The move comes as the company prepares to mitigate potential risks from trade policy changes and expand its presence in the global automotive market.
Baba Kalyani, Chairman and Managing Director of Bharat Forge, said; “The automotive component — that is one area where we have a lot of opportunities, we have capacity, and we are ramping up.”
With the US set to impose a 25% tariff on imported automobiles, uncertainty looms over global auto exports. Bharat Forge exports 20% of its auto components to the US. There is still no clarity on whether Class 8 truck components will be affected.
“When the customs order comes, only then will we know which components are covered,” Kalyani stated.
He also stated that switching auto suppliers takes 3-4 years, reducing immediate disruptions. Moreover, India’s trade negotiations with the US could influence the final outcome.
Beyond autos, Bharat Forge is making significant strides in the defence sector. The company recently secured a ₹6,900 crore artillery contract
, with Bharat Forge’s share amounting to ₹4,100 crore.
The contract is officially set for a three-year execution timeline, but Bharat Forge aims to complete it faster. “We have a very large capacity to make artillery guns, so we could finish this whole business in two years once the first stage approval is done,” Kalyani added.
India’s artillery modernisation program, valued at ₹70,000 crore, presents a long-term growth opportunity for Bharat Forge. The company is set to participate in multiple defence programs, including armoured vehicles and infantry combat vehicles.
With a current defence order book of ₹10,000 crore, Bharat Forge is positioned for strong growth in this segment.
The company is also working on restructuring its overseas subsidiary, with a resolution expected by April-June 2025 quarter (Q1FY26).
Bharat Forge’s current market capitalisation is ₹55,348.32 crore. The stock is currently trading at ₹1,157.80 as of 10:28 am on the NSE and has gained 2% over the last year.
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(Edited by : Unnikrishnan)
