Bharat Forge Bets Big on Defence Growth

Key Highlights Largest Army Carbine Order – Landmark deal strengthens domestic defence footprint. Export Revenue – 40% of defence revenue now from exports. Global Opportunity – Strong demand from India, US, and Europe. Defence Growth Runway – Company sees multi-year expansion in defence vertical. 📊 Fundamentals Snapshot Metric Current Status (FY25–26) Implication Defence Revenue Share ~18–20% of total Rising contribution to topline. Export Share 40% of defence revenue Diversified global footprint. Order Book Largest-ever carbine order Visibility for FY27–28 earnings. ROCE/ROE Improving Defence margins higher than auto/industrial. ⚡ Growth Drivers India’s defence push: “Make in India” and Atmanirbhar Bharat initiatives. Global demand: US & Europe increasing defence budgets amid geopolitical tensions. Diversification: Moving beyond auto forgings into high-margin defence. Technology partnerships: Collaborations with global OEMs for advanced weaponry. ⚠️ Risks Execution challenges in large defence contracts. Regulatory approvals and defence procurement cycles. Currency volatility impacting export margins. 🔮 Outlook Bharat Forge is positioning itself as a key defence player, leveraging its engineering expertise and global reach.