- The Defence Acquisition Council cleared procurement proposals worth ₹79,000 crore.
- The move creates strong tailwinds for defence majors like HAL, BEL, and Mazdock.
- Analysts expect it to unlock multi-year order visibility for these defense players
Hindustan Aeronautics (HAL), Bharat Electronics (BEL), Mazagon Dockyard, Zen Technologies, and PTC Industries will be in focus on Friday after the Defence Acquisition Council (DAC) approved procurement proposals worth ₹79,000 crore for the acquisition of equipment for the Indian Army, Navy, and the Indian Air Force.
SEBI-registered analyst Bastion Research identified these five stocks as potential beneficiaries of the government’s push for arms and how it could translate into multi-year order visibility for HAL, BEL, Mazdock, PTC, and Zen.
Policy catalysts setting the runway
They noted that the revised Defence Procurement Manual (DPM), implemented in September 2025, and the forthcoming update to the Defence Acquisition Procedure (DAP) by December 2025 are expected to institutionalize faster decision-making. The government aims to finalize contracts within six months and cap foreign sourcing at 15% per service branch, signalling a decisive move toward domestic self-reliance.
Exports are the second engine of growth for India’s defense industry. Defense exports reached a record ₹240 billion in FY24–25, out of which private firms contributed approximately ₹150 billion. And the Ministry of Defence is targeting exports of ₹500 billion by FY29.
Defense stocks to watch
Among the listed defence players, Hindustan Aeronautics (HAL) is positioned to benefit from the normalization of engine supplies and execution of the Tejas program. Bastion Research noted that HAL currently holds orders for 83 Mk-1As, with an additional 97 expected, taking the total backlog to about 180 units and pushing the overall order book toward ₹2.6 trillion.
Bharat Electronics (BEL) has evolved into a key system integrator in missile electronics. The upcoming Quick Reaction Surface-to-Air Missile (QRSAM) contract, valued at around ₹300 billion and expected in Q4 FY26, will likely drive a step-up in inflows. BEL has a base order pipeline (excluding QRSAM) of around ₹270 billion, suggesting that total inflows of over ₹570 billion are feasible in FY26.
Mazagon Dock Shipbuilders is seeing submarines emerge as its principal growth driver, Bastion highlighted. Contract negotiations for the Project 75(I) program are underway, with order placement expected in FY26. Additionally, three more Scorpene-class submarines are likely to be awarded on a nominated basis, bringing the implied order value to ₹1–1.05 trillion, which is three times the company’s current order book.
Bastion Research flagged that public-sector metallurgical specialist Mishra Dhatu Nigam’s spinoff, PTC Industries (PTCIL), is scaling as a materials sovereignty play. Once utilization stabilizes at its Lucknow unit, revenue is projected to rise ten- to twentyfold by FY30, reaching ₹35–70 billion, with potential EBITDA margins of over 50% in precision casting.
And Zen Technologies continues to leverage its dual engines of Automated Drone Systems (ADS) and simulation technologies. Although near-term order delays have softened FY26 visibility, a strong rebound is anticipated in FY27, according to the analysts.
Defense sector: Triggers to watch
They cautioned that testing bottlenecks continue to pose execution challenges, even with support from the Defence Testing Infrastructure Scheme (DTIS). Additionally, a global shortage of trinitrotoluene (TNT) is putting pressure on ammunition supply chains.
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