Mumbai: Engineering major Bharat Forge’s step-down subsidiary Agneyastra Energetics has signed an agreement with the Andhra Pradesh Industrial Infrastructure Corporation Ltd for purchasing nearly 950 acres of land in Madakasira, Anantapur district to set up an end-to-end defence manufacturing facility, according to a release submitted to the bourses.
This would include a gun propellant facility, a high explosives manufacturing plant and an ammunition filling plant. There are also plans to set up energetics facilities for rockets, missile systems and space launch vehicles as well.
This acquisition is a strategic step by the company to expand into India’s growing defence manufacturing sector, aligning with the government’s Make in India initiative.
This is even as Bharat Forge had reported a 10% year-on-year decline in its standalone revenue at Rs.2,105 crore, attributed mainly to weaker exports. The homegrown forgings company has also witnessed its margins narrow from 29.7% to 27.1% over the last year.
Agnesyastra Energetics is a wholly owned subsidiary of Kalyani Strategic Systems Limited (KSSL), which manufactures advanced defence equipment, including Artillery systems, armoured vehicles, air defence solutions, and towed guns, among others.
Despite its weakened financials, domestic Mutual Funds have increased their shareholding in the company to 21.20% in Q1FY26 from 20.76% in the end of the March 2025 quarter.
The company’s shares have declined about 11% in the last three months, yet the company has delivered strong long-term returns, rising almost 132% in five years.
On September 5 at 5.30 PM, Bharat Forge’s shares were trading at Rs.1,140 per share,
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