1. How to evaluate defence sector stocks?

When evaluating defence sector stocks, it’s essential to consider factors such as a company’s product range, including both domestic and international demand. Additionally, competition, government support, regulatory compliance, and financial health can be crucial elements to examine.

2. Who can consider defence stocks?

Defence stocks may appeal to investors interested in companies linked to national security and technological advancements in the defence sector.

3. 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.

4. Do defence shares typically offer dividends?

Dividend payouts depend on a company’s financial performance. Many defence blue-chip stocks have recorded net profits in the past, making them potential dividend payers. It is advisable to check the dividend history of specific defence shares before investing.

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

Defence sector stocks are linked to government spending and policy focus on indigenisation. Their performance depends on factors like execution timelines, regulatory developments, and the financial health of listed companies. However, whether they are to be held by investors for the long term is up to their discretion and investment strategy.

6. Which are the top stocks from the defence sector in terms of market cap?

Based on market capitalisation, companies such as Hindustan Aeronautics Ltd, Bharat Dynamics Ltd, Data Patterns (India) Ltd, and Paras Defence and Space Technologies Ltd are frequently referenced among top defence shares in India due to their operational scale and sectoral relevance.

Best Defence Stocks in India (2025)

Defence stocks represent companies involved in building military systems and products. India’s Union Budget 2025–26 allocated ₹6.81 lakh cr. to defence, focusing on modernisation and local sourcing.

Top Defence Stocks for 2025

Aerospace & Defense Equipments Stock Screener

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Showing 1 - 14 of 14 results

last updated at 6:30 AM IST

	NameStocks (14)↓	↓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 Ltd HAL	Aerospace & Defense EquipmentsAerospace & Defense Equipments	2,89,753.462,89,753.46	4,332.604,332.60	34.6434.64	-0.28-0.28	-2.71-2.71	35.9435.94	-5.85-5.85	8.288.28	26.0926.09	17.5117.51	0.920.92	0.000.00	2.592.59
2.	Bharat Dynamics Ltd BDL	Aerospace & Defense EquipmentsAerospace & Defense Equipments	52,627.3852,627.38	1,435.701,435.70	95.7595.75	0.480.48	-11.58-11.58	46.5446.54	10.5510.55	14.4714.47	17.8917.89	10.2510.25	0.600.60	0.000.00	3.453.45
3.	Data Patterns (India) Ltd DATAPATTNS	Aerospace & Defense EquipmentsAerospace & Defense Equipments	13,451.8313,451.83	2,402.802,402.80	60.6560.65	-0.95-0.95	-5.17-5.17	67.5767.57	-13.48-13.48	8.928.92	15.6615.66	19.6819.68	0.330.33	0.000.00	3.953.95
4.	Unimech Aerospace and Manufacturing Ltd UNIMECH	Aerospace & Defense EquipmentsAerospace & Defense Equipments	5,325.225,325.22	1,047.101,047.10	63.8063.80	-0.06-0.06	-8.90-8.90	9.649.64	-23.92-23.92	7.967.96	21.4721.47	14.8814.88	--	0.130.13	3.783.78
5.	Paras Defence and Space Technologies Ltd PARAS	Aerospace & Defense EquipmentsAerospace & Defense Equipments	5,227.705,227.70	648.70648.70	82.3682.36	1.301.30	-8.44-8.44	55.3955.39	6.606.60	8.218.21	11.7511.75	14.0214.02	0.080.08	0.040.04	4.064.06
6.	Rossell Techsys Ltd ROSSTECH	Aerospace & Defense EquipmentsAerospace & Defense Equipments	2,532.642,532.64	671.85671.85	320.18320.18	-0.20-0.20	19.7919.79	154.73154.73	26.3526.35	20.0220.02	--	20.1320.13	--	1.321.32	4.044.04
7.	Sika Interplant Systems Ltd SIKA	Aerospace & Defense EquipmentsAerospace & Defense Equipments	2,426.762,426.76	1,140.001,140.00	95.7795.77	-0.01-0.01	4.544.54	155.61155.61	114.08114.08	19.5819.58	22.2922.29	26.0826.08	0.210.21	0.000.00	4.924.92
8.	ideaForge Technology Ltd IDEAFORGE	Aerospace & Defense EquipmentsAerospace & Defense Equipments	2,107.432,107.43	487.65487.65	-33.84-33.84	5.985.98	1.891.89	40.9440.94	-30.85-30.85	3.463.46	-9.81-9.81	-9.63-9.63	--	0.030.03	4.044.04
9.	Nibe Ltd NIBE	Aerospace & Defense EquipmentsAerospace & Defense Equipments	1,738.061,738.06	1,189.601,189.60	65.0265.02	-0.10-0.10	-33.55-33.55	27.1527.15	-34.74-34.74	9.299.29	14.1414.14	18.6918.69	0.090.09	0.390.39	4.044.04
10.	CFF Fluid Control Ltd CFF	Aerospace & Defense EquipmentsAerospace & Defense Equipments	1,328.391,328.39	635.00635.00	55.7055.70	-0.13-0.13	2.412.41	59.9959.99	-8.11-8.11	8.998.99	17.4217.42	23.0123.01	0.150.15	0.140.14	3.483.48
11.	Taneja Aerospace and Aviation Ltd TANAA	Aerospace & Defense EquipmentsAerospace & Defense Equipments	1,008.161,008.16	395.00395.00	55.7655.76	-2.05-2.05	-7.32-7.32	55.3955.39	-28.27-28.27	7.087.08	13.2613.26	15.6115.61	0.630.63	0.000.00	3.493.49
12.	High Energy Batteries (India) Ltd HIGHENE	Aerospace & Defense EquipmentsAerospace & Defense Equipments	598.02598.02	667.15667.15	39.0139.01	1.211.21	3.063.06	52.3752.37	-6.04-6.04	6.006.00	16.3716.37	21.4521.45	0.450.45	0.110.11	3.673.67
13.	TechEra Engineering (India) Ltd TECHERA	Aerospace & Defense EquipmentsAerospace & Defense Equipments	340.25340.25	205.95205.95	101.57101.57	4.944.94	-2.53-2.53	42.2342.23	56.9156.91	21.4021.40	35.8835.88	30.5330.53	--	0.900.90	4.404.40
14.	Nibe Ordnance and Maritime Ltd ANSHNCO	Aerospace & Defense EquipmentsAerospace & Defense Equipments	1.151.15	7.527.52	2.402.40	0.000.00	--	398.01398.01	398.01398.01	0.690.69	-11.24-11.24	111.90111.90	--	0.000.00	1.801.80

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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

Union Budget 2025-26 Allocations for the Defence Sector

Union Budget 2025-26 presented by Finance Minister Nirmala Sitharaman on 1st February 2025 has substantial allocations for the defence sector.

Total allocation for the Ministry of Defence (MoD) is ₹6.8 lakh cr.
Out of this ₹1.8 lakh cr. is for capital outlay, which is 4.65% more than last year’s budget. This will be used for modernisation, R&D and infrastructure development.
“Atmanirbhar Bharat” initiative continues to influence the budget to reduce dependence on foreign defence imports. This includes expanding domestic production with focus on aerospace, electronics and armaments.
Defence exports, strategic partnerships and joint ventures are key areas of focus to increase global competitiveness.
A significant amount has been allocated for R&D, especially in areas like AI, drone technology and next-gen equipment.

Budget reflects the government’s efforts to build a robust and self-reliant defence sector, but the impact of these will depend on various internal and external factors.

How to Invest in Defence Sector Stocks?

Investing in defence stocks 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:

Sign Up and Log In: You can create an account on the Tickertape or log in if you already have one.
Search for Defence Stocks: Go to Tickertape Stock Screener and search for the ‘Aerospace & Defense Equipments’ sector.
Use Filters: You can apply from over 200 filters to get stocks sorted based on criteria like market cap, P/E ratio, or dividend yield. You can create your own custom filter, in case your preferred parameters are not available. This can help you narrow down the top defence companies in India.
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.
Add to Watchlist: You may keep track of potential investments by adding them to your watchlist.
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!

Overview of Top Defence Stocks in India

Hindustan Aeronautics Ltd

Hindustan Aeronautics Ltd (HAL) is one of 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.

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.

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 company in India who produces a wide range of defence equipment stocks, including surface-to-air missiles, anti-tank guided missiles and underwater weapons for the Indian Armed Forces.

Unimech Aerospace and Manufacturing Ltd

Unimech Aerospace and Manufacturing Ltd provides precision engineering solutions for aerospace, defence and automotive sectors. Specialising in high-quality machining, assembly and testing, Unimech manufactures critical aerospace components. The company supports the production of complex parts, including those for aircraft systems, ensuring high standards of quality and performance in the defence and commercial aerospace industries.

Paras Defence and Space Technologies Ltd

Paras Defence and Space Technologies Ltd, established in 2009, is into the design, development and manufacturing of defence and space engineering products. The company offers defence electronics, defence optics and space imaging components for various military and space applications.

What are Defence Stocks?

The Indian defence industry includes companies that manufacture military equipment, technologies, and services. Initiatives like “Atmanirbhar Bharat” focus on increasing domestic production and reducing imports. Indian defence shares continue to grow in alignment with national priorities, with export targets and localisation programs influencing the market.

About Defence Sector

The Indian defence industry includes companies that manufacture military equipment, technologies, and services. Initiatives like “Atmanirbhar Bharat” focus on increasing domestic production and reducing imports. Key areas of emphasis are aerospace, electronics, and armaments. India has approved ₹1.05 lakh cr. ($12.5 bn) in defence purchases, including armoured vehicles, electronic warfare systems, and advanced missiles. The Defence Ministry aims to finalise ₹2 lakh cr. in agreements, with a target of ₹24 bn for FY2026. The goal is to allocate 75% of funds to domestic procurement. India has also launched a ₹2,000 cr. financial program to promote drone component localisation.

Future of the Defence Industry in India

As of 2020, 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 began to focus on Indian companies and reduced its foreign defence imports. The country also wants to strengthen their defence manufacturing industry through these initiatives and develop its independence. By 2025, the Indian government aims to achieve a turnover of $25 bn in the Aerospace and Defence goods and services sector. This target turnover includes export revenue of $5 bn as well.

Advantages of Investing in Defence Stocks

Steady Performance

Defence sector stocks have long-term contracts with the government and hence a steady and predictable income. This stability can help the defence sector companies to weather economic downturns and market volatility.

Technological Advancements

Defence technology stocks are typically at the forefront of innovation. By investing in these companies, investors can gain exposure to cutting-edge technologies and developments in aerospace, cybersecurity, and advanced weaponry.

Government Support

The government’s emphasis on self-reliance and indigenous production under the “Atmanirbhar Bharat” initiative provides a big boost to the domestic defence sector. Policies to reduce dependence on imports can boost the growth of government defence company stocks.

Strong Market Demand

The ongoing need for national security and defence spending creates consistent demand for defence products and services. This demand is driven not only by domestic requirements but also by international markets, as countries continually invest in their military capabilities.

Risks of Investing in Defence Shares in India

Government Dependence

Defence companies in India often rely on government contracts, which can fluctuate due to policy changes or budget revisions. This reliance may affect order pipelines, revenue stability, and future project execution timelines.

Geopolitical Tensions

Geopolitical situations can influence the defence sector. Regional tensions may increase demand but also bring supply chain risks and uncertainty, making operational and financial performance sensitive to international developments.

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.

Diversification and Market Reach

Defence firms with varied products and wider market reach may better withstand market shifts. Evaluating product lines and regional presence helps understand a company’s exposure to risks and operational opportunities.

Regulatory Compliance

Ongoing adherence to regulatory requirements is essential in the defence sector. Non-compliance can result in penalties, reputational concerns, or contract disruptions, which may impact future business performance.

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Factors to Consider Before Investing in Defence Stocks

Financial Performance and Stability

Investors can check the financial performance of defence companies, including revenue growth, profit margins, debt levels and cash flow. A company’s financial stability can give an idea of its ability to withstand market fluctuations.

Government Contracts and Policies

Defence sector companies are dependent on government contracts for revenue. It may be useful to look into a company’s past performance, future contracts and government policies like “Atmanirbhar Bharat”.

Technological Innovation

The defence industry is driven by technological advancements. Companies investing in research and development to create cutting-edge technologies and systems may have a competitive advantage. Assessing a company’s innovation capabilities and pipeline of new products can provide insights into its long-term defence stocks potential.

Geopolitical Environment

The geopolitical climate can have a significant impact on defence stocks in India. Tensions or conflicts can lead to increased defence spending by governments, benefiting defence companies. Conversely, periods of geopolitical stability might result in reduced defence budgets. Understanding the current geopolitical environment is crucial for evaluating defence stock forecasts.

Diversification and Market Reach

Companies with a diversified portfolio of products and services, as well as a broad market reach, might be better positioned to handle market fluctuations. Evaluating the range of products and the geographical markets a company serves can provide a clearer picture of its risk and growth potential.

Regulatory Compliance

The defence sector is subject to stringent regulations. Ensuring that a company complies with these regulations is critical to avoiding potential legal and operational risks. Investors may want to research the regulatory landscape to assess the stability of their defence stock investment strategy and its effects on defence stock prices.

To Wrap Up

In conclusion, the defence sector in India is evolving with investments in domestic production and technological advancements. With the government's focus on self-reliance through initiatives like "Atmanirbhar Bharat," companies in this sector are likely to continue attracting attention. Factors such as financial health and sector performance are essential to consider when evaluating defence stocks. Tickertape Stock Screener helps in analysing defence sector stocks using various filters and data.

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Frequently Asked Questions on Defence Stocks

1. How to evaluate defence sector stocks?
When evaluating defence sector stocks, it’s essential to consider factors such as a company’s product range, including both domestic and international demand. Additionally, competition, government support, regulatory compliance, and financial health can be crucial elements to examine.
2. Who can consider defence stocks?
Defence stocks may appeal to investors interested in companies linked to national security and technological advancements in the defence sector.
3. 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.
4. Do defence shares typically offer dividends?
Dividend payouts depend on a company’s financial performance. Many defence blue-chip stocks have recorded net profits in the past, making them potential dividend payers. It is advisable to check the dividend history of specific defence shares before investing.
5. Can defence sector stocks be considered as long-term investments in India?
Defence sector stocks are linked to government spending and policy focus on indigenisation. Their performance depends on factors like execution timelines, regulatory developments, and the financial health of listed companies. However, whether they are to be held by investors for the long term is up to their discretion and investment strategy.
6. Which are the top stocks from the defence sector in terms of market cap?
Based on market capitalisation, companies such as Hindustan Aeronautics Ltd, Bharat Dynamics Ltd, Data Patterns (India) Ltd, and Paras Defence and Space Technologies Ltd are frequently referenced among top defence shares in India due to their operational scale and sectoral relevance.

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.