India’s defence sector hit a record production of Rs 1.54 lakh crore in 2024-25, showcasing rapid growth driven by indigenisation efforts. Exports surged to Rs 23,622 crore, growing over 12% year-on-year. The government allocates around Rs 6.81 lakh crore for defence in 2025-26, aiming to boost domestic manufacturing to Rs 3 lakh crore by 2029, strengthening self-reliance and global presence.
Here is the List of Defence stocks with a robust order book in Q2FY26
Premier Explosives Ltd
Premier Explosives manufactures solid propellants, explosives, and pyrotechnics for defence, space, and mining applications. Known for long-standing collaborations with DRDO and ISRO, the company plays a crucial role in missile systems, rocket motors, and specialised energetic materials essential for India’s strategic and industrial requirements.
With a market capitalisation of Rs 2,877 crore, the shares closed at Rs 535.20 per share, decreasing around 0.54 percent as compared to the previous closing. Premier Explosives shows a strong growth trajectory with its order book rising from Rs 3,890 mn in Mar 2022 to Rs 12,971 mn in Sep 2025, nearly 3.1x of FY25 revenue. The business is heavily defence-driven, with 90% contribution, while explosives and services form small segments, highlighting its strategic niche.
Garden Reach Shipbuilders & Engineers Ltd (GRSE)
GRSE is a leading defence shipyard building warships, patrol vessels, and specialised naval platforms for the Indian Navy and Coast Guard. With modern shipbuilding facilities and strong execution capability, it contributes significantly to India’s maritime strength and indigenous naval manufacturing ecosystem.
With a market capitalisation of Rs 31,994 crore, the shares closed at Rs 2,793 per share, increasing around 0.27 percent as compared to the previous closing. GRSE’s order book of Rs 20,205 crore reflects strong visibility, driven by 10 major shipbuilding programs and diversified non-ship work. Key naval projects like P-17A frigates, ASW Shallow Water Craft and NGOPVs anchor long-term revenue, ensuring stable execution pipelines upto FY28.
Furthermore, Export momentum adds further strength, with Rs 5,400 crore German multipurpose vessels and multiple research, survey and coastal platforms. Smaller contracts—guns, ferries and dredgers offer steady incremental revenues. Overall, the backlog provides a balanced mix of defence, research and international orders.
Bharat Forge Ltd
Bharat Forge is a global engineering and forging powerhouse producing critical components for automotive, defence, aerospace, and industrial sectors. Known for advanced manufacturing and technology-led solutions, the company is expanding its defence footprint through artillery systems, armoured platforms, and precision-engineered defence components.
With a market capitalisation of Rs 68,557 crore, the shares closed at Rs 1,434 per share, gaining around 0.09 percent as compared to the previous closing. The company reported strong momentum in defence, securing Rs 1,582 crore of new orders in H1 FY26, of which Rs 559 crore came from defence alone. The defence order book has reached Rs 9,467 crore. With assets moved to subsidiary KSSL, management expects additional wins across platforms and ongoing strategic projects.
Mazagon Dock Shipbuilders Ltd (MDL)
Mazagon Dock is India’s premier defence shipyard, building submarines, destroyers, and frigates for the Indian Navy. With decades of strategic experience and participation in key naval programmes, MDL plays a central role in strengthening India’s maritime defence and advancing indigenous shipbuilding capabilities.
With a market capitalisation of Rs 1.08 lakh crore, the shares closed at Rs 2,679 per share, gaining around 0.21 percent as compared to the previous closing. Mazagon Dock order book as of 30 September 2025 stands strong at Rs 27,415 crore, driven mainly by major shipbuilding projects like P15B Destroyers and P17A Stealth Frigates. High-value naval contracts and steady government demand highlight a robust, long-term revenue pipeline.
Additionally, Submarine and heavy-engineering orders add further depth, led by P75 Kalvari Submarines, ONGC projects, and AIP systems. With multiple vessels and refit works pending delivery, the company enjoys solid visibility, ensuring sustained execution, stable earnings, and continued traction across defence and marine engineering segments.
Bharat Electronics Ltd
Bharat Electronics is a leading defence electronics manufacturer supporting India’s armed forces with advanced radars, communication systems, missile components and surveillance solutions. With a strong order book, expanding capacities and focus on indigenisation, it plays a pivotal role in India’s defence modernisation and continues to deliver steady, reliable long-term growth.
With a market capitalisation of Rs 3 lakh crore, the shares of Bharat Electronics Ltd closed at Rs 411.55 per share, decreasing around 0.36 percent as compared to the previous closing price of Rs 413.05 apiece.
Bharat Electronics Ltd continues its strong growth trajectory, with the order book climbing to around Rs 75,600 crore as of 31-Oct-25. Robust inflows of nearly Rs 14,750 crore reflect sustained defence demand, driven by key programmes such as LRSAM, Akash systems, electronic fuses and BMP-2 upgrade contracts.
Furthermore, BEL’s top seven projects worth nearly Rs 25,000 crore provide strong multi-year revenue visibility. Its broad portfolio of 350+ equipment lines and 1,000+ sub-systems ensures resilience, while a similar product mix expected in H2 supports steady execution, stable margins, and consistent profitability momentum.
Written by Abhishek Singh
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