Defence stocks rallied sharply in trade on June 17 after the Ministry of Defence announced that India’s defence production had reached an all-time high of Rs 1.78 lakh crore in the financial year 2025-26. The milestone underscored the country’s continued push towards self-reliance in defence manufacturing and boosted investor sentiment across the sector.
Paras Defence led the gains, surging 12.89%, making it the top performer among defence-related counters. Astra Microwave Products advanced 7.72%, while MTAR Technologies climbed 6.99%. Data Patterns gained 4.81%, and Bharat Dynamics rose 4.39% as investors responded positively to the latest production figures released by the government.
Public sector defence companies also witnessed strong buying interest. Hindustan Aeronautics Ltd. (HAL) rose 3.51%, Garden Reach Shipbuilders gained 3.67%, and Cochin Shipyard added 3.39%. Mazagon Dock Shipbuilders advanced 2.43%, while Mishra Dhatu Nigam and DCX Systems gained 2.14% and 1.84%, respectively. Bharat Electronics Ltd. (BEL) rose 1.58%, and IdeaForge Technology added 1.29%. Bharat Forge was the weakest performer in the group, though it still traded 0.46% higher.
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According to the Ministry of Defence, the record production value of Rs 1.78 lakh crore represents a 15.6% increase from the previous fiscal year, when defence output stood at Rs 1.54 lakh crore. The achievement highlights the growing capacity of domestic manufacturers and the increasing role of indigenous production in meeting the country’s defence requirements.
The latest figures also point to sustained long-term growth in the sector. Defence production has expanded by nearly 110% since FY 2020-21, when output was valued at Rs 84,643 crore. Compared with FY 2013-14, indigenous defence production has increased almost fourfold from Rs 43,746 crore, reflecting years of policy support aimed at strengthening local manufacturing capabilities.
The government has consistently promoted initiatives focused on domestic procurement, technology development, and private-sector participation in defence manufacturing. The record production level is expected to further strengthen confidence in the sector, with investors viewing defence companies as key beneficiaries of India’s long-term military modernisation and self-reliance objectives.
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