List of the Best Defence Stocks in NSE
India’s defence sector is expanding, supported by higher government expenditure and indigenisation initiatives such as Atmanirbhar Bharat. The defence budget for FY 2025–26 is ₹6.81 lakh cr, supporting sustained activity across listed defence stocks.
List of the Defence Sector Stocks in India
Monday, 19 January, 2026
| symbol | Company | ticker | slug | Sector | Market Price | 52W High | 52W Low | Market Cap (Cr.) | PE Ratio | Industry PE | PB Ratio | Div. Yield (%) | ROE (%) | 1YReturns | 3YReturns | 5YReturns | Market Cap Label | Industry Group | Industry | Sub Industry | percentageChange |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BARA | Bharat Dynamics Ltd | BDL | /stocks/bharat-dynamics-BARA | Aerospace & Defense Equipments | 1,516.40 | 2,096.60 | 907.00 | 55,585.54 | 101.13 | 40.21 | 13.87 | 0.31 | 14.38 | 26.21 | 227.60 | 813.05 | Midcap | Capital Goods | Machinery | Aerospace & Defense | -0.60 |
| CFF | CFF Fluid Control Ltd | CFF | /stocks/cff-fluid-control-CFF | Aerospace & Defense Equipments | 573.10 | 728.50 | 392.00 | 1,202.03 | 50.40 | 40.21 | 8.13 | 0.16 | 17.42 | -16.92 | 211.89 | 211.89 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | -1.25 |
| DATAP | Data Patterns (India) Ltd | DATAPATTNS | /stocks/data-patterns-india-DATAP | Aerospace & Defense Equipments | 2,542.00 | 3,268.80 | 1,351.15 | 14,231.12 | 64.16 | 40.21 | 9.44 | 0.31 | 15.66 | 15.89 | 103.91 | 236.69 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | -2.20 |
| HIAE | Hindustan Aeronautics Ltd | HAL | /stocks/hindustan-aeronautics-HIAE | Aerospace & Defense Equipments | 4,428.70 | 5,165.00 | 3,046.05 | 296,180.38 | 35.41 | 40.21 | 8.47 | 0.90 | 26.09 | 13.01 | 257.50 | 821.24 | Largecap | Capital Goods | Machinery | Aerospace & Defense | 1.71 |
| HIGH | High Energy Batteries (India) Ltd | HIGHENE | /stocks/high-energy-batteries-india-HIGH | Aerospace & Defense Equipments | 545.45 | 830.35 | 420.05 | 488.93 | 31.89 | 40.21 | 4.91 | 0.55 | 16.37 | -10.85 | 66.09 | 349.23 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | -1.73 |
| IDE | ideaForge Technology Ltd | IDEAFORGE | /stocks/ideaforge-technology-IDE | Aerospace & Defense Equipments | 451.55 | 659.85 | 304.20 | 1,953.77 | -31.37 | 40.21 | 3.21 | 0.00 | -9.81 | -21.11 | -65.13 | -65.13 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | -1.38 |
| NIB | Nibe Ltd | NIBE | /stocks/nibe-NIB | Aerospace & Defense Equipments | 1,153.20 | 2,001.00 | 761.50 | 1,672.29 | 62.01 | 40.21 | 7.43 | 0.11 | 13.76 | -27.60 | -27.60 | -27.60 | Smallcap | Consumer Durables & Apparel | Machinery | Textiles | -1.99 |
| PARAS | Paras Defence and Space Technologies Ltd | PARAS | /stocks/paras-defence-and-space-technologies-PARAS | Aerospace & Defense Equipments | 662.25 | 972.50 | 404.70 | 5,336.90 | 84.09 | 40.21 | 8.38 | 0.08 | 11.75 | 30.65 | 129.83 | 168.96 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | -1.16 |
| ROSST | Rossell Techsys Ltd | ROSSTECH | /stocks/rossell-techsys-ROSST | Aerospace & Defense Equipments | 621.80 | 840.00 | 231.15 | 2,343.97 | 296.33 | 40.21 | 17.54 | 0.03 | 6.08 | 33.52 | 16.93 | 16.93 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | -2.92 |
| SIKA | Sika Interplant Systems Ltd | SIKA | /stocks/sika-interplant-systems-SIKA | Aerospace & Defense Equipments | 884.90 | 1,624.95 | 399.96 | 1,876.07 | 74.04 | 40.21 | 15.14 | 0.27 | 22.29 | 85.05 | 538.32 | 1,380.76 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | -5.10 |
| TANE | Taneja Aerospace and Aviation Ltd | TANAA | /stocks/taneja-aerospace-and-aviation-TANE | Aerospace & Defense Equipments | 259.00 | 504.00 | 218.55 | 660.46 | 36.53 | 40.21 | 4.64 | 0.97 | 13.26 | -32.21 | 124.92 | 633.71 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | -1.81 |
| TECHE | TechEra Engineering (India) Ltd | TECHERA | /stocks/techera-engineering-india-TECHE | Aerospace & Defense Equipments | 194.10 | 325.70 | 115.60 | 320.67 | 95.72 | 40.21 | 6.44 | 0.00 | 10.17 | 9.66 | 47.89 | 47.89 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | -4.71 |
| UNIMC | Unimech Aerospace and Manufacturing Ltd | UNIMECH | /stocks/unimech-aerospace-and-manufacturing-UNIMC | Aerospace & Defense Equipments | 897.45 | 1,397.00 | 850.00 | 4,564.15 | 54.68 | 40.21 | 6.82 | 0.00 | 21.47 | -29.23 | -34.79 | -34.79 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | 0.72 |
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.
Note: The data in the above table is dynamic in nature and subject to real-time changes. This data is derived from Tickertape Stock Screener.
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What are Defence Stocks in India?
Defence stocks are shares of companies involved in manufacturing, supplying, or servicing equipment, technology, and systems used by the armed forces. These companies operate across sectors, including aerospace, weapons, electronics, shipbuilding, and defence engineering.
About the Top 5 Defence Stocks in 2025 Based on Market Cap
- Hindustan Aeronautics Ltd: One of India’s top defence companies, Hindustan Aeronautics Limited (HAL) is a public-sector aerospace and defence company. Founded on 23rd Dec 1940, it is one of the oldest and most prominent in the world.
- Bharat Dynamics Ltd: Bharat Dynamics Limited (BDL) was established in Hyderabad in 1970. One of India’s key manufacturers of ammunition and missiles, BDL, has developed in-house R&D capabilities and focuses on design and engineering for weapon systems.
- Paras Defence and Space Technologies Ltd: The company focuses on aerospace structures and systems and delivers advanced technologies for defence and space.
- Data Patterns (India) Ltd: Data Patterns designs and develops electronic systems for defence and aerospace applications and specialises in radars, avionics, communication, and missile subsystems for armed forces and space programmes.
- Unimech Aerospace and Manufacturing: Unimech Aerospace manufactures precision components and assemblies for the aerospace and defence sectors. As a member of India’s defence manufacturing sector, it offers machining, fabrication, and engineering services for aircraft structures, engines, and ground support equipment.
How to invest in Defence Sector Stocks through smallcase?
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- Conduct thorough research into the top defence stocks in India using Tickertape Stocks Screener. The screener offers over 200 built-in filters, allowing investors to select parameters and generate a list of defence stocks in India.
- Place a ‘Buy’ Order on the top defence stocks that align with your investment thesis.
Indian Defence Sector – Overview
Since 2014, India’s defence sector has increasingly focused on self-reliance and domestic manufacturing.
- Government Initiatives: Atmanirbhar Bharat in Defence promotes indigenous production, innovation, and reduced import dependence.
- Budget Allocation: Defence spending in FY 2025–26 stands at ₹6.81 lakh cr, a 9.53% increase year-on-year, accounting for 13.45% of total government expenditure.
- Market Performance: Defence indices recorded strong gains over the past year, followed by a correction in the second half of 2024.
- Sector Targets: India aims to achieve a $26 bn turnover in aerospace and defence manufacturing by 2026, supported by infrastructure development and public–private collaboration.
Union Budget 2025-2026: Allocations for the Indian Defence Sector
The FY 2025-26 budget outlines a structured allocation framework:
- Capital Outlay: ₹1.80 lakh cr for modernisation, with 75% of acquisitions earmarked for domestic sourcing.
- Revenue Expenditure: ₹3.11 lakh cr for salaries, maintenance, and operational readiness.
- Defence Pensions: ₹1.60 lakh cr, alongside ₹8,317 cr for veteran healthcare under the ECHS scheme.
- Technology and Infrastructure: ₹31,277 cr allocated for R&D in emerging technologies, ₹7,146 cr for the Border Roads Organisation, and a significant capital increase for the Indian Coast Guard.
Future Outlook of Investing in Top Defence Sector Stocks
The outlook for India’s defence sector reflects multi-year planning, consistent policy support, and expanding research capabilities. Strategic collaborations, such as undersea surveillance initiatives and regional drone programmes, indicate gradual ecosystem maturity. Phased import restrictions and incentives for local manufacturing continue to shape demand patterns. While companies benefit from order-book visibility, execution timelines and valuation levels remain key factors in assessing sector performance.
Advantages of Investing in Defence Sector Stocks
- Policy-Anchored Growth: The government’s focus on the sector has contributed to sustained budget allocations and incentive programmes over recent years.
- Technology Development: Indigenous R&D and joint production arrangements with global partners help build operational capability and may support future scalability.
- Export Potential: Efforts to expand India’s defence exports could create opportunities for eligible domestic firms in global markets.
- Strategic Autonomy Focus: National initiatives continue to reduce reliance on imports, potentially improving operational visibility for domestic manufacturers.
Risks Associated With Investing in Defence Sector Stocks in India
- Dependence on Government Budgets: Defence spending fluctuates with political or economic shifts. This may affect the performance of the Indian defence sector.
- Procurement Delays: Changes in fiscal priorities or procedural factors may affect contract finalisation and order timelines.
- Revenue Concentration: Heavy reliance on a single buyer, the Indian government, can limit pricing flexibility and increase exposure to policy changes.
- Execution Risks: Manufacturing complexity, supply dependencies, and logistical challenges may impact project delivery schedules and costs.
- Valuation Corrections: After strong rallies, profit booking or lower-than-expected earnings may lead to defence share price corrections in the best defence stocks list in India, impacting short-term performance.
Factors to Consider While Investing in Indian Defence Stocks
- Government policies and regulations: Procurement rules, licensing norms, and FDI policies shape how defence companies operate and influence revenue visibility for Indian defence stocks.
- Defence budget: Annual budget allocations guide procurement cycles and contract volumes. The Union Budget serves as a key indicator of sectoral activity.
- Order-to-revenue conversion: The speed at which confirmed orders are converted into revenue reflects execution strength and delivery discipline.
- Profitability trends: Stable margins and recurring revenue help gauge sustainability in project-driven defence businesses.
- Governance and transparency: Clear disclosures and strong compliance practices improve financial clarity and operational visibility.
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To Wrap It Up…
India’s defence stocks reflect a sector transitioning from policy-led expansion to structured, execution-focused growth. Budgetary support, indigenisation mandates, and export-oriented strategies continue to shape industry dynamics. Sector performance increasingly depends on delivery efficiency, technology capability, and alignment with long-term procurement priorities.
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Frequently Asked Questions About Defence Shares in India
1. How to analyse the top defence stocks?
Defence sector stocks can be evaluated by examining order books, execution timelines, budget alignment, financials, and regulatory disclosures across the defence stocks list.
2. How do defence shares work?
Defence shares represent companies supplying equipment and services to the armed forces, with performance linked to contracts and policies across the defence sector.
3. Is it safe to invest in defence shares?
The safety of investing in defence shares depends on market conditions, company fundamentals, policy environment, and risk appetite. Whereas, the defence penny stocks may carry higher volatility.
Disclaimer: This information is for educational purposes only and does not constitute investment advice. Please assess risk and suitability independently.
4. What factors can affect the performance of defence shares in India?
Defence shares can be impacted by government budget allocations, procurement schedules, policy developments, export orders and how Indian defence companies manage contract execution and regulatory requirements. Monitoring the defence stocks market trends helps identify these performance drivers.
5. Do geopolitical events impact defence shares?
Geopolitical situations, regional developments, and changes in international defence partnerships can affect the operating environment and demand outlook for companies linked to defence stocks. Many investors also explore Indian defence sector mutual funds to diversify their exposure to these risks.
6. Is defence a good sector to invest in?
The defence sector has shown growth due to the government’s focus on domestic manufacturing and increased budget allocations. However, it faces challenges like long project cycles, policy changes, and competition. Performance varies by individual company fundamentals and execution capabilities.
Disclaimer: This information is for educational purposes only and does not constitute investment advice. Please assess risk and suitability independently.
7. Who can explore defence stocks in India?
Investors with a long-term view, an interest in government policies, and an understanding of cyclical industries and defence procurement often explore this sector.
Disclaimer: This information is for educational purposes only and does not constitute investment advice.
8. What is the strategic significance of the defence sector in India?
The defence sector supports national security and self-reliance. Government initiatives like Make in India and Atmanirbhar Bharat promote domestic manufacturing, reduce imports, and strengthen technological capability.
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