Bharat Forge Limited's wholly-owned subsidiary, Kalyani Strategic Systems Limited (KSSL), has secured contracts worth over ₹2,500 million from the Indian Ministry of Defence for underwater systems. The contracts, signed on November 10, 2025, stipulate delivery within a year, aligning with Fast Track procurement norms.

Contract Details

Strategic Importance

This development marks a significant milestone for KSSL in the underwater domain, which the company has identified as a key focus area alongside naval guns and marine equipment. The contracts underscore KSSL's growing capabilities in design, development, and production of unmanned marine systems.

Company Background

KSSL, established as the flagship defense business entity of the Bharat Forge Group, has been building its capabilities in unmanned marine systems over the past five years. The company has already supplied autonomous underwater vehicles that are currently in service with the Indian Navy.

Alignment with Indian Navy's Requirements

The contracts demonstrate KSSL's commitment to aligning its capabilities with the Indian Navy's urgent and mission-critical requirements. This alignment is crucial for enhancing India's naval defense capabilities.

Bharat Forge's Q2 FY26 Performance Context

While this contract win is a positive development for KSSL, it's worth noting the broader context of Bharat Forge's recent financial performance:

The defence business, including KSSL's operations, continues to be a growing segment for Bharat Forge, with these new contracts likely to contribute positively to future financial results.

Future Outlook

KSSL's success in securing these contracts may pave the way for further growth in the defense sector. The company remains committed to timely delivery of these advanced underwater systems, potentially strengthening its position in the naval defense market.

As KSSL continues to expand its capabilities and secure significant contracts, it is poised to play an increasingly important role in India's defense manufacturing ecosystem, aligning with the country's push for self-reliance in defense production.

Bharat Forge Limited , a leading Indian multinational company, has announced the complete utilization of the Rs 1,650 crore raised through its Qualified Institutional Placement (QIP) issued in December 2024. The company's monitoring agency, ICRA Limited, reported no material deviation from the stated objectives for the quarter ended September 30, 2025.

Allocation of Funds

The QIP proceeds were deployed across three main areas:

The actual net proceeds of Rs 1,621.87 crore were slightly higher than the estimated Rs 1,619.14 crore due to lower actual offer-related expenditure.

Timely Completion

Bharat Forge has reported that all objectives have been completed with no delays in implementation. This efficient utilization of funds demonstrates the company's commitment to its stated goals and financial discipline.

Monitoring and Transparency

ICRA Limited, serving as the monitoring agency, has played a crucial role in overseeing the utilization of funds. Their report for the quarter ended September 30, 2025, confirms adherence to the planned usage, enhancing transparency for investors and stakeholders.

Strategic Implications

The successful deployment of QIP proceeds marks a significant milestone for Bharat Forge. The repayment of subsidiary borrowings is likely to strengthen the company's financial position, while the acquisition of equity shares in AAM India Manufacturing Corporation Private Limited may contribute to Bharat Forge's strategic growth initiatives.

Market Response

The completion of fund utilization as per the stated objectives may be viewed positively by investors, reflecting the company's efficient capital allocation and execution capabilities.

Bharat Forge's judicious use of the QIP proceeds underscores its focus on debt reduction, strategic acquisitions, and overall financial prudence. Stakeholders will be keen to observe how these investments translate into long-term value creation and growth opportunities.