Bharat Forge shares fall over 1% after firm signs deal with Defence Ministry; check details

Apart from Bharat Forge, the deal was also signed with Tata Advanced Systems Limited. The agreements were signed in the presence of Defence Secretary Rajesh Kumar Singh in New Delhi.

At 10:04 AM, shares of Bharat Forge were trading at ₹1,170.30 apiece, falling 1.07% on the National Stock Exchange.

Advanced Towed Artillery Gun Systems, known for their exceptional lethality, will replace older, lower-calibre artillery guns in the Indian Army’s inventory, the defence ministry said in a statement. “The procurement of this gun system marks a significant milestone in the modernisation of the Artillery Regiments, enhancing operational readiness,” the statement read.

With this deal, total capital procurement contracts worth ₹1.40 lakh crore have been signed by the defence ministry in the ongoing financial year 2024-25.

The procurement marks the first major acquisition of towed artillery from the private sector, providing a boost to domestic gun manufacturing under the ‘Aatmanirbhar Bharat’ initiative.

It is also expected to generate employment and contribute to economic growth under the Make in India framework.

During its December quarter FY25, Bharat Forge had reported a 16.38% decline in consolidated net profit of ₹212.78 crore impacted by lower revenue. The company had posted a profit of ₹254.45 crore in the corresponding quarter last fiscal.

Its revenue from operations during the quarter stood at ₹3,475.55 crore as against ₹3,866.4 crore in the third quarter of FY24. Total expenses in the third quarter were lower at ₹3,165.37 crore as compared to ₹3,529 crore in the year-ago period.

Bharat Forge is one of the leading names in the auto ancillary and defence space.