India: Bharat Forge targets INR 2,500-crore fundraise to support capacity expansion plans

• INR 1,800 crore capex planned over 12-18 months
• Company to focus on higher-value, specialised manufacturing

Bharat Forge, a leading Indian metal forgings manufacturer, has proposed a fundraise of up to INR 2,500 crore through equity shares, debt securities, and convertible securities to support a broader capacity expansion programme as the company increases its focus on aerospace, defence, semiconductors, power generation, and large engines. The company plans around INR 1,800 crore of capex over the next 12-18 months across forging, machining, heat treatment, and ring rolling.

Capacity addition shifts beyond automotive

The planned investments indicate a shift towards higher-value and more specialised manufacturing, with dedicated capabilities being developed for newer sectors. The company expects asset turnover from these investments to exceed 1.5 times, supporting incremental revenue after commissioning.

The planned Odisha manufacturing site is also expected to form part of the expansion programme. The facility, subject to environmental clearance, is planned around large aerospace and other high-value components, including products currently not manufactured in India.

Defence and aerospace provide visibility

Bharat Forge’s defence order book stood at INR 11,196 crore as of 30 June 2026, while Indian operations secured INR 1,352 crore of new orders in Q1FY’27, including INR 681 crore from defence. Aerospace is also expected to scale as recently won orders enter production.

The company has retained its 20-25% growth outlook for its Indian manufacturing business in FY’27, with stronger growth expected in the second half.

Market implication

The investment cycle could gradually increase demand for specialised forgings, machining, and allied manufacturing capabilities. The larger strategic shift is towards products with higher engineering complexity and greater value addition, reducing the company’s reliance on traditional automotive forging demand while expanding its exposure to defence, aerospace and emerging industrial sectors.