Defence Stocks in India Ranked by Order Book

As geopolitical tensions rise, India is focused on 'Atmanirbhar Bharat'. A big beneficiary of this megatrend is the Indian defence sector.

The government is increasing its defence spending, which has resulted in a massive increase in the order books of Indian defence companies.

This makes defence attractive to long-term investors and these stocks have caught the attention of investors on Dalal Street.

This article highlights defence stocks based on their order books.

Have a look...

#1 Hindustan Aeronautics

First on the list is Hindustan Aeronautics Ltd (HAL).

HAL is one of the largest aerospace and defence companies in India. It is engaged in the business of manufacturing, repairing, and maintaining aircraft and helicopters.

The company was conferred Maharatna status on 12th October 2024.

At the end of FY25, the company's order book was Rs 1,893 billion (bn), up from Rs 941.27 bn in FY24. This makes HAL's order book the largest among its peers.

The major new manufacturing contracts of the company total Rs 1,023.37 bn. These are the order for 240 AL-31FP engines (Rs 255 bn), the order for 156 LCH Prachand helicopters (Rs 627.77 bn), and the order for 12 Sukhoi-30MKI (Rs 134.54 bn).

Further the company has received repair & overhaul (ROH) orders worth Rs 192.71 bn, design & development orders worth Rs 31.80 bn, and export orders worth Rs 4.93 bn.

The company expects orders worth about Rs 1,000 bn over the next 1-2 years. These are orders for 97 LCA Mk1A aircraft, 143 ALH for IAF/Army, 10 DO-228 for Navy/Coast Guard, and the upgrade of 40 Dornier for the IAF. Also, additional ROH 0rders of Rs 200 bn are expected in the coming years.

The company has a capex plan of Rs 140-150 bn over the next five years for manufacturing lines of helicopters, fighter jets, trainer aircraft, and aero engines as well as ROH facilities.

The management has given a revenue guidance of 8-10% for FY26 and expects double-digit growth from FY27 as execution ramps up.

The company's earnings before interest, tax, depreciation, and amortisation (EBITDA) margin guidance is 38-39% over the medium term.

HAL's Financial Snapshot (FY 22-24)

(Rs m, Consolidated)	FY22	FY23	FY24
Revenue	246,200	269,275	303,811
Revenue Growth (%)	7.6	9.4	12.8
Net Profit	50,799	58,277	76,210
Net Profit Margin (%)	20.6	21.6	25.1
Return on Equity (%)	26.3	24.7	26.2
Return on Capital Employed (%)	27.4	27.9	35.2

Source: Equitymaster

Its revenue grew at a compounded annual growth rate (CAGR) of 9.9% over the past three years, while its net profit grew at a CAGR of 32.9%.

The company maintained strong financial health, with an average RoE of 25.7% and RoCE of 30.2%.

In FY25, revenue from operations was Rs 301.05 bn, up 7% YoY, Operating profit margin is 27%, with EBITDA margin of 38%, the net profit was Rs 83.64 bn, up 9.75% YoY.

#2 Bharat Electronics

Next on the list is Bharat Electronics Ltd (BEL).

Incorporated in 1954, BEL manufactures and supplies electronic equipment and systems for the defence sector. The company also has a limited presence in the civilian market.

As of 1st April 2025, the order book was Rs 716.5 bn, the second largest order book after HAL.

The company is expecting a huge order for the quick reaction surface-to-air missile (QRSAM), worth Rs 300 bn in FY26. This is the biggest order in the pipeline.

BEL is also expecting an order relating to the next generation corvettes worth Rs 60-100 bn in FY26.

The company is a development partner of DRDO to design and develop critical subsystems for Project Kusha with the company expecting Rs 200-400 bn in orders from this project.

BEL's 5-year revenue growth guidance is 15-17.5% CAGR with targeted profit growth of more than 20%. It has a capex plan of more than 10 bn for FY26.

BEL's Financial Snapshot (FY 22-24)

(Rs m, Consolidated)	FY22	FY23	FY24
Revenue	153,682	177,344	202,682
Revenue Growth (%)	8.9	15.4	14.3
Net Profit	23,545	29,404	39,431
Net Profit Margin (%)	15.3	16.6	19.5
Return on Equity (%)	19.2	21.2	24.2
Return on Capital Employed (%)	25.8	28.4	32.3

Source: Equitymaster

Its revenue grew at a compounded annual growth rate (CAGR) of 12.8% over the past three years, while its net profit grew at a CAGR of 24%.

The company maintained strong financial health, with an average RoE of 21.5% and RoCE of 28.9%.

In FY25, revenue from operations was Rs 230.24 bn, up 16.2% YoY, the EBITDA margin was 29.4%, and the net profit was Rs 52.88 bn, up 31.6% YoY.

#3 Mazagon Dock Shipbuilders

Next on the list is Mazagon Dock Shipbuilders Ltd (MDL).

MDL is a prominent shipyard in India. Initially, a small dry dock, MDL has evolved into a renowned shipbuilding company, and the only shipyard to be conferred Navratna Status.

It has constructed 801 vessels since 1960, including warships, submarines, cargo/passenger ships, and offshore platforms. It's the only Indian shipyard to have built destroyers and conventional submarines for the Indian Navy

MDL and has also built Veer and Khukri-class corvettes and is the lead builder of 4 Nilgiri-class stealth frigates.

As of 31st March 2025, the company's order book was Rs 322.6 bn.

MDL has signed individual shipbuilding contracts with a European client for the construction of an additional three multi-purpose hybrid powered vessels, valued at approximately US$ 43 m.

MDL's Financial Snapshot (FY 22-24)

(Rs m, Consolidated)	FY22	FY23	FY24
Revenue	57,333	78,272	94,666
Revenue Growth (%)	41.6	36.5	20.9
Net Profit	5,631	10,461	18,089
Net Profit Margin (%)	9.8	13.4	19.1
Return on Equity (%)	14.6	22	29
Return on Capital Employed (%)	19.8	29.7	39.1

Source: Equitymaster

Its revenue grew at a compounded annual growth rate (CAGR) of 32.7% over the past three years, while its net profit grew at a CAGR of 58.6%.

The company maintained strong financial health, with an average RoE of 21.8% and RoCE of 29.5%.

In FY25, revenue from operations was Rs 114.31 bn, up 20.76% YoY, the EBITDA was Rs 32.28 bn, up 26.63% YoY, and the net profit of Rs 23.24 bn, up 25.96% YoY.

#4 Bharat Dynamics

Next on the list is Bharat Dynamics Ltd (BDL).

BDL is a Government of India Enterprise, engaged in the manufacturing of guided missiles and allied defence equipment. The company manufactures and supplies guided missiles, underwater weapons, airborne products, and allied defence equipment for the Indian Armed Forces.

It also provides product life cycle support for all equipment supplied, as well as refurbishment and life extension services for vintage missiles already in the Indian Armed Forces' inventory.

BDL is in the production of several key defence systems like Akash surface-to-air missile, Astra weapon system, Milan 2T and Konkurs-M ATGMs, and the Varunastra torpedo.

As of FY24, the company had a total order book of Rs 194.34 bn. Export orders account for 12% of the order book. It has an order pipeline of Rs 200 bn for the next 2-3 years.

The company has 3 manufacturing facilities located in Hyderabad, Bhanur, and Vishakhapatnam. It has achieved an average indigenisation level of 80-90%, This has reduced import costs and enables the company offer competitively priced products to the Indian Armed Forces.

BDL's Financial Snapshot (FY 22-24)

(Rs m, Consolidated)	FY22	FY23	FY24
Revenue	28,174	24,894	23,693
Revenue Growth (%)	47.2	-11.7	-4.8
Net Profit	4,999	3,522	6,127
Net Profit Margin (%)	17.7	14.1	25.9
Return on Equity (%)	16.5	11	16.8
Return on Capital Employed (%)	23.6	15.2	22.9

Source: Equitymaster

Its revenue grew at a compounded annual growth rate (CAGR) of 7.4% over the past three years, while its net profit grew at a CAGR of 33.5%.

The company maintained strong financial health, with an average RoE of 14.8% and RoCE of 20.5%.

In FY25, revenue from operations was Rs 33.45 bn, up 41.2% YoY and the net profit was Rs 5.5 bn, a decline of 10.28% YoY.

#5 Paras Defence and Space Technologies

Next on the list is Paras Defence (PDST).

PDST is a private sector company engaged in the designing, developing, manufacturing, and testing of a variety of defence and space engineering products and solutions.

The company caters to four major segments - defence and space optics, defence electronics, heavy engineering, and electromagnetic pulse protection solutions.

As of 31 March 2025, the company's order book was Rs 9 bn. The management has forecasted an order book of more than Rs 10 bn for FY26.

The company is anticipating being among the top 5 drone companies by FY27. It already has a huge client base, which includes HAL, ISRO, DRDO, Bharat Electronics, Godrej, TATA Power, Elbit Systems, Cochin Shipyard, Goa Shipyard, Singapore Electronics, etc.

In January 2025, the company secured a license to produce MK-46 and MK-48 belt-fed light machine guns (LMG), with an annual production capacity of 6,000 units each.

Paras Defence's Financial Snapshot (FY 22-24)

(Rs m, Consolidated)	FY22	FY23	FY24
Revenue	1,826	2,224	2,535
Revenue Growth (%)	27.4	21.8	14
Net Profit	271	359	300
Net Profit Margin (%)	14.8	16.2	11.8
Return on Equity (%)	7.2	8.7	6.8
Return on Capital Employed (%)	11.9	13.2	10.8

Source: Equitymaster

Its revenue grew at a compounded annual growth rate (CAGR) of 20.9% over the past three years, while its net profit grew at a CAGR of 23.9%.

The company maintained strong financial health, with an average RoE of 7.5% and RoCE of 12.0%.

In FY25, revenue from operations was Rs 3.65 bn up 43.7% YoY and the net profit was Rs 0.61 bn up 103.33% YoY.

#6 Data Patterns (India)

Last on the list is Data Patterns.

It's one of the fastest-growing companies in the defence and aerospace electronics sector in India.

It has supplied products catering to all segments - space, air, land, and sea - including products for LCA-Tejas, Light Utility Helicopter, and the BrahMos missile.

As of 31 March 2025, the company's order book was Rs 7.3 bn.

The management expects a strong ramp-up in FY26, targeting Rs 10-20 bn in new orders, with a healthy pipeline in radar, electronic warfare (EW), and seeker segments.

The company is planning capex of Rs 1.5 bn over the next 1-2 years for manufacturing/test infrastructure to support anticipated contract deliveries.

It's moving from sub-system/component supplier to integrated system and end-to-end solution provider. The value of a single contract in this business could range from hundreds to more than a thousand crore each.

The company has given a revenue guidance of 20-25% for FY26 and PAT growth guidance of 20%, with an EBITDA margin guidance of 35-40%.

Data Pattern's Financial Snapshot (FY 22-24)

(Rs m, Consolidated)	FY22	FY23	FY24
Revenue	3,109	4,535	5,198
Revenue Growth (%)	38.8	45.9	14.6
Net Profit	940	1,240	1,817
Net Profit Margin (%)	30.2	27.3	35
Return on Equity (%)	16.4	10.6	13.7
Return on Capital Employed (%)	24.1	14.8	19

Source: Equitymaster

Its revenue grew at a compounded annual growth rate (CAGR) of 32.4% over the past three years, while its net profit grew at a CAGR of 48.4%.

The company maintained strong financial health, with an average RoE of 13.6% and RoCE of 19.3%.

In FY25, revenue from operations was Rs 7.8 bn, up 36% YoY, the EBITDA was Rs 2.75 bn, up 24% YoY with an EBITDA margin of 39%, and the net profit was Rs 2.22 bn, up 22% YoY, with a net margin of 31%.

Conclusion

All the companies mentioned in this editorial have a strong government focus on growing their defence orders and ensuring robust supply chains over the next 4-5 years.

The result of 'Make in India' and the push for indigenization is well reflected in the financial performance of the companies and are well placed to benefit from the growing defence sector in India.

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

Happy Investing.

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