Balu Forge Signs 5-Year MOU for 40,000 Large Calibre Shells Per Month at USD 315/Unit; Stock Jumps 7.65%

Mumbai, February 26, 2026 – Balu Forge Industries Limited (BSE: 531112 | NSE: BALUFORGE) has entered into a five-year Memorandum of Understanding for the supply of large calibre ammunition shells from its greenfield manufacturing campus in Belgaum, Karnataka. The announcement coincided with a sharp rally in the company’s shares during Thursday’s trading session.

Share Price Performance​

Shares of Balu Forge Industries were trading at ₹479.00, up ₹34.05 or 7.65%, as of 9:54 a.m. IST on February 26, 2026.
The stock witnessed strong intraday momentum, touching a high of ₹488.40 before moderating slightly.

Order Details and Product Scope​

Under the agreement, Balu Forge will supply:

• 155 mm M107 shells: 30,000 units per month in ‘Ready to Fill’ condition for five years
• 152 mm shells: 10,000 units per month in ‘Ready to Fill’ condition for five years

The combined commitment totals 40,000 units per month, equivalent to 480,000 units annually, subject to phased ramp-up.
The agreement also includes scope for extension to additional variants such as 155 mm ERFB/BT and other calibres including 105 mm, 120 mm and 81 mm, subject to trials and approvals.

Pricing and Commercial Terms​

The commercial structure has been defined as follows:
Pricing is indexed to the London Metal Exchange benchmark to address raw material price fluctuations. The supply terms are structured on an FOB Nhava Sheva basis.
Payment terms comprise 20% advance, with the balance payable through an irrevocable Letter of Credit within 30 days from invoice issuance.

Capacity Expansion Plan​

The contracted volumes exceed the company’s current capacity of 360,000 units per annum. The company has indicated that expansion plans are already in place and will be funded through internal accruals to meet the required scale.

Execution Timeline​

The agreement is effective from February 25, 2026, and is legally binding for a period of five years. Serial supplies are scheduled to commence from April 2026, beginning with 155 mm M107 and 152 mm variants, with production ramp-up in phases.
The counterparty is a NATO-affiliated entity. Due to confidentiality and the sensitive nature of the supplies, the end-user details have not been disclosed.

About Balu Forge Industries Limited​

Balu Forge Industries Limited is a precision engineering company engaged in manufacturing forged and machined components across automotive, industrial vehicles, earthmoving equipment, wind energy, aerospace, defence, oil and gas, railways, marine and agriculture sectors.
The company operates integrated forging and machining facilities at its Belgaum campus in Karnataka, equipped with high-capacity hydraulic hammers, forging presses, metallurgical labs and CNC machining units. The company is listed on BSE and NSE under the symbols 531112 and BALUFORGE, respectively.

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