Bharat Forge Limited has outlined plans to invest up to INR 30 billion in a proposed integrated metals and manufacturing project in Odisha, forming part of a broader INR 170 billion group-level development. The project is positioned as the company’s next major growth phase following completion of its ongoing expansions in Baramati.
The Odisha project will be implemented by three group entities across upstream and downstream manufacturing segments. The first component is a specialty steel plant with a planned capacity of 700,000 tonnes per year to be set up by Kalyani Steel. “That will be about 700,000 tons of steel, specialty steel,” said Amit Kalyani, Vice Chairman and Joint Managing Director.
The second component involves a super alloy plant to be established by Saarloha. The facility is intended to manufacture aerospace-grade and other super alloy materials, including tool and die steel, strengthening the group’s presence in high-value materials used in aerospace and industrial applications.
The third component relates to downstream manufacturing. This includes a proposed forging and machining facility, and potentially a casting unit, to be developed by the relevant companies within the group, including Bharat Forge and JSA if required. The downstream units are expected to leverage locally produced specialty steel and super alloys, supporting both expansion of existing product lines and development of new products.
When asked about Bharat Forge’s capital commitment within the overall project, Kalyani said, “So Bharat Forge, we have said up to INR3,000 crores.” This translates to an investment of up to INR 30 billion by the company. He added that each entity within the group would undertake its capital expenditure independently.
On timelines, the company indicated that the investment will not commence immediately. “This will be the next growth phase after our existing expansions in Baramati, etc., over,” Kalyani said, adding that the spending is “Not in the next 1 year.”
The proposed cluster integrates specialty steel production, super alloy manufacturing, and downstream forging and machining operations in a single location. The structure is designed to enhance material integration and support automotive, aerospace, and defence applications through a consolidated manufacturing base.
In aerospace, new programmes and capacity additions are scheduled from next year, with larger capacities coming online the following year. Kalyani said the company is “on track to, you know, really meaningfully grow this business in the next three odd years.”
The company said in a stock exchange filing that it had secured new business worth INR 23.88 billion across key segments during the quarter, including INR 18.78 billion in defence, INR 3.78 billion in components, INR 780 million in casting, and INR 550 million in K Drive.
Standalone revenue for the quarter rose 7 percent sequentially to INR 20.84 billion, with EBITDA of INR 5.69 billion and a margin of 27.3 percent, including a tariff cost impact of INR 310 million. Nine-month standalone revenue stood at INR 61.35 billion with an EBITDA margin of 27.7 percent. Consolidated revenue for the quarter was INR 43.43 billion, while nine-month consolidated revenue reached INR 122.84 billion.
On defence, the company cited execution of the ATAGS order and commencement of CQB carbine production. “We should look at a, you know, 30%-40% plus growth in our defense business next year,” said Amit Kalyani, Vice Chairman and Joint Managing Director. He added that defence could increase from around 10–12 percent of revenue to “more like closer to 18-20% if things go right, could be even more than that,” and later stated, “I think let’s look at 20%, 30%.”
The defence order execution cycle ranges from five years for small arms to around four years for other programmes. The company is also expanding into unmanned systems across aerial and underwater domains.
JSA, the casting subsidiary, recorded 22 percent top-line growth and 39 percent EBITDA growth. Premji Invest acquired a 23 percent stake in JSA at a valuation of INR 13 billion.
Bharat Forge Limited manufactures forged and machined components for automotive, industrial, aerospace and defence sectors, with operations in India and international markets.
