fall of nearly 11.6 percent YoY, decreasing from Rs. 3,866.4 crores in Q3 FY24 to Rs. 3,475.5 crores in Q3 FY25.

Similarly, during the same period, the company’s net profit decreased from Rs. 264.5 crores to Rs. 212.8 crores, representing a decline of around 19.5 percent YoY.

About the Company

Bharat Forge Limited is engaged in the business of manufacturing and selling of forged and machined components including aluminium castings for the auto and industrial sectors as well as assembled products for the defence industry.

Written by Shivani Singh

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