Bharat Forge Bags ₹1,662 Crore Deal for Army Carbines

Introduction

Bharat Forge Limited (BFL), a leading technology and engineering company, has secured its largest-ever small arms contract from the Indian Ministry of Defence. The deal, valued at ₹1,661.9 crore, is for the supply of indigenously developed Close Quarter Battle (CQB) Carbines to the Indian Army. This landmark agreement, signed on December 30, 2025, marks a significant milestone for India's self-reliance in defence manufacturing under the 'Atmanirbhar Bharat' initiative. The contract underscores Bharat Forge's growing capabilities in the defence sector and its commitment to modernizing the equipment for the Indian Armed Forces.

Details of the Landmark Contract

The contract mandates Bharat Forge to supply 255,128 units of its 5.56 x 45 mm CQB Carbines. The execution of this substantial order is scheduled over a five-year period. This firearm is a modern, compact weapon designed for close-quarters combat, a critical requirement for infantry and special forces operations in varied terrains. The agreement solidifies the company's position as a key private sector partner in India's defence ecosystem. The deal is expected to provide a significant boost to Bharat Forge's revenue stream from its defence vertical over the coming years.

A Triumph for Indigenous Development

The CQB Carbine is a product of successful collaboration between the government's research arm and private industry. It has been indigenously designed, developed, and manufactured (IDDM) jointly by the Armament Research & Development Establishment (ARDE), a premier laboratory of the Defence Research and Development Organisation (DRDO), and Pune-based Bharat Forge. This partnership highlights the success of the public-private partnership model in creating advanced defence solutions within the country. The company, along with its wholly-owned defence subsidiary, Kalyani Strategic Systems Limited (KSSL), has been at the forefront of developing advanced 'Made in India' platforms.

Broader Context of Defence Modernisation

This contract is part of a larger procurement drive by the Ministry of Defence to modernise the armed forces. On the same day, the ministry signed contracts worth a total of ₹4,666 crore. The overall program for CQB Carbines is valued at ₹2,770 crore for a total of over 4.25 lakh units, with the orders split between Bharat Forge and PLR Systems Private Limited. Bharat Forge secured the larger share of this procurement. Additionally, the ministry also finalized a deal worth ₹1,896 crore for 48 heavy-weight torpedoes for the Indian Navy's Kalvari Class submarines, indicating a comprehensive push towards enhancing military capabilities across all services.

Here's a summary of the Bharat Forge contract:

Market Response and Stock Performance

The announcement of the contract win was positively received by the market, with shares of Bharat Forge expected to remain in focus. On the day of the announcement, the company's shares closed 0.75% higher at ₹1,456.60 on the National Stock Exchange. The stock has demonstrated steady performance, gaining approximately 12% over the past year. This deal is likely to strengthen investor confidence in the company's long-term growth trajectory, particularly in its defence business, which is emerging as a key growth driver alongside its core automotive and industrial segments.

Strategic Importance for the Indian Army

The procurement of modern CQB carbines addresses a long-standing need of the Indian Army to replace its aging small arms inventory. These state-of-the-art weapons provide soldiers with enhanced firepower, accuracy, and maneuverability in close-combat situations, which are common in counter-insurgency and urban warfare scenarios. The induction of these indigenously produced carbines not only boosts the operational readiness of the infantry but also reduces dependence on foreign imports, saving valuable foreign exchange and strengthening national security.

Economic Impact and Future Outlook

The contract is expected to have a positive ripple effect on the domestic defence manufacturing ecosystem. It will likely generate significant business for Micro, Small, and Medium Enterprises (MSMEs) that form the supply chain for components and raw materials. This aligns with the government's goal of fostering a robust and self-sufficient defence industrial base. For Bharat Forge, this order cements its role as a critical partner in India's defence modernisation journey. The successful execution of this contract will further enhance its credentials and position it favorably for future large-scale defence projects.

Conclusion

Bharat Forge's ₹1,661.9 crore contract for CQB Carbines is a landmark achievement for both the company and India's indigenous defence industry. It represents a significant step forward in the 'Atmanirbhar Bharat' mission, showcasing the country's capability to design, develop, and manufacture advanced weaponry. As the company prepares to execute this five-year contract, it is poised to play an increasingly vital role in equipping the Indian Armed Forces with cutting-edge, Made-in-India solutions.