Datanomics: Private companies gaining ground in defence tender wins

Private defence firms are gaining ground in government tenders, with their share of tender value rising to 56 per cent in 2026 from 3 per cent in 2019

Defence Secretary R K Singh recently said that Hindustan Aeronautics Ltd (HAL) failed to win the bid for a prototype of the indigenous Advanced Medium Combat Aircraft. While public-sector defence companies frequently dominate tenders, private-sector firms have been steadily increasing their participation. The total value of tenders won by 10 defence companies in India increased from ₹3,799 crore in 2019 to ₹6,598 crore in 2021, before declining to ₹2,205 crore in 2026 (as of September). Interestingly, the share of tender value won by public-sector defence companies declined from around 97 per cent in 2019 to 95 per cent in 2021, and further to 44 per cent in 2026. In contrast, the share won by private-sector companies increased from 3 per cent to 5 per cent, and then to 56 per cent over the same period. Among public-sector companies, HAL, Bharat Dynamics, and Bharat Electronics recorded the highest shares of tenders won relative to their total participation. In the break-up of these tenders between 2011 and 2026, three of the top five companies with the highest share of the defence segment are PSUs: Bharat Dynamics, Mazagon Dock Shipbuilders, and HAL.