Balu Forge Industries shares hit 10% upper circuit. Here’s what’s behind the surge – News Air Insight

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Shares of Balu Forge Industries, the worst-performing smallcap stock of 2026 with a 41% decline, surged as much as 10% to hit the upper circuit at Rs 392 on Thursday after it was formally inducted into the NATO supply chain for critical defence components. With today’s surge the stock has snapped a 9-day losing streak on the bourses.

The development grants Balu Forge the mandate to manufacture and supply high-specification artillery shell bodies and complex forged components to NATO member states, marking a key strategic milestone for the company.

Membership into the NATO supply base provides a long-term platform for growth, positioning Balu Forge Industries Ltd at the centre of the alliance’s industrial revitalization efforts, the company said. “We are honoured to contribute our technical prowess to the collective security of the alliance while delivering sustainable, long-term value to our shareholders through this prestigious partnership.”

The company has been certified as a supplier of mission-critical defence components for NATO member states, marking a significant milestone in its global defence ambitions. This certification enables it to expand its defence portfolio into global artillery systems and advanced ammunition platforms, while also strengthening India’s position in the global defence manufacturing ecosystem through deeper integration with international supply chains.

“This in addition to the recent FTA signed with the European Union puts us in a very strong position to establish a strong position in the NATO supply chain,” Trimaan Chandock, Executive Director of the company said.


“Our selection as a NATO partner is driven by our industry-leading forging technology, which allows us to produce components with exceptional precision. Utilizing advanced closed-die forging processes and our technical edge ensures that our artillery shells & components maintain a level of reliability that is imperative for modern defence system,” the company added in a press release.

Balu Forge is an Indian precision engineering company engaged in the manufacture of forged and machined components for a wide range of global industries. Its product portfolio spans components weighing 1 kg to 1,500 kg and measuring up to 3 metres in length, catering to sectors such as automotive, industrial vehicles, earthmoving equipment, wind energy, aerospace, defence, oil and gas, railways, marine and agriculture. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)



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