Bharat Forge Share Price Gains as DRDO-Backed Carbine Wins Indian Army Bid

Market Performance

On Monday, June 23, 2025, the Bharat Forge share price experienced a nearly 2% upward movement, outperforming broader market indices.

The surge comes on a day marked by weak overall trading sentiment, where defense stocks emerged as top performers amid rising geopolitical tensions in the Middle East.

Main News

A significant development in the defense sector drove the rally in Bharat Forge shares. The 5.56x45 mm CQB carbine, jointly developed by the Defence Research and Development Organisation (DRDO) and Bharat Forge, has been selected as the L1 bidder in response to the Indian Army's request for proposals.

This announcement marks a significant boost to the company's standing in the defense segment, triggering increased investor interest in the stock.

Meanwhile, the broader defense sector saw heightened activity as geopolitical unrest deepened. Rising tensions between Israel and Iran, coupled with recent U.S. airstrikes on Iranian nuclear facilities, have steered investor interest toward defense-related stocks.

Company Details

Bharat Forge Ltd., a key player in the automotive and defense manufacturing sectors, has been steadily expanding its defense portfolio over the years. This carbine deal reinforces the company's growing role in India's Indigenous defense initiatives.

As of the end of March 2025, Bharat Forge's defense order book stood at a solid ₹9,420 Crore, reflecting strong demand for its defense offerings. During FY25, the company secured new defense orders worth ₹6,959 crores, of which 70% were related to defense contracts.

Notably, among these new contracts was a substantial ₹4,343 Crore deal, including ₹3,417 Crore towards the ATAGS order, further bolstering the company's defense credentials.

Financial Performance Overview

Revenue

• Q4 FY25 revenue dropped 7% YoY to ₹2,163 Crore

EBITDA

• EBITDA for the quarter stood at ₹616.5 Crore, down 6.5% YoY

EBITDA Margins

• EBITDA margin saw a modest expansion of 20 basis points, reaching 28.5%

Net Profits

• Net profit declined 11.2% YoY to ₹345 Crore

Defence Revenue

• The defense segment revenue fell by 50% YoY
• Despite this, the company secured significant new defense contracts, indicating a robust future pipeline

Summary of the Article

The Bharat Forge share price gained traction following the announcement that the Indian Army has selected its DRDO-developed carbine. The move further solidifies the company's position in the defense manufacturing space.

While the financials for Q4 FY25 revealed pressure on revenue and profitability, the company's strong defense order book and continued success in government contracts reflect its long-term strength.

The combination of strategic defense wins and a growing presence in India's Indigenous arms program continues to keep Bharat Forge in the spotlight.