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Bharat Forge secures record ₹1,662 cr small arms contract

Bharat Forge Limited has secured its largest-ever small arms contract with the Indian Ministry of Defence, valued at ₹1,661.9 crore. The deal, finalised on 30 December 2025, is for the supply of 255,128 Close Quarter Battle (CQB) carbines to the Indian Army over the next five years. The contract marks a major milestone for Bharat Forge in defence manufacturing and underlines the government’s focus on building self-reliance in critical defence equipment.

The 5.56 x 45 mm CQB Carbine is a compact, lightweight firearm designed for close-range operations, particularly in urban combat, counter-insurgency, and special operations. Its smaller size and enhanced manoeuvrability make it suitable for scenarios where traditional assault rifles may be less effective. The weapon has been jointly developed by the Defence Research and Development Organisation (DRDO) through the Armament Research & Development Establishment (ARDE) and Bharat Forge’s defence arm, Kalyani Strategic Systems Limited (KSSL).

As an indigenously designed, developed, and manufactured system, the CQB Carbine supports the Atmanirbhar Bharat initiative by reducing import dependence and strengthening India’s domestic defence industrial capacity. Bharat Forge has highlighted the “Made in India” nature of the programme, reaffirming its commitment to equipping the armed forces with advanced, locally produced weapons.

This contract is part of a broader modernisation push by the Ministry of Defence, which has recently approved procurement deals worth thousands of crores for carbines, artillery, and torpedoes for the Indian Army and Navy. The government aims to enhance operational readiness while fostering private sector participation in defence production.

The announcement was positively received by markets, with Bharat Forge’s shares rising to a 52-week high, reflecting investor confidence in the company’s expanding defence portfolio. Analysts see the order as a boost to Bharat Forge’s future defence opportunities and its growing role in India’s strategic defence ecosystem.

With this deal, Bharat Forge strengthens its position as a key domestic supplier of advanced small arms, enhancing infantry firepower while showcasing successful collaboration between government research institutions and private industry in delivering mission-critical defence equipment.

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