Apollo Micro, Paras Defence, BEL, HAL: Defence stocks today soar up to 9% as DAC clears ₹2.12 lakh crore proposals
Defence stocks today: Defence stocks rallied up to 9% on Tuesday after the Defence Acquisition Council (DAC) approved capital procurement proposals worth approximately ₹2.12 lakh crore, strengthening the sector's order pipeline and reinforcing expectations of sustained military modernisation spending.
With around 82% of the approved procurements earmarked for Indian industry, the clearances also highlighted the government's continued push towards domestic defence manufacturing.
Apollo Micro Systems led the gains, rising 8.7%, followed by Data Patterns at 8.1%, Paras Defence at 7.3% and Astra Micro Systems at 5.9%. MTAR Technologies hit its 5% upper price band, while Midhani, Hindustan Aeronautics (HAL), Bharat Electronics (BEL), BEML and Mazagon Dock Shipbuilders advanced 3-4%.
Aequs was the exception, declining 19% after reporting a wider net loss of ₹52.2 crore in Q2 FY27, compared with ₹20.6 crore a year earlier, despite 45% year-on-year revenue growth.
The DAC granted Acceptance of Necessity (AoN) for a broad range of military equipment covering mobility, surveillance, air defence, precision strikes and counter-drone warfare.
For the Indian Army, the approvals included High Mobility Vehicles, Self-Propelled Tracked Gun Systems, Gun Shot Response Systems, Light Multi Role Helicopters (LMRHs), Very Short-Range Air Defence Systems (VSHORADS) and Platform-Based Counter Unmanned Aerial Systems. The list also covered long-range unmanned aerial systems, surveillance UAVs, an Integrated Surveillance and Strike System and Long Range Kamikaze Drone Systems.
The Indian Air Force received clearances for helicopters, air-defence systems, weapons and mobile X-Band Doppler Weather Radar Systems. Special Utility Helicopters are intended to meet air-transport requirements, while the weather radars will support high-resolution, localised surveillance in forward areas.
For the Indian Navy, the approvals included Active Offboard Decoy Systems (AODS), which are expected to strengthen protection against anti-ship missiles, along with other naval platforms to be designed and built indigenously.
Antique Stock Broking remained constructive on the sector, stating that the latest clearances strengthened the medium-term procurement pipeline for both public- and private-sector defence companies. It identified HAL and BEL as potential beneficiaries.
"We believe India's defence sector is on a multi-year structural upcycle, driven by a steady growth in budgeted capital expenditure over FY2026-30E, surging acceptance of necessity (AON) approvals, with cumulative approvals of ₹18.9 trillion in FY2023-YTD FY27 vs ₹9.2 trillion in FY13-22, and push toward indigenization," the brokerage said.
Antique has BUY ratings on HAL, BEL, Solar Industries, Astra Microwave and Krishna Defence and Allied Industries.
However, the brokerage cautioned that sustained revenue growth would depend on faster conversion of AoN approvals into contracts and the conversion of the sizeable procurement pipeline into executable orders.
Meanwhile, Bajaj Broking also described India's defence sector as an attractive long-term structural growth opportunity within the manufacturing universe. It highlighted the potential support from military modernisation, increasing localisation, a strong domestic order pipeline, rising exports and sustained policy backing.
The brokerage also pointed to the Defence Acquisition Procedure, positive indigenisation lists, defence industrial corridors and liberalised foreign direct investment norms as measures supporting the domestic manufacturing ecosystem.
Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism. <br><br> Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market veterans, fund managers, economists, and industry experts. Her work often combines on-ground reporting with analytical depth, helping readers make sense of daily market fluctuations and longer-term trends. An alumnus of the Symbiosis Institute of Media and Communications and Hansraj College, University of Delhi, Pranati brings a strong academic foundation to her journalism. She specialises in real-time financial reporting, with a keen focus on precision, balance, and insight, aiming to decode market movements in a way that is both informative and accessible to readers across experience levels.
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HomeMarketsStock MarketsApollo Micro, Paras Defence, BEL, HAL: Defence stocks today soar up to 9% as DAC clears ₹2.12 lakh crore proposals
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