Bharat Forge shares rally over 6% in 5 sessions; two reasons why stock is in focus today

Bharat Forge is a part of the BSE 200 universe. The Pune-headquartered company was founded in 1961. Bharat Forge has been a flagship entity of Kalyani Group.

Bharat Forge is one of the leading players in the manufacturing of axle beams, steering knuckles, connecting rods and crankshafts. Over the years, Bharat Forge has grown into the world’s largest single-location forging facility, having fully automated forging facilities and state-of-the-art machinery. The company’s manufacturing units are located in Mundhwa, Satara, Baramati and Chakan in Maharashtra.

Shares of the company in the recent past have seen a decent rally. Data show that the stock price has surged 6.28% over the past five sessions, 5% in one month, and 11% in the past six months.

_Here are two reasons why stock is in focus today. _

GRADEONE and Kalyani Strategic Systems Sign Contract

In its press release on Thursday, Bharat Forge said that MP3 International, a GRADEONE subsidiary and an Abu Dhabi–based, highly skilled supplier and manufacturer of defence, security, law enforcement, rescue services, and sporting and hunting products, has announced the signing of a landmark agreement with Kalyani Strategic Systems Limited, a wholly owned subsidiary of Bharat Forge Limited and the key driver of defence and aerospace business initiatives.

GRADEONE is an entity of EDGE Group and a leading provider of military hardware equipment, pyrotechnics, ammunition, and other supplies for the UAE Armed Forces and other critical national entities.

The contract, a first of its kind for a critical defence component between an Emirati and an Indian company, was signed by Khalifa Al Ali, CEO of MP3 International, and Neelesh Tungar, CEO of Kalyani Strategic Systems Limited, the press release said.

Under the agreement, Kalyani Strategic Systems Limited will supply the UAE with large-calibre 155 mm barrels for howitzers, which are commonly used by armed forces worldwide and designed to deliver long-range, high-explosive fire support.

Bharat Forge and Windracers announce strategic MoU to advance UAV operations in India

In another press release, the company said that Bharat Forge and Windracers Limited, the UK-based manufacturer of the world’s most accomplished dual-use heavy-lift drone, have signed a Memorandum of Understanding (MoU) to collaborate on the deployment, localisation and application of the Windracers ULTRA Unmanned Aerial Vehicle (UAV) across India. The MoU was signed at DSEI UK 2025 in London.

The partnership builds on the UK-India Free Trade Agreement (FTA), advancing aerospace technology transfer and innovation in both countries, and aligns with the goals of India-UK Vision 2035. The MoU begins with an initial two-year term, offering both companies the opportunity to advance localisation, conduct joint trials and shape a definitive agreement for deployment in India.

"Together, Bharat Forge and Windracers expect to address emerging requirements across the Indian military and civil sectors with ULTRA’s capabilities, including Carrier On Board Delivery (COD) operations for the Indian Navy, critical logistics for the Indian Army and Indian Air Force, and other key roles in varied operational environments," the press release added.

Bharat Forge Q1 FY26 Result

Bharat Forge posted a 63% increase in consolidated net profit to ₹284 crore for the June quarter (Q1 FY26).

The company posted a net profit of ₹174 crore in the April-June quarter of last fiscal.

Total income, however, declined to ₹3,958 crore in the first quarter as against ₹4,158 crore logged in the year-ago period, Bharat Forge said in a regulatory filing.

"Given the recent tariff announcement by the US government and changes to emission regulation in North America, we are cautious on the outlook for the US export business for the remainder of the fiscal year," Bharat Forge Chairman and MD Baba Kalyani said.

"FY26 is likely to be a challenging period, given where we are in the overall cycle and our geographical exposure. Our focus is on capturing opportunities in businesses & geographies which are relatively unaffected and working simultaneously on cost optimisation to minimise the impact of operating deleverage," the chairman added.