- Defence Acquisition Council approved Rs 1.1 lakh crore in defence purchases mainly for Indian firms
- MTAR Technologies expects sizable orders from the defence sector due to this policy shift
- MTAR has experience in defence, nuclear, and space sectors aiding its position for new orders
India's Defence Acquisition Council has given the initial go-ahead for defence purchases worth Rs 1.1 lakh crore, and nearly all of it, around 98%, is set to go to Indian companies instead of foreign suppliers. This clearance, known as an acceptance of necessity, is the first formal step before the government actually places these orders.
P Srinivas Reddy, managing director and promoter of MTAR Technologies, said his company expects to benefit from this, calling the opportunity "sizable", though he said it was too early to put an exact number on it. "We are already in the defence sector for many years. We're expecting sizable orders to come in. But it will take a little time, but we're already working on many projects, even now," Reddy told NDTV Profit.
He explained that MTAR spent years helping build defence and other high-tech products within India instead of importing them, and that this experience puts the company in a good position now.
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"You can't tag specific numbers to this. I have seen a lot of changes happening over the last three, four years. This is not new to us," he said, adding that similar work done in the past for India's nuclear and space programmes could now extend further into defence.
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The comments come at a strong moment for the company. MTAR's share price has tripled in 2026 so far, helped by a very good April-June quarter, in which revenue jumped around 130% compared to the same period last year.
The company's total pending orders have already crossed what it had originally targeted for the full year, and it now expects to grow business by 80% this financial year.
Reddy said this growth should continue. "We will grow quarter on quarter basis, and also obviously year on year basis as well. So everything is on track," he said.
Beyond defence, Reddy said the company's nuclear energy business currently has its highest-ever order book, and that MTAR plans to enter a completely new business area, oil and gas, starting around October or November this year.
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