Bharat Forge is set to move the Advanced Towed Artillery Gun System (ATAGS) into serial production after receiving Bulk Production Clearance (BPC). Production is due to start in FY2027, while the company expects to recognise revenue from the first quarter of FY2028.
The clearance was reported in Bharat Forge’s Q2/H1 FY2027 investor presentation, released on 5 November 2026. Chairman and Managing Director B.N. Kalyani said: “We have obtained the necessary clearance and we are starting production in FY2027. Revenue will be recognised from Q1FY2028.” The company said the order had not been deferred; the delay concerned the production-clearance process.
Procurement and production partners
In March 2025, the Ministry of Defence signed contracts worth approximately ₹6,900 crore for 307 ATAGS guns and 327 high-mobility 6×6 gun-towing vehicles. The procurement was the Indian Army’s first major purchase of towed artillery guns from the private sector.
The 307-gun production share was divided 60:40 between Bharat Forge and Tata Advanced Systems Limited (TASL). Bharat Forge, as the L1 bidder, was allocated 184 guns valued at around ₹4,000 crore; TASL received 123 guns.
BPC enables the companies to progress from development and limited prototypes to full-scale manufacturing. Bharat Forge had earlier said production would follow completion of the First-off Production Model (FOPM) and the associated clearances. The latest approval marks that milestone.
Expected production and delivery pace
Manufacturing activity is expected to build during the second half of FY2027. Bharat Forge’s 184 guns are projected to begin delivery in Q1 FY2028, with deliveries spread over approximately four years.
The indicative schedule starts with a ramp-up of roughly 10 per cent of the order volume, followed by rates of around 15 per cent and then 20 per cent, with similar volumes projected in subsequent years. The actual pace will also depend on the Indian Army’s absorption, training and induction plans, not just the manufacturer’s output.
Bharat Forge has said its facilities can produce approximately 120–150 large artillery guns annually across mounted, wheeled and towed configurations. The ATAGS order accounts for part of that wider capacity. The company expects defence business margins for the programme to be in the 20–22 per cent range.
About the ATAGS
The Defence Research and Development Organisation’s Armament Research and Development Establishment (ARDE) developed ATAGS with industry partners. Initiated in 2013, the programme is intended to replace older and smaller-calibre guns in Indian Army service.
The towed howitzer has a 155 mm/52-calibre gun, an all-electric drive, automated ammunition handling and advanced fire-control systems. During trials, it demonstrated a range of up to approximately 48 km with High Explosive Base Bleed (HE-BB) ammunition. It weighs around 18 tonnes, has high indigenous content and is designed for rapid deployment and sustained operations across varied terrains.
The March 2025 contract also covers specialised high-mobility towing vehicles for the guns. The Army’s overall towed-artillery requirement is estimated to be substantially larger than the initial induction of 307 units, which reflects logistical and infrastructure considerations.
What the clearance enables
The approval opens the way for large-scale private-sector production of an indigenous towed artillery system for the Indian Army. It supports domestic manufacturing capability in advanced artillery and the Atmanirbhar Bharat initiative in long-range firepower.
As deliveries begin in FY2028, ATAGS will contribute to the Army’s artillery modernisation programme, which also includes systems such as Dhanush and K9 Vajra-T. With production authorised to begin in FY2027, the programme is moving from development and trials into execution.
