Balu Forge share price hits 10% upper circuit after large calibre ammunition supply MoU

The stock rose 10% to ₹489.4 apiece on the National Stock Exchange (NSE). Its market capitalisation stood at ₹5,627.70 crore.

The company had hit its 52-week high of ₹784 apiece on June 12, 2025, while a year's low of ₹341.05 per unit was recorded on January 29, 2026.

In an exchange filing on February 26, the company said that it has entered into an MoU for the supply of empty shells from the company's greenfield manufacturing campus in Karnataka's Belgaum.

"This is the next phase of our journey post the onboarding onto the NATO supply chain & commercialisation of our empty shell line. This is in line with the company’s strategy to build a strong foundation in the defence consumable space starting with large calibre ammunition & will further expand towards medium & small calibre in the near future," it said.

This agreement covers the complete large calibre ammunition category, starting with 155 mm M107 and 152 mm & 155 mm ERFB/BT variants, and will be extended to 105 mm, 120 mm, and 81 mm, amongst others, the company said.

Balu Forge will supply 30,000 units per month of 155 mm M107 and 10,000 units of 152 mm per month in ‘Ready to Fill’ condition for a period of 5 years. The cost for 155 mm M107 is USD 315 apiece, while that for 152 mm is USD 315 per unit.

The MoU has been inked with a NATO-affiliated entity, and due to the confidential nature of the deal and sensitive nature of the supplies, the name of the end user has not been disclosed.

"The serial commencement of supplies will be from April 2026 and will be ramped up in a phased manner. The initial supplies will be for 155 mm M107 & 152 mm variants only. Further to trials & approval of the extended range variant (155 mm ERFB BB/BT), these will be added as an addendum to this M.O.U.," the firm said.