Defence Stocks Surge as India’s Production Hits Record ₹1.78 Lakh Crore

Mumbai | 17 June 2026 

Shares of defence companies climbed on Wednesday after the Ministry of Defence announced that India’s annual defence production touched an all-time high of ₹1.78 lakh crore in FY26. 

How Did Defence Stocks React? 

Paras Defence and Space Technologies led the rally, rising 11.78 per cent to ₹1,217.70. Other defence counters also advanced. 

• Bharat Dynamics: up 4.25 per cent to ₹1,289.30 

• Hindustan Aeronautics (HAL): up 3.58 per cent to ₹4,408 

• Mazagon Dock Shipbuilders: up 2.37 per cent to ₹2,526 

• Bharat Electronics (BEL): up 1.61 per cent to ₹414.10 

• Bharat Forge: up 0.51 per cent to ₹2,022.60 

The rally extended gains across both public and private defence companies after the government released its annual production data. 

What Did the Defence Minister Say About the Growth? 

Defence minister Rajnath Singh welcomed the milestone and credited Prime Minister Narendra Modi’s leadership along with industry-wide participation. In a post on X, Singh said: “Under the inspiring leadership of PM Shri Narendra Modi, India’s defence production is reaching new heights every year. I am delighted to inform everyone that India’s annual defence production has surged to an all-time high of ₹1.78 lakh crore in the financial year 2025-26.” 

Calling the growth trajectory remarkable, Singh added: “This milestone represents an impressive 15.6 per cent growth over the previous fiscal year’s output of ₹1.54 lakh crore and a staggering 110 per cent increase since FY 2020-21, when the figure stood at ₹84,643 crore. Indigenous defence production has increased nearly fourfold from ₹43,746 crore in FY 2013-14.” 

How Is Production Split Between Public and Private Sectors? 

The Ministry of Defence said Defence Public Sector Undertakings and other public sector entities accounted for about 76 per cent of total defence production in FY26, with the private sector contributing the remaining 24 per cent. The private sector’s share rose from 22 per cent in FY25. In absolute terms, private sector production reached a record level of around ₹42,000 crore. 

India’s defence exports also touched a record ₹38,424 crore in FY26. 

Outlook 

Singh said the growth reflected the combined efforts of the Department of Defence Production and other stakeholders. “This upward trajectory is a clear indicator of the country’s expanding defence industrial base. With sustained policy support, several new initiatives, increased private sector participation and growing export capabilities, the defence production sector is poised for continued acceleration in the years ahead,” he said. 

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