Bharat Forge Secures Rs 2,000 Crore Army Contract for DRDO-Designed CQB Carbines
Bharat Forge has achieved a significant milestone in India's quest for defense self-reliance by emerging as the lowest bidder in a crucial Indian Army tender for indigenously developed close-quarter battle (CQB) carbines. These carbines, designed by the Armament Research and Development Establishment (ARDE) of the Defence Research and Development Organisation (DRDO), will be manufactured by Bharat Forge’s defense division, Kalyani Strategic Systems (KSS).
The exact value of the contract has not been officially disclosed, but various reports suggest it could be approximately ₹2,000 crore. This would make it the largest carbine order in India since the introduction of the INSAS rifles more than two decades ago. The Indian Army plans to acquire over 400,000 units through this tender.
On social media, DRDO highlighted the significance of this development by stating, “Significantly boosting #atmanirbharta in critical technology, 5.56x45 mm CQB Carbine, designed and developed by ARDE, DRDO and produced by @BharatForgeLtd selected as L1 in #IndianArmy RFP.”
The CQB carbine is crafted to fulfill the Army’s long-standing need for a compact and modern weapon suitable for close combat scenarios. Its adoption is anticipated to greatly enhance the infantry’s capabilities in urban and jungle warfare environments.
The announcement positively impacted investor sentiment, as Bharat Forge shares rose by more than 1% despite challenges in the wider market. This development is a significant breakthrough for Kalyani Strategic Systems, which has primarily relied on export revenue up until now.
Bharat Forge currently possesses a defense order book valued at nearly ₹9,500 crore and anticipates a 15–20% growth in its order book by FY26. CFO Kedar Dixit noted that while FY25 was driven by export orders, FY26 is expected to see a surge in domestic defense deals. The company secured new business worth ₹6,959 crore during the previous fiscal year, with ₹5,000 crore stemming from the defense sector alone.
This tender victory is a substantial advancement in India's 'Make in India' and 'Aatmanirbhar Bharat' initiatives, solidifying Bharat Forge's position as a crucial partner in the modernization and indigenization of India’s armed forces.
