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Defence Stocks: Best Defence Shares in India (2026)

As of 2026, India’s defence sector continues to shift from import dependence towards domestic manufacturing and exports. Defence production reached a record ₹1.78 lakh cr in FY2025-26, while exports rose to ₹38,424 cr. The sector spans aircraft, missiles, naval systems, electronics, drones, ammunition and other defence technologies.

Defence Sector Stocks - Defence Stocks in India 2026

Aerospace & Defense Equipments Stock Screener

Aerospace & Defense Equipments Stock Screener: Analyse & Filter Indian Stocks on Tickertape

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last updated at 6:30 PM IST 
NameStocks (17)↓↓Sub-SectorSub-Sector↓↓Market CapMarket Cap↓↓Close PriceClose Price↓↓PE RatioPE Ratio↓↓1D Return1D Return↓↓1M Return1M Return↓↓6M Return6M Return↓↓1Y Return1Y Return↓↓PB RatioPB Ratio↓↓Return on EquityReturn on Equity↓↓ROCEROCE↓↓Dividend YieldDiv Yield↓↓Debt to EquityDebt to Equity↓↓Volatility vs NiftyVolatility vs Nifty↓
1.Hindustan Aeronautics LtdHALAerospace & Defense EquipmentsAerospace & Defense Equipments3,34,387.503,34,387.504,921.904,921.9036.6836.68-1.57-1.570.810.8121.8321.838.008.008.158.1523.9823.9813.8213.820.900.900.000.001.901.90
2.Bharat Dynamics LtdBDLAerospace & Defense EquipmentsAerospace & Defense Equipments49,815.8449,815.841,190.301,190.30118.52118.52-2.28-2.28-7.42-7.42-14.02-14.02-20.47-20.4712.4312.4314.3814.387.747.740.360.360.000.002.632.63
3.Data Patterns (India) LtdDATAPATTNSAerospace & Defense EquipmentsAerospace & Defense Equipments27,039.7027,039.704,779.004,779.0099.6499.64-2.13-2.139.279.2738.8538.8586.0586.0515.5815.5816.7316.7321.0221.020.210.210.000.003.533.53
4.Aequs LtdAEQUSAerospace & Defense EquipmentsAerospace & Defense Equipments16,987.4016,987.40231.00231.00-150.00-150.000.200.20-8.53-8.5382.4882.4852.6952.6911.4411.44-10.29-10.291.221.22--0.470.474.004.00
5.Sigma Advanced Systems LtdSIGMAADVAerospace & Defense EquipmentsAerospace & Defense Equipments13,070.9113,070.91792.85792.8548.7648.765.005.0012.4612.46407.39407.39393.07393.0790.9790.97-18.47-18.47107.63107.63--0.970.974.024.02
6.Paras Defence and Space Technologies LimitedPARASAerospace & Defense EquipmentsAerospace & Defense Equipments12,084.8812,084.881,462.501,462.50137.16137.16-0.51-0.5115.7415.74107.99107.99120.46120.4616.6616.6612.9412.9416.5716.570.030.030.040.043.553.55
7.Unimech Aerospace and Manufacturing LtdUNIMECHAerospace & Defense EquipmentsAerospace & Defense Equipments7,591.527,591.521,562.501,562.50119.99119.99-1.51-1.518.098.0977.4777.4745.4445.4410.3010.309.009.0012.3412.34--0.170.173.333.33
8.Rossell Techsys LtdROSSTECHAerospace & Defense EquipmentsAerospace & Defense Equipments4,049.364,049.361,209.701,209.70184.99184.991.341.3410.4810.4866.2066.2074.3674.3630.3130.316.086.0838.0738.070.030.031.801.804.314.31
9.ideaForge Technology LtdIDEAFORGEAerospace & Defense EquipmentsAerospace & Defense Equipments4,038.824,038.82741.00741.00-237.30-237.30-0.86-0.86-19.14-19.1466.9766.9749.0549.056.746.74-2.82-2.82-2.48-2.48--0.140.143.913.91
10.Nibe LtdNIBEAerospace & Defense EquipmentsAerospace & Defense Equipments2,223.262,223.261,299.901,299.90394.20394.20-1.02-1.02-6.93-6.9332.3232.329.289.289.889.8813.7613.766.716.710.080.080.290.293.653.65
11.Sika Interplant Systems LtdSIKAAerospace & Defense EquipmentsAerospace & Defense Equipments2,194.502,194.501,025.001,025.0060.2260.223.183.18-6.85-6.852.932.93-8.17-8.1714.1114.1126.0826.0830.7030.700.340.340.000.003.543.54
12.CFF Fluid Control LtdCFFAerospace & Defense EquipmentsAerospace & Defense Equipments2,059.872,059.87983.80983.8052.5552.550.570.57-0.13-0.1387.8987.8953.7753.777.747.7418.9418.9419.7819.78--0.070.072.792.79
13.Taneja Aerospace and Aviation LtdTANAAAerospace & Defense EquipmentsAerospace & Defense Equipments787.58787.58248.55248.5546.8246.82-8.87-8.87-22.38-22.38-7.48-7.48-37.35-37.355.095.0911.3311.3313.7613.760.810.810.000.003.503.50
14.Apsis Aerocom LtdAPSISAEROAerospace & Defense EquipmentsAerospace & Defense Equipments651.83651.83624.75624.7586.7986.792.002.0031.4231.42288.89288.89288.89288.8913.3313.3325.4125.4120.5620.56--0.090.093.693.69
15.Digilogic Systems LtdDIGILOGICAerospace & Defense EquipmentsAerospace & Defense Equipments601.02601.02183.70183.7057.6257.622.002.002.682.68106.03106.03132.38132.385.565.5614.7714.7713.7013.70--0.040.044.104.10
16.High Energy Batteries (India) LtdHIGHENEAerospace & Defense EquipmentsAerospace & Defense Equipments557.37557.37586.25586.2536.2236.22-1.37-1.370.040.045.755.75-9.38-9.385.005.0014.5814.5819.6019.600.480.480.100.103.123.12
17.TechEra Engineering (India) LtdTECHERAAerospace & Defense EquipmentsAerospace & Defense Equipments291.84291.84148.95148.95105.36105.36-2.71-2.71-21.01-21.01-19.94-19.94-18.61-18.615.865.8610.1710.1710.7410.74--0.410.413.803.80
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Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Selection criteria: Sub-sector: Aerospace & Defense Equipments | Market Cap: Sorted from Highest to Lowest

Overview of Top Defence Industry Stocks in India

Hindustan Aeronautics Ltd

Hindustan Aeronautics Ltd (HAL) is among the oldest and biggest aerospace companies in the defence sector in India, established in 1940. Its main activities include design and development, manufacturing and servicing of aircraft, helicopters, engines and ancillary systems. HAL is the backbone of India’s defence and offers advanced technology solutions for military and commercial users.

Bharat Dynamics Ltd

Bharat Dynamics Ltd, established in 1970, is a leading manufacturer of guided missile systems in India. Bharat Dynamics is among the defence companies in India that produce a wide range of defence equipment, including surface-to-air missiles, anti-tank guided missiles and underwater weapons for the Indian Armed Forces.

Data Patterns (India) Ltd

Data Patterns (India) Ltd designs and manufactures modern electronics for the defence and aerospace industries. Its products include avionics, radar and communication devices. Focused on meeting the tough demands of military and civilian customers, the company pursues reliability and superior performance in critical defence and space applications.

Aequs Ltd

Aequs Ltd is an Indian precision manufacturing company that provides vertically integrated product solutions across aerospace and consumer industries. It operates manufacturing facilities in India, France, and the United States, and is known for supplying components, assemblies, and engineering solutions to global OEM customers.

Paras Defence and Space Technologies Ltd

Paras Defence and Space Technologies Ltd, established in 2009, is an Indian defence and aerospace engineering company. It develops and manufactures products such as defence optics, optronic systems, electromagnetic pulse protection solutions, heavy engineering components and space-related technologies for government and private-sector customers.

What are Defence Stocks?

Defence stocks in India are shares of companies that make equipment, technology, and systems used by the Indian Army, Navy, and Air Force. These companies work in areas such as aircraft and helicopters, warships and submarines, weapons and ammunition, radars and communication systems, and defence electronics.

Future of the Defence Industry in India

As of 2026, India remains among the world’s largest defence spenders while increasing its focus on domestic manufacturing through Atmanirbhar Bharat and Make in India. Defence production reached about ₹1.54 lakh cr in FY2025-26, while exports crossed ₹23,000 cr. The government is now targeting defence production of ₹3 lakh cr and exports of ₹50,000 cr by 2029, supported by higher indigenisation, private-sector participation and military modernisation.

How to Invest in Defence Sector Stocks?

Investing in best defence stocks in India using Tickertape is a straightforward process. Tickertape is a powerful stock analysis and screening tool that helps you make informed investment decisions. Here’s how you can use Tickertape to invest in defence stocks:

  1. Sign Up and Log In: You can create an account on the Tickertape or log in if you already have one.
  2. Search for Stocks in Defence Manufacturing Industry: Go to Tickertape Stock Screener and search for the ‘Aerospace & Defense Equipments’ sector.
  3. Use Filters: You can apply over 200 filters to get stocks sorted based on criteria like market cap, P/E ratio.
  4. Analyse Stock Data: Tickertape provides comprehensive data on each stock, including financials, performance metrics, future projections, red flags, and more. You can review this data to assess each company’s health and potential in depth.
  5. Add to Watchlist: You may keep track of potential investments by adding them to your watchlist.
  6. Invest Through Your Broker: Once you’ve decided on a stock, you can place a buy order through your brokerage account linked to Tickertape.

You can stay updated with each of your favourite stocks’ alerts and announcements with Tickertape Alerts. Further, you can analyse your overall portfolio and potential red flags in it by connecting it to Tickertape. Check out detailed analysis of your portfolio now!

About Defence Sector

  1. Record Production: India’s defence production reached about ₹1.54 lakh cr in FY2025-26, supported by higher domestic manufacturing across public-sector units and private companies.
  2. Rising Exports: Defence exports crossed ₹23,000 cr in FY2025-26, reflecting growing overseas demand for Indian-made aircraft components, missiles, naval systems and other defence equipment.
  3. Higher Budget: The Union Budget 2026-27 allocated more than ₹7 lakh cr to defence, supporting military modernisation, infrastructure, equipment procurement and operational requirements.
  4. Indigenisation Push: Positive indigenisation lists and domestic procurement rules continue shifting defence orders towards Indian manufacturers, reducing reliance on imported platforms and components.
  5. Private Participation: Private companies are expanding across electronics, aerospace, drones, shipbuilding, missiles and defence engineering, increasing competition and capacity within India’s defence manufacturing ecosystem.
  6. Long-Term Targets: India aims to increase defence production to ₹3 lakh cr and exports to ₹50,000 cr by 2029, supporting continued expansion of domestic manufacturing capacity.

Union Budget 2026-27 Allocations for the Defence Sector

Union Budget 2026-27 Allocations Related to the Defence Sector

Union Budget 2026- 27 continued the government's focus on strengthening national defence capabilities through sustained funding, modernisation priorities, and investments in strategic technologies while maintaining fiscal prudence.

  1. Overall defence outlay: The total budget for defence in FY 2026&27 was set at ₹6 lakh cr.+ (comprising both revenue and capital components), underlining sustained investment in defence capabilities.
  2. Capital expenditure focus: A notable portion of the defence budget was allocated to capital expenditure, which supports the procurement of modern weapons systems, aircraft, naval vessels, armoured platforms, and critical defence infrastructure. This capital push aligns with ongoing modernisation agendas.
  3. Indigenisation and domestic production: The Budget reiterated support for Atmanirbhar Bharat defence manufacturing, encouraging greater participation of Indian firms (including MSMEs), improved technology partnerships, and supply chain integration with domestic industries. Schemes that promote localisation and technology transfer continue to be emphasised in budgetary planning.

Advantages of Investing in Defence Stocks

Record Production

India’s defence production reached a record ₹1.78 lakh cr in FY2025-26, up 15.6% year-on-year, reflecting stronger domestic manufacturing across public and private companies.

Export Growth

Defence exports crossed ₹38,000 cr in FY2025-26, expanding overseas demand for Indian-made defence equipment and supporting revenue opportunities beyond domestic military procurement.

Higher Budget

The Union Budget 2026-27 allocated ₹7.85 lakh cr to defence, 15% higher than the previous budget estimate, supporting procurement, modernisation and infrastructure spending.

Indigenisation Push

Positive Indigenisation Lists direct the selection of defence equipment towards domestic procurement, with items worth more than ₹1.40 lakh cr identified for sourcing from Indian manufacturers.

Long-Term Targets

India aims to raise defence production to ₹3 lakh cr and exports to ₹50,000 cr by 2029, creating a longer-term pipeline for domestic manufacturers.

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Risks of Investing in Defence Stocks

Order Concentration

Many defence companies depend heavily on government and armed-forces contracts. Delays in tendering, approvals or procurement decisions can affect order inflows and revenue recognition.

Execution Delays

Defence projects often involve complex technology, testing and certification requirements. Delayed development, production or customer acceptance can postpone deliveries and increase project costs.

High Working Capital

Long manufacturing cycles and milestone-based payments can create significant receivables and inventory requirements, placing pressure on cash flows even when order books remain strong.

Technology Dependence

Advanced radar, engines, electronics and specialised components may still require foreign technology or inputs, exposing companies to import restrictions, currency fluctuations and supply chain disruptions.

Valuation Risk

Strong order announcements and policy support can quickly lift market expectations. Share prices may correct if revenue conversion, margins, or future order wins fall short of expectations.

Factors to Consider Before Investing in Defence Stocks

Order Book

The size, composition and execution timeline of defence orders influence future revenue visibility, although large order books may convert into sales over several financial years.

Domestic Procurement

Government indigenisation policies influence the share of contracts available to Indian manufacturers. Positive lists increasingly reserve selected platforms, systems and components for domestic sourcing.

Export Orders

Overseas contracts diversify revenue beyond domestic procurement. India’s defence exports crossed ₹38,000 cr in FY2025-26, making international demand increasingly relevant to sector performance.

Execution Rate

Production capacity, supply chain availability, and delivery schedules determine how quickly defence companies convert orders into revenue, cash flows, and recognised profits.

Research Spending

Investment in radar, missiles, drones, electronics, aerospace and other advanced systems influences technology capability and competitiveness as India expands indigenous defence manufacturing.

Budget Allocation

Government defence spending affects procurement and modernisation activity. The FY2026-27 allocation of ₹7.85 lakh cr provides context for the sector’s near-term spending environment.

Conclusion

Defence sector companies operate in a sector shaped by long-term government spending, national security priorities, and complex project execution cycles. Business performance in this space depends on factors such as order inflows, execution capability, policy support, export activity, and financial strength. At the same time, regulatory controls, dependence on government contracts, and long development timelines add layers of uncertainty.

That’s why it’s important for investors to evaluate defence stocks in India before investing. With over 200 filters on Tickertape Stock Screener, you can conduct thorough research and analyse defence sector stocks based on various parameters.

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Frequently Asked Questions on Defence Stocks

  1. What are the defence stocks in India?

    Defence sector stocks in India refer to shares of companies involved in designing, manufacturing and maintaining military equipment and defence systems across aerospace, shipbuilding, weapons, ammunition, electronics, radars and support services.

  2. What are the top 10 defence stocks in India?

    As of 22nd July 2026, the following top 10 defence stocks in India rank among the leading listed defence companies by market capitalisation:

    1. Hindustan Aeronautics Ltd
    2. Bharat Dynamics Ltd
    3. Data Patterns (India) Ltd
    4. Aequs Ltd
    5. Sigma Advanced Systems Ltd
    6. Paras Defence and Space Technologies Ltd
    7. Unimech Aerospace and Manufacturing Ltd
    8. ideaForge Technology Ltd
    9. Rossell Techsys Ltd
    10. Nibe Ltd

    Disclaimer: The above defence stocks list in India is for educational purposes only and should not be considered investment advice.

  3. How to evaluate defence sector stocks?

    Users can explore a defence stocks list through the Tickertape Stock Screener, which offers 200+ filters covering valuation, financials, profitability, technical indicators, market capitalisation and other company-specific metrics.

  4. Who can consider Indian defence stocks?

    Small-cap defence stocks in India and larger defence companies may interest investors studying national security, manufacturing and technology themes. Suitability, however, depends on individual financial goals, risk tolerance and investment horizon.
    Disclaimer: This information is for educational purposes only and should not be considered investment advice.

  5. Do defence shares typically offer dividends?

    Dividend policies vary across companies included in the Nifty Defence Index stocks list and the broader sector. Payouts depend on profitability, cash flows, capital requirements and each company’s dividend policy.

    Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

  6. Can defence sector stocks be considered as long-term investments in India?

    The long-term performance of defence sector stocks in India depends on defence spending, indigenisation, order execution, technology capabilities, exports and policy stability. Sector growth does not guarantee similar returns across individual companies.

    Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

  7. Is it a good time to invest in defence stocks?

    The timing of investments across a defence stocks list can be influenced by government budget allocations, order inflows, project execution, valuations, procurement cycles and broader market conditions.

    Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

  8. How risky are defence stocks?

    Defence penny stocks and larger defence companies can face risks from dependence on government orders, long execution periods, working capital requirements, regulatory controls, cost overruns, and changes in procurement policy.

  9. What are multibagger defence stocks?

    Several companies within the Nifty defence index stocks list have delivered multibagger returns over certain historical periods. Such performance reflects past price appreciation and does not indicate or guarantee future returns.

    Disclaimer: The stocks mentioned above are for educational purposes only and should not be considered investment recommendations. Please conduct your own research or consult a financial advisor before investing.

Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.

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