India’s defence expenditure for FY 2025–26 has been set at approximately ₹6.81 lakh crore, representing around a 9.5% increase over the allocation for FY 2024–25. India’s defence production reached a record ₹1.46 trillion in FY 2024–25, up nearly 15% from FY 2023–24. Projected revenue growth of 15–17% in FY 2026 is consistent with industry forecasts.
India’s Defence Acquisition Council has approved Acceptance of Necessity (AoNs) worth ₹67,000 crore for the Army, Navy, and Air Force. The proposals include the procurement of Compact Autonomous Surface Craft and thermal imager-based night sights for drivers, reflecting a significant push towards modernisation, self-reliance, and technological advancement in India’s defence capabilities across all three armed forces.
The DAC has cleared the procurement of thermal imager-based driver night sights for infantry fighting vehicles, enhancing the Indian Army’s night warfare capabilities. There are several companies expected to benefit, given its role as a key supplier of thermal imaging sights for BMP series combat vehicles and T-72 tanks, reinforcing its defence sector presence.
Further, the Defence Acquisition Council has also cleared key proposals for the Indian Navy, including the procurement of Compact Autonomous Surface Craft, BrahMos Fire Control Systems, and launchers. It also approved the upgradation of BARAK-1 Point Defence Missile Systems, enhancing the Navy’s operational capabilities and supporting the indigenisation of advanced maritime defence technologies.
Additionally, the Defence Acquisition Council has approved several proposals to boost the Indian Air Force’s capabilities, including the procurement of Mountain Radars and the upgradation of the SAKSHAM and SPYDER weapon systems. These upgrades will enhance integration with the Integrated Air Command and Control System (IACCS), improving air surveillance and response efficiency.
Approval was also granted for acquiring Medium Altitude Long Endurance (MALE) drones and maintenance of the S-400 Air Defence System. These moves signal a focus on enhancing strategic aerial defence and surveillance capabilities, while promoting indigenous defence production and strengthening India’s long-term self-reliance goals in the aerospace and defence sectors.
Also read: Infra stock skyrockets 13% after company’s net profit increases by 105% YoY
Here are the defence stocks in focus after approval of AoNs worth ₹67,000 Cr
| Company Name | CMP |
| Bharat Electronics | 388.20 |
| Bharat Dynamics | 1,577.00 |
| Astra Microwave | 982.00 |
| Hindustan Aeronautics | 4,529.70 |
| Larsen and Toubro Ltd | 3,640.20 |
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Defence stocks in focus after DAC approves Acceptance of Necessity worth ₹67,000 Cr for Indian forces appeared first on Trade Brains.