Defence Stocks: The Indian stock market kicked off the week with a volatile session, but defence stocks delivered a powerful breakout, defying the broader choppiness in benchmarks.
While Sensex and Nifty swung between gains and losses, investors turned their focus to the booming defence sector, which is riding high on strong quarterly earnings, fresh orders, and speculation of a significant boost in the upcoming defence budget.
Among the standout performers, Paras Defence and Space Technologies surged over 5% in early trade to hit ₹1,945, before stabilizing at ₹1,823.70. The spike came after the company reported a consolidated net profit of ₹19.72 crore in Q4 FY25, nearly 98% higher than the same period last year.
Similarly, Zen Technologies locked in the 5% upper circuit, touching ₹1,884.50 after delivering stellar Q4 results with a 189% YoY rise in profit and a 130% jump in revenue. The stock has rallied 28% in just one month.
Data Patterns was another strong gainer, rising 2.5% to trade around ₹2,937. The company posted a quarterly profit of ₹114 crore, up from ₹71 crore last year, showcasing its improved execution capabilities and operational strength. Meanwhile, Bharat Electronics Ltd (BEL) climbed 3% to reach a 52-week high of ₹373.50.
The Navratna PSU recently announced ₹572 crore worth of new orders after April 7, including high-tech systems like Integrated Drone Detection and Interdiction Systems (IDDIS) and Software Defined Radios.
Other major gainers included Cochin Shipyard and BEML, which rose over 4% and 3.5%, respectively. The strength in defence stocks comes despite mixed performance in broader indices, with BSE Sensex and NSE Nifty fluctuating throughout the day.
While the Nifty India Defence Index slipped marginally by 0.24%, mainly due to profit booking in names like HAL, Mazagon Dock, Dynamatic Tech, and Solar Industries, the overall sentiment in the sector remains bullish.
Driving this momentum is the speculation around “Operation Sindhur”, which may result in an additional ₹50,000 crore allocation to the Indian defence budget for FY26, taking the total beyond ₹7 lakh crore. The government’s aggressive ‘Make in India’ campaign has also turbocharged interest in domestic defence companies.
According to official data, India’s defence manufacturing value has risen 174% over the last decade—from ₹46,429 crore in FY15 to ₹1.27 lakh crore in FY25. Defence exports have also surged from ₹686 crore in FY14 to ₹23,622 crore in FY25, marking a 34x increase, with Indian defence products now reaching nearly 100 countries.
While the long-term prospects look solid, analysts suggest near-term caution as many defence stocks are trading in technically overbought territory.
Experts believe that a healthy consolidation or pullback could provide better entry points for new investors. Nevertheless, the combination of strong financials, rising order books, export momentum, and government policy support makes the Indian defence sector one of the most promising themes of FY25.
With robust earnings, record-breaking export numbers, and the likelihood of a budget boost, defence stocks appear poised for a long-term bull run.
Investors and market watchers will be keeping a close eye on upcoming defence allocations and new project announcements that could further strengthen this rally.
Stay tuned to Google News and GondwanaUniversity.org for real-time coverage on defence stocks, Q4 earnings reports, and strategic developments in India’s growing defence sector.