Bharat Forge Bags ₹1,662 Crore Defence Contract to Supply CQB Carbines to Indian Army

Bharat Forge Limited (BFL), a Pune-based global technology-driven company, has secured its largest small arms contract with the Ministry of Defence, Government of India. Valued at ₹1,661.9 crore, the contract involves supplying 255,128 Close-Quarter Battle (CQB) carbines, chambered in 5.56 x 45 mm, to the Indian Army over a five-year period. The CQB carbine is a compact, lightweight firearm optimized for rapid manoeuvrability in tight combat situations, making it ideal for infantry, special forces, and close-combat operations.

This major defence order reaffirms Bharat Forge’s commitment to India’s Atmanirbhar Bharat initiative and the indigenous defence manufacturing agenda. Executed through its defence subsidiary, Kalyani Strategic Systems Limited (KSSL), the company emphasizes supplying “Made in India” advanced defence equipment, strengthening India’s strategic self-reliance in small arms production. The contract is strategically important as it aligns with India’s broader policy of modernizing its armed forces with domestically produced weapons systems.

Bharat Forge’s stock remained in focus following the announcement. On the National Stock Exchange (NSE), shares closed at ₹1,456.60, gaining 0.75 % from the previous close. The stock has shown consistent growth, with a one-month performance up ~2 %, six-month gains over ~11 %, and a year-to-date rally of ~12 % in 2025. The share price previously touched a 52-week high of ₹1,470.60 and a 52-week low of ₹919.10, reflecting strong market confidence amid major defence orders.

The company’s latest financial results also highlight its operational strength. In Q2 FY26 (ending September 30, 2025), Bharat Forge reported a net profit of ₹299 crore, a 23 % YoY jump from ₹243.5 crore. Revenue from operations rose 9.3 % YoY to ₹4,032 crore, while EBITDA increased 12 % YoY to ₹726 crore, maintaining an EBITDA margin of 18 %. Operationally, some headwinds emerged due to reduced North American truck production impacting inventory and standalone revenue, with standalone revenue declining 7.5 % sequentially due to lower commercial vehicle exports to North America.

Bharat Forge operates across multiple sectors, including automotive, power, oil & gas, construction & mining, rail & marine, and defence & aerospace. Its expertise in high-performance and safety-critical components positions it as a key supplier for strategic defence contracts in India. The company’s growing portfolio of defence products, including CQB carbines, artillery components, and aerospace-grade systems, underlines its importance in India’s indigenous defence ecosystem.

In summary, Bharat Forge’s ₹1,661.9 crore defence contract to supply 255,128 CQB carbines to the Indian Army marks its largest small arms deal to date. The company’s stock rallied modestly, supported by strong Q2 FY26 financials and its strategic role in India’s defence indigenization drive. This order underscores Bharat Forge’s long-term commitment to Atmanirbhar Bharat, advanced weapons manufacturing, and supplying high-performance, domestically produced defence equipment.