Antique sees 'tremendous' scope in ₹2.5-trn worth FY26 defence proposals

On Thursday, the MoD said the Defence Acquisition Council approved procurement proposals worth ₹79,000 crore

The latest procurement clearance worth ₹79,000 crore has pushed total approvals this financial year to ₹2.5 trillion, which analysts at Antique Stock Broking call a "tremendous opportunity" for Indian defence manufacturers.

 

With project approvals worth ₹2.5 trillion in year-to-date FY26 (YTD FY26), defence public sector undertakings (PSUs) are poised for strong growth, Antique said. The Nifty Defence index rose as much as 1.02 per cent on Friday. 

 

The brokerage highlighted companies such as PTC Industries, Mazagon Dock Shipbuilders, Hindustan Aeronautics Ltd., Bharat Electronics Ltd., Bharat Dynamics Ltd., Zen Technologies, and Solar Industries as key beneficiaries, maintaining a 'Buy' rating on these stocks.

 

 

Analysts at Antique set target prices of ₹19,016 for PTC Industries, ₹454 for Bharat Electronics, ₹1,951 for Bharat Dynamics, ₹6,356 for Hindustan Aeronautics, ₹4,921 for BEML, ₹16,600 for Solar Industries, ₹1,866 for Zen Technologies, and ₹3,856 for Mazagon Dock Shipbuilders.

 

The analysts noted that efforts are underway to streamline acquisition and procurement processes, aiming for greater agility and transparency. The revised Defence Procurement Manual (DPM) was approved in September 2025, with an updated Defence Acquisition Procedure (DAP) expected by December 2025, targeting reduced timelines between Acceptance of Necessity (AoN) and contract awarding. 

 

On Thursday, the Ministry of Defence (MoD) said the Defence Acquisition Council (DAC) has approved procurement proposals worth ₹79,000 crore to enhance the capabilities of the Indian armed forces.

 

Among the approved projects for the Indian Army, acceptance of necessity (AoN) was granted for the acquisition of the Nag Missile System (Tracked) Mk-II (NAMIS), Ground Based Mobile ELINT System (GBMES), and High Mobility Vehicles (HMVs) with Material Handling Crane, the ministry said in a statement. 

 

To provide further impetus to indigenous design and development, Acceptance of Necessity (AoN) approvals were accorded under the Buy (Indian-Indigenously Designed Developed and Manufactured) category, Antique said. This category refers to procurement from Indian vendors of products that are indigenously designed, developed, and manufactured, with a minimum of 50 per cent Indigenous Content (IC) on the cost basis of the total contract value.

 

In the longer term, defence production of ₹8.8 trillion and exports of ₹2.8 trillion are targeted by 2047, Apollo Micro Systems stated in its FY25 annual report. The defence budget is expected to rise to ₹31.7 trillion, with capital expenditure rising to 40 per cent and R&D spend to 8-10 per cent of the budget in 2047.