Defence shares gain attention amid escalating India-Pakistan conflict

On Friday, the Defence shares surged after India and Pakistan tensions escalated. As per various sources, the Indian Government has called a meeting with defence manufacturers. The focus on defence stocks comes after Baba Kalyani, Bharat Forge’s Chairman and Managing Director, was in an interview on CNBC TV18 and stated, “We’ve been called to Delhi next week. Our team is going. I can’t say more.”

This development comes after the Indian Armed Forces launched Operation Sindoor, targeting nine terrorist infrastructure sites in Pakistan and Pakistan-occupied Jammu and Kashmir, which are responsible for planning attacks against India. Further, Pakistan’s drone attacks on bordering Indian cities have increased tensions between the two nations. This military action has heightened investor interest in defence stocks, as increased government defence spending and procurement increase order expectations from the ongoing conflict. The Nifty India Defence surged by around 3 percent and here are some of the Indian defence stocks that are under the radar.

1. Hindustan Aeronautics Limited

HAL is an Indian aerospace and defence manufacturer that designs, develops, and produces fighter jets, helicopters, engines, avionics and upgrades of military aircraft. They operate multiple R&D centers and manufacturing units across India, with an order book of Rs. 1,84,000 crore in FY25. The stock surged by 3.5 percent, touching a day’s high of Rs. 4,579.20 per share.

2. Bharat Electronics Limited

BEL is a Navratna PSU that specialises in defence electronics and provides radar, communication, and electronic warfare systems to the Indian Armed Forces (IAF). Its share price jumped by 4.7 percent to Rs. 321.80, marking it as a day’s high price. The order book stood at Rs. 71,650 crore as of 1st April 2025.

3. Bharat Dynamics Limited

BDL is an Indian missile manufacturer and weapon system integrator. It supplies guided missile systems and complete defence solutions to the Indian Armed Forces, highlighting indigenous design, development, and production to improve national defence capabilities. Its shares rose upto 9.7 percent on Friday and command an order book of Rs. 22,700 crore as of April 1, 2025.

4. Paras Defence and Space Technologies Limited

The company specialises in defence electronics, space optics, and heavy engineering. They offer end-to-end solutions from concept to commissioning with a focus on indigenous design and manufacturing for defence and space sectors. Currently, they have an order book of around Rs. 900 crore and expect to cross Rs. 1,000 crore soon, as per recent sources. Its shares rose upto 6 percent.

5. Mazagon Dock Shipbuilders Limited

MDL is a government-owned shipbuilding company that produces warships, submarines, and offshore platforms. It supports the Indian Navy with ship and submarine construction, repairs, and plans capacity expansion for larger vessels and export orders. As of December 31, 2024, the order book stood at Rs. 34,787 crores. The shares rose by 3.3 percent.

6. Astra Microwave Products Limited

They design and manufacture advanced radio frequency and microwave subsystems for defence, space, and others. The company holds experience in mechanisms like radar, telemetry, antennas, electronic warfare, and satellite communication while delivering end-to-end solutions with in-house R&D and state-of-the-art facilities in India. Their order book stood at Rs. 2,332.6 crores as of 31st December 2024. Upon the news, the shares rose by 5 percent.