Defence stocks add Rs 3,12,000 crore to market cap in 6 months of geopolitical tensions
The biggest contributors were Bharat Electronics Ltd (Rs 91,737 crore), Solar Industries India Ltd (Rs 66,040 crore), Hindustan Aeronautics Ltd (Rs 47,433 crore) and Mazagon Dock Shipbuilders Ltd (Rs 42,589 crore).
- Jun 25, 2025,
- Updated Jun 25, 2025 12:51 PM IST
The year 2025 is turning out to be a year of geopolitical tensions. Russia-Ukraine war, India-Pakistan tensions and now Iran-Israel conflict, the first half of the year saw focus shifting to indigenous defence technologies globally. India was no exception, following the Operation Sindoor. This is well-captured in the share movements of 18 listed defence stocks in India, which together saw Rs 3,12,052 crore or $36.35 billion rise in market capitalisation (m-cap) in the six-month period.
These 18 stocks, the constituents of NSE India Defence, command a combined m-cap of Rs 11,81,856 crore as on June 24, compared with Rs 8,69,803 crore at the end of 2024, data compiled from corporate database AceEquity suggested.
The biggest contributors to the m-cap rise were Bharat Electronics Ltd (Rs 91,737 crore), Solar Industries India Ltd (Rs 66,040 crore), Hindustan Aeronautics Ltd (Rs 47,433 crore) and Mazagon Dock Shipbuilders Ltd (Rs 42,589 crore). Bharat Dynamics Ltd (Rs 26,721 crore), Garden Reach Shipbuilders & Engineers Ltd (Rs 17,955 crore) and Cochin Shipyard Ltd (Rs 16,437.29 crore) were some other big contributers to the m-cap gain.
In percentage terms, GRSE shares zoomed 97 per cent to Rs 3,185.10 level from Rs 1,617.65 on December 31, 2024. It was followed by Solar Industries, BDL, Paras Defence And Space Technologies Ltd, Mazagon Dock and BEL, which advanced 74.46 per cent, 64.91 per cent, 63.54 per cent, 47.38 per cent and 42.82 per cent, respectively. Cochin Shipyard Ltd and Astra Microwave Products Ltd gained 40 per cent each in 2025 so far. Mishra Dhatu Nigam Ltd, Data Patterns (India) Ltd and HAL were some other gainers, rising 17-30 per cent.
The Ministry of Defence budget for FY26BE stands at Rs 6.8 lakh crore, marking a 6.3 per cent year-on-year increase. But due to escalating geopolitical tensions, particularly in the Indo-Pacific region and along India’s borders with China and Pakistan, InCred Equities expects the budget to rise 10 per cent YoY in FY27F, reaching around Rs 7.49 lakh crore.
"These tensions necessitate enhanced defence capabilities, especially in air defence and air force domains, to address strategic challenges and ensure national security. The increased allocation will support modernization efforts, with a strong emphasis on indigenous production through DPSUs and growing private sector involvement," InCred said on June 23.
Brokerages remain optimistic about India's defence sector, with Jefferies expressing a positive outlook on Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), and Data Patterns. The global investment firm noted the strong potential of these stocks amid rising defence expenditures and increased export opportunities.
InCred Equities likes HAL and BEL as they together accounted for nearly half of India’s total defence production in FY25, reinforcing their central role in the country’s indigenous defence ecosystem.
Divam Sharma, Founder & Fund Manager at Green Portfolio PMS, said that a visible improvement in the performance of defence companies is expected from the second quarter onwards.
The year 2025 is turning out to be a year of geopolitical tensions. Russia-Ukraine war, India-Pakistan tensions and now Iran-Israel conflict, the first half of the year saw focus shifting to indigenous defence technologies globally. India was no exception, following the Operation Sindoor. This is well-captured in the share movements of 18 listed defence stocks in India, which together saw Rs 3,12,052 crore or $36.35 billion rise in market capitalisation (m-cap) in the six-month period.
These 18 stocks, the constituents of NSE India Defence, command a combined m-cap of Rs 11,81,856 crore as on June 24, compared with Rs 8,69,803 crore at the end of 2024, data compiled from corporate database AceEquity suggested.
The biggest contributors to the m-cap rise were Bharat Electronics Ltd (Rs 91,737 crore), Solar Industries India Ltd (Rs 66,040 crore), Hindustan Aeronautics Ltd (Rs 47,433 crore) and Mazagon Dock Shipbuilders Ltd (Rs 42,589 crore). Bharat Dynamics Ltd (Rs 26,721 crore), Garden Reach Shipbuilders & Engineers Ltd (Rs 17,955 crore) and Cochin Shipyard Ltd (Rs 16,437.29 crore) were some other big contributers to the m-cap gain.
In percentage terms, GRSE shares zoomed 97 per cent to Rs 3,185.10 level from Rs 1,617.65 on December 31, 2024. It was followed by Solar Industries, BDL, Paras Defence And Space Technologies Ltd, Mazagon Dock and BEL, which advanced 74.46 per cent, 64.91 per cent, 63.54 per cent, 47.38 per cent and 42.82 per cent, respectively. Cochin Shipyard Ltd and Astra Microwave Products Ltd gained 40 per cent each in 2025 so far. Mishra Dhatu Nigam Ltd, Data Patterns (India) Ltd and HAL were some other gainers, rising 17-30 per cent.
The Ministry of Defence budget for FY26BE stands at Rs 6.8 lakh crore, marking a 6.3 per cent year-on-year increase. But due to escalating geopolitical tensions, particularly in the Indo-Pacific region and along India’s borders with China and Pakistan, InCred Equities expects the budget to rise 10 per cent YoY in FY27F, reaching around Rs 7.49 lakh crore.
"These tensions necessitate enhanced defence capabilities, especially in air defence and air force domains, to address strategic challenges and ensure national security. The increased allocation will support modernization efforts, with a strong emphasis on indigenous production through DPSUs and growing private sector involvement," InCred said on June 23.
Brokerages remain optimistic about India's defence sector, with Jefferies expressing a positive outlook on Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), and Data Patterns. The global investment firm noted the strong potential of these stocks amid rising defence expenditures and increased export opportunities.
InCred Equities likes HAL and BEL as they together accounted for nearly half of India’s total defence production in FY25, reinforcing their central role in the country’s indigenous defence ecosystem.
Divam Sharma, Founder & Fund Manager at Green Portfolio PMS, said that a visible improvement in the performance of defence companies is expected from the second quarter onwards.