Bharat Forge shares jump over 6%: Here is what's driving the rally

The auto components major on September 4 said that its step-down subsidiary firm, Agneyastra Energetics, has entered into an agreement with Andhra Pradesh Industrial Infrastructure Corporation Ltd, an industrial infrastructure agency of the Government of Andhra Pradesh, for the purpose of land purchase.

The company will approximately buy 949.65 acres at Madakasira, Anantapur district, for undertaking development of an end-to-end defence energetics manufacturing complex. The unit will include a high explosives manufacturing plant, an ammunition filling plant, a gun propellant facility, and provisions for future expansion into energetics for rockets, missile systems, and space launch vehicles, followed by advanced energetics.

“This acquisition of land is in line with the company’s growth objective and will allow the company to further expand its presence in the defence sector,” Bharat Forge had said in a regulatory filing.

Following this, Bharat Forge shares rallied on Monday. At the time of writing the article, shares of Bharat Forge were trading at ₹1,209.20 apiece, rising 6.38% on the National Stock Exchange.

Over the last five trading sessions, shares of the firm have gained over 8%, while for a month’s time, the stock has jumped 6.5%.

Since March 10, 2025, a six-month period, Bharat Forge shares have climbed over 13%. However, year-to-date, it has lost 7%.

Bharat Forge had reported a 40% year-on-year (YoY) jump in its consolidated net profit at ₹284 crore for the quarter ended June 31 of the financial year 2025-26. Its net profit for the same quarter last fiscal year was at ₹203 crore.

Its revenue from operations, however, declined 5% YoY for the quarter at ₹3,909 crore as compared to ₹4,106 crore in Q1 FY25.

During the quarter, the company faced challenging market conditions in our export markets caused by tariff & regulatory uncertainties.

On the operation level, Bharat Forge’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter were at ₹673 crore, marking a 7% growth YoY from ₹629 crore. The EBITDA margin for Q1 FY26 stood at 17.2% in contrast to 15.3% YoY.

In Q1 FY26, the company secured new orders worth ₹847 crore, including ₹269 crore in defence. The defence order book stood at ₹9,463 crores.