Bharat Forge to Expand in Defence Sector After Forecasting A 15% Dip in Truck Orders for FY26

Bharat Forge is currently facing a slowdown in its commercial vehicle business. The company recently reported a 14% year-on-year decline in Class 8 truck orders for August 2025. This drop in demand is a worrying sign for its commercial vehicle segment.

Looking ahead, the company has issued a cautious outlook for FY26, expecting a further 15% decline in truck orders. This suggests continued weakness in the market, which could negatively impact Bharat Forge’s revenue and profitability in the near term.

Bharat Forge Shifts Focus to the Defence Sector

In response to these challenges, Bharat Forge is increasing its focus on the defence sector, an area with strong growth potential and less cyclical demand. Through its subsidiary, Agneyastra Energetics Limited, the company is making a major investment aimed at long-term diversification.

Bharat Forge Signs Defence Deal in Andhra Pradesh

On September 4, 2025, Agneyastra Energetics signed an agreement with the Andhra Pradesh Industrial Infrastructure Corporation Ltd. to acquire 949.65 acres of land in Madakasira, Anantapur District. This land will be used to set up an advanced Defence Energetics Manufacturing Complex.

Bharat Forge Andhra Pradesh Project Details

The planned facility will manufacture key defence materials and components. The project includes:

• A high-explosives manufacturing plant
• An ammunition filling plant
• A gun propellant facility

There are also plans for future expansion, which could include:

• Manufacturing for rockets and missile systems
• Space launch vehicle components
• Advanced energetic materials

This move is a clear signal that Bharat Forge is committed to becoming a major player in India’s defence manufacturing ecosystem.

Bharat Forge Share Price Performance

While recent market conditions have affected performance, Bharat Forge share price has delivered solid returns over the long term:

• 5 Days: +2.61%
• 1 Month: -2.15%
• 6 Months: +7.43%
• 1 Year: -29.42%
• 5 Years: +133.28%

Read more: Best PSU Stocks in India in September 2025: GRSE, Cochin Shipyard, & More Based on 5-Yr CAGR, With Some Trading Below ₹400!

Conclusion

With a projected 15% drop in truck orders for FY26, Bharat Forge is facing clear headwinds in the commercial vehicle sector. However, the company is taking proactive steps to reshape its future through a strong push into defence manufacturing. The large-scale defence complex in Andhra Pradesh could help offset weaknesses in other segments and drive long-term growth. 
 
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