5 Companies Leading Arms and Ammunition Manufacturing in India

#2 Bharat Electronics

Next on the list is Bharat Electronics (BEL).

BEL is a Government of India undertaking Navratna PSU and a state-run defence equipment manufacturer.

The company is a leading aerospace and defence electronics player catering primarily to the Indian Armed Forces, with a growing presence is many defence segments, including arms and ammunition.

While Bharat Electronics is not a pure-play arms and ammunition manufacturer, it has meaningful exposure to the segment through its product portfolio.

Specifically, it has exposure to the arms and ammunition space through its missile systems such as Akash and LRSAM, precision weapon systems, and accessories including electronic fuses, seekers used in guided missiles, and tank electronics and gun upgrades.

Additionally, the company's Bengaluru operations include arms and ammunition as one of its key business segments, alongside military communications, weapon systems, naval systems, electronic warfare, and unmanned systems.

This highlights BEL's diversified presence across multiple defence domains, including selective exposure to weapons and ammunition.

According to its FY25 annual report, Bharat Electronics is focusing on several defence-related areas, including next-generation arms and ammunition, precision-guided munitions, smart weapons, missile electronics, and unmanned systems.

On the financial front, over the past three years, the company's revenue has seen a CAGR growth of 15.6%. Meanwhile, net profit grew at a CAGR of 31%.

The company is debt-free. The three-year average ROE and ROCE stand at 23.9% and 32.1%.

Bharat Electronics's Financial Snapshot

For more details, see the BHARAT ELECTRONICS company fact sheet and quarterly results.

#3 Solar Industries

Next on the list is Solar Industries.

The company is among the world's leading manufacturers and suppliers of explosives, initiating systems and ammunition.

Solar Industries operates in over 90 countries and has more than 40 manufacturing facilities across 9 countries, reflecting its expanding international footprint.

The company has built a diversified ammunition portfolio that includes 30 mm ammunition, 81 mm ATAL, 155 mm ammunition, multi-mode hand grenades, mines, bombs, warheads, and bundled blasting devices.

In FY24, Solar Industries also supplied fully indigenous 30 mm ammunition to the Indian Navy, marking a key milestone in its defence manufacturing capabilities.

Beyond ammunition, the company's offerings span high-performance energetic materials, next-generation explosive devices, medium and high-calibre ammunition, rockets, missiles, and UAVs.

Going forward, the company plans to expand into advanced ammunition markets.

On the financial front, over the past three years, the company's revenue has seen a CAGR growth of 24.1%. Meanwhile, net profit grew at a CAGR of 41.4%.

The company is debt-free. The three-year average ROE and ROCE stand at 29% and 36.7%.

Solar Industries's Financial Snapshot

For more details, see the SOLAR INDUSTRIES company fact sheet and quarterly results.

#4 Bharat Forge

Next on the list is Bharat Forge.

Bharat Forge has been steadily expanding its presence in the arms and ammunition space through its defence subsidiary, Kalyani Strategic Systems Limited (KSSL).

Its defence portfolio spans artillery guns, small arms, protected vehicles, and consumables, placing the company within the broader arms and ammunition ecosystem.

As per its FY25 annual report, a key thrust area for the company is the small arms segment, where it has made significant investments to build a globally competitive product portfolio.

The company sees strong growth potential in this vertical, with expectations to replicate the success achieved in its other defence segments.

Bharat Forge holds arms manufacturing licences issued by the Ministry of Home Affairs and the Department for Promotion of Industry and Internal Trade.

To further strengthen its capabilities, it's setting up a state-of-the-art manufacturing facility at Jejuri near Pune, which is expected to commence operations in H1 FY26.

Once operational, this facility is expected to significantly enhance the company's capacity to manufacture artillery guns and other arms-related products.

On the financial front, over the past three years, the company's revenue has seen a CAGR growth of 13.1%. Meanwhile, net profit saw a growth from Rs 5,084 m in 2023 to Rs 9,133 m in 2025.

The three-year average ROE and ROCE stand at 10.1% and 17.5%.

Bharat Forge's Financial Snapshot

For more details, see the BHARAT FORGE company fact sheet and quarterly results.

#5 Paras Defence and Space Technologies

Next on the list is Paras Defence and Space Technologies.

Paras specialises in precision products and turnkey systems for the defence and space sectors.

The company operates across two key verticals - Optics and Optronic Systems and Defence Engineering - which includes defence electronics, electromagnetic pulse (EMP) protection solutions, and heavy engineering.

Over the past four decades, Paras Defence has developed technologies for rockets and missiles, naval platforms, armoured vehicles, electronic warfare, and surveillance systems.

Strengthening its presence in the arms and ammunition segment, the company was granted a licence on 6 January 2025, under the Arms Act, 1959, to manufacture MK-46 and MK-48 belt-fed light machine guns.

This development marks Paras Defence's entry into the small arms manufacturing space.

On the financial front, over the past three years, the company's revenue has seen a CAGR growth of 25.9%. Meanwhile, net profit saw a growth of 31.4%.

The three-year average ROE and ROCE stand at 8.4% and 12.8%.

Paras Defence's Financial Snapshot

For more details, see the PARAS DEFENCE & SPACE TECH company fact sheet and quarterly results.

Conclusion

The demand for arms and ammunition in India is witnessing a strong uptrend, driven by defence modernisation, heightened border security requirements, and a strategic push for indigenisation under the Atmanirbhar Bharat initiative.

At the same time, ongoing geopolitical tensions and conflicts in regions such as Europe and West Asia have led to a surge in global demand for explosives and ammunition.

This rising demand is also reflected in India's growing defence exports, which crossed Rs 236.22 bn in FY25, highlighting the increasing global competitiveness of Indian defence manufacturers. These developments have brought companies operating in the arms and ammunition space into focus.

However, while the long-term outlook appears promising, investors should be mindful that defence orders are often lumpy in nature and dependent on government spending and policy decisions.

As a result, tracking order inflows, execution capabilities, and export opportunities remains key when evaluating companies in the arms and ammunition space.

Investors should carefully evaluate these companies' fundamentals, corporate governance, and valuations as key factors when conducting due diligence before making investment decisions.

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