Shares of Bharat Forge jumped 5.50% in Thursday’s trading session, reaching ₹1,198.75 after the Cabinet Committee on Security (CCS) approved a ₹7,000 crore contract for the procurement of 307 Advanced Towed Artillery Gun Systems (ATAGS) for the Indian Army. The surge in the stock price comes as Bharat Forge’s subsidiary, Kalyani Strategic Systems Limited (KSSL), secured the majority stake in the contract, with a 60% production allocation.
The ATAGS, a 155mm/52-caliber towed artillery gun system, is a key component of India’s defence modernization program, aimed at bolstering border security along the China and Pakistan frontiers. The contract, awarded in partnership with Tata Advanced Systems Limited (TASL), marks a significant milestone for India’s indigenous defence manufacturing sector.
Additionally, the Indian Army has floated a tender for an extra 400 howitzers, which could further benefit Bharat Forge and other defence firms like Larsen & Toubro (L&T), Adani Defence, and the Ordnance Factory Board. This anticipated pipeline of defence orders has sparked investor interest, boosting Bharat Forge’s stock momentum.
The rally also aligns with broader market optimism around defence stocks, as the government continues to push its ‘Make in India’ initiative to reduce reliance on foreign arms procurement. With Bharat Forge positioned as a leader in India’s private-sector defence manufacturing, the company stands to benefit significantly from future contracts and policy tailwinds.
