Defense – Sector Update – DAC AoN of INR1.1trn accelerates indigenization
Published on 08 Sep 2026
The Defense Acquisition Council (DAC) has accorded AoN for capital acquisitions of ~INR1.1trn across the Army, Navy and Air Force, spanning mobility and combat engineering platforms, CBRN preparedness, helicopters, radars, marine propulsion, electronic warfare and secure communications. With YTD AoN for FY27 now standing at ~INR1.6trn, the steady cadence of approvals underscores a sustained defense capex upcycle and the government’s continued push toward indigenization under Atmanirbhar Bharat. Importantly, ~98% of the latest procurements are expected to be sourced from Indian industry, reinforcing the focus on higher localization and private-sector participation. We believe the AoN provides strong multi-year order and earnings visibility for domestic defense manufacturers.
