Archive · 5 Dec 2025
India's Defence Sector Boom: 3 Stocks to Watch
India wants to make a lot of defence equipment and sell it to other countries.
The government has approved big orders for the army, navy, and air force.
Three companies, Bharat Electronics, Hindustan Aeronautics, and Bharat Dynamics, are expected to benefit from this.
Bharat Electronics makes electronics for defence, Hindustan Aeronautics makes fighter jets, and Bharat Dynamics makes missiles.
All three companies have big orders and are growing.
The government wants to spend more on defence and make most of the equipment in India.
This could make these companies' stocks go up.
India aims to achieve defence production worth ₹3 trillion and defence exports worth ₹50,000 crore by 2029.
The Defence Acquisition Council has approved proposals worth ₹670 billion for the Indian Army, Navy, and Air Force.
Bharat Electronics, Hindustan Aeronautics, and Bharat Dynamics are key players in India's defence sector with strong order books.
Bharat Electronics and Hindustan Aeronautics are trading at a discount to the industry median multiple but at a premium to their 5-year median valuations.
Bharat Dynamics has a strong order pipeline and plans to increase indigenization and exports.
- Who
- Indian government and defence companies (Bharat Electronics, Hindustan Aeronautics, Bharat Dynamics)
- What
- India's plan to become a global defence manufacturing hub and the potential re-rating of defence stocks
- When
- Current and future fiscal years, with specific targets set for 2029
- Where
- India
- Why
- To achieve self-reliance in defence production and boost exports
- Defence Production Target
- ₹3 trillion by 2029
- Defence Exports Target
- ₹50,000 crore by 2029
- Recent DAC Approvals
- ₹670 billion for Indian Army, Navy, and Air Force
- Bharat Electronics Order Book
- ₹756 billion (as of 31 October 2025)
- Hindustan Aeronautics Order Book
- ₹2.3 trillion (as of 14 November 2025)
- Bharat Dynamics Order Book
- ₹235 billion (slated for execution over the next 3-4 years)
- Bharat Electronics Revenue Growth
- 15.9% year-on-year in the first half of FY26
- Hindustan Aeronautics Revenue Growth
- 10.9% year-on-year in the first half of FY26
- Bharat Dynamics Revenue Growth
- 110.6% in 2QFY26