- Nifty India Defence index surged nearly 26% in 2026 on govt focus on self-reliance
- MoD approved Rs 6.7 lakh crore AoNs in FY26, boosting defence sector growth outlook
- Antique Stock Broking recommends HAL, BEL, BDL, Zen Tech, Solar Ind, PTC, Mazagon Dock
Defence stocks in India have seen a sharp rally, with the Nifty India Defence index surging nearly 26% in 2026 so far, boosted by the government's sustained focus on self-reliance in defence manufacturing and accelerated procurement from domestic private sector players. The long-term programs in rockets, ammunition and advanced weapon systems are creating recurring supply opportunities.
Heightened global geopolitical tensions and have created a multiyear demand cycle for Missiles, Aircrafts, Anti-drone systems, Ammunition, Rockets and High-energy materials.
The Ministry of Defence has accorded AoNs of Rs 6.7 lakh crore in FY26, and analysts expect defence companies have strong growth opportunities in the foreseeable timeframe.
Antique Stock Broking believe that ordering pipeline for FY26-27 remains robust and reiterated ‘Buy' on Hindustan Aeronautics Ltd (HAL), Mazagon Dock Shipbuilders, and Bharat Electronics (BEL), Bharat Dynamics (BDL), Zen Technologies, Solar Industries India, and PTC Industries.
Here are defence stocks to buy:
HAL | Buy | Target Price: Rs 6,026
Hindustan Aeronautics (HAL) being a monopoly play in defence aerospace would emerge as one of the key beneficiaries of the ordering momentum. Antique Stock Broking believes HAL's supply chain woes appear to be nearing an end as GE delivered seven engines to the defence PSU so far and is expected to deliver 15-20 more in FY27 for the Tejas Mk-IA aircraft.
With expected final operational clearance by September 2026, the brokerage firm estimates delivery of LCAs to drive revenue growth in FY27-28.
Antique Stock Broking retained its positive stance on the stock, and raised HAL share price target to Rs 6,026, valuing the company at 40x its H1FY28 EPS estimates.
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Bharat Electronics | Buy | Target Price: Rs 532
Antique Stock Broking believes BEL remains well-positioned for sustained growth, supported by a robust execution pipeline, healthy order inflow prospects, and continued investments in indigenisation and R&D.
Coupled with increasing indigenous content, healthy export opportunities, and investments in next-generation defence technologies, the brokerage firm remains positive on BEL's long-term growth outlook.
It retained positive stance on the company and maintained ‘Buy' rating on the stock with BEL share price target of Rs 532 apiece, valuing the company at 45x its H1FY29 EPS estimates.
Bharat Dynamics | Buy | Target Price: Rs 1,597
The Government of India's focus on defence modernization and self-reliance provides a strong tailwind for Bharat Dynamics' growth. Given the strong order book and a huge export opportunity available to Bharat Dynamics, the brokerage firm continues to remain positive on the company's long-term business prospects and maintains its positive stance on the company.
It has a ‘Buy' rating on Bharat Dynamics shares, with a target price of Rs 1,597 apiece.
PTC Industries | Buy | Target Price: Rs 24,415
The brokerage firm expects PTC Industries to enter a phase of accelerated growth as recently commissioned facilities ramp up and a strong order pipeline converts into revenue. It projects EBITDA of Rs 6.9 billion in FY28, and Rs 16.5 billion in FY30, resulting in significant RoCE and free cash flows. Net profit is expected to grow by 12x from Rs 1.0 billion in FY26 to Rs 12.2 billion by FY30.
With significant capacity creation completed and a robust order book providing strong revenue visibility, the brokerage firm reiterated its ‘Buy' call on PTC Industries shares with a target price of Rs 24,415 apiece.
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Zen Technologies | Buy | Target Price: Rs 2,000
Zen Technologies remains well-positioned in Simulators and Anti Drone Segment (ADS). Order book is strong at Rs 12.4 billion, up 64% YoY. Moreover, the company is expecting good order wins in the near term, and targets an order book of Rs 25 billion by FY27-end.
The outlook remains positive for Simulators as well as Drones/ Anti Drone segments, Antique Stock Broking said. It maintained a ‘Buy' call on Zen Technologies shares and raised the target price to Rs 2,000 from Rs 1,805 earlier.
Solar Industries | Buy | Target Price: Rs 21,408
The brokerage firm remains positive on Solar Industries given its leadership position in industrial explsoives, backward integration, geographical diversification, and rising demand for high energy materials as geopolitical tensions are driving countries to upgrade their defence preparedness.
The brokerage firm maintained its ‘Buy' rating and raised target price to Rs 21,408 per share.
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Mazagon Dock Shipbuilders | Buy | Target Price: Rs 3,275
The brokerage firm expects the finalisation of the P75I order in the coming weeks, which should reverse the declining trend in the order book of Mazagon Dock Shipbuilders. Beyond this, the medium-term outlook remains positive from an order perspective as the Indian Navy is at the cusp of a significant ordering cycle, with a robust pipeline including P75I submarines, three additional submarines under P75, LPDs, P17B frigates, MCMVs, and Destroyers.
Moreover, the follow-on orders for three Scorpene submarines and six P75-I submarines can significantly elevate the order book and drive medium-term revenue growth. It maintained a ‘Buy' rating on Mazagon Dock Shipbuilders shares, with a target price of Rs 3,275 apiece.
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