Bharat Forge Wins Rs.250 Cr Navy Contract & Shines at Dubai Airshow 2025

 

A Turning Point for India’s Defence Manufacturing Giant

Bharat Forge Ltd., one of India’s most globally respected engineering and forging powerhouses, is entering a defining phase in its long-term growth trajectory. What began as a steady transformation into a high-value defence and aerospace manufacturer is now gaining strong visibility on the global stage. With two major developments unfolding in November 2025the company winning a Rs.250 crore Indian Navy contract and showcasing some of India’s most advanced aerospace technologies at the Dubai Airshow 2025Bharat Forge has signalled that its next wave of expansion will be driven not by cyclical auto exports, but by next-generation defence systems, unmanned platforms, precision components and advanced materials engineering.

These breakthroughs come at a time when the stock has also completed a major technical turnaround, breaking out of a nine-month downtrend and regaining its multi-year bullish structure. Backed by strong order wins, global exhibitions, and improving corporate commentary, the company is drawing fresh interest from retail and institutional investors alike. This blog takes a deep, 360-degree look at Bharat Forge’s latest developments, financial strength, technical structure, and what investors should watch in the coming months.

 

Bharat Forge’s Rs.250 Crore Navy Contract  A Strategic Win With Multi-Year Implications

In November 2025, Bharat Forge’s defence arm, Kalyani Strategic Systems Ltd. (KSSL), secured a fast-track procurement contract worth Rs.250 crore from the Indian Navy. The project involves underwater and unmanned marine systemsamong the fastest-growing segments in India’s naval modernisation programme. Delivery is scheduled by November 2026.

This contract is strategically important for three reasons. First, it reinforces Bharat Forge’s dominant presence in India’s high-precision defence engineering ecosystem. Second, it marks the company’s entry deeper into autonomous underwater platforms, a segment where global demand is rising rapidly. Third, it strengthens the company’s defence order book, which now stands at Rs.9,467 crore, providing long-term revenue visibility and margin improvement potential.

At a time when global supply chains are slowly shifting away from traditional arms exporters toward new defence manufacturing hubs like India, this win positions Bharat Forge as both a technology partner and a capable systems integrator.

 

Showcasing India at Dubai Airshow 2025 , A Global Push in Aerospace Innovation

Running parallel to the defence contract win, Bharat Forge made headlines at the Dubai Airshow 2025 (Nov 17–21)one of the world’s most influential aerospace exhibitions. The company showcased:

• Next-generation UAV structures

• Autonomous flight systems

• Lightweight aerospace alloys

• Precision-forged propulsion components

• Advanced unmanned aerial platforms

The presence of CEO Guru Biswal and the company’s active demonstrations positioned Bharat Forge as a credible global partner in aerospace supply chains. As India aggressively expands its aviation manufacturing footprint under Make in India 2.0, Bharat Forge’s participation signals its intent to build a large share of future aero-engine, propulsion and structural components.

For investors, this expands Bharat Forge’s long-term narrative from “forging giant” to global defence–aerospace solutions provider.

Financial Momentum: Strong Q2 FY26 Results Build Investor Confidence

Despite short-term challenges in traditional auto exports, Bharat Forge delivered an encouraging performance in Q2 FY26:

• Consolidated Revenue:Rs.4,031 crore (+9.3% YoY)

• Net Profit:Rs.299 crore (+22.8% YoY)

• Standalone Auto Exports: Lower due to North American truck destocking

• Defence Orders in H1 FY26:Rs.1,582 crore

• Aerospace Growth Outlook: 25–30% annually (management guidance)

These numbers show how dramatically the revenue mix is shifting. Defence, aerospace and industrial components are replacing low-margin, cyclical auto exports. As the CEO highlighted during the Airshow, India is no longer a low-cost supplier; companies like Bharat Forge are becoming high-tech partners in global supply chains.

 

1. Bharat ForgeFinancial Performance Summary

Bharat Forge shows strong quarterly growth with improving margins, despite a slight dip in annual numbers. Overall, profitability and momentum remain positive.

 

2. Balance Sheet Strength

Bharat Forge’s balance sheet remains strong and stable, with rising assets, a sharp jump in shareholder equity, and significantly improved working capital. The company maintains very low debt and a healthy interest coverage ratio, indicating strong financial resilience.

 

3. Cash Flow Summary

Bharat Forge’s cash flow shows strong operating cash generation, but heavy investments and financing outflows have led to a negative net cash flow, indicating an ongoing capex-driven growth phase.

 

4. Key Valuation Metrics

Bharat Forge’s valuation remains on the higher side across all major metrics, with rising P/E and P/B indicating a premium-priced stock. High EV/EBITDA and PEG suggest the current growth doesn’t fully justify the valuation, making it look expensive compared to peers.

 

5. Return Ratios

Bharat Forge’s return ratios have softened, with ROE and ROCE declining, mainly due to ongoing capex and moderating efficiency. ROA remains relatively stable, indicating steady asset performance despite the investment cycle.

 

6. Momentum & Technical Indicators (From Fundamentals Section)

Bharat Forge shows strong bullish momentum, trading above all key SMAs and EMAs. The RSI indicates an overbought but powerful trend, while the high beta reflects higher volatility compared to the market. 

 

7. Analyst Consensus Snapshot

 

8. Peer Comparison Snapshot

Bharat Forge trades at a significantly higher P/E compared to peers, while its ROE is lower, indicating weaker returns. Momentum is strong, but the valuation score is relatively low, suggesting the stock is expensive versus competitors like AIA Engineering, Happy Forgings, and Steel Cast, which offer better value or stronger returns.

 

Fundamental Strength: High Durability, Moderate Valuation, and Strong Momentum

Bharat Forge’s  report (Nov 19, 2025) paints a clear picture of a financially strong company undergoing valuation expansion due to structural improvements.

Durability Score:

75/100  High Financial Strength
Indicates long-term consistency in revenues, profits and cash flows.

Valuation Score:

32/100  Expensive Zone
PE of 64.2 places the stock at a premium, showing that the market is pricing in future growth.

Momentum Score:

67/100  Technically Bullish
The stock trades above all major moving averages and momentum indicators.

Key numbers reinforce the story:

• 5-year Revenue CAGR: 13.2%

• 5-year Profit CAGR: 21.9%

• Debt-to-Equity: 0.1 (very low leverage)

• Operating Margin: 17.6% (rising globally)

The only near-term concern is high capex, which has temporarily pushed net cash flows negative. But this investment cycle is directly tied to defence and aerospace capacity expansion.

 

Bharat ForgeTechnicalAnanysis: A Major Breakout and Return to the Long-Term Channel

For almost five years, Bharat Forge has traded inside a beautifully defined rising trend channel. Every correction from the 2020 crash to the 2022 slowdown eventually found support at the lower boundary of this channel.

In 2024–mid 2025, the stock entered a nine-month correction, forming a downward-sloping resistance line. That structure has now been broken decisively.

Key Technical Signals:

• Breakout above Rs.1,320 confirms trend reversal

• Price reclaimed Rs.1,400–1,450, a major supply zone

• Stock trades above 8/8 SMAs and 8/8 EMAs

• RSI remains above 70, showing strong trend strength

• MACD remains bullish with strong volume confirmation

Short-term pullbacks are possible as the stock is temporarily overbought, but the medium-term trend has turned decisively upward.

Peer Comparison: Bharat Forge Trading at a Premium Leadership Valuation

Against peers like AIA Engineering, Ramkrishna Forgings and Happy Forgings, Bharat Forge stands apart:

• Highest momentum score among peers (67)

• Stronger long-term revenue and profit base

• Significantly lower leverage

• Diversified global presence

• But also highest PE valuation in the sector

This means Bharat Forge is now seen as a premium quality, structurally transforming business, not a cyclical auto-forging commodity stock.

 

Why Bharat Forge share prices upside moves?

The recent rally is supported by multiple tailwinds:

1. Defence & Aerospace Boom: These segments deliver higher margins and multi-year contracts.

2. Rs.250 Cr Navy Contract: Strengthens defence order book and enhances credibility.

3. Dubai Airshow Visibility: Positions the company globally among top aerospace suppliers.

4. Technical Breakout: Re-entry into long-term bullish channel is attracting fresh buying.

5. Strong Q2 Earnings: Profitability rising despite export slowdown.

6. India’s Defence Export Push: Policy and capital flows favour companies like Bharat Forge.

Together, these factors create a powerful narrative of structural growth.

 

Why Bharat Forge Was Selling Off Earlier?

The downturn in 2024–2025 was driven by:

• Weakness in North American truck markets

• Lower standalone auto exports

• Global industrial slowdown

• High capex causing negative cash flow

• Valuation concerns when earnings growth paused

Once the company demonstrated strong defence momentum and broke its technical downtrend, sellers became buyers.

Should You Buy Bharat Forge Now?

Bharat Forge is fundamentally strong, strategically well-positioned and technically bullish. But valuations are currently in the expensive zone. This means:

• Long-term investors (2–3 years): Can accumulate on dips

• Short-term traders: Should avoid chasing highs and wait for retracements

• Value investors: May prefer staggered buying to manage PE risk

• Risk-averse investors: Should track the Rs.1,320 breakout zone as a key stop-loss reference

The structural story is intact, but timing the entry is essential.

 

How to Invest in Bharat Forge?

For investors wanting exposure:

1. SIP-Based Accumulation: Best for long-term portfolios; spreads valuation risk
2. Buy-on-Dip Strategy: Look for entry zones around Rs.1,380–1,420
3. Positional Trading: Track momentum above Rs.1,450 for targets toward Rs.1,550–1,620
4. Risk Management: Maintain stop-loss below Rs.1,320 (trend reversal point)

The ideal investor mindset here is long-term: Bharat Forge is transitioning into a defence–aerospace leader, and such transitions reward patient capital.

 

Conclusion: Bharat Forge’s Next Decade Has Officially Started

The combination of a Rs.250 crore Navy contract win and a strong global showcase at the Dubai Airshow 2025 represents more than just business updatesit marks the beginning of Bharat Forge’s next chapter as a high-value engineering, defence and aerospace powerhouse. Supported by robust financial performance, a healthy order book, strong management commentary and a powerful technical breakout, the company is positioned to benefit from India’s fast-growing role in global defence manufacturing.

For investors, Bharat Forge now offers a rare combination of structural tailwinds, global scale and long-term visibility. While valuations are elevated, the underlying business trajectory suggests that the next decade of compounding could be shaped by defence, aerospace and precision engineering areas where Bharat Forge is emerging as one of India’s flagship global champions.

 

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Disclaimer: Investment in securities/commodities market subject to market risk. Read all the related documents carefully before investing/trading. This report is for informational purposes only and should not be construed as investment advice. Past performance is not indicative of future results.

 

Analyst Certification: I/We, Ayushi Jain Research Analyst, authors, and the name subscribed to this report, hereby certify that all the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. NISM Research Analyst registration number – NISM-201900015194.