Bharat Forge has been awarded a contract worth Rs 1,661.9 crore by the Indian Ministry of Defence to supply more than 255,000 Close Quarter Battle (CQB) carbines to the Indian Army. The company said the contract covers 255,128 CQB carbines in 5.56 x 45 mm calibre and is expected to be executed over a five-year period.
Bharat Forge defence contract India – contract details and timeline
According to the firm’s BSE filing, the CQB carbine is an indigenously designed, developed and manufactured compact firearm that was produced jointly by the Armament Research & Development Establishment (ARDE), DRDO and Bharat Forge’s Pune unit. The project aligns with the government’s Atmanirbhar Bharat mission to enhance domestic defence manufacturing and reduce import dependence.
Bharat Forge noted that, because the counterparty is the Indian Ministry of Defence, elements of the contract are confidential. The company has, however, disclosed the broad contract value, quantities and the delivery timeframe. Execution across five years will involve serial production, quality assurance and phased deliveries to meet Army requirements.
The contract follows structural changes inside the Kalyani Group. Bharat Forge said it has transferred all defence-dedicated assets to its wholly owned subsidiary, Kalyani Strategic Systems Limited (KSSL), to sharpen focus on the defence segment. KSSL will play a central role in manufacturing and programme management for the CQB carbine order.
Financially, the award adds to an already sizeable defence order book. In its Q2 FY26 results, Bharat Forge reported a net profit of Rs 299 crore and revenue of Rs 4,032 crore. The company secured new orders worth Rs 1,582 crore in H1 FY26, of which Rs 559 crore were defence orders, leaving the defence order book at Rs 9,467 crore at the half-year mark.
Market reaction was modest: the company’s share price rose about 1.11% on the trading day the contract was announced. The stock has gained roughly 14.6% over the past six months and is up about 13.5% year to date.
Industry analysts say the contract supports broader trends in India’s defence industrial base, including increased collaboration between DRDO laboratories and private manufacturers. The CQB carbine programme illustrates how state-funded research establishments and private sector scale-up can deliver equipment tailored for the armed forces while keeping production onshore.
For Bharat Forge and its subsidiary KSSL, the order provides multi-year revenue visibility and operational workload that will be routed through defence-focused facilities. The company has flagged growth expectations for the second half of FY26 across the industrial business, defence, aerospace and non-US export markets.
With the Indian government pressing ahead on indigenisation, large-scale supply contracts such as this one may become more frequent, offering established manufacturers recurring business and helping the armed forces to modernise with locally produced equipment.
Key Takeaways:
- Bharat Forge secured a Rs 1,661.9 crore MoD order to supply 255,128 indigenously developed 5.56x45mm CQB carbines to the Indian Army over five years.
- The CQB carbine was jointly developed by ARDE, DRDO and Bharat Forge under the Atmanirbhar Bharat initiative, and defence assets have been moved to Kalyani Strategic Systems Limited.
- Bharat Forge reported Q2 FY26 net profit of Rs 299 crore and a defence order book of Rs 9,467 crore at the end of H1 FY26, signalling stronger defence-sector momentum.
