Bharat Forge wins ₹425 cr defence contract for first indigenous naval gas turbine
The five-year order for 1.25 MW gas turbine generators on Kolkata-class destroyers marks Bharat Forge's entry into marine power systems, but at 0.44% of market cap it's a niche win, not a needle-mover.
— 3 earlier stories on Bharat Forge Ltd. →What's new
- Wins ₹425 cr contract from MoD for gas turbine generators on Kolkata-class destroyers.
- Will set up a dedicated integration and test facility for the GTGs.
- First indigenous gas turbine-based power plant on Indian naval ships.
Why this matters
For a company with a defence order book exceeding ₹11,000 cr and a ₹97,597 cr market cap, a ₹425 cr order spread over five years is incremental. But it seats Bharat Forge in marine gas turbines for the first time, a technology play that could lead to bigger naval propulsion contracts down the line.
What we're watching
- Timeline for facility setup and first delivery.
- Future orders for larger power plants and propulsion turbines.
- Execution margins vs auto/industrial forgings.
The full read
Bharat Forge has signed a ₹425 crore contract with the Ministry of Defence to supply 1.25 MW gas turbine generators (GTGs) for the Indian Navy's Kolkata-class destroyers. It is the first indigenous gas turbine-based power plant to operate aboard Indian naval ships. The five-year order wins a new technology category for the company and comes with a dedicated integration and test facility. Yet for a company with a market cap of ₹97,597 crore and a defence order book exceeding ₹11,000 crore, the contract represents only 0.44% of market capitalisation and roughly 3-4% of annual revenue spread over five years. The news is strategically positive; it opens a marine gas turbine line and positions Bharat Forge for larger naval propulsion programmes. But it is not a material earnings event by scale.
Questions answered
- What exactly is the contract for?
- Bharat Forge will supply 1.25 MW gas turbine generators (GTGs) for Kolkata-class destroyers, replacing lower-capacity units. The contract is under the Buy (Indian) category of DAP 2020 and runs for five years.
- How significant is this order financially?
- The ₹425 cr contract is about 0.44% of Bharat Forge's ₹97,595 cr market cap and an estimated 3-4% of annual revenue over five years. For a large-cap with a ₹11,000 cr defence backlog, it's a modest addition.
- Is this Bharat Forge's first defence order?
- No. The company already has a robust defence order book exceeding ₹11,000 cr, with earlier orders for artillery guns and components. This contract adds a new category: marine gas turbines.
- What is the execution timeline?
- The contract will be executed over five years. Bharat Forge plans to set up a dedicated integration and test facility for the GTGs, which likely precedes serial production.
- Will this open up more orders?
- Bharat Forge expects to participate in future design programmes for larger power plants and propulsion turbines, making this a strategic beachhead in naval propulsion beyond the current GTG contract.
Bharat Forge Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on BHARATFORG →- 19 Jun 2026 · 6:20 PM IST Bharat Forge wins ₹425 cr defence contract for first indigenous naval gas turbine
- 18d ago Bharat Forge teams up with AM General for artillery exports
- 20d ago Bharat Forge's KSSL unveils Simha 4x4 at Eurosatory, no order attached
- 21d ago Bharat Forge unveils MArG artillery gun at Eurosatory, no order yet