Defence stocks in focus: All you need to know about HAL, BEL, Bharat Forge and others

Defence stocks such as HAL, BEL, BDL, Data Patterns and Zen Technologies have been rallying over the last few days.

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26 Aug, 2025 12:21

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The Nifty India Defence Index is sharply higher by 2.5 percent on May 9, with sizeable gains in shares of missiles and electronic warfare equipment manufacturers, as border tensions between India and Pakistan continue to remain high.

On the segment in the current climate, Amit Anwani, Research Analyst at Prabhudas Lilladher, noted that Companies like HAL may benefit from operations and maintenance (O&M) contracts, especially if deployed fleets require urgent servicing. Additionally, electronics firms like BEL, Astra Microwave, and Data Patterns could also gain from short-cycle product replacement.

The renewed focus on defence stocks has led to sharp gains of up to 40 percent in key names over the last one month. Here is all you need to know about some of the leading listed defence manufacturers:

Bharat Dynamics (BDL)
Market Cap: 53,279 crore
Stock Price: Rs 1531.80 (5%)

Bharat Dynamics is a premier manufacturer of missiles and torpedoes for India’s armed forces. Analysts highlight BDL as a key beneficiary of India’s growing defence exports and push for indigenous procurement. The company holds an order book of approximately Rs 22,800 crore, equivalent to 7x its FY25E revenue. With major programs like Akash SAM, Astra Mk-II, and MRSAM under execution, a recent Nuvama note has projected a robust revenue and EPS CAGR of around 55% over FY25–27E.

Data Patterns (DPIL)
Market Cap: Rs 12,392 crore
P/E (one-year forward): 63.28x
Stock price: Rs 2295.20 (4.22%)  

Data Patterns is an R&D-centric defence electronics firm with in-house capabilities across high-margin systems and subsystems. The company’s current order book stands at Rs 13 billion. DPIL is among the most profitable players in the sector. The firm has been shifting focus toward full-system integration and proprietary IP development and is targetting a 30 percent revenue CAGR and 25 percent EPS CAGR.

Hindustan Aeronautics (HAL)
Market Cap: 2.95 lakh crore
P/E (one-year forward): 42.19x
Stock price: Rs 4501.20 (+2%)

HAL is India’s leading aerospace manufacturer with a near-monopoly in fighter aircraft and helicopter production. As of FY2024, it has an order book of Rs 94,100 crore with a project pipeline estimated at Rs 4.4 lakh crore. HAL is integral to key defence programs such as LCA Mk-IA, AMCA, and IMRH. While analysts at Nuvama estimate that EBITDA margins are expected to moderate from 32.1% to ~26% by FY27E due to a shift toward product-based revenue, the company is set to achieve a 26 percent revenue CAGR.

Bharat Electronics (BEL)
Market Cap: Rs 12,392 crore
P/E (one-year forward): 63.28x
Stock price: Rs 315.85 (2.83%)

BEL is a leading DPSU (Defence PSU) with core competencies in radar, electronic warfare, and missile integration systems. As of FY24, BEL commands an order book of Rs 71,600 crore with a pipeline of Rs 1.1 lakh crore. The company posted a 27.4 percent operating margin in 9MFY25, outperforming its 23–25% guidance. Analysts forecast 17-20 percent revenue CAGR and ~20% EPS CAGR through FY27.

Solar Industries 
Market Cap: Rs 1.18 lakh crore
PE (1-year forward): 97.56x
Stock price: Rs 13,284 (1.27%)

Solar Industries has evolved from a domestic explosives manufacturer into a diversified global defence supplier, with growing capabilities in rockets, warheads, and precision strike systems. Its defence order book has surged to Rs 13,400 crore, supported by exports and steady domestic demand. Analysts estimate that defence is expected to contribute 29% of total revenues by FY27 (from 8% in FY24), with revenue and EPS CAGRs of 32.4% and 45%, respectively, over FY25–27.

Zen Technologies 
Market Cap: Rs 12,698 crore
P/E (one-year forward): 47,6x
Stock Price: Rs 1406.40 (5%)

Zen Technologies specialises in defence simulation and training solutions. Analysts believe that the company is poised to benefit from policy support for simulation-based training and indigenous procurement and expect earnings growth to hinge on timely execution and scaling deployments. Risks include customer concentration and project delays, but Zen’s strategic positioning in simulators offers strong upside potential if defence procurement gains pace. As of March 2025, there total order book is around Zen’s total order book is around Rs 950 crore. The management recently told CNBC TV18 that they are optimistic about securing Rs 500-600 crore in new orders in H1FY26.

Bharat Forge
Market Cap: 53,259 lakh crore
P/E (one-year forward): 37.58x
Stock Price: Rs 1165.60 (5%)

Bharat Forge is a global leader in forged components across automotive, industrial, defence, and EV sectors. Bharat Forge reported net sales of Rs 3,852.60 crore for the quarter ending March 2025, a decline of 7.48 percent compared to Rs. 4,164.21 crore in the previous fiscal. However, the company’s quarterly net profit increased by 19.51%, reaching Rs. 282.00 crore, up from Rs. 235.95 crore in March 2024. Defence currently forms around 70 percent of its business. For the quarter ending March 2025, Bharat Forge had an order book of around Rs 9,420 crore, additionally, new orders worth Rs 6,959 crore were won in FY2025.

Astra Microwave Products Ltd
Market Cap: Rs 7,900 crore
PE (1-year forward): 49.6x
Stock price: Rs 882.05 (6%)

Astra Microwave is involved in radio frequency (RF) and microwave components and subsystems, primarily catering to India’s defence and space sectors. The company draws nearly 88% of its revenue from the domestic market, with the rest from exports. In December 2024, it received an order of around Rs 255 crore order from the Ministry of Defence.

Cochin Shipyard Ltd
Market Cap: Rs 37,991 crore
Stock price: Rs 1484.60 (3%)

Cochin Shipyard is a government-owned enterprise involved in shipbuilding and repair, serving both defence and commercial segments.

Mazagon Dock Shipbuilders Ltd
Market Cap: Rs 1.13 lakh crore
PE (1-year forward): 42.01x
Stock price: Rs 2922 (4%)

Mazagon Dock is a leading defence shipyard in India, with nearly 98% of its business coming from military contracts. It specializes in building warships and submarines for the Indian Navy. As of December 2024, its order book stood at Rs. 34,787 crore.

MTAR Technologies Ltd
Market Cap: Rs 4,294 crore
PE (1-year forward): 62.03x
Stock price: Rs 38.90 (3%) 

MTAR Technologies is a precision engineering company that serves sectors such as defence, nuclear, space, and clean energy. Defence contributes roughly 6% to its overall revenue. In December 2024, it won Rs 226 crore worth of new orders. MTAR is targeting 30% revenue growth by FY2026.

IdeaForge Technology Ltd
Market Cap: Rs 4,294 crore
PE (1-year forward): 62.03x
Stock price: Rs 463.50 (20%)

IdeaForge is a leader in the Indian unmanned aerial vehicle (UAV) market, primarily supplying drones to defence and paramilitary forces. For the quarter ending March 2025, ideaForge reported a net loss of Rs 26 crore, against a net profit of Rs 10 crore in the previous fiscal. Revenue for the quarter also fell around 80 percent year-on-year to Rs 20 crore as against Rs 102 crore in the same period a year ago. For the quarter ending March 2025, the company had an order book of Rs 13.6 crore.

Paras Defence and Space Technologies
Market Cap: Rs 5,482.96 crore
PE (1-year forward): 71.7x
Stock price: Rs 1458.50 (7.31%)
Paras Defence is a key player in India's defence and space. The company focuses on defence electronics, optics, and drone technologies.  In Q4FY25, the company reported a 97% YoY rise in net profit to Rs 19.7 crore and a 36 percent YoY revenue increase to Rs 108.2 crore. The company recently signed MoUs with Israeli firms MicroCon Vision and HevenDrones. In a recent conversation with CNBC-TV18, the management noted that they the orderbook currently stood at Rs 900 crore and they were targeting Rs 1,500 crore in the near term. For the quarter ending March 2025, the company reported a  97 percent increase in net profit to Rs 19.7 crore. Revenue for the company also increased  35.8 percent from Rs 108.2 crore in the previous fiscal.

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