Defence Stocks Surge as India's Defence Production Hits Record Rs 1.78 Lakh Crore in FY26

Leading the gains was Paras Defence and Space Technologies, whose shares surged 11.78 per cent to Rs 1,217.70. Hindustan Aeronautics Ltd (HAL) advanced 3.58 per cent to Rs 4,408, while Bharat Dynamics climbed 4.25 per cent to Rs 1,289.30.

Other major defence stocks also registered gains. Mazagon Dock Shipbuilders rose 2.37 per cent to Rs 2,526, Bharat Electronics Ltd (BEL) gained 1.61 per cent to Rs 414.10, and Bharat Forge added 0.51 per cent to Rs 2,022.60.

Defence Minister Rajnath Singh welcomed the achievement and credited Prime Minister Narendra Modi's leadership and the collective participation of industry stakeholders for the record performance.

"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 Rs 1.78 lakh crore in the Financial Year 2025-26," Singh said in a post on X.

Highlighting the scale of growth, Singh noted that the latest figure represents a 15.6 per cent increase over the previous financial year's production of Rs 1.54 lakh crore. He further stated that the sector has recorded a remarkable 110 per cent rise since FY 2020-21, when defence production stood at Rs 84,643 crore. Indigenous defence production has also increased nearly fourfold from Rs 43,746 crore recorded in FY 2013-14.

According to the Ministry of Defence, Defence Public Sector Undertakings (DPSUs) and other public-sector entities accounted for approximately 76 per cent of total defence production during FY26. The private sector contributed the remaining 24 per cent, underscoring its growing role in the country's defence manufacturing ecosystem.

Private-sector defence production reached a record level of around Rs 42,000 crore during FY26. The figure rose from 22 per cent of total output in FY25, reflecting increasing participation by domestic companies and expanding manufacturing capabilities within the sector.

The government also highlighted the strong performance of defence exports, which reached a record Rs 38,424 crore during FY26. The export milestone further strengthened investor confidence and reinforced expectations of sustained growth for domestic defence manufacturers.

"The remarkable rise in India's defence production in recent years is the result of the collective efforts of the Department of Defence Production and all other stakeholders," Singh said. "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."

The record-breaking production and export figures have reinforced market expectations of stronger order inflows and improved execution opportunities across the defence sector. The milestone highlights India's rapidly expanding defence industrial base and reflects the growing strength of both public and private manufacturers as the country advances toward greater self-reliance and a larger presence in the global defence market.