Top Performing Defence Stocks of 2026 so far

#2 Krishna Defence and Allied Industries

Next on the list is Krishna Defence and Allied Industries.

The company supplies critical systems and components to the Indian Navy and Army. Its products include shipbuilding steel sections, special steel alloys, weld consumables, and armoured steel profiles - all developed under India's Make in India vision.

The stock has rallied 41.7% in 2026 so far, rising from Rs 809 on 1 January 2026 to Rs 1,147 currently.

The move was backed by a record breaking Q3 FY26 performance. Revenue grew 23.4% YoY to Rs 637 m, while net profit surged 163.9% YoY to Rs 102 m - highest ever in company history.

EBITDA margins expanded sharply by over 1,000 bps YoY to 22.2%, reflecting not just growth but improving business quality. Company has order book of Rs 1,423 m.

Beyond the numbers, the company is making bold strategic moves. It recently acquired the technology for India's largest Autonomous Underwater Vehicle (AUV) from CSIR-NIO and has commenced its construction in Chennai.

It has also entered a joint venture with Netherlands based VABO composite for fire-resistant naval doors and hatches, currently in final trials with the Indian Navy.

Management has guided for 30%+ CAGR over the next 3 to 5 years. With India's navy targeting 175-200 warships by 2035 and a record defence budget of Rs 7.85 tn in FY27, the order pipeline for a company like Krishna Defence looks compelling.

#3 Garden Reach Shipbuilders & Engineers (GRSE)

Next on the list is Garden Reach Shipbuilders & Engineers (GRSE).

It's a defence shipbuilding company engaged in the construction of warships, frigates, patrol vessels, anti-submarine warfare ships, and other naval platforms for the Indian Navy and Coast Guard.

The stock has surged 26.3% in 2026 so far, rising from Rs 2,450 on 1 January to Rs 3,094 currently.

The stock also gained momentum after the company reported strong Q4 FY26 performance. Revenue rose 29% YoY, while net profit grew 24% YoY.

For FY26, GRSE reported its highest-ever financial performance, with revenue crossing Rs 70,000 m and net profit reaching Rs 7,480 m, reflecting strong execution and healthy operational growth.

GRSE has a strong order pipeline. Management expects the order book to strengthen significantly from Rs 184 bn currently to nearly Rs 500 bn by the end of FY26, supported by the expected finalisation of the large Next Generation Corvette project.

Apart from defence, GRSE is also expanding into commercial shipbuilding and export opportunities.

The company is executing export vessel projects for Germany and Bangladesh, while also expanding its manufacturing capacities via brownfield and greenfield facilities West Bengal and Gujarat.

#4 Astra Microwave Products

Next on the list is Astra Microwave Products.

A leading defence electronics company engaged in radar systems, electronic warfare, telemetry, space electronics, and advanced RF & microwave solutions for India's defence and space sector.

The stock has remained among the strong-performing defence counters in 2026 so far, supported by healthy order inflows, strong margins, and rising opportunities in defence electronics.

The company delivered its highest ever nine-month performance during FY26. In Q3 FY26, revenue was Rs 2,580 m, while EBITDA grew 7% YoY to Rs 800 m with EBITDA margins expanding to 30.9%.

The company also reported a healthy order book of Rs 22.26 bn as of December 2025, providing strong revenue visibility across defence, radar electronics, space, and meteorological segments.

Astra Microwave continues to strengthen its position in high-value defence electronics and electronic warfare systems. The company is participating in many indigenous defence programs, and expanding opportunities in radar systems, missile electronics, telemetry, and advanced space applications.

It's increasingly focused on complex systems and complete solutions, which could support long-term margin expansion and stronger growth visibility.

Apart from this, the company is also witnessing improving export opportunities, particularly after rising global defence spending and increasing collaboration with international defence players.

Astra Microwave already exports components and subsystems to continues such as Israel, the US, and Singapore while strengthening partnerships with global defence companies.

#5 Zen Technologies

Next on the list is Zen Technologies.

Zen Technologies is a leading defence technology company engaged in combat training simulators, anti-drone system, loitering munitions, combat robotics, and advanced defence training solutions.

The stock has rallied 18.1% in 2026 so far, from Rs 1,373 on 1 January to Rs 1,622 currently.

The company's Q4 FY26 performance remained relatively muted due to delays in order execution timing. Revenue declined 45% YoY to Rs 1.78 b, while PAT stood at Rs 315 m.

However, the company maintained healthy operational EBITDA margins at 28.6%, reflecting the strength of its high-value defence technology portfolio.

Zen Technologies ended FY26 with a strong consolidated order book of Rs 13.36 bn, with nearly Rs 10 bn expected to be executed in FY27, providing healthy revenue visibility for the coming quarters.

The company is expanding into next generation defence technologies such as AI-enabled anti-drone systems, interceptor drones, combat robotics, smart ammunition, and naval simulation solutions.

Conclusion

The global defence landscape is evolving rapidly amid rising geopolitical tensions, increasing drone warfare, missile attacks, and growing security concerns across regions.

As countries continue to strengthen their military capabilities, defence modernisation and indigenous manufacturing have become major priorities globally.

For India, the government's strong focus on "Make in India", higher defence allocation, borders security, and technological self-reliance is creating significant long-term opportunities for domestic defence companies.

Anti-drone systems, electronic warfare, radars, naval platforms, combat robotics, missile systems, and aerospace electronics are witnessing rising investments and stronger order inflow.

But investors should note that defence firms typically face long execution cycles, dependence on government spending, regulatory clearance, and delays in order conversion and project execution.

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