Bharat Forge $1.35B Orders, $217M Capex: Multi-Sector Push?

March 26, 2025 – Indian auto and defense components manufacturer Bharat Forge Ltd. is making headlines with a massive defense order book worth ₹11,196 crore (approximately $1.35 billion) and a planned capital expenditure of ₹1,800 crore ($217 million). The company, known for its forging and automotive components, is aggressively expanding into defense, aerospace, and energy sectors, potentially positioning itself as a multi-sector manufacturing powerhouse.

Defense Orders Drive Growth

Bharat Forge’s defense order book, now equivalent to nearly 3.5 times its FY2025 defense revenue, underscores the company’s deepening footprint in India’s military modernization programs. The orders span artillery systems, ammunition, and vehicle components for the Indian Army and Navy. In a significant move, the company has also secured contracts from international clients, including a recent deal with a European defense OEM for howitzer components.

Capex Signals Strategic Shift

The ₹1,800 crore capex, spread over the next two fiscal years, will fund new facilities for advanced forging, aerospace-grade titanium parts, and a dedicated defense production line. Management has indicated that the capex will also support a new energy storage unit, targeting the growing demand for lithium-ion battery packs in India and North America.

U.S. Supply Chain Opportunities

Bharat Forge’s expansion is closely watched by U.S. defense and auto firms. The company is already a supplier to American truck manufacturers and has been exploring joint ventures with U.S. defense primes. According to a recent report by Goldman Sachs, the Indian firm’s ability to offer cost-competitive, high-quality forgings could make it a key player in the Pentagon’s "Friend-shoring" strategy. Between 2024 and 2025, Bharat Forge’s export revenue to the U.S. grew by 18%, driven by demand for heavy-duty truck and oil & gas components.

Multi-Sector Ambitions Beyond Defense

The company is not relying solely on defense. Its automotive division, though facing headwinds from a global EV transition, remains profitable and is pivoting toward lightweight aluminum components for electric vehicles. The aerospace segment, still nascent, has won orders