Defence stocks extend rally; Dynamatic, MTAR hit 52-wk highs in weak market

NSE India Defence index was quoting higher for the third straight trading day, surging 3.7% during the period, as against 0.14% decline in the Nifty 50.

Defence companies share price today

 

Shares of defence companies extended their upward movement, with the Nifty India Defence gaining over 1 per cent on the National Stock Exchange (NSE) in Tuesday’s intra-day trade in an otherwise weak market on the back of positive corporate announcements.

 

At 11:59 AM; Nifty India Defence index, the top gainer among indices, was up 2 per cent, as compared to 0.19 per cent decline in the Nifty 50. The defence index was quoting higher for the third straight trading day, surging 3.7 per cent during the period. In comparison, the benchmark index has declined 0.14 per cent during the same period.

 

MTAR Technologies (up 8 per cent at ₹2,610) and Dynamatic Technologies (up 6 per cent at ₹9,567) hit their respective 52-week highs in intra-day trade. 

 

Data Patterns (India), Garden Reach Shipbuilders & Engineers, Solar Industries, Zen Technologies, Bharat Electronics (BEL), Paras Defence and Space Technologies and Hindustan Aeronautics (HAL) were up in the range to 1 per cent to 5 per cent.  CATCH STOCK MARKET UPDATES TODAY LIVE

Why are defence stocks outperforming the market?

 

The defence companies HAL, BEL, Paras Defence and Space Technologies and Avantel announced winning new orders.

 

Among individual stocks, MTAR Technologies soared 8 per cent to hit a 52-week high of ₹ 2,610. In the past one month, the stock has zoomed 39 per cent on a strong business outlook.

 

The management said they look forward to a significantly strong performance in the second half of FY26, with revenue expected to nearly double compared to the first half. The company anticipates around 30 per cent – 35 per cent year-on-year revenue growth in FY26 compared to FY25, exceeding its earlier guidance of 25 per cent, driven by additional order inflows from the customers that are slated for execution within this fiscal year. Furthermore, the company reaffirms EBITDA margin guidance of around 21 per cent supported by a stronger margin profile in H2 due to operating leverage and higher capacity utilization.

 

Meanwhile, Bharat Electronics (BEL) said it has secured additional orders worth ₹792 crore, out of which major orders include defence network upgrade, radio communication network, radars, communication equipment, drones, combat management system, gun sighting system, upgrades, spares, services etc.

 

With these orders, BEL has now accumulated orders totalling ₹15,359 crore on a year-to-date basis in FY26. Order backlog is estimated at ~₹76,500 crore (3x TTM revenue) which gives a healthy revenue growth visibility, according to analysts.

 

HAL has signed an agreement with General Electric Company (GE), for $1 billion (~₹ 8,870 crore), for the supply of 113 F404-GE-IN20 engines and a comprehensive support package for the execution of the 97 LCA Mk1A fighter aircraft programme, following the contract signing for the project in September 2025. Under the agreement, engine deliveries are scheduled between 2027 and 2032, ensuring timely execution of the LCA Mk1A production plan.

 

Paras Defence has received an order from the Ministry of Defence, for the supply of Anti-Drone Systems, including Radio Frequency (RF) Jammers, valued at approximately ₹3.95 crore.  ALSO READ | Vikran Engineering zooms 9% on healthy Q2 results, deal win; details inside 

Meanwhile, the Ministry of Defence announced that India’s defence production reached a record ₹1.51 trillion in FY25, with Defence Public Sector Undertakings (DPSUs) contributing 71.6 per cent of the total output. The private sector’s share rose to 23 per cent from 21 per cent in FY24, reflecting growing participation in indigenous manufacturing. 

 

The Ministry provided over ₹10,000 crore in financial support to DPSUs for modernisation and emergency authorisations between FY22 and FY25, with aid to continue till FY27. Defence exports grew to ₹6,695 crore, while new initiatives such as advanced material facilities and a national metal bank were announced to boost self-reliance and reduce import dependence.

 

Analysts at ICICI Securities believe that an increase in R&D expenditure by defence PSUs in the coming periods will be structurally positive for the sector as it will help India to build strategic autonomy, reduce foreign dependencies, and establish competitive advantages in the global defence market. Increasing R&D spend will further accelerate the development of critical technologies including jet engines, advanced radars, missile seekers, electronic warfare systems, artificial intelligence systems, hypersonic weapons etc.