Synopsis: India’s defence sector shows strong growth driven by Make in India and rising budgets. Key companies like HAL, BEL, BDL and other companies reported robust order books and fresh inflows in the latest quarter, ensuring long-term revenue visibility and highlighting strong demand from domestic and global defence programs.
India’s defence sector is growing rapidly due to strong government emphasis on indigenisation, increased defence budget allocations, and strategic reforms under the “Make in India” initiative. Focusing on self-reliance, domestic manufacturing, and technology development is boosting local production. Rising exports and private sector participation are further strengthening the industry’s global competitiveness.
India’s defence exports have seen a significant rise, increasing from Rs. 686 crore (US$ 81.1 million) in FY14 to Rs. 23,622 crore (US$ 2.8 billion) in FY25. This reflects a strong growth, highlighting India’s expanding presence in the global defence market. Defence production also continues to grow steadily, reaching Rs. 1,09,556 crore (US$ 12.39 billion) during April–December of FY26. This sustained momentum underscores the strengthening domestic defence manufacturing ecosystem.
In the most recent quarter, several listed defence companies collectively reported a robust order book pipeline, reflecting long-term visibility of demand from the Ministry of Defence, public sector undertakings, and global buyers. The combined order inflow strength is estimated to be as high as Rs. 2,54,538 crore, highlighting the sector’s growing strategic importance and execution pipeline.
Hindustan Aeronautics Ltd
Hindustan Aeronautics Limited (HAL) is an Indian public sector aerospace and defence company under the Ministry of Defence. It designs, manufactures, and maintains aircraft, helicopters, engines, and avionics. HAL plays a key role in India’s indigenous defence production, including platforms like Tejas, Dhruv, and Su-30 upgrades, supporting both military aviation and export programs.
Hindustan Aeronautics Limited reported an order book of about Rs. 2,54,538 crore, with FY26 fresh order intake of Rs. 97,028 crore. This includes Rs. 69,668 crore from manufacturing and Rs. 26,539 crore from ROH (repair/overhaul) work. Management also indicated a potential ~Rs. 90,000 crore order inflow opportunity over the next two years, suggesting a strong medium-term pipeline visibility.
Bharat Electronics Ltd
Bharat Electronics Limited (BEL) is a government-owned defence electronics company specialising in radars, communication systems, electronic warfare, and missile systems. It supplies advanced technology solutions primarily to the Indian Armed Forces. BEL also diversifies into civilian sectors like smart cities, cybersecurity, and e-governance, making it a key player in India’s strategic electronics industry.
The BEL’s FY26 order intake was Rs. 30,045 crore, showing strong business acquisition during the year, and their execution remained steady, keeping pace with inflows. As of April 2026, the company’s order book stood at Rs. 73,882 crore, indicating a strong backlog and providing healthy revenue visibility for upcoming periods and a sustained growth outlook.
Bharat Dynamics Ltd
Bharat Dynamics Limited (BDL) is a defence public sector undertaking focused on manufacturing guided missiles and allied defence equipment. It produces systems like Akash, Nag, and Astra missiles under collaborations with DRDO. BDL supports India’s missile program and contributes significantly to indigenous defence capability development and strategic deterrence infrastructure.
Bharat Dynamics Limited’s order book strength and visibility for future growth. As of 1st April 2025, the total order book stood at Rs. 22,814 crore. During FY 2025–26, the company has already received new orders worth Rs. 5,909 crore.
With ongoing execution and additions, the total order book is projected to reach Rs. 26,176 crore as on 31st March 2026, while additional orders worth around Rs. 15,000 crore are still in the pipeline. This indicates a strong and stable order pipeline supported by continued defence demand.
Garden Reach Shipbuilders & Engineers Ltd
Garden Reach Shipbuilders & Engineers Limited (GRSE) is a leading Indian shipbuilding company under the Ministry of Defence. It builds warships, patrol vessels, and auxiliary ships for the Indian Navy and Coast Guard. GRSE is known for indigenous warship construction and contributes to India’s maritime security and naval modernisation efforts.
GRSE’s order book stood at Rs. 15,324.13 crore, spanning 9 projects across 39 platforms. Management highlighted that the reduction below the Rs. 20,000 crore mark, seen for the first time in five years, should be viewed positively, as it reflects a stronger execution pace and faster project delivery.
Apollo Micro Systems Ltd
Apollo Micro Systems Limited is an Indian defence and aerospace electronics company that designs and manufactures mission-critical systems. Its products include avionics, weapon control systems, simulation systems, and embedded electronics. The company serves the defence, space, and homeland security sectors and is involved in indigenous technology development for India’s strategic programs.
As of 31st March 2026, the company reported an order book of Rs. 14,320 million (about Rs. 1,432 crores). It recently secured a significant order from Coal India worth approximately Rs. 421 crores, strengthening its business pipeline and reflecting continued momentum in securing large-scale project contracts.
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