Bharat Forge has stated that the Advanced Towed Artillery Gun System (ATAGS) project has entered its final phase of Field Acceptance Trials with the Indian Army, while production capacity is being scaled up in anticipation of large-scale deliveries, with peak output expected within the next 15 to 18 months. This prepares the company to fulfill a major domestic order of 184 guns, part of a larger 307-unit contract awarded in 2025.

ATAGS is one of India’s most significant artillery modernization initiatives. It is a 155mm/52-calibre towed gun system capable of striking targets at ranges beyond 48 km using extended-range ammunition. The system also features an all-electric drive, improving operational speed, accuracy, and reliability in the field.

Bharat Forge, in partnership with Tata Advanced Systems, secured this landmark private-sector defence contract valued at around ₹6,900 crore, making it the largest artillery order awarded to Indian industry. Under the agreement, Bharat Forge will manufacture 184 units, while Tata will produce 123 units. The first regiment is expected to become operational by early 2027, replacing older Soviet-era artillery systems with domestically built platforms.

The company’s Q4 FY26 performance showed strong growth in defence despite a 17% decline in consolidated net profit to ₹233 crore due to exceptional losses. Revenue rose 18% to ₹4,528 crore, supported by defence orders totaling ₹2,816 crore during the year. Bharat Forge’s defence order book has now reached nearly ₹11,000 crore, driven by demand across artillery, aerospace, and structural components. The management has projected around 25% revenue growth in FY27, supported by execution of defence contracts and recovery in export demand.

The ATAGS program has undergone extensive testing, including trials in high-altitude and desert environments, to ensure reliability under diverse combat conditions. The ongoing Field Acceptance Trials represent the final stage before induction into active service, focusing on performance validation in terms of accuracy, mobility, and sustained fire capability.

To support upcoming deliveries, Bharat Forge is expanding its manufacturing infrastructure and ramping up assembly lines, aiming to achieve full production capacity within 15–18 months. This aligns with the Army’s induction timeline for the first operational regiment by early 2027. Alongside ATAGS, India’s artillery modernization effort also includes systems such as the Dhanush howitzer and K9 Vajra-T self-propelled guns. However, ATAGS remains a flagship indigenous platform due to its long-range capability, automation, and modern design.

The system is expected to significantly strengthen India’s long-range artillery strength along both western and northern borders, while also boosting domestic defence manufacturing by increasing private-sector participation in frontline weapon systems. From a financial perspective, Bharat Forge continues to show resilience, reporting FY26 consolidated revenue of ₹16,812 crore and EBITDA of ₹2,921 crore. Defence is becoming an increasingly important segment of its business alongside automotive and industrial operations. The company’s recommended dividend of ₹6.50 per share for FY26 reflects confidence in steady performance even as capital investment rises.

The ATAGS program represents a key step in India’s push toward defence self-reliance. With indigenous design, private-sector manufacturing strength, and large-scale procurement backing, it marks a significant shift in the country’s artillery capabilities. Bharat Forge’s ability to scale production efficiently over the next 18 months will be crucial for timely delivery and strengthening national defence preparedness.