Archive · 19 Aug 2026
DIIs Raise Stakes in Four Indian Defence Stocks
Domestic institutional investors, or DIIs, are large Indian investment organizations.
They increased their ownership in four defence companies over three quarters.
The companies are Avantel, Astra Microwave Products, Garden Reach Shipbuilders and Engineers, and Bharat Dynamics.
These businesses make defence communications equipment, electronics, ships, and missile systems.
Their growing orders and financial results may have attracted investor interest.
Avantel and Astra Microwave also reported substantial order pipelines.
Garden Reach reported higher income and profit in the first quarter of FY27.
Bharat Dynamics has the largest stated order book among the four companies.
However, investors still need to consider prices, execution, finances, and future earnings before investing.
Domestic institutional investors increased holdings in Avantel, Astra Microwave, GRSE and Bharat Dynamics for three consecutive quarters.
Avantel’s DII stake rose from 0% in December 2025 to 1.1% in June 2026, alongside an approximately Rs 7,200 million order book.
Astra Microwave’s DII holding reached 16.1% in June 2026, while its order book stood at approximately Rs 21.41 billion as of 31 March.
Garden Reach Shipbuilders and Engineers saw DII ownership rise to 1.9%, while Q1 FY27 income and profit grew 38% and 44% year over year.
Bharat Dynamics reported a Rs 261.76 billion order book as of 31 March 2026, but execution remains a key challenge.
- Who
- Domestic institutional investors and the four defence companies: Avantel, Astra Microwave Products, Garden Reach Shipbuilders and Engineers, and Bharat Dynamics.
- What
- DIIs increased their holdings in all four companies over consecutive quarters, while the companies reported various orders and financial results.
- When
- The holding comparisons cover the quarters ending December 2025, March 2026, and June 2026; other results include FY26 and Q1 FY27.
- Where
- The companies operate in India, including locations such as Hyderabad and Kolkata.
- Why
- The article links institutional interest to India’s rising defence budget, indigenous manufacturing focus, export opportunities, and company order pipelines.
Institutional-confidence view
Cautious-investor view
Meaning of rising DII ownership
Institutional-confidence view
Consecutive quarterly purchases may indicate confidence in the companies’ long-term growth prospects, order pipelines, and earnings visibility.
Cautious-investor view
Institutional buying alone does not guarantee future stock performance, which depends on business execution and earnings growth.
Defence-sector growth
Institutional-confidence view
Higher defence spending, indigenous manufacturing, export opportunities, and rising orders could support these companies’ expansion.
Cautious-investor view
Investors should still assess valuations, balance-sheet strength, corporate governance, and the sustainability of order inflows.
Business outlook
Institutional-confidence view
Large order books, research and development, and capacity expansion provide potential support for future growth.
Cautious-investor view
Execution, timely order conversion, dependence on government procurement, and other delivery challenges could affect results.
- Companies covered
- Avantel, Astra Microwave Products, Garden Reach Shipbuilders and Engineers, and Bharat Dynamics
- DII holding period
- December 2025 through June 2026
- Avantel holding
- DII ownership increased from 0% to 1.1%; its order book was approximately Rs 7,200 million for FY27 and FY28.
- Astra Microwave holding
- DII ownership increased from 14.8% to 16.1%; its order book was approximately Rs 21.41 billion as of 31 March.
- GRSE performance
- Q1 FY27 total income was Rs 19.14 billion, up 38% year over year, while profit after tax rose to Rs 1.73 billion.
- Bharat Dynamics holding
- DII ownership increased from 10.9% to 11.5%.
- Bharat Dynamics order book
- The order book was Rs 261.76 billion as of 31 March 2026.