Defence Stocks Rally: Bharat Dynamics, HAL, Garden Reach Share Price Rally Up to 5% on R&D Boost

Defence stocks is in strong focus on Monday, with several public and private sector companies rising sharply in intraday trade. Heavy buying interest pushed shares of major defence manufacturers up to 8% on the NSE.

Defence Stocks Rally

Dynamatic Technologies climbed 8% to ₹9,208.50 during the session. Garden Reach Shipbuilders & Engineers hit ₹2,748 and Bharat Dynamics reached ₹1,520, both up 5%. Hindustan Aeronautics (HAL) also gained 4% to ₹4,792. 

Other names like Data Patterns, Cochin Shipyard, Paras Defence, Mazagon Dock and Unimech Aerospace saw gains between 1% and 3%. Around 1:49 PM, the Nifty India Defence Index was up 1.5%, outperforming the Nifty 50’s 0.45% rise.

Why Defence Stocks Are Rising

The Ministry of Defence is conducting its annual performance review of 16 Defence Public Sector Undertakings under its “Year of Reforms” initiative. The review aims to accelerate R&D, exports and domestic manufacturing. The sentiment improved further after reports showed that India’s defence PSUs plan to spend ₹32,766 crore on R&D over the next 5 years, more than the ₹30,952 crore spent in the past decade.

Rising turnover, profits and exports have also strengthened the outlook. DPSUs together saw a 15.4% jump in revenue to ₹1.08 trillion, a 19.5% rise in profit to ₹20,021 crore and a 51% surge in exports in FY25.

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HAL’s Strong Position

HAL recently signed a ₹8,870 crore (about $1 billion) agreement with General Electric for 113 F404 engines to support the 97 LCA Mk1A fighter aircraft programme. Deliveries will run from 2027 to 2032. HAL also holds a massive order book of about ₹1.9 trillion as of June 30, 2025, offering solid revenue visibility. The company continues to maintain an edge due to its long history with India’s defence forces, large manufacturing capacity and strong skill base. Supportive government policies like Make in India and offset rules further strengthen its position.

Conclusion

Defence stocks are gaining momentum as renewed R&D focus, strong order books and government initiatives improve long-term prospects. With growing investments and rising demand for indigenous defence systems, the sector appears well placed for sustained growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal 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.

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