Bharat Forge shares in focus as firm signs largest small arms contract with defence ministry for ₹1,662 crore

The defence ministry has awarded Bharat Forge Limited (BFL) a contract for the supply of 255,128 CQB carbines (5.56 x 45 mm) to the Indian Army. The deal will be executed within five years.

The 5.56 x 45 mm CQB Carbine is an indigenously designed, developed, and manufactured (IDDM) compact firearm jointly developed by Armament Research & Development Establishment (ARDE), DRDO, and Bharat Forge Ltd, Pune.

“Aligned with the Atmanirbhar Bharat mission, we – BFL and our wholly owned defence subsidiary Kalyani Strategic Systems Limited (KSSL) – remain dedicated to equipping the Indian Armed Forces with ‘Made in India’ advanced defence equipment and platforms,” the company said in a regulatory filing.  

Founded in 1961, Pune-based Bharat Forge Limited is a technology-driven global company that provides high-performance, safety-critical components and solutions across sectors such as automotive, power, oil and gas, construction and mining, rail, marine, defence, and aerospace.

Bharat Forge share price

On Tuesday, Bharat Forge shares closed at ₹1,456.60 apiece on NSE, rising 0.75%.

Over a month’s time, the stock has risen nearly 2%, while in the last six months, the shares have surged more than 11%. Since the beginning of 2025, the stock has rallied 12%.

Shares of the firm had touched their one-year high of ₹1,470.60 apiece on December 24, 2025, while their 52-week low of ₹919.10 was hit on April 7, 2025.

The company has a market capitalisation of ₹69,638.39 crore.

Bharat Forge Q2 earnings

The auto components major had reported a 23% year-on-year (YoY) jump in its consolidated net profit at ₹299 crore for the quarter ended September 30 of the financial year 2025-26. Its net profit for the same quarter last fiscal year was at ₹243.5 crore.

Its revenue from operations increased 9.3% YoY for the quarter at ₹4,032 crore as compared to ₹3,689 crore in Q2 FY25.

On the operation level, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter were at ₹726 crore, marking a 12% growth YoY from ₹648 crore. The EBITDA margin for Q2 FY26 stood at 18%, in contrast to 17.5% YoY.

Bharat Forge’s quarterly performance was affected by a sharp decline in North American truck production, leading to inventory destocking. The company reported a 7.5% sequential drop in standalone revenue to ₹1,947 crore, driven by a 16% fall in revenue from North America. Commercial vehicle exports to the region were down 48% sequentially and 63% year-on-year.