Bharat Forge expects to begin deliveries of 184 Advanced Towed Artillery Gun Systems (ATAGS) ordered by the Indian Army in the first quarter of FY28, following the receipt of long-awaited production approval. The company clarified that the original order had never been deferred, with delays arising solely from the production clearance process, which pushed the programme’s revenue recognition into FY28.
Management stated that ATAGS deliveries are not essential to achieving the company’s near-term growth targets. Several other defence contracts secured over the past six to twelve months, including engineering procurement projects, are expected to begin contributing to revenue and profitability during the second half of FY27.
The company’s growth strategy is supported by a diversified portfolio spanning aerospace, industrial exports, semiconductor-related opportunities, commercial and passenger vehicle export programmes, marine projects, JSA, and K-Drive initiatives. Management expects business momentum to improve significantly in the second half of FY27.
ATAGS Production and Delivery Schedule
Bharat Forge expects the 184 ATAGS guns to be delivered over approximately four years. The first year will primarily involve production ramp-up and initial deployment, followed by more consistent delivery volumes during the second and third years.
Management outlined an indicative delivery schedule starting at approximately 10% of the total order volume, increasing to around 15% in the following year and 20% thereafter. Subsequent deliveries are expected to maintain similar volumes before the remaining units are completed.
However, the final schedule will depend on the Indian Army’s induction and equipment absorption plans rather than manufacturing capacity alone. The introduction of new artillery systems requires battalion-level training and operational integration before acceptance, making the Army’s training schedule an important factor in determining delivery timelines and revenue recognition.
Bharat Forge stated that its existing manufacturing infrastructure can produce approximately 120–150 large artillery guns annually across mounted, wheeled, and towed configurations. Consequently, the 184-gun ATAGS contract represents only a portion of the company’s overall artillery manufacturing capacity.
ATAGS Programme to Generate 20–22% Margins
On profitability, Bharat Forge expects the ATAGS programme to deliver operating margins of approximately 20–22%, supported by favourable asset turnover characteristics.
More broadly, the company’s defence business is expected to generate margins ranging between 20% and 25%, depending on the product mix. Under the current portfolio composition, defence margins are likely to remain around 20–21%.
Management anticipates an improvement of at least 200–300 basis points as the business expands into more sophisticated defence systems and fully integrated ammunition solutions. This improvement is expected to result primarily from an evolving product portfolio rather than the ATAGS programme alone.
Strengthening India’s Indigenous Artillery Capabilities
The ATAGS programme represents a major milestone in India’s indigenous artillery development and defence manufacturing ambitions. Developed as a 155mm/52-calibre artillery system, the gun incorporates extended firing range, advanced automation, and enhanced firepower compared with legacy artillery platforms.
Bharat Forge’s manufacturing capabilities and the Indian Army’s 184-gun procurement programme are expected to support the expansion of domestic artillery production. The programme also reinforces India’s broader efforts to strengthen self-reliance in advanced weapon systems while developing a stronger indigenous defence industrial base.
