Defence Stocks Rally: HAL, BDL, BEL, Data Patterns Share Price Rally Up to 5%

Shares of defence companies gained up to 5% on the NSE in Friday’s trading session, supported by heavy volumes and positive developments. Key gainers included Data Patterns (India), MTAR Technologies, Bharat Dynamics (BDL), Zen Technologies, Hindustan Aeronautics (HAL), and Bharat Electronics, rising between 2% and 5%. The Nifty India Defence index was up 1.5%, outperforming the Nifty 50’s 0.35% gain, though the index remains 10% below its 52-week high.

HAL Tejas Mk1A Takes Flight

Hindustan Aeronautics Ltd (HAL) announced that the first Tejas Mark-1A fighter aircraft from its new Nashik facility will take flight today in the presence of Defence Minister Rajnath Singh. This facility is HAL’s third assembly line for the LCA Mark-1A and also hosts the second production line for HTT40 trainer aircraft.

The Tejas Mk1A features advanced avionics and radar systems, offering a significant upgrade over earlier LCAs and expected to replace the ageing MiG-21 jets. HAL currently has a backlog of 180 Tejas Mk1A and 70 HTT-40 orders. The new Nashik plant increases production capacity from 16 to 24 Tejas Mk1A aircraft annually, with plans to expand output to 30+ by FY27E. HAL targets delivering 12 Tejas Mk1A jets by the end of FY26E, aided by improved GE engine supply.

Other Corporate Developments

Apollo Micro Systems was declared the lowest bidder for orders worth ₹39.27 crore, including ₹4.3 crore from DRDO and ₹34.97 crore from defence PSUs. The company also received DRDO approval for Transfer of Technology (ToT) of Mechatronic Fuze for Grenades, boosting India’s indigenous defence manufacturing.

Defence Budget and Future Outlook

The government has allocated a defence budget of ₹6.81 trillion for FY25-26, with 27% for capital expenditure. Defence production is expected to grow from ₹1.46 trillion in FY24-25 to ₹3 trillion by 2029 (CAGR ~20%), establishing India as a global leader in defence manufacturing. 

By 2047, production is targeted at ₹8.8 trillion, exports at ₹2.8 trillion, with R&D spending at 8–10% of the budget, focusing on emerging technologies like AI, quantum computing, hypersonics, cyber defence, and autonomous systems.

Also Read, All You Should Know About Diwali Muhurat Trading 2025!

Conclusion

Defence stocks are in focus today, led by HAL and BDL, driven by new fighter aircraft launches, strong order backlogs, and ambitious government spending, signaling a promising growth trajectory for India’s defence sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a pe₹onal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.