Defence Stocks Rally: MTAR, Mazagon Dock, GRSE Surge Up to 9%

Defence stocks were in focus on Friday, with several stocks rising sharply during intra-day trade. At around 11:03 am, the Nifty India Defence index was up 1.3%, while the Nifty 50 slipped 0.24%. The defence index even gained up to 2% during the session, showing strong sector-wide momentum.

Stocks such as MTAR Technologies, Mazagon Dock Shipbuilders (MDL), Garden Reach Shipbuilders & Engineers (GRSE), Cochin Shipyard, Bharat Dynamics and Dynamatic Technologies rose between 2% and 9%. Other defence names like Paras Defence, BEL, HAL and BEML also traded in the green.

MTAR Technologies Hits Fresh 52-Week High

MTAR Technologies was the top gainer, jumping up to 9% and hitting a new 52-week high of ₹2,742. The rally was driven by expectations of strong earnings in the second half of FY26.

The company has guided for revenue in H2FY26 to nearly double compared to the first half. For the full year, MTAR expects 30–35% year-on-year revenue growth, higher than its earlier estimate of 25%, supported by strong order inflows.

Management also maintained its EBITDA margin guidance of around 21%, helped by better capacity utilisation and operating leverage. The stock has gained over 15% in the past week and nearly doubled in the last 4 months.

BEL Gains on Fresh Order Wins

Bharat Electronics Ltd (BEL) also remained in focus after announcing new orders worth ₹596 crore. These include drone detection systems, communication equipment, software solutions, and related services.

With these additions, BEL’s total order inflows for FY26 so far have reached ₹18,740 crore. Its order book stands at around ₹78,600 crore, offering strong revenue visibility. The company has guided for order inflows of over ₹27,000 crore in FY26, excluding a major QRSAM contract.

Submarine Deal Boosts Shipbuilders

Shipbuilding stocks like Mazagon Dock and GRSE gained on reports that the contract for six submarines under the P-75(I) programme could be signed by March 2026.

Under this deal, MDL is expected to partner with Germany’s Thyssenkrupp Marine Systems to build advanced submarines in India. The project, valued at over ₹72,000 crore, would significantly strengthen MDL’s capabilities and long-term order pipeline.

Also Read: Best Gold Mutual Funds in India for Jan 2026!

Astra Microwave Wins Air Force Orders

Astra Microwave Products also added to the positive sentiment after its joint venture, Astra Rafael Comsys, won orders worth ₹275.27 crore from the Indian Air Force. The orders include software-defined radios and network-centric systems for MiG-29 and LCA Mk-1A aircraft.

Conclusion

Defence stocks rallied on the back of strong order inflows, positive earnings outlook, and progress on large defence projects. With government support, rising defence spending, and healthy order books, the sector continues to attract investor interest, though valuations may remain sensitive to execution and policy developments.

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