Foreign Institutional Investors (FIIs) are showing more interest in India’s defence sector, indicating their growing trust in the country’s long-term growth and focus on self-reliance. With strong government support, increasing defence orders, and better financial results, many defence companies have seen a rise in FII investments.
The rise in FII investments also highlights how important the defence sector is to India’s economy and global position. As India pushes for more local manufacturing through initiatives like “Make in India” and looks to boost defence exports, companies in this field are gaining attention. This foreign investment brings not just money, but also support for better technology, innovation, and financial strength.
Here is the List of stocks to watch out for
Paras Defence and Space Technologies Ltd
Paras Defence is a leading Indian defence engineering company specialising in indigenously designed and manufactured defence electronics, space optics, and heavy engineering solutions. Notably, it is the sole Indian supplier of large-sized infrared optics for space applications.
The FII has increased its stake in Paras Defence and Space Technologies Ltd from 0.13 percent in the March quarter of 2024 to 5.24 percent in the March quarter of 2025, marking an increase of 3,930.7 percent on a YoY basis.
Great Eastern Shipping Company Ltd
Garden Reach Shipbuilders & Engineers Ltd (GRSE) is a leading Indian defence shipyard under the Ministry of Defence. The company specialises in designing and constructing advanced warships for the Indian Navy and Coast Guard, with a focus on indigenisation and innovation.
The FII has increased its stake in Great Eastern Shipping Company Ltd from 3.26 percent in the March quarter of 2024 to 3.85 percent in the March quarter of 2025, marking an increase of 18 percent on a YoY basis.
Sika Interplant Systems Ltd
Sika Interplant Systems Ltd is an Indian company focused on providing products, systems and services to the Aerospace, Defence & Space and Automotive sectors in India. The company offers a range of products, including material handling systems, process automation solutions, and custom-engineered systems for various industries.
The FII has increased its stake in Sika Interplant Systems Ltd from 2.64 percent in the March quarter of 2024 to 3.11 percent in the March quarter of 2025, marking an increase of 17.8 percent on a YoY basis.
Bharat Dynamics Ltd
Bharat Dynamics Ltd (BDL), founded in 1970 and headquartered in Hyderabad, is a public sector undertaking under the Ministry of Defence, Government of India. BDL specialises in the manufacture of guided missile systems, underwater weapons, and allied defence equipment.
The FII has increased its stake in Bharat Dynamics Ltd from 2.95 percent in the March quarter of 2024 to 3.25 percent in the March quarter of 2025, marking an increase of 10.1 percent on a YoY basis.
Written by Sridhar J
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