Defence index slips 2%; Paras, Apollo Micro, Data Patterns down up to 4%

Despite a 3.6% dip in the past two trading days, the Nifty India Defence index has outperformed the market soaring 22% since April 2026.

Defence shares today

 

Shares of defence companies were under pressure, with the Nifty India Defence index falling 2 per cent on the National Stock Exchange (NSE) in Thursday’s intra-day trade on profit booking.

 

At 02:24 PM; the Nifty India Defence index was the top loser among thematic indices down 1.9 per cent, as compared to 0.03 per cent decline in the Nifty 50. In the past two trading days, the defence index slipped 3.6 per cent. It corrected 7.2 per cent from its 52-week high of 9,487.75 touched on May 8, 2026.

 

Among individual stocks, MTAR Technologies plunged 12 per cent to ₹6,225 amid heavy volumes. In the past one week, the stock underperformed the market by falling 20 per cent, as against 1.5 per cent decline in the Nifty 50. It hit a record high of ₹8,449.50 on May 22, 2026. The stock hit a 52-week low of ₹1,390.50 on August 29, 2025.

 

Data Patterns (India), Paras Defence and Space Technologies, Apollo Micro Systems, Mishra Dhatu Nigam (MIDHANI), Solar Industries India, BEML, Zen Technologies, Garden Reach Shipbuilders & Engineers and Astra Microwave Products were down in the range of 2 per cent to 4 per cent.

 

Why are defence stocks under pressure?

 

Despite a 3.6 per cent fall in the past two trading days, since April 2026, the Nifty India Defence index has outperformed the market by soaring 22 per cent. In comparison, the Nifty 50 was up 4 per cent during the same period. Further, thus far in the calendar year 2026 (CY26), defence index soared 14 per cent, as against 11 per cent decline in the benchmark index.

 

Thus far in CY26, share price of MTAR Technologies skyrocketed 160 per cent, while Data Patterns zoomed 62 per cent, followed by Paras Defence (45 per cent), Astra Microwave Products (42 per cent), Solar Industries India (41 per cent), Apollo Micro Systems (39 per cent) and Zen Technologies (27 per cent).

 

Execution across the defence sector remained healthy in FY26 (12 per cent YoY growth) despite a mixed January to March 2026 quarter (Q4FY26) performance, reflecting the back-ended nature of defence deliveries. Average EBITDA margin for the year remained healthy at 32 per cent (flattish YoY) while profit after tax increased by 11 per cent YoY. 

 

According to ICICI Securities, sector outlook, however, remains robust, with aggregate order backlog improving to ~4.6x FY26 revenue, providing strong multiyear revenue visibility. The brokerage firm remains constructive on the sector, supported by an accelerating procurement pipeline, increasing indigenisation, rising export opportunities and sustained policy support for domestic defence manufacturing.

 

Meanwhile, the stock price of MTAR Technologies slipped 12 per cent following a 10 per cent crash in Bloom Energy stock overnight in the US. Bloom Energy is the single largest client for MTAR Technologies, contributing more than 55 per cent of the company's total revenue. READ MORE

 

MTARis a leading manufacturer engaged in manufacturing and development of mission critical precision engineered systems catering to clean energy – civil nuclear power, fuel cells, hydel & others, aerospace & defence (A&D) sectors. The company has a long-standing relationship of over four decades with leading Indian organisations and global OEMs.

 

The closing order book for FY26 is at ₹2,580 crore, and the management had given a guidance of ₹2,800 crore. The marginal difference is due to some nuclear orders and the defense orders being deferred to the current quarter, which does not have any impact on business outlook for this year, the management said.

 

The company's management is confident of receiving large orders across various sectors during FY27 and the estimated closing order book would be close to about ₹5,000 crore at the end of the year.  =================================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.