Bharat Forge Shares Surge 3% After Partnering with Taiwan’s Compal Electronics for Local Server Manufacturing
The stock price of Bharat Forge Ltd. (BFL), a leading global player in high-performance, safety-critical components across automotive, aerospace, and defense sectors, saw a sharp rise of 3% in today’s trade. The surge comes after its subsidiary, Kalyani Powertrain Ltd. (KPTL), entered into a significant partnership with Taiwanese tech giant Compal Electronics Inc., to manufacture servers locally in India.
Price Action and Market Movement
Bharat Forge Ltd., with a market capitalization of ₹52,090 crores, saw its share price hit an intraday high of ₹1,089.80, marking a nearly 3% rise from the previous day’s close of ₹1,057. As of 1:30 PM, shares were trading at ₹1,086.5, up by 2.8% from the previous closing. This jump in stock price follows the announcement of a strategic collaboration aimed at boosting local manufacturing and fostering India’s technological ecosystem, particularly within the data processing and AI space.
Strategic Partnership: A Game-Changer for Local Manufacturing
Kalyani Powertrain Ltd., Bharat Forge’s wholly-owned subsidiary, has entered into a technology licensing agreement with Compal Electronics, a renowned Taiwanese consumer electronics company. The collaboration focuses on the manufacturing of X86 platform servers in India, a move aimed at supporting India’s ambitious “Make in India” initiative.
Under the terms of the partnership, Compal Electronics will provide KPTL with technological know-how and support for the production, assembly, testing, and final sales of servers manufactured locally in India. This collaboration not only strengthens the partnership between India and Taiwan but also promises to boost India’s capabilities in high-performance server manufacturing for cloud computing, AI, and large-scale data processing.
The electronics division of Kalyani Powertrain also made headlines in February 2025 with the launch of its “Made in India” servers from a state-of-the-art facility located in Pune, Maharashtra. The facility is poised to contribute significantly to regional manufacturing potential while promoting business growth locally.
Management’s Outlook
Mr. Amit Kalyani, the Vice Chairman & Joint Managing Director of Bharat Forge Ltd., expressed optimism regarding the partnership. He highlighted that the collaboration with Compal Electronics would greatly enhance India’s manufacturing competitiveness. According to Mr. Kalyani, this move aligns perfectly with the government’s “Make in India” vision and will strengthen Bharat Forge’s position in the Indian market.
The CEO of Compal Electronics, too, shared positive sentiments, noting that the company is actively expanding its server business and is excited about leveraging Kalyani Powertrain’s vast experience in the Indian market. The partnership is seen as a step forward in reducing India’s dependency on imports while strengthening its position in the rapidly growing AI, cloud, and data center ecosystem.
Why This Partnership is a Milestone for India’s Tech Industry
This partnership is not only crucial for Bharat Forge but also for the broader Indian economy. By locally manufacturing high-performance servers, this collaboration reduces dependency on international suppliers and helps lower costs for domestic companies. With advanced processors designed to support AI workloads, cloud computing, and large-scale data processing, locally manufactured servers will significantly benefit multiple sectors, including telecommunications, automotive, and digital infrastructure.
In particular, the automotive sector will benefit from AI and autonomous systems powered by high-performance servers. The railway industry can also expect improved operational efficiency with enhanced digital infrastructure, particularly for initiatives such as RailCloud, which aims to boost data security and sovereignty.
This move is expected to stimulate local business growth, attract investments, and further fuel the Indian government’s efforts to establish the country as a major player in the global manufacturing space. With server technology at the heart of various digital transformation initiatives, this partnership could pave the way for the next wave of innovation in India’s tech sector.
Financial Performance and Key Ratios
Despite the excitement surrounding the new partnership, Bharat Forge Ltd. has faced some challenges in its recent financial performance. The company reported a 10% YoY decline in revenue from operations, from ₹3,866 crores in Q3FY24 to ₹3,475 crores in Q3FY25. Net profits also dipped by 16% YoY, from ₹254 crores to ₹213 crores in the same period.
Here’s a snapshot of Bharat Forge’s financial ratios for the latest period:
| Financial Metrics | Value |
|---|---|
| Market Cap | ₹51,927 Cr. |
| Current Price | ₹1,086 |
| Stock P/E | 54.6 |
| Book Value | ₹152 |
| Dividend Yield | 0.83% |
| ROCE | 12.9% |
| ROE | 12.7% |
| Face Value | ₹2.00 |
| Promoter Holding | 44.1% |
| Debt to Equity Ratio | 1.06 |
| Free Cash Flow | ₹164 Cr. |
| EPS | ₹19.1 |
| Pledged Percentage | 0.00% |
| Industry P/E | 27.9 |
| Graham Number | ₹256 |
| Intrinsic Value | ₹315 |
| RSI | 47.1 |
| Debt | ₹7,740 Cr. |
About Bharat Forge Ltd.
Bharat Forge Ltd. is a global leader in providing high-performance, safety-critical components to industries like automotive, aerospace, defense, and more. With extensive expertise in metallurgy and a global manufacturing presence, Bharat Forge offers end-to-end solutions, including design, engineering, manufacturing, testing, and validation services for its global clientele.
In conclusion, the strategic partnership between Bharat Forge’s subsidiary Kalyani Powertrain and Compal Electronics is a promising step toward strengthening India’s local manufacturing capabilities. This collaboration has the potential to revolutionize the AI, cloud, and data processing sectors, making India an integral part of the global technological landscape
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.