Until a few years ago, Bharat Forge was best known as a global auto forgings giant, a Tier-1 supplier for trucks, tractors, and industrial equipment, with clients across Europe and the US.
But 2025 changed everything.
As tensions with Pakistan escalated this May, Bharat Forge wasn’t just watching from the sidelines. It was in Delhi, called in by the Defence Ministry alongside other key vendors. The ask: ramp up ammunition, drones, artillery, and armoured vehicles. Fast.
Turns out, the shift had already begun.
The company’s defence vertical, once a quiet diversification, is now front and centre. It secured ₹6,959 crore worth of new orders in FY25—70% of its total wins.
The flagship contract? A ₹3,417 crore order for ATAGS—the Advanced Towed Artillery Gun System co-developed with DRDO. With a firing range of 48 km and six-round burst capability, ATAGS is one of the most advanced systems India has ever fielded. Execution begins in Q4 FY26.
That deal is part of a broader ₹9,420 crore defence order book—the largest in the company’s history.
By the numbers:
- Market capitalisation: ₹57,346 crore.
- Total revenues (FY25): ₹8,844 crore.
- Net profit (FY25): ₹1,322 crore.
- Defence order book (as of Mar 2025): ₹9,420 crore
Meanwhile, the company’s clean mobility pivot is quietly gaining ground. This year, Bharat Forge deployed a fleet of electric trucks, developed by its subsidiary Kalyani Powertrain for inter-plant transport between Baramati and Mundhwa. It’s a small but strategic step toward building EV capability in commercial logistics.
In aerospace, a new dedicated forging and machining facility is underway, with early orders already flowing in from Europe and other non-US markets.
FY25 was mixed. Revenue declined 1.4%, and net profit fell 7.2%. But margins held steady, supported by improved performance in the US business and narrowing losses overseas. The US unit is now running at 60–65% capacity. The e-mobility division also trimmed its losses. Overall EBITDA margins for the year stood at 17.7%.
Looking ahead, ₹500 crore in capex is planned for FY26: spread across defence, aerospace, e-mobility, and aluminium verticals. The company is also restructuring its European steel business, aiming to restore profitability by the end of FY26.
Export demand remains uncertain. North American Class 8 truck volumes are under pressure, and unresolved US–EU tariff issues add further complexity. There’s no FY26 export guidance yet, and the company is closely monitoring global demand trends.
Valuation comfort is limited. ROE stands at 12.3%, and standalone revenue and EBITDA growth are expected to stay around 7% CAGR over the next two years, especially with auto exports still soft.
Should you keep an eye on it? Yes, particularly if you’re following India’s push toward defence self-reliance. With deep capabilities in advanced manufacturing, a ₹9,400 crore defence backlog, and expanding bets in EVs and aerospace, Bharat Forge is no longer just an auto parts exporter. It’s a national capacity builder—realigning its focus just when the country needs it most.
Final pour: Bharat Forge is rewriting its story. It’s no longer just about auto cycles and export tailwinds. With defence contracts locked in, EV products rolling out, and aerospace capacity scaling up, this is now a company aligned with India’s strategic priorities. It’s not just building parts anymore. It’s building relevance. And that’s exactly where it needs to be.
