Top Defence Stocks in India
India’s defence sector is expanding, driven by increased government spending and a focus on indigenisation under initiatives such as “Atmanirbhar Bharat.” With the defence budget set at ₹6.81 lakh cr for 2025-26, defence stocks are gaining traction.
Best Defence Stocks
Saturday, 2 August, 2025
| 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 | 1,565.20 | 2,096.60 | 890.00 | 57,374.36 | 104.39 | 38.10 | 15.78 | 0.55 | 17.89 | 7.93 | 281.20 | 694.42 | Midcap | Capital Goods | Machinery | Aerospace & Defense | -3.32 |
| CFF | CFF Fluid Control Ltd | CFF | /stocks/cff-fluid-control-CFF | Aerospace & Defense Equipments | 625.85 | 810.00 | 392.00 | 1,312.66 | 55.04 | 38.10 | 8.88 | 0.15 | 17.42 | -20.65 | 240.60 | 240.60 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | -0.22 |
| DATAP | Data Patterns (India) Ltd | DATAPATTNS | /stocks/data-patterns-india-DATAP | Aerospace & Defense Equipments | 2,550.50 | 3,268.80 | 1,351.15 | 14,278.71 | 64.37 | 38.10 | 9.47 | 0.31 | 15.66 | -19.45 | 219.85 | 237.81 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | -3.42 |
| HIAE | Hindustan Aeronautics Ltd | HAL | /stocks/hindustan-aeronautics-HIAE | Aerospace & Defense Equipments | 4,438.70 | 5,165.00 | 3,046.05 | 296,849.16 | 35.49 | 38.10 | 8.48 | 0.90 | 26.09 | -7.78 | 337.48 | 892.89 | Largecap | Capital Goods | Machinery | Aerospace & Defense | -2.10 |
| HIGH | High Energy Batteries (India) Ltd | HIGHENE | /stocks/high-energy-batteries-india-HIGH | Aerospace & Defense Equipments | 622.35 | 830.35 | 420.05 | 557.86 | 36.39 | 38.10 | 5.60 | 0.48 | 16.37 | -17.41 | 62.54 | 1,168.81 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | -2.00 |
| IDE | ideaForge Technology Ltd | IDEAFORGE | /stocks/ideaforge-technology-IDE | Aerospace & Defense Equipments | 432.85 | 757.95 | 304.20 | 1,870.10 | -30.03 | 38.10 | 3.07 | 0.00 | -9.81 | -41.23 | -66.57 | -66.57 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | -3.11 |
| NIB | Nibe Ltd | NIBE | /stocks/nibe-NIB | Aerospace & Defense Equipments | 1,621.30 | 2,220.00 | 761.50 | 2,351.09 | 87.96 | 38.10 | 12.56 | 0.07 | 14.14 | -13.26 | 1,322.82 | 15,080.71 | Smallcap | Consumer Durables & Apparel | Machinery | Textiles | -0.56 |
| PARAS | Paras Defence and Space Technologies Ltd | PARAS | /stocks/paras-defence-and-space-technologies-PARAS | Aerospace & Defense Equipments | 631.85 | 972.50 | 404.70 | 5,091.91 | 80.23 | 38.10 | 11.49 | 0.00 | 7.48 | -0.24 | 88.34 | 156.61 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | -4.51 |
| ROSST | Rossell Techsys Ltd | ROSSTECH | /stocks/rossell-techsys-ROSST | Aerospace & Defense Equipments | 583.70 | 619.40 | 231.15 | 2,200.34 | 278.17 | 38.10 | 17.39 | 0.00 | 0.00 | 9.77 | 9.77 | 9.77 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | 3.20 |
| SIKA | Sika Interplant Systems Ltd | SIKA | /stocks/sika-interplant-systems-SIKA | Aerospace & Defense Equipments | 1,206.35 | 1,624.95 | 399.96 | 2,557.57 | 100.93 | 38.10 | 20.64 | 0.20 | 22.29 | 97.40 | 662.74 | 3,944.08 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | -1.68 |
| TANE | Taneja Aerospace and Aviation Ltd | TANAA | /stocks/taneja-aerospace-and-aviation-TANE | Aerospace & Defense Equipments | 445.90 | 697.00 | 218.55 | 1,137.07 | 62.89 | 38.10 | 7.99 | 0.56 | 13.26 | -24.47 | 316.73 | 1,781.43 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | -2.00 |
| TECHE | TechEra Engineering (India) Ltd | TECHERA | /stocks/techera-engineering-india-TECHE | Aerospace & Defense Equipments | 201.95 | 249.75 | 115.60 | 333.64 | 99.59 | 38.10 | 20.98 | 0.00 | 35.88 | 53.87 | 53.87 | 53.87 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | -0.37 |
| UNIMC | Unimech Aerospace and Manufacturing Ltd | UNIMECH | /stocks/unimech-aerospace-and-manufacturing-UNIMC | Aerospace & Defense Equipments | 1,126.10 | 1,523.75 | 850.00 | 5,726.99 | 68.61 | 38.10 | 8.56 | 0.00 | 21.47 | -18.18 | -18.18 | -18.18 | Smallcap | Capital Goods | Machinery | Aerospace & Defense | -2.67 |
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 on this list of defence stocks is dynamic in nature and subject to real-time changes. This data is derived from Tickertape Stock Screener.
Readymade Model Portfolios in the Defence Sector
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smartvalues – defense smallcase: This smallcase, managed by Lamron Analysts, is a portfolio of five stocks from the Indian defence sector.
Disclosure for the smartvalues-defense smallcase.
What are Defence Stocks in India?
Defence industry stocks represent shares of companies that produce, develop, or distribute equipment, technology, and services for the defence sector. This includes aerospace systems, shipbuilding, electronics, surveillance, munitions, and communication technologies. These defence companies typically operate under regulatory oversight and coordinate production in line with government procurement frameworks.
About the 5 Best Defence Stocks in 2025
- Hindustan Aeronautics Ltd: One of the top defence companies in India, Hindustan Aeronautics Limited (HAL) is an Indian public sector aerospace and defence company. Founded on 23rd Dec 1940, it is one of the oldest and largest in the world.
- Bharat Dynamics Ltd: Bharat Dynamics Limited (BDL) was established in Hyderabad in 1970. One of the key ammunition and missile systems manufacturers in India, BDL developed in-house R&D capabilities and focused on design and engineering activities while manufacturing weapon systems.
- Paras Defence and Space Technologies Ltd: Paras Defence and Space Technologies Ltd is into 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 aerospace and defence. As part of India’s defence manufacturing companies, it offers machining, fabrication, and engineering services for aircraft structures, engines, and ground support equipment.
Union Budget 2025-2026: Allocations for the Indian Defence Sector
Budget 2025–26 allocates ₹6.81 lakh cr to the Ministry of Defence, up 9.53% from last year, comprising 13.45% of the total budget, with a stated focus on modernisation and indigenous procurement.
- Capital Outlay: ₹1.80 lakh cr allocated for modernisation; 75% of acquisitions to be sourced from domestic industries.
- Revenue Expenditure: ₹3.11 lakh cr allocated for salaries, maintenance, and operational readiness.
- Defence Pensions: ₹1.60 lakh cr allocated for pensions; ₹8,317 cr for veteran healthcare under ECHS, reflecting a 14% increase.
- Security and Tech Upgrades: ₹7,146 cr for BRO, a 43% capital boost for ICG, and ₹31,277 cr allocated for R&D in emerging technologies.
Future Outlook of Investing in Top Defence Sector Stocks
Indian defence sector outlook reflects multi-year planning, policy continuity, and expanding R&D capabilities. Strategic partnerships, such as undersea surveillance with Australia and regional drone programmes, suggest a maturing ecosystem.
Policy announcements on indigenisation, including phased import restrictions and incentives for local manufacturing, are expected to support domestic manufacturers in the medium to long term. These developments may contribute to more stable demand with a continued focus on internal security and export readiness.
Companies maintain multi-year order book visibility, and FY2026 projections indicate ongoing execution potential. However, recent valuation levels and delivery timelines remain key aspects to monitor.
How to invest in Defence Stocks through smallcase?
Here are a few steps you can follow to invest in defence company stocks:
- Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
- Conduct thorough research into the top defence stocks India that are of interest to you. Investors can use tools like the Tickertape Stocks Screener to do this. The screener offers 200+ built-in filters to choose from, and investors can choose the parameters to research and generate different defence lists.
- Place a ‘Buy’ Order on the defence sector stocks of your choosing.
Advantages of Investing in Defence Industry 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 role in defence exports may create opportunities for eligible domestic firms in global markets.
- Strategic Autonomy Focus: National initiatives continue to reduce import reliance, which may support greater 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, which can influence the performance of companies operating in this 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 price corrections in the best defence stocks list in India, impacting short-term performance.
Factors to Consider While Investing in Defence Stocks in India
- Government Policies and Regulations: Policies on procurement, licensing, and FDI influence the sector’s operating environment; regulatory developments may affect company operations and revenue flows.
- Defence Budget: Annual defence allocations influence procurement cycles and contract volumes; the Union Budget is often viewed as an important indicator of sector funding.
- Order to Revenue: The speed and consistency of converting orders into revenue may reflect a company’s operational capabilities and delivery efficiency.
- Profitability Trends: Sustainable margins and recurring revenue streams are often considered important indicators for companies with large project-based operations.
- Governance and Transparency: Companies with clear reporting standards and strong compliance records may offer greater predictability in financial and operational disclosures.
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To Wrap It Up…
India’s defence sector is transitioning from policy-driven momentum to more structured growth, supported by budget allocations, indigenisation efforts, and an export focus. Defence stocks performance may vary based on execution timelines, valuations, and external factors such as procurement trends and technology partnerships.
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Frequently Asked Questions About Defence Shares in India
1. How to analyse the best defence stocks?
Defence sector stocks are evaluated by looking at order books, execution timelines, budget alignment, financials and regulatory disclosures related to government-linked procurement and manufacturing.
2. How do defence shares work?
Defence sector stocks are companies supplying to the defence industry. Their operations are dependent on government contracts, capital budgets and defence procurement cycles governed by national policy frameworks. For a deeper understanding, investors can refer to the defence stocks market analysis with Tickertape Stock Screener.
3. Is it safe to invest in defence shares?
Safety of investing in defence shares depends on multiple factors like market conditions, company fundamentals, policy environment and risk appetite. The defence stocks for long-term investment can be volatile and regulatory sensitive. Investors may consider reviewing fundamentals, market context, and their own risk tolerance when evaluating best defence stocks 2025.
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. Investors may also focus on private defence companies in India for more targeted investments. To do your research for defence sector stocks, you can use Tickertape Stock Screener.
5. Do geopolitical events impact defence shares?
Geopolitical situations, regional developments and changes in international defence partnerships can impact the operating environment and demand outlook for companies linked to the defence sector stocks. Many investors also explore defence sector mutual funds to diversify their exposure to these risks.
