Top News

On May 14, defense equities maintained their upward trend, propelled by a robust surge in shipbuilding firms. The Nifty India Defence index rose more than 4% during the day as shares of Cochin Shipyard, Garden Reach Shipbuilders & Engineers (GRSE), and Mazagon Dock jumped up to 17% in early trading

Over the last 30 days, Paras Defence and Data Patterns have risen up to 47%, while Mazagon Dock’s shares have jumped 23%.

The rise, which highlights India’s domestic military capabilities in the wake of recent tensions with Pakistan, is fueled by hopes of greater order inflows, according to Axis Securities. According to The Economic Times, the brokerage said in a recent note that “this growth was fueled by expectations of increased orders, which underscored India’s military capabilities and the might of its indigenous weaponry.”

According to different research by Antique Stock Broking, when the military Acquisition Council (DAC) starts to issue contracts totaling Rs 8.45 lakh crore, order inflows for listed military shipyards might almost quadruple by FY27. Strong order visibility and a supportive regulatory environment for indigenization were seen by the brokerage, along with ongoing prospects for Mazagon Dock, Garden Reach Shipbuilders (GRSE), and Cochin Shipyard.

In FY25, GRSE, a significant Defense PSU, posted a net profit of Rs 527 crore, a 48% rise from the previous year. Profit increased 118% to Rs 244 crore in Q4 alone. The stock has risen 118% in the last year and 30% so far in 2025 as a result of this performance. A strong order book and fresh prospects in commercial shipbuilding and exports, which are anticipated to triple in four years, were cited by GRSE’s CMD Commodore PR Hari (Retd) as reasons for confidence. Additionally on schedule is the Indian Navy’s P-17 Alpha destroyer project, which is anticipated to be delivered by August 2025 and will increase revenue and profits in FY27.

Following the announcement of a collaboration with Drydocks World to construct ship repair clusters, Cochin Shipyard’s stock surged more than 7% in early trading on May 14. “The partnership intends to improve India’s offshore fabrication and marine engineering capabilities while simultaneously establishing a world-class ship repair ecosystem for both domestic and foreign fleets,” the business said. Plans include expanding the collaboration across India, with the first work starting at Kochi Dock.

Recently, the DAC authorized AoNs for defense procurements of more than Rs 54,000 crore, which included airborne warning systems, Varunastra torpedoes, and engines for T-90 tanks. Under the “Make in India” campaign, India’s defense manufacturing has increased to unprecedented levels, with exports reaching a record Rs 23,622 crore in FY25, a 34-fold increase from Rs 686 crore in FY14.

Presently, domestic manufacturing accounts for 65% of India’s defense equipment production, with the private sector accounting for 21% of overall output. By 2029, the government wants to increase defense output to Rs 3 lakh crore and establish India as a major base for the defense industry worldwide. The Ministry of Defense granted 92% of its record 193 contracts, totaling over Rs 2 lakh crore, to local companies in FY25 alone.