Bharat Forge’s Q4 FY26 results highlight that its Close Quarter Battle (CQB) Carbines have successfully cleared R&D and early validation, with management projecting them as a near‑term domestic revenue accelerator in FY27, alongside artillery systems such as the Advanced Towed Artillery Gun System (ATAGS).
This positions the defence vertical as a major growth driver, supported by a robust ₹11,000 crore order book.
Bharat Forge reported consolidated revenue of ₹4,528 crore in Q4 FY26, marking a 17.5 per cent year‑on‑year increase, though net profit declined 17 per cent to ₹233 crore due to exceptional losses.
For the full year FY26, revenue stood at ₹16,811 crore, up 11 per cent, while net profit rose 14.7 per cent to ₹1,079 crore. The company recommended a final dividend of ₹6.50 per share, payable in August 2026.
Despite profit pressure, management remains confident of achieving 25 per cent revenue growth in FY27, driven by execution of defence orders, recovery in exports, and strong domestic demand.
The defence vertical is now firmly positioned as a strategic pillar. Bharat Forge has secured contracts worth ₹4,140 crore to supply 184 ATAGS and ₹1,661.9 crore for over 255,000 CQB carbines to the Indian Army.
Production of these systems is scheduled to commence in the second half of FY27, with revenues expected to ramp up significantly thereafter.
The CQB Carbine line, having cleared R&D and validation, is seen as an immediate domestic revenue accelerator, complementing artillery program.
This reflects Bharat Forge’s broader ambition to transition from a primarily automotive and industrial components manufacturer into a leading private‑sector defence supplier.
The artillery vertical is equally critical. Bharat Forge is preparing for large‑scale production of the 155 mm ATAGS, an indigenous system jointly developed with DRDO, which has already undergone extensive trials.
The company is also expanding into explosives manufacturing, with a new facility planned in Anantapur, Andhra Pradesh, to support integrated munitions production. These initiatives underscore Bharat Forge’s intent to build a comprehensive defence ecosystem spanning small arms, artillery, armoured vehicles, drones, and ammunition.
Beyond defence, aerospace revenues of ₹400 crore in FY26 are expected to grow at double‑digit rates, supported by global outsourcing and new OEM partnerships. Export markets, particularly North America, are showing signs of recovery, with US truck production rebounding and passenger vehicle exports strengthening.
However, management acknowledges risks from geopolitical volatility, raw material costs, and execution delays in defence contracts, which could affect near‑term earnings visibility.
Brokerages remain divided. Jefferies and Morgan Stanley are optimistic, citing defence and aerospace as key growth drivers, while Citi and Kotak Securities remain cautious, pointing to execution risks and high valuations.
Nevertheless, Bharat Forge’s diversified portfolio, spanning auto, aerospace, defence, and industrial goods, is expected to reduce cyclicality and provide multi‑year revenue visibility.
The CQB Carbine program is particularly significant for India’s armed forces, as it addresses long‑standing requirements for modern small arms to replace ageing inventories.
Its domestic production aligns with the government’s Atmanirbhar Bharat initiative, reducing reliance on imports and strengthening indigenous capabilities. For Bharat Forge, this marks a turning point where defence revenues could eclipse traditional automotive contributions, reshaping the company’s long‑term trajectory.
Bharat Forge Press Release
