- Defence Acquisition Council approved Rs 52,000 crore capital acquisition proposals for armed forces
- Approvals include anti-drone systems, missiles, air defence, unmanned systems, and surveillance tech
- Indian Army, Navy, and Air Force received clearance for various indigenous defence platforms
Defence stocks are expected to remain in focus after the Defence Acquisition Council (DAC) approved capital acquisition proposals worth about Rs 52,000 crore, paving the way for future procurement orders across the Army, Navy and Air Force.
The DAC, chaired by Defence Minister Rajnath Singh, granted Acceptance of Necessity (AoN) for a wide range of indigenous defence systems aimed at strengthening the armed forces' operational preparedness.
While an AoN is the first step in the procurement process and does not immediately translate into contract awards, it often signals a robust pipeline of future orders for defence manufacturers.
According to the Ministry of Defence, the approvals span anti-drone systems, missiles, air defence platforms, unmanned systems and surveillance capabilities.
For the Indian Army, the DAC approved the procurement of the AKASH TARANG anti-Unmanned Aerial Vehicle (UAV) electronic warfare system, Man Portable Anti-Tank Guided Missile (MPATGM) systems, Medium Range Surface-to-Air Missile (MRSAM) weapon systems, Very Short Range Air Defence System (V-SHORADS), Active Protection Systems for tanks and jet-based kamikaze drone systems.
For the Indian Navy, the council cleared procurement of Multi Influence Ground Mines (MIGM), Naval Shipborne Unmanned Aerial Systems (NSUAS) and the establishment of a Land Based Testing Facility (LBTF) for electric propulsion systems.
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The Indian Air Force received approval for Fixed-Wing High Altitude Pseudo Satellites (FW-HAPS) and other systems to enhance intelligence, surveillance, reconnaissance, telecommunications and remote sensing capabilities.
The approvals are expected to keep several state-owned defence companies on investors' radar, given their strong execution track record and existing product portfolios.
Bharat Dynamics could be among the key beneficiaries, as the company has been a major supplier of missile systems and has previously secured contracts for Akash missiles, anti-tank guided missiles and other strategic weapon platforms.
Bharat Electronics may also attract attention due to its expertise in radar, electronic warfare systems, air defence solutions and command-and-control systems. The company has been a key supplier for several indigenous defence programmes and has consistently won large orders from the armed forces.
BEML is another stock likely to remain in focus, given its role in supplying military vehicles, engineering equipment and support platforms for the Army and other defence agencies.
Other defence public sector companies such as Hindustan Aeronautics Limited and Mazagon Dock Shipbuilders Limited could also see investor interest as the procurement pipeline for indigenous platforms continues to expand.
Among private sector players, Apollo Micro Systems Limited is expected to be closely watched.
The Hyderabad-based defence electronics company has capabilities that overlap with several of the systems approved by the DAC. Many of these fall under the company's Department for Promotion of Industry and Internal Trade (DPIIT) lifetime arms manufacturing licence granted in April 2026, which covers missiles, anti-tank guided missiles (ATGMs), torpedoes and loitering munitions.
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