Bharat Forge Limited has secured a ₹425 Crore contract from the Ministry of Defence (MoD) to supply 12 Marine Gas Turbine Generators (GTGs) to the Indian Navy. The agreement, signed on June 19, 2026, involves the supply of 1.25 MW units for onboard power generation on Kolkata class ships. The contract will be executed over a period of 5 years.

The new GTGs will replace lower capacity units currently in service. Awarded under the Buy (Indian) category of the Defence Acquisition Procedure 2020 (DAP-2020), the contract marks Bharat Forge's entry into the marine gas turbine (GT) business. It will deliver the first indigenous GT-based power plant to operate aboard Indian Naval ships.

Strategic Expansion and Capabilities

As part of this initiative, Bharat Forge will establish a dedicated Integration and Test facility for GTGs. The company will also participate in design and development programs for larger power plants and propulsion GTs. These capabilities are intended to serve the broader needs of the Indian armed forces through local production. The company stated that these manufacturing capabilities would ensure complete sovereignty on maintenance and overhaul operations of GTs and GTGs.

Contract Details

The following table summarises the key parameters of the contract:

Bharat Forge Limited has detailed the Tax Deduction at Source (TDS) compliance requirements for the final dividend of ₹6.5 per equity share, or 325%, recommended for the financial year 2025-26. The company specified that shareholders must submit necessary tax-related documents by Friday, July 3, 2026, to ensure the correct tax rate is applied and to avoid higher deductions. The dividend is payable on equity shares of ₹2 each, subject to shareholder approval at the Annual General Meeting.

The Board of Directors recommended the dividend in its meeting held on May 7, 2026. To facilitate the distribution, the company has established Friday, July 3, 2026, as the record date. The Annual General Meeting is scheduled for Tuesday, August 11, 2026, followed by the dividend payout on Friday, August 14, 2026.

Key Dates for Dividend Payout

TDS Compliance for Shareholders

Under the Income Tax Act, 2025, dividend income is taxable in the hands of shareholders, and the company is mandated to deduct TDS at the time of payment. For resident individuals, TDS is deducted at 10% if a valid Permanent Account Number (PAN) is registered. This rate rises to 20% if the PAN is invalid, not linked with Aadhaar, or unavailable. No tax is deducted if the total dividend income for the Tax Year 2026-27 does not exceed ₹10,000 or if the shareholder submits Form 121.

Resident non-individual entities, such as insurance companies and mutual funds, are exempt from TDS upon submission of specific self-declarations and registration certificates. Non-resident shareholders face a withholding tax rate of 20% plus surcharge and cess under domestic law, unless they opt for benefits under a Double Tax Avoidance Agreement (DTAA). To avail DTAA rates, non-residents must submit a Tax Residency Certificate, Form 41, and other declarations by July 3, 2026.

Documentation and Submission

Shareholders holding shares in demat form must update bank details with their Depository Participant, while those with physical shares must update them with MUFG Intime India Private Limited. All required forms and declarations for claiming exemption or lower TDS must be submitted via the Registrar and Transfer Agent's website or via email to tdsforms@bharatforge.com by the record date. The company emphasized that incomplete or unsigned forms received after July 3, 2026, will not be accepted, and any tax deducted at a higher rate due to non-compliance will not be refundable by the company, though shareholders may claim it in their income tax returns.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE465A01025/9bc1c4e1d8e04ebc.pdf