Apollo Micro, GRSE, Paras rally up to 8%; what's driving defence stocks?

Defence companies share price today

 

Shares of defence companies have rallied up to 8 per cent on the National Stock Exchange (NSE) in Friday’s intra-day trade amid heavy volumes.

 

Apollo Micro Systems, Garden Reach Shipbuilders & Engineers, Paras Defence and Space Technologies, MTAR Technologies, Mazagon Dock Shipbuilders and Astra Microwave Products have surged between 5 per cent and 8 per cent.

 

BEML, Cochin Shipyard, Bharat Dynamics, Hindustan Aeronautics (HAL), Bharat Electronics, Mishra Dhatu Nigam, Data Patterns (India), Solar Industries and Zen Technologies were up in the range of 2 per cent to 4 per cent.

 

At 10:32 AM; Nifty India Defence index was up 2.6 per cent, as compared to 0.28 per cent rise in Nifty 50. However, the defence index is down 14 per cent from its 52-week high.  CATCH STOCK MARKET LIVE UPDATES TODAY

What's driving defence stocks on Friday?

 

Shares of Apollo Micro Systems hit a record high of ₹321.70, as they rallied 8 per cent on the back of heavy volumes. A combined 19.72 million equity shares have changed hands on the NSE and BSE till 10:20 AM.

 

In the past three trading days, the stock price of Apollo Micro Systems has surged 17 per cent after Apollo Strategic Technologies (ASTPL), a step-down subsidiary of the company, signed an MoU with Dynamic Engineering and Design Inc., USA for technology transfer, co-development, and potential licensed production of rocket motors for BM-21 Grad ER and Non-ER rockets. The collaboration, formalised at DSEI London 2025, is aimed at indigenising propulsion technologies for multi-barrel rocket systems. The company group, which has already developed the 122mm rocket warhead in-house, plans to begin trials soon and target full-scale production by mid-2026.

 

In the past three days, the stock price of MTAR has rallied 14 per cent after the company said it secured orders worth ₹386 crore in Clean Energy – Fuel cells segment. The company expects further orders from fuel cells segment going forward. MTAR caters to Clean Energy – Civil Nuclear Power, Fuel cells, Hydel & others, Aerospace and Defense sectors.

 

In another development, HAL received the third GE-404 engine from the US for the LCA Tejas Mk1A fighter jet programme, with a fourth engine due by month-end, according to defence officials. 

 

HAL is set to receive 12 engines by FY26-end under the $716 million deal signed with GE in 2021 for 99 units, delayed earlier due to supply chain issues. The IAF has ordered 83 Tejas Mk1A fighters and is advancing a proposal for 97 more, with a long-term plan to induct 352 Tejas aircraft across Mk1A and Mk2 variants. HAL expects engine supplies to stabilise next year and plans to ramp up production to 30 jets annually by FY27, supported by both public and private partners. The stock price of HAL was up 3 per cent at ₹4,707 in intra-day trade today. Thus far in the month of September, the stock has rallied 9 per cent.

 

Meanwhile, moving forward, the defence budget has been targeted by the government at ₹6.81 trillion for FY25-26 with a view to further strengthening the country's military strength. Of this, 27 per cent is targeted for capital expenditure. Defence production is likely to increase from ₹1.46 trillion in FY24-25 to ₹3 trillion by 2029, reflecting an estimated compound annual growth rate of 20 per cent and firmly establishing India as a global leader in defence manufacturing, Apollo Micro Systems said in its FY25 annual report.