Synopsis: Foreign institutional investors (FIIs) increased their holdings in several defence and aerospace companies during Q1 FY27, reflecting growing confidence in the sector’s long-term growth prospects, supported by strong order inflows and rising defence spending.
Foreign Institutional Investors (FIIs) are closely watched by market participants because changes in their shareholding often reflect institutional conviction in a company’s long-term growth prospects. Rising FII ownership is generally considered a positive signal for investor sentiment.
The latest shareholding data for Q1 FY27 shows that several companies witnessed a notable increase in FII holdings. Here are five defence and aerospace stocks where foreign investors raised their stakes during the quarter.
IdeaForge Technology Ltd
IdeaForge Technology Ltd is one of the leading Indian manufacturers of unmanned aerial vehicles (UAVs) and drone solutions. The company designs and develops drones for defence, homeland security, mapping, surveillance, and industrial applications, serving the Indian armed forces, government agencies, and enterprise customers.
With a market capitalisation of Rs. 4,194 cr, the shares of IdeaForge Technology Ltd closed at Rs. 844.15 per share, down from its previous close of Rs. 854.65 per share. FII’s have increased their stake from 0.73% in Q4FY26 to 4.89% in Q1FY27.
Paras Defence and Space Technologies Ltd
Paras Defence and Space Technologies Ltd is engaged in the design, development, manufacturing, and testing of defence and space engineering products. Its business spans defence electronics, optics and optronics, electromagnetic pulse (EMP) protection, heavy engineering, and defence software, catering to the armed forces, DRDO, ISRO, and private defence companies.
With a market capitalisation of Rs. 9,484 cr, the shares of Paras Defence and Space Technologies Ltd closed at Rs. 1176.90 per share, down from its previous close of Rs. 1,197.45 per share. FII’s have increased their stake from 5.06% in Q4FY26 to 8.29% in Q1FY27.
Krishna Defence & Allied Industries Ltd
Krishna Defence & Allied Industries Ltd manufactures specialised defence and safety products for the armed forces, paramilitary forces, railways, and aerospace sectors. Its product portfolio includes defence shelters, aircraft arresting systems, composite products, and customised engineering solutions, with a focus on indigenisation and import substitution.
With a market capitalisation of Rs. 1,917 cr, the shares of Krishna Defence & Allied Industries Ltd closed at Rs. 1,283 per share, down from its previous close of Rs. 1,297.90 per share. FII’s have increased their stake from 0.61% in Q4FY26 to 1.36% in Q1FY27.
Astra Microwave Products Ltd
Astra Microwave Products Ltd is a leading defence electronics company specializing in the design, development, and manufacture of high-frequency radio frequency (RF) and microwave components, subsystems, and systems. It supplies critical equipment to DRDO, ISRO, the Indian armed forces, and major defence PSUs, while also serving the space and telecom sectors.
With a market capitalisation of Rs. 16,358 cr, the shares of Astra Microwave Products Ltd closed at Rs. 1722.95 per share, up from its previous close of Rs. 1,721.10 per share. FII’s have increased their stake from 7.56% in Q4FY26 to 10.74% in Q1FY27.
Avantel Ltd
Avantel Ltd is a technology-driven company that develops wireless communication, satellite communication, and network management solutions primarily for the defence and aerospace sectors. The company supplies secure communication systems, software-defined radios, and satellite-based communication equipment to the Indian Navy, DRDO, ISRO, and other government organisations.
With a market capitalisation of Rs. 4,518 cr, the shares of Avantel Ltd closed at Rs. 170.05 per share, down from its previous close of Rs. 173 per share. FII’s have increased their stake from 0.55% in Q4FY26 to 1.54% in Q1FY27.
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