Bharat Forge is targeting the first quarter of FY28 for the start of deliveries under the Indian Army’s order for 184 ATAGS artillery guns, following receipt of production approval. The company said the procurement contract was never postponed; only the production clearance process was delayed, pushing revenue recognition into FY28. Management stressed that the ATAGS programme is not central to its immediate growth outlook, as other defence contracts secured over the past six to twelve months, including engineering procurement projects, are expected to contribute from the second half of FY27. Growth is also expected to be supported by aerospace, industrial exports, semiconductor opportunities, commercial and passenger vehicle export programmes, marine projects, JSA and K-Drive initiatives. Bharat Forge anticipates stronger business momentum in the latter half of FY27. ATAGS deliveries are expected to take approximately four years, with the first year dedicated mainly to production ramp-up and deployment before more consistent delivery rates are achieved in the second and third years. The indicative delivery profile begins at roughly 10% of the order, followed by around 15% and 20%, with similar volumes in subsequent years before the remaining guns are delivered. The final schedule will depend on the Army’s ability to absorb and induct the systems, including the time required for battalion-level training and operational integration. Bharat Forge said its facilities can manufacture around 120–150 large artillery guns annually across mounted, wheeled and towed variants, meaning the 184-gun ATAGS order represents only a portion of its total production capacity. The contract is expected to deliver margins of approximately 20%–22%. Across the wider defence business, margins are projected at 20%–25%, depending on the product mix, while the current portfolio supports margins of around 20%–21%. Management expects profitability to improve by at least 200–300 basis points as the business moves towards more advanced systems and fully filled ammunition solutions. The ATAGS, a domestically developed 155mm/52-calibre artillery system, is designed to deliver greater range, automation and firepower than legacy guns and remains an important programme in India’s drive for defence manufacturing self-reliance.
