Bharat Forge shares hit 52-week high 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

At 9:56 AM, Bharat Forge shares were trading at ₹1,465.60 apiece on NSE, rising 0.89%.

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%.

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.