Description

Bharat Forge clarifies its status as L1 bidder for 60% of Indian Army's 425,000 CQB Carbine order, with contract finalization underway.

Summary

Bharat Forge Limited (BFL) has clarified its position regarding news reports about negotiations with the Ministry of Defence. The company confirmed it has been qualified as L1 bidder for supply of 60% of the Indian Army’s Close Quarters Battle (CQB) Carbine requirement totaling 425,000 units. The bid was submitted in March 2023, commercial bids were opened in July 2025, and contract finalization is currently underway. No definitive agreement has been signed as of October 23, 2025.

Key Points

  • BFL bid for Indian Army’s CQB Carbine requirement of 425,000 units in March 2023
  • After rigorous trials by Indian Army, commercial bids opened in July 2025
  • BFL qualified as L1 bidder for 60% of total order (approximately 255,000 carbines)
  • Contract finalization process underway with Ministry of Defence
  • No contract signed as of October 23, 2025
  • Indian Army referred to this program during press conference on October 22, 2025
  • Company will inform exchanges upon signing definitive agreement, subject to materiality thresholds under Regulation 30(4) of SEBI LODR
  • No other material information or regulatory/legal proceedings to report
  • Scrip Code: 500493 (BSE), Symbol: BHARATFORG (NSE)

Regulatory Changes

No regulatory changes announced in this circular.

Compliance Requirements

This is a clarification circular issued in response to BSE and NSE surveillance queries regarding news items about the company. BFL has complied with disclosure requirements by clarifying the status of negotiations and confirming there is no undisclosed material information.

Important Dates

  • March 2023: Bid submitted for CQB Carbine Program
  • July 2025: Commercial bids opened
  • October 22, 2025: Indian Army press conference referenced the program
  • October 23, 2025: Clarification issued to stock exchanges
  • Future: Definitive agreement signing (date TBD)

Impact Assessment

Market Impact: High - This is a significant defense contract that could substantially impact BFL’s revenues. The order for 60% of 425,000 CQB Carbines represents a major government procurement deal in the defense sector.

Operational Impact: High - Successful contract execution would require substantial manufacturing capacity and represents a long-term commitment to defense production.

Stock Impact: The clarification was issued following surveillance queries, suggesting the news may have caused stock price movement. The confirmation of L1 bidder status is materially positive for the company’s prospects.

Industry Impact: Medium - Reflects India’s defense modernization efforts and domestic manufacturing push under ‘Make in India’ initiative for critical defense equipment.

Impact Justification

Major defense contract worth 60% of 425,000 CQB Carbines order for Indian Army, significant potential revenue impact for Bharat Forge