India’s defence sector is gaining strong investor interest, especially with the government’s push for self-reliance under the “Make in India” initiative. As defence companies secure more orders and show steady earnings growth, Foreign Institutional Investors (FIIs) are increasing their stake in several of these firms. This growing FII interest highlights confidence in the sector’s long-term potential. These are three stocks where FIIs have shown interest by increasing their stake.
1. Bharat Electronics Ltd (BEL)
Bharat Electronics Ltd (BEL) is a government-owned company that plays a key role in India’s defence sector. It designs, develops, and manufactures advanced electronic products and systems mainly for the Indian Armed Forces. BEL provides solutions in areas like radars, communication systems, electronic warfare, avionics, and missile systems.
The shares of Bharat Electronics Ltd with a market capitalization of Rs. 2,88,553 Crore, opened at Rs.404.50 per equity share, from its previous day’s closing price of Rs.404.15.
In Bharat Electronics Ltd, the shareholding by Foreign Institutional Investors (FIIs) went up from 17.55 percent in March 2025 to 18.56 percent in June 2025. This shows an increase of 1.01 percent, reflecting stronger interest from global investors in the first quarter of FY26.
2. Garden Reach Shipbuilders & Engineers Ltd (GRSE)
Garden Reach Shipbuilders & Engineers Ltd (GRSE) is a government owned company that designs and builds ships primarily for the Indian Navy and Coast Guard. Based in Kolkata, the company is known for making advanced warships, patrol vessels, and other naval support ships. GRSE also works on engineering projects like building bridges and deck machinery. With a strong focus on quality and innovation, the company plays a key role in strengthening India’s defence and maritime capabilities.
With a market capitalization of Rs.29,939 Crore, shares of Garden Reach Shipbuilders and Engineers Ltd opened at Rs.2648.00 per equity share, from its previous day’s closing price of Rs.2,647.50 and made an intra-day high of Rs. 2712.65
As of June 2025, FIIs hold a 5.33 percent stake in Garden Reach Shipbuilders & Engineers Ltd, which is a clear increase from 3.85 percent in March 2025. This marks a significant rise of 1.48 percent in just one quarter, showing growing interest and confidence from foreign investors in the company.
3. Apollo Micro Systems Ltd
Apollo Micro Systems Ltd is a Hyderabad-based company that designs, develops, and manufactures electronic and electro-mechanical systems for the defence, aerospace, and space sectors. The company provides mission-critical solutions like missile control systems, radar systems, navigation, communication, and avionics equipment. Its business model focuses on offering customized, high-tech systems for Indian defence organizations such as DRDO, ISRO, and various armed forces.
With a market capitalization of Rs. 5,430 Crore,shares of Apollo Micro Systems Ltd opened at Rs.180.50 per equity share, from its previous day’s closing price of Rs.179.70, and made an intra-day high of Rs.181.35.
In March 2025, FIIs held 0.93 percent stake in Apollo Micro Systems Ltd, which increased to 7.16 percent in June 2025. This means their holding went up by 6.23 percent in just one quarter, showing that foreign investors are becoming more interested in the company.
Written by: Sudeep Kumbar
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.
