Shares of Bharat Forge are higher by over 5 percent to be among the top F&O gainer on September 8, as investors weighed its subsidiary's recent plan to buy a 950 -acre land parcel in Andhra Pradesh to develop a defence manufacturing complex.
The step-down subsidiary, Agneyastra Energetics, is held through Kalyani Strategic Systems (KSSL), a wholly owned subsidiary of Bharat Forge.
Agneyastra will purchase a nearly 949.65 acre land parcel in Madakasira, in Anantapur District, for undertaking development of 'End-to-End Defence Energetics Manufacturing Complex, including High Explosives Manufacturing plant, ammunition filling plant, gun propellant facility, and provisions for future expansion
into energetics for rockets, missile systems, space launch vehicles', Bharat Forge said in an exchange filing on September 4.
India aims for Rs 3 lakh crore in defence production and Rs 50,000 crore in exports by 2029, setting the nation up as a reliable global defence partner, and Bharat Forge is leveraging on strategic partnerships and indigenous capabilities to increase its share in this business. During FY25, Bharat Forge received its biggest ever defence order worth nearly Rs 4,000 crore to supply 184 ATAGS platforms, marking what the company called a 'big moment for the private defence industry' in India, with private sector as a production partner. Its subsidiary Kalyani Strategic Systems (KSSL) has acquired a 25 percent stake in Italian design company EdgeLab, which specializes in design and manufacturing of Autonomous Underwater Vehicles. KSSL’s new manufacturing facility spread over 4 lakh square feet near Pune is slated to commence operations in H1FY26.
In the near term, Bharat Forge said Q2FY26 looks a 'little weaker' driven by US exports, and the management hopes this will be the low for this cycle. "Second half should be better than the first half," Amit Kalyani said during the June quarter earnings call. "(In) aerospace, we will have strong growth in the year. Again, you have to look at it on a YOY basis. We should see upwards of 20% growth, maybe even higher than that," Amit Kalyani added.
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