Defence Stocks Rally: Data Patterns, Zen, BDL, GRSE Share Price Surge as EU Unveils $850 Billion Plan

On Friday, March 7, 2025, shares of Indian defence companies surged, with some stocks gaining up to 11% on the National Stock Exchange (NSE). This rally came after the European Union (EU) announced an €800 billion (~$850 billion) defence plan following the suspension of US military aid to Ukraine.

At 11:03 AM, the Nifty India Defence Index was the top-performing sector, rising 2.9% to 5,678, while the Nifty50 gained 0.21%. However, the defence index remains 32% below its 52-week high of 8,302.

Top Gainers in the Defence Sector

Several defence stocks saw sharp intraday gains:

• Data Patterns: Up 11% to ₹1,299.20
• Zen Technologies: Hit a 10% upper circuit at ₹1,299.20
• Paras Defence: Up 9% to ₹978.45
• GRSE (Garden Reach Shipbuilders & Engineers): Up 8% to ₹1,399
• Bharat Dynamics (BDL): Up 7% to ₹1,143

Other stocks, including Astra Microwave, Mishra Dhatu Nigam (MIDHANI), MTAR Technologies, Cochin Shipyard, Idea Forge, and Mazagon Dock Shipbuilders, gained 4-5% intraday.

Why Are Defence Stocks Rising?

Indian defence companies could benefit as European defence OEMs (Original Equipment Manufacturers) look to source components and subsystems from global suppliers.

The EU announced a 5-step plan to boost its defence industry and military strength, possibly due to concerns about declining US support for Ukraine. This could open up export opportunities for Indian defence firms.

India’s Growing Defence Exports

India’s defence exports reached a record ₹21,000 crore in FY24, a 33% increase from the previous year (Source: Defence Ministry). The government has set a ₹30,000 crore export target by FY26.

Currently, India’s top defence export destinations are the US, France, and Armenia. Indian firms export 155mm artillery guns, Akash air defence missiles, Pinaka multi-launch rocket systems, BrahMos missiles, Dornier-228 aircraft, radars, armoured vehicles, aircraft fuselage and wings, bulletproof vests, night vision equipment, and electronics.

Potential Beneficiaries

The following companies could benefit from increased global defence spending:

• Listed Companies: Bharat Electronics, Hindustan Aeronautics, Bharat Dynamics, Data Patterns, Zen Technologies, Paras Defence, Solar Industries, Azad Engineering, and Dynamatic Technologies

With India’s growing defence manufacturing capabilities and rising exports, domestic firms are well-positioned to capitalise on global defence demand.

Conclusion

With India’s defence exports at a record ₹21,000 crore and a target of ₹30,000 crore by FY26, Indian firms are set to benefit from rising global military spending.

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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