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harat Forge Limited has announced that it has secured a ₹425 crore contract from the Ministry of Defence

ICICIdirect Research 22 Jun 2026 DISCLAIMER

News: In a press release, Bharat Forge Limited has announced that it has secured a ₹425 crore contract from the Ministry of Defence to supply Gas Turbine Generators (GTGs) for the Indian Navy, marking a major strategic milestone for the company’s defence vertical. The contract, to be executed over 5 years, involves supplying 1.25 MW GTGs for Kolkata-class naval ships, replacing lower-capacity units currently in service. More importantly, this marks Bharat Forge’s entry into the marine gas turbine business, with the company set to deliver the first indigenous GT-based power plant for Indian naval ships. Alongside manufacturing, Bharat Forge will establish a dedicated integration and testing facility and participate in future propulsion and larger turbine development programs, strengthening its role in India’s defence indigenisation push.

View: This development significantly strengthens the long-term investment case for Bharat Forge Limited because it further validates management’s strategy of transforming the company from a traditional auto-components player into a high-technology defence and aerospace engineering platform. The bigger significance lies in Bharat Forge entering an entirely new niche of marine propulsion systems, a segment with very high entry barriers, long-term recurring opportunities in maintenance and overhaul, and future export potential. Combined with the already strong ~₹11,000 crore defence order book, expanding aerospace business, drone manufacturing capabilities, artillery systems, and explosives facility under development, this order reinforces the view that defence could become one of Bharat Forge’s largest growth engines over the next 3–5 years, making the company increasingly less dependent on cyclical automotive demand.

Impact: Positive

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