Operation Sindoor Anniversary: Top defence stocks' performance since May 7, 2025; check returns

Operation Sindoor was a structural inflection point, not just militarily but as a policy and market catalyst, analysts said on Thursday, as India marked the first anniversary of the event that saw India striking key strategic assets in Pakistan, in a response to Pahalgam terror attack. Post Operation Sindoor, India’s defence strategy has clearly pivoted towards strengthening defence capabilities and it is reflected on defence stocks. 

Defence stocks gain up to 354% 

Data compiled from corporate database AceEquity suggests at least nine defence-related stocks delivered 20 per cent-plus returns in the last one year, with  MTAR Technologies Ltd even delivering a massive 354 per cent return. From a level of Rs 1,382.95 to Rs 6,284.70, the scrip surged nearly five times within a year. Data Patterns (India) Ltd almost doubled from Rs 2,161.95 level to Rs 4,172.90, offering 93 per cent return to investors.

Defence shares outperform Sensex, Nifty 

Garden Reach Shipbuilders & Engineers Ltd (GSRE), Bharat Forge Ltd and Bharat Electronics Ltd (BEL) gained 41-68 per cent in a year equity benchmarks Sensex and Nifty declined 7-9 per cent. Mishra Dhatu Nigam Ltd, Astra Microwave Products Ltd, BEML Ltd and Cochin Shipyard Ltd also gained 29 per cent, 29 per cent, 21 per cent and 20 per cent, respectively.

Stocks such as Solar Industries India Ltd, Paras Defence And Space Technologies Ltd, Unimech Aerospace and Manufacturing Ltd, Zen Technologies Ltd and Hindustan Aeronautics Ltd advanced 3-18 per cent during this period. 

Operation Sindoor

Operation Sindoor was a four-day, high-precision military operation that Indian Armed Forces carried out from May 7 to May 10, last year. It was a response to the Pahalgam terror attack where 26 civilians were killed. India hit multiple terror targets in Pakistan-occupied Kashmir (PoK) and Pakistan and put on display its growing technological self-reliance by using indigenous weapons systems and advanced domestic technologies.  

Boost to Atmanirbhar Bharat

Saurabh Jain of SMC Global Securities noted that India's defence budget has been set at Rs 7.85 lakh crore for FY27, the highest ever. It is up 15 per cent from Rs 6.81 lakh crore in the previous year, with capital expenditure rising sharply to Rs 2.19 lakh crore, a nearly 22 per cent increase. 

"Critically, approximately 75 per cent of the capital acquisition budget has been earmarked for procurement from Indian industry, one of the strongest endorsements yet of the Atmanirbhar Bharat defence manufacturing agenda," he noted. 

Jain noted that the government targeting Rs 3 lakh crore in defence production and Rs 50,000 crore in exports by FY2029  offer a significant long-term visibility on scale, growth, and export potential. 

Putta Ravi Kumar, Defence Analyst at Choice Institutional Equities also believes India’s defence manufacturing ecosystem has deepened. 

"Domestic defence production has seen a steady uptick, growing steadily on year-on-year in recent periods, supported by policy thrust on indigenisation, import substitution, and higher budgetary allocation towards capital expenditure," he said.

Bharat Dynamics Ltd (down 3.30 per cent), Mazagon Dock Shipbuilders Ltd (down 6 per cent) and DCX Systems Ltd (down 26 per cent), meanwhile, remained three stocks delivering negative returns during the period.