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Defence Stocks: Best Defence Shares in India (2026)

India’s defence sector is moving from import dependence towards stronger domestic manufacturing and exports. Defence production reached a record ₹1.78 lakh cr. in FY2025-26, while exports rose to ₹38,424 cr. during the year. Defence stocks give investors exposure to companies operating across 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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NameStocks (18)↓↓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 Equipments3,29,572.323,29,572.324,881.604,881.6036.1536.15-0.94-0.949.899.8918.1118.119.829.828.038.0323.9823.9813.8213.820.910.910.000.001.881.88
2.Bharat Dynamics LtdBDLAerospace & Defense EquipmentsAerospace & Defense Equipments48,019.6948,019.691,308.001,308.00114.24114.24-0.15-0.15-0.59-0.591.981.98-13.60-13.6011.9811.9814.3814.387.747.740.370.370.000.002.682.68
3.Data Patterns (India) LtdDATAPATTNSAerospace & Defense EquipmentsAerospace & Defense Equipments24,799.2224,799.224,399.904,399.9091.3991.39-0.67-0.673.113.1155.3355.3375.0075.0014.2914.2916.7316.7321.0221.020.230.230.000.003.473.47
4.Aequs LtdAEQUSAerospace & Defense EquipmentsAerospace & Defense Equipments15,998.5115,998.51240.95240.95-141.27-141.27-1.30-1.30-3.40-3.4065.9465.9459.2659.2622.3422.34-13.37-13.371.761.76--1.101.104.144.14
5.Sigma Advanced Systems LtdSIGMAADVAerospace & Defense EquipmentsAerospace & Defense Equipments13,370.0513,370.05701.80701.8049.8849.88-0.31-0.3120.4420.44260.19260.19511.32511.3293.0593.05-18.47-18.47107.63107.63--0.970.974.024.02
6.Paras Defence and Space Technologies LimitedPARASAerospace & Defense EquipmentsAerospace & Defense Equipments10,214.4410,214.441,283.001,283.00115.94115.941.221.224.044.0494.7094.7096.6096.6016.0416.0411.7511.7518.5118.510.080.080.040.043.423.42
7.Unimech Aerospace and Manufacturing LtdUNIMECHAerospace & Defense EquipmentsAerospace & Defense Equipments7,392.507,392.501,424.501,424.50116.84116.84-1.91-1.9121.9521.9542.8342.8329.5929.5910.0310.039.009.0012.3412.34--0.170.173.243.24
8.ideaForge Technology LtdIDEAFORGEAerospace & Defense EquipmentsAerospace & Defense Equipments4,461.314,461.31897.75897.75-262.12-262.120.000.00-1.97-1.97106.38106.3895.6395.637.457.45-2.82-2.82-2.48-2.48--0.140.143.943.94
9.Rossell Techsys LtdROSSTECHAerospace & Defense EquipmentsAerospace & Defense Equipments4,125.884,125.881,060.001,060.00188.48188.48-3.15-3.156.436.4345.5445.5477.7377.7330.8830.886.086.0838.0738.070.030.031.801.804.484.48
10.Sika Interplant Systems LtdSIKAAerospace & Defense EquipmentsAerospace & Defense Equipments2,265.102,265.101,098.001,098.0062.1662.162.772.77-7.99-7.9917.1417.14-7.00-7.0014.5614.5626.0826.0830.7030.700.330.330.000.003.583.58
11.Nibe LtdNIBEAerospace & Defense EquipmentsAerospace & Defense Equipments2,169.472,169.471,438.001,438.00384.66384.662.752.75-10.00-10.0033.4433.447.097.099.649.6413.7613.766.716.710.090.090.290.293.633.63
12.CFF Fluid Control LtdCFFAerospace & Defense EquipmentsAerospace & Defense Equipments2,058.612,058.611,009.001,009.0052.5252.522.802.8021.5721.5785.2685.2659.0159.017.737.7318.9418.9419.7819.78--0.070.072.742.74
13.Taneja Aerospace and Aviation LtdTANAAAerospace & Defense EquipmentsAerospace & Defense Equipments805.94805.94312.20312.2047.9247.92-1.22-1.227.277.2710.8110.81-20.72-20.725.215.2111.3311.3313.7613.760.790.790.000.003.543.54
14.Apsis Aerocom LtdAPSISAEROAerospace & Defense EquipmentsAerospace & Defense Equipments572.95572.95484.90484.9076.2976.292.002.0030.6130.61201.84201.84201.84201.8454.2154.2191.4591.4591.8391.83--0.270.273.993.99
15.Digilogic Systems LtdDIGILOGICAerospace & Defense EquipmentsAerospace & Defense Equipments519.53519.53188.40188.4049.8149.814.994.9955.1955.19112.23112.23138.33138.3315.6615.6633.3133.3142.4342.43--0.400.404.174.17
16.High Energy Batteries (India) LtdHIGHENEAerospace & Defense EquipmentsAerospace & Defense Equipments514.57514.57570.95570.9533.4433.44-0.54-0.54-3.73-3.73-0.42-0.42-9.69-9.694.614.6114.5814.5819.6019.600.520.520.100.103.063.06
17.TechEra Engineering (India) LtdTECHERAAerospace & Defense EquipmentsAerospace & Defense Equipments296.72296.72175.00175.00107.12107.12-2.56-2.5615.5515.55-17.99-17.99-12.43-12.435.965.9610.1710.1710.7410.74--0.410.413.783.78
18.Global Defence Industries LtdGDILAerospace & Defense EquipmentsAerospace & Defense Equipments1.781.7812.1912.19-0.32-0.320.000.00--54.5054.50170.89170.890.010.010.420.42-2.20-2.20--0.050.051.651.65
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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

communication systems, and defence electronics.

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

In 2024, India is one of the top 5 largest defence spenders globally. However, after the rise of programs like ‘Atmanirbhar Bharat’ and ‘Make in India’, India started focusing on Indian companies and reduced foreign defence imports. The country also wants to strengthen their defence manufacturing industry through these initiatives and develop its independence. Not just that, given the national security concerns, India had to make such a decision. By the end of 2025, the Indian Government is looking to achieve a turnover of $26 bn in the defence industry. This target turnover includes export revenue of $5 bn as well.

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

Under the Atmanirbhar Bharat programme, the government continues to promote domestic defence production to reduce dependence on imports. Key focus areas include aerospace, defence electronics, naval systems, and armaments. In July 2025, the Defence Acquisition Council approved defence procurement proposals worth ₹1.05 lakh cr. under the “Buy (Indian–IDDM)” category, which supports equipment designed and manufactured within India. These approvals cover systems such as armoured recovery vehicles, electronic warfare platforms, missile systems, naval mine counter-measure equipment, and autonomous underwater vessels, allowing these projects to move into the next stage of contracting and production.

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

Rising Defence Spending

India allocated ₹7.85 lakh cr. to the Ministry of Defence for FY2026-27. Of this, over ₹2.19 lakh cr. was set aside under the capital head, supporting modernisation and procurement of defence equipment.

Domestic Manufacturing Growth

India’s defence production reached a record ₹1.78 lakh cr. in FY2025-26, up 15.6% year-on-year and more than double the level recorded in FY2020-21. This creates a larger opportunity for domestic defence manufacturers and suppliers.

Higher Focus on Domestic Procurement

Around 75% of the capital acquisition budget for FY2026-27 is reserved for procurement from domestic defence companies, with about ₹1.39 lakh cr. earmarked for local sourcing. This supports order visibility for Indian defence manufacturers.

Growing Defence Exports

India’s defence exports reached a record ₹38,424 cr. in FY2025-26, rising 62.66% from the previous year. Higher exports can help defence companies diversify beyond domestic government orders and access global markets.

Exposure to Multiple Defence Segments

Defence stocks provide exposure to areas such as aerospace, shipbuilding, missiles, electronics, drones, ammunition and precision engineering. This allows investors to participate in different parts of India’s expanding defence manufacturing ecosystem.

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Risks of Investing in Defence Stocks

Dependence on Government Orders

Defence companies rely heavily on orders from the central government. Any delay in approvals, changes in procurement priorities, or shifts in budget allocation can directly affect order flow and revenue visibility.

Long Project Execution Cycles

Many defence contracts involve complex design, testing, and certification processes. These long execution timelines can lead to delays in revenue recognition and affect stock performance during slow project phases.

High Capital Expenditure

Significant capital is typically required for research, development, and manufacturing in defence. Delays or cost overruns may impact profitability, cash flow management, and overall financial resilience over project cycles.

Regulatory Risks

Companies in this sector operate under strict regulatory frameworks. Any change in defence procurement policies, export controls, or compliance rules may affect business operations and contract performance over time.

Technology and Obsolescence Risk

Rapid changes in defence technology can reduce the relevance of existing systems. Companies must continuously invest in research and upgrades to stay competitive, which adds to long-term cost pressure.

Factors to Consider Before Investing in Defence Stocks

Order Book

Defence companies depend on long-term government contracts. The size of the confirmed order book and the pace at which companies execute these orders influence revenue stability and cash flows over time.

Government Policy

Defence spending depends on annual budget allocations and procurement policies. Changes in defence budgets, indigenisation rules, or import restrictions can affect business volumes across the sector.

Exposure to Defence Segments

Companies operate across different segments such as aerospace, shipbuilding, weapons systems, electronics, and maintenance services. The segment mix shapes revenue patterns, risk exposure, and growth stability.

Project Timelines

Defence projects often face design changes, testing delays, and certification processes. A company’s history of delivering projects on schedule offers context on execution reliability.

Research and Technology Capabilities

The defence sector evolves with advancing technology. Companies with in-house research capacity and access to advanced platforms usually adapt better to changing equipment and warfare needs.

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 stocks in India refer to shares of companies involved in designing, manufacturing, and maintaining military equipment and defence-related systems. These companies operate across areas such as aerospace, shipbuilding, weapons and ammunition, defence electronics, radars, and support services.

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

    As of 22nd July 2026, some of the top defence sector stocks in India, as per market cap include:
    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?

    Investors may consider exploring the defence stocks list with Tickertape Stock Screener, which comes with more than 200 filters and can assist in comparing these companies based on various parameters and metrics.

  4. Who can consider Indian defence stocks?

    Defence stocks may appeal to investors interested in companies linked to national security and technological advancements in the defence sector. However, it is important to do thorough research and consult a financial advisor before investing in these stocks.
    Disclaimer: This information is for educational purposes only and should not be considered investment advice.

  5. Do defence shares typically offer dividends?

    Dividend payouts typically depend on a company’s financial performance and profit trends. Some defence sector companies have recorded net profits in the past, which may enable them to pay dividends. It is important for investors to review the dividend track record and financial disclosures of individual companies for more context.

    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?

    Defence sector stocks in India have seen renewed interest due to factors such as government spending, indigenisation initiatives, and changing geopolitical dynamics. However, their future performance depends on various factors, including policy stability, technological capabilities, and global demand shifts.

    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 defence sector investments depends on multiple factors such as government budget allocations, order inflows, project execution progress, and overall market conditions. The sector often moves in cycles based on procurement activity and policy direction.

    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 stocks carry sector-specific risks linked to dependence on government orders, long project execution periods, regulatory controls, and working capital requirements. Delays in approvals, cost overruns, or changes in defence policy can affect the defence share price.

  9. What are multibagger defence stocks?

    Some Indian defence stocks, such as Hindustan Aeronautics Ltd, Mazagon Dock Shipbuilders, Cochin Shipyard, Garden Reach Shipbuilders & Engineers, Bharat Dynamics and Bharat Electronics, have delivered multibagger returns over certain past periods. However, multibagger performance refers only to historical returns and does not guarantee similar future gains.

    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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