Defence stock jumps after receiving ₹300 Cr contract for Indian Army and Navy

Synopsis: Bharat Forge shares rose after its aerospace arm secured Rs 300 crore EP-VI contracts for indigenous unmanned systems for the Army and Navy, signalling strategic diversification into defence and strengthening its Atmanirbhar Bharat positioning.

This company, which is engaged in the manufacturing and selling of forged and machined compounds for the auto and industry sectors, had its shares in the news today after the company’s aerospace division bagged a contract under Emergency Procurement for Indigenous Unmanned Systems for the Indian Army and Navy.

With the market cap of Rs 69,800 crore, the shares of Bharat Forge Ltd have gained about 2% and reached a high at Rs 1,477.50, compared to their previous day’s closing price of Rs 1,447. The shares are trading at a PE of 64.5, whereas its industry PE is at 28.8, and the shares have given a return of almost 140% over the last 5 years.

About the contract

Bharat Forge’s aerospace division has won contracts worth Rs 300 crore in the Emergency Purchase-VI category, which includes supplies to the Indian Army and subsequent use by the Indian Navy, with the product basket consisting of the Indian unmanned platforms and ISRs, as well as loitering ammunition, adding a highly prestigious segment to the company’s aerospace and defence contracts.

The contracts bring out that there has been a strategic diversification of Bharat Forge beyond the automotive industry in manufacturing to more advanced defence technologies. R&D programmes like Omega One, Omega Nine, Bayonet, and Cleaver that were put up in the Army Day Parade are testimony to its designs and manufacturing, as well as integrative efforts in unmanned & autonomous systems that are witnessing growing defence outlays.

Looking into the long term, the EP-VI win is an important move that increases Bharat Forge’s position within the Indian Atmanirbhar Bharat defence ecosystem. Taking into consideration the growing need for indigenous procurement and swift procurement, as well as the use of technology in warfare, the company is thus creating a scalable defence business, which would help it generate a stream of orders.

Financials and more 

The revenue from operations for the company stood at Rs 4,032 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 3,689 crores, up by about 9 per cent YoY. Similarly, the net profit stood at Rs 299 crore in Q2 FY26, up compared to the Rs 243 crore profit in Q2 FY25.

Bharat Forge Limited is a Pune-based global engineering company, driven by technology, with expertise in high-performance safety-critical components and services. It extends its manufacturing network to five different countries, catering to various industries like “automotive, power, oil and gas, construction, rail, marine, defence, and aerospace, providing end-to-end services ranging from designing to validation.

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