Bharat Forge partners with Pratt & Whitney Canada to manufacture critical aero-engine components
Aerospace is one of the toughest industries to break into. Certification takes years, tolerances are unforgiving and every part must be traceable, so engine makers tend to stay with trusted suppliers for a very long time. Supply chain shocks in recent years have pushed global OEMs to look for dependable sources beyond their usual hubs, and India has quietly moved up that list.
Shares of Bharat Forge Ltd . were trading at Rs. 1,822.10, down 2.82 percent from previous close of Rs. 1,875.00. The stock opened at Rs. 1,868.00, reaching an intraday high of Rs. 1,873.70 and low of Rs. 1,816.70. The company currently has a market capitalization of Rs. 89,148 crores.
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What's the news?
According to a press release by Bharat Forge on October 5, 2026, the company has signed a long-term agreement with Pratt & Whitney Canada, an RTX Company, to manufacture mission critical components of engines. The components will be manufactured at Bharat Forge's aerospace plant in India. The plant has been constructed to cater to high performance, high-value aero engine components and has been developed to adhere to the industry standards of quality and precision and traceability.
The contract period and value have not been disclosed by the company. Speaking about the agreement, Amit Kalyani, Vice-Chairman and Joint Managing Director of Bharat Forge stated that it is an indication of the company's reputation in the aerospace supply chain of the world. Nathalie Rivet of Pratt & Whitney Canada highlighted how the agreement helps in their efforts towards building resilience in the supply chain.
Financial & Business Analysis
Looking at the quarterly results of Bharat Forge Ltd., the company’s consolidated revenue increased by 18.66 percent YoY, from Rs. 3,958.47 crore in Q1 FY26 to Rs. 4,697.18 crore in Q1 FY27, and increased by 2.54 percent QoQ from Rs. 4,581.01 crore in Q4 FY26.
In Q1 FY27 Bharat Forge Ltd.’s consolidated net profit decreased by 131.66 percent YoY, reaching Rs. (89.88) crore compared to Rs. 283.87 crore during the same period last year. As compared to Q4 FY26, the net profit has decreased by 138.50 percent, from Rs. 233.44 crore. The basic earnings per share stood at Rs. (1.88) as against Rs. 5.93 recorded in the same quarter in the previous year, FY2026.
Bharat Forge is still best known for automotive and industrial forging, but its mix has been shifting. Industrial exports, especially heavy-horsepower engines and aerospace, drove strong execution in Q1 FY27, while the defence order book stood at ₹11,196 crore as of June 30, 2026. That is a healthy cushion alongside the core auto business, and the defence arm has been a steady contributor.
The aerospace segment is the smaller of the two today. It is estimated by management to be worth around ₹400 crore and is likely to be doubled in about two years due to the introduction of a ring mill and forging capacity. The segment has already secured itself a high-profile customer in the form of a multi-year contract from Pratt & Whitney Canada. Without knowing the contract value, we cannot assess the significance of the achievement. But multi-year contracts are always sticky.
Industry Context
India's aerospace opportunity is substantial but still nascent. India's aerospace parts manufacturing market size was valued at around $13.6 billion in 2023 and is projected to reach $21.48 billion by 2030, registering a growth of 6.8% CAGR. India currently contributes to about 2% of the global aerospace supply chain, and the industry leaders anticipate it to increase to about 10% in the near future.
The global OEMs are already taking cognizance of this opportunity. Boeing already sources for more than $1 billion of components annually from India, up from $250 million compared to a decade ago, and Airbus targets to achieve $2 billion by 2030. Moreover, the cost plays a significant role. As per a PwC and CII survey, India offers a manufacturing cost advantage of 15-25%, and the aerospace components are subjected to a 25% US duty as compared to up to 50% for sectors like textile and auto components.
Company Overview
Bharat Forge Limited is the flagship company of the Pune-based Kalyani Group. It makes high-performance, safety-critical components for the automotive, aerospace, defence, rail, marine, energy and industrial sectors. It has manufacturing operations across five countries and offers customers full-service capability from design and engineering to testing and validation. Its aerospace arm focuses on critical aerospace, defence and marine systems, structures and components.