India’s defence exports have grown exponentially over the past decade, rising from Rs. 686 crores in FY14 to Rs. 23,622 crores in FY25. The private sector accounted for Rs. 15,233 crore of these exports, while Defence Public Sector Undertakings (DPSUs) contributed Rs. 8,389 crore. Defence exports also increased 12 percent YoY in FY25, and in FY26 (April-September 2025), exports have already touched Rs. 9,131 crore – highlighting India’s expanding footprint in the global defence industry.
For FY26, the Ministry of Defence (MoD) received a total budgetary allocation of Rs. 6.81 lakh crore, marking a 9.5 percent YoY increase. Out of this, Rs. 1.80 lakh crore was earmarked for capex to support the acquisition of new aircraft, warships, weapons systems, and other modern defence equipment. Additionally, Rs. 7,146 crore was allocated to the Border Roads Organisation (BRO) to bolster infrastructure development in strategically important regions.
Following are some notable defence stocks trading at a discount of up to 46 percent, worth keeping on your radar:
Bharat Dynamics Limited
With a market cap of Rs. 56,817 crores, the stock surged nearly 1.3 percent on Thursday. The stock hit its 52-week high at Rs. 2,096 on 30th May 2025, and compared to the current price levels of Rs. 1,550.5, the stock is trading at a discount of nearly 26 percent.
In Q2 FY26, the company’s revenue from operations increased by around 110 percent YoY to Rs. 1,147 crores, while the net profit grew by nearly 76 percent YoY to Rs. 216 crores.
Bharat Dynamics Limited (BDL), a Government of India Enterprise under the Ministry of Defence, is engaged in the business of manufacturing missiles and allied defence equipment. The company provides the majority of its goods and services to the Indian Armed Forces and the Government of India.
Shree Refrigerations Limited
With a market cap of Rs. 766 crores, the stock slumped nearly 2.3 percent on Thursday. The stock hit its 52-week high at Rs. 311.5 on 8th October 2025, and compared to the current price levels of Rs. 215, the stock is trading at a discount of nearly 31 percent.
In H1 FY26, the company’s revenue from operations decreased by around 2 percent YoY to Rs. 50 crores, while the net profit also declined by nearly 75 percent YoY to Rs. 2 crores.
Shree Refrigerations Limited is engaged in the business of manufacturing multi-product refrigeration and air-conditioning appliances and testing equipment for the refrigeration and air-conditioning industry. It is a leading player in the design, supply and installation of HVAC in the defence segment and specifically to the Indian Navy, as well as produces high-quality chillers for the chemical and pharmaceutical sectors.
Sika Interplant Systems Limited
With a market cap of Rs. 2,185 crores, the stock surged nearly 1 percent on Thursday. The stock hit its 52-week high at Rs. 1,624.95 on 19th June 2025, and compared to the current price levels of Rs. 1,032, the stock is trading at a discount of nearly 36 percent.
In Q2 FY26, the company’s revenue from operations increased by more than 55 percent YoY to Rs. 51.6 crores, while the net profit grew by nearly 45 percent YoY to Rs. 9 crores.
Sika Interplant Systems Limited is actively involved in four main areas, namely, engineering (design and development); manufacturing, assembly and testing; projects and systems integration; and maintenance, repair and overhaul (MRO).
Additionally, the company’s in-house capabilities in technology development and production are complemented by tie-ups with international partners. The majority of its business is catered to serving the aerospace, defence & space (AD&S) and automotive sectors.
Unimech Aerospace and Manufacturing Limited
With a market cap of Rs. 4,950 crores, the stock surged nearly 1 percent on Thursday. The stock hit its 52-week high at Rs. 1,523.6 on 2nd January 2025, and compared to the current price levels of Rs. 973, the stock is trading at a discount of nearly 36 percent.
In Q2 FY26, the company’s revenue from operations increased marginally by around 2 percent YoY to Rs. 62 crores, while the net profit declined by nearly 11 percent YoY to Rs. 16 crores.
Unimech Aerospace and Manufacturing Limited is a precision engineering company engaged in offering a wide range of manufacturing solutions for mission-critical, high-complexity, and low-volume components. The company’s product portfolio spans aerospace tooling systems, ground support equipment, electro-mechanical sub-assemblies, and high-precision machined components.
HFCL Limited
With a market cap of Rs. 10,605 crores, the stock surged nearly 1 percent on Thursday. The stock hit its 52-week high at Rs. 135.95 on 28th November 2024, and compared to the current price levels of Rs. 73.5, the stock is trading at a discount of nearly 46 percent.
In Q2 FY26, the company’s revenue from operations decreased marginally by around 5 percent YoY to Rs. 1,043 crores, while the net profit also declined by nearly 1.4 percent YoY to Rs. 72 crores.
HFCL Limited is a diverse telecom infrastructure enabler with active interest spanning telecom infrastructure development, system integration, and manufacture and supply of high-end telecom equipment, optical fibre and optical fibre cable (OFC).
The company has developed capabilities to provide premium quality optical fibre and OFC, advanced telecom products, including 5G Radio Access Network (RAN) products, 5G Transport Products, Wi-Fi systems (Wi-Fi 6, Wi-Fi 7), high capacity backhaul radios, switches, routers and defence electronics products viz. thermal weapon sights, electronic fuzes, high-capacity radio relay and surveillance radars.
Written by Shivani Singh
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