Bharat Forge lands MoD deals worth ₹4,666 crore in 2026

Deal recap: multiple defence orders converge

The Ministry of Defence (MoD) and Bharat Forge Limited have been part of a set of recent procurement announcements that highlight the government’s emphasis on domestic sourcing. The latest disclosed agreement covers equipment for the Indian Navy, while other contracts relate to small arms and unmanned systems for the Army and Navy. The combined announcements also reference a broader MoD procurement push during FY 2024-25. Several of these orders have been described as landmark wins for Bharat Forge in India’s domestic defence manufacturing ecosystem.

MoD signs ₹425 crore pact for Navy gas turbine generators

On Friday, the MoD entered into an agreement with Bharat Forge for the procurement of 12 units of 125 MW Gas Tur Generators intended for the Indian Navy. The contract is estimated to be worth approximately ₹425 crore. The ministry said the generators will contain at least 60% local content. It also stated that the agreement is expected to promote self-sufficiency in vital strategic technologies and enhance the operational preparedness of the Indian Navy. The ministry added that local production and comprehensive life-cycle support are part of the broader objective.

‘Buy (Indian)’ category and the signing in New Delhi

The MoD said the agreement was finalised under the Buy (Indian) category. Defence Secretary Rajesh Kumar Singh was present during the signing in New Delhi. The ministry’s framing of the contract linked procurement choices with indigenisation and sustainment support. The local-content threshold of at least 60% is also positioned as a key compliance and capability-building feature of the deal.

Contracts worth ₹4,666 crore: carbines and heavy weight torpedoes

Separately, the defence ministry announced that it signed contracts worth ₹4,666 crore with Bharat Forge and PLR Systems for the procurement of Close Quarter Battle (CQB) Carbine and Heavy Weight Torpedoes. A ministry release stated that a contract for over 4.25 lakh CQB carbine along with accessories, worth ₹2,770 crore, was signed for the Indian Army and the Indian Navy with Bharat Forge Ltd and PLR Systems Pvt Ltd. The announcement also referenced the procurement decision taken earlier for these carbines under the Buy (Indian) category.

A 2022 procurement approval and competing bids

According to the information cited, in 2022 the MoD approved the procurement of over 4.25 lakh units of these carbines under the Buy (Indian) category, with the total contract valued at approximately ₹2,770 crore. The same set of details said Bharat Forge’s winning offer of ₹2,770 crore outperformed competing bids. PLR Systems and Jindal Defence were cited as bidders with offers of ₹3,148 crore and ₹3,379 crore respectively. This comparison was presented as evidence of Bharat Forge’s competitiveness in a large domestic small-arms programme.

Bharat Forge’s December 2025 carbine order: ₹1,661.9 crore

Bharat Forge also disclosed that it signed its largest-ever small arms contract with the MoD in late December 2025. Valued at ₹1,661.9 crore, the deal is for the supply of 255,128 Close-Quarter Battle (CQB) carbines to the Indian Army. The contract is set to be executed over a five-year period. The company described it as its biggest domestic defence deal.

Unmanned systems orders: ₹300 crore for Army and Navy

In addition to small arms and naval equipment, Bharat Forge’s aerospace division announced contracts worth around ₹300 crore to supply a range of unmanned systems to the Indian Army and Navy. The disclosure grouped these as drone-related contracts. The same set of details summarised Bharat Forge’s recent wins as two major contracts: one worth approximately ₹300 crore for drones and another valued at ₹1,661.9 crore for 255,128 CQB carbines.

Development partners and Bharat Forge order book disclosure

Amit Kalyani, Vice-Chairman and Joint Managing Director of Bharat Forge Limited, shared details on the latest defence deal and discussed defence manufacturing programmes. In the cited remarks, he said two big orders signed in the year were IDTM products, referring to the ATAX gun and the CQB carbine. He said the CQB was jointly developed with ARDE, and the ATAGS with DRDO. He also stated that the company’s total order book is roughly around ₹11,000 crore.

Broader procurement context: ₹1.40 lakh crore in FY 2024-25

One of the MoD updates noted that with a separate deal, the ministry had inked capital procurement contracts aggregating to ₹1.40 lakh crore in FY 2024-25. The references in the provided information also mentioned a ₹6,900 crore contract with Bharat Forge, described in relation to an artillery system procurement outlay. The same excerpt said it was the biggest domestic defence deal ever for Bharat Forge as it constitutes 60% of the total ₹6,900 crore procurement earmarked for the artillery system.

Key figures at a glance

Why these deals matter for investors and the sector

Across the announcements, two themes stand out: scale and domestic sourcing. The gas turbine generator contract explicitly specifies at least 60% local content, while the small-arms programmes are described as domestic manufacturing at scale. The multi-contract pipeline also indicates that Bharat Forge’s defence revenues are being built through a mix of platforms, from naval power systems to infantry weapons and unmanned systems. For the broader defence manufacturing ecosystem, these orders reinforce procurement channels such as Buy (Indian) and the emphasis on indigenisation and through-life support.

Conclusion

Bharat Forge’s recent set of MoD-linked announcements spans a ₹425 crore Navy equipment order, large CQB carbine programmes, and ₹300 crore unmanned systems supply contracts, alongside disclosures about a roughly ₹11,000 crore order book. The agreements were tied to domestic procurement categories and local-content targets, with the Defence Secretary present at the New Delhi signing for the Navy generators. Execution timelines cited include a five-year period for the ₹1,661.9 crore carbine supply contract signed in December 2025. Further clarity is likely to come through subsequent MoD updates and company disclosures as deliveries and milestones progress.