Synopsis: A major defence and engineering company inks a government pact to build a first-of-its-kind naval propulsion facility on Indian soil.
India’s push for defence self-reliance got a significant boost as a leading engineering conglomerate signed a formal agreement with a state government to establish a facility that could transform how the Indian Navy maintains and powers its frontline warships. The move marks a historic first for the country’s private defence sector.
With a market cap of Rs. 89,646 Crore, shares Bharat Forge Ltd. are trading at a price of Rs. 1,876.8 per share i.e. 0.75% down from its previous closing price of Rs. 1,891. It currently trades at a P/E of 76.1.
MoU Signed at Puttaparthy Conclave
Bharat Forge Limited, through its Aerospace division, has signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh to establish India’s first private-sector Marine Gas Turbine (MGT) Repair, Overhaul, and indigenous Development complex at Visakhapatnam. The facility will come up over approximately 80 acres within the Andhra Pradesh Defence Manufacturing Corridor.
The MoU was signed at the Aerospace and Defence Investment Conclave held at Puttaparthy on May 19, 2026, in the presence of Union Defence Minister Shri Rajnath Singh and Andhra Pradesh Chief Minister Shri N. Chandrababu Naidu. The event also saw the foundation stone laying of India’s AMCA fifth-generation stealth fighter programme.
What the Facility Will Do
The proposed facility will be co-located with the Naval Dockyard, INS Eksila, and Eastern Naval Command Headquarters at Visakhapatnam. Phase 1 will focus on a full Marine GT Repair and Overhaul complex, covering hot section restoration of blades, vanes, and combustion liners, component manufacturing, an NDE laboratory, and a 72-hour turnaround capability for the Naval Dockyard.
Phase 2 and Indigenous Development
Phase 2 will establish India’s first private-sector Marine GT Development and Assembly Hall, along with a full-spectrum hot test cell scalable across all propulsion ratings. Crucially, Phase 2 will also include the development and qualification of an indigenous Marine Gas Turbine — a first for the country. The facility is also expected to serve as a regional repair and overhaul hub for friendly nation navies, creating approximately 750 direct and indirect employment opportunities.
About Bharat Forge and its Financials
Bharat Forge Limited is a Pune-based multinational and a global leader in high-performance, safety-critical components for sectors including automotive, defence, aerospace, power, and oil and gas. The company has manufacturing operations across five countries.
Based on Bharat Forge’s consolidated financial performance from March 2025 to March 2026, the company demonstrated robust growth. Annual revenue increased by 11.17%, rising from ₹15,123 crores to ₹16,812 crores. Operating profit also saw a steady upward trajectory, growing from ₹2,692 crores to ₹2,917 crores. Driven by improved operational efficiencies and lower interest costs, net profit surged by an impressive 19.28%, reaching ₹1,089 crores compared to ₹913 crores in the previous year, while earnings per share (EPS) climbed to ₹22.58.
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