3 Defence Stocks with Strong Order Book

#2 Mazagon Dock Shipbuilders

Next on our list is the stock of Mazagon Dock.

The company is one of India's leading public sector shipyards under the Ministry of Defence, specialising in building warships and submarines for the Indian Navy.

The company is India's only shipyard to have built destroyers, conventional submarines for the Indian Navy & manufactured Corvettes in India.

Order Book Details

Mazagon Dock has been receiving massive orders in line with government initiatives to boost defence spending.

As of 31 December 2025, the company had a massive order book of Rs 237.58 bn. The company is completing several high profile projects including the P15B Destroyers (project value of Rs 287.45 bn), P17A Stealth Frigates (project value of Rs 272.54 bn) and P75 Kalvari Submarines with project value of Rs 296.21 bn.

Moving ahead, Mazagon Dock benefits from strong government backing, a near-monopoly in submarine construction in India, and a robust order book driven by defence indigenisation policies like "Make in India." Its long-term contracts provide good revenue visibility.

#3 Garden Reach Shipbuilders & Engineers

The company is a premier Defence Public Sector Undertaking (PSU) under the Ministry of Defence, Government of India.

Headquartered in Kolkata, it is one of India's leading warship-building companies catering mainly to the Indian Navy and Indian Coast Guard.

Order Book Details

In a recent investor concall, the management said that the order book position as of 31st December 2025 stood at Rs 184.82 bn. Interestingly, this is the first time that the order book has dipping below Rs 200 bn. According to the management, this is good news, as the execution rate has picked up.

The order book comprises of 10 projects consisting of 42 platforms. And these include four projects of the Indian Navy, the P-17 Alpha projects. The company has delivered one of the three ships and two more ships are under construction.

The second ship has almost touched the 93% physical progress, and the company intend delivering the ship shortly.

In addition to defence platforms, GRSE is also executing one project for the government of West Bengal. It's a small project, but a very interesting project that is for hybrid ferries. It is a 13-vessel project, and two different sizes, 7 ships of 100 passengers and 6 ships of 200 passengers.

The company will start commencing the delivery during this financial year and the project will be closed during the first half of FY28.

Moving ahead, Garden Reach Shipbuilders & Engineers has strong prospects driven by rising naval spending, a healthy order book, and export opportunities.

Its execution capabilities and focus on indigenisation support growth. However, dependence on government orders and project delays remain key risks.

Should You Consider Defence Stocks with Strong Order Book?

Considering defence stocks with a strong order book can be a balanced strategy, but it requires careful evaluation.

A robust order book provides revenue visibility and indicates sustained demand, especially in countries like India where government focus on indigenisation and defence spending is rising.

However, investors should remain cautious. Execution delays, dependence on government decisions, margin pressures, and policy changes can impact performance.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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