3 Defence Electronics Companies Riding India's Export Growth Story

In today's era of digital warfare, the fiercest battles are no longer fought on land, sea, or air, but within the invisible realm of the electromagnetic spectrum (EMS).

Here, Electronic Warfare (EW) systems that intercept, disrupt, and manipulate signals have become just as critical to national defence as tanks, missiles, or fighter jets.

For India, the timing couldn't be more crucial. Rising geopolitical tensions, the rapid militarisation of neighbours, and emerging threats like drones, hypersonic missiles, and cyber-electromagnetic attacks are pushing the Armed Forces to fast-track their EW capabilities.

Meanwhile, defence exports are already booming, hitting a record Rs 210.8 billion (bn) in FY24, a 32.5% jump from the previous year. From small arms to armoured vehicles, the sector is buzzing with opportunities.

It won't be surprising if this space throws up some multi-baggers in the near future.

With this backdrop, here are 3 defence electronics stocks to keep on your radar.

#1 Bharat Electronics

First on the list is Bharat Electronics

Bharat Electronics Limited (BEL) is a Indian government-owned aerospace and defence electronics company that designs, develops, and manufactures advanced electronic systems and components for the nation's Army, Navy, and Air Force.

BEL has established a strong presence across four key segments of electronic warfare systems.

• Radar ESM: Spice ESM for medium-class ships, advanced protection suites for large aircraft, and integrated EW systems for fighter jets-along with customised solutions for helicopters and smaller aircraft.
• ELINT/COMINT/SIGINT: A wide portfolio including mobile ground-based ELINT Systems, COMINT & communication jamming systems, wideband signal processing & analysis systems, satellite interception systems, microwave monitoring systems, and avionics like HUDs for fighter jets (e.g., LCA).
• Integrated EW Systems: Communication IEW Systems, EW suites for large warships, and fully integrated electronic warfare systems delivering complete battlefield dominance.
• Jammers: Static cell phone jammers (4G-50W), mini portable jammers, portable 5W jammers, and compact jammers to neutralise enemy networks with versatile deployment options.

With a proven track record, diversified product portfolio, and increasing role in exports, BEL is not just a defence PSU, it is a key growth driver in India's push for indigenised, next-generation electronic warfare systems.

Bharat Electronics Financial Snapshot (FY21-FY25)

Year	2021	2022	2023	2024	2025
Revenue (Rs in m)	141,087.0	153,682.0	177,344.0	202,682.0	237,688.0
Revenue Growth (%)	8.8	8.9	15.4	14.3	17.3
Net Profit (Rs in m)	20,693.0	23,545.0	29,404.0	39,431.0	52,872.0
Net profit margin (%)	14.7	15.3	16.6	19.5	22.2
Return on equity (%)	18.7	19.2	21.2	24.2	26.5
Return on capital employed (%)	26.7	25.8	28.4	32.3	35.6

Source: Equitymaster

In the last five years, BEL has delivered steady financial performance with sales registering a CAGR of 12.9% and net profit growing at a faster pace of 24.2%.

Its profitability ratios also remain healthy, with a five-year average ROE of 21.9% and ROCE of 29.8%.

On 21 August 2025, Bharat Electronics Limited and Centum Electronics Limited entered into a Memorandum of Understanding (MoU) to jointly design, develop, and manufacture electronic modules, subsystems, and systems for defence applications.

The collaboration will concentrate on key technology areas, including electronic warfare, radar systems, and secure military communications.

Going forward, the company plans to expand its product offering in this space.

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

#2 Apollo Micro systems

Next on the list is Apollo Micro Systems.

Established as a major player in the aerospace & defence electronics sector, Apollo Micro Systems develops and produces cutting-edge electronic and electro-mechanical systems for defence, space, and homeland security.

Apollo Micro Systems (AMS) has built strong expertise in designing and manufacturing rugged electronics tailored for military use.

Ground-based military systems require electronics that can withstand extreme vibration, shock, and EMC-EMI challenges, and AMS addresses these with its advanced engineering and hardware design capabilities.

The company offers ruggedised COTS-embedded hardware and software solutions that perform reliably across land, sea, air, and homeland security operations.

Its products meet the highest military standards, providing robust processing, networking, data storage, and information assurance, making AMS a trusted partner in defence electronics.

Also, according to media reports on 21 August 2025, the company has been declared as the lowest bidder for orders totalling Rs 251.2 m from DRDO and Defence PSUs, reflecting its strong positioning and growing presence in the defence technology sector.

Apollo Micro Systems Financial Snapshot (FY21-FY25)

Year	2021	2022	2023	2024	2025
Revenue (Rs in m)	2,031.0	2,432.0	2,975.0	3,716.0	5,621.0
Revenue Growth (%)	-	19.8	22.3	24.9	51.2
Net Profit (Rs in m)	103.0	146.0	187.0	311.0	564.0
Net profit margin (%)	5.0	6.0	6.3	8.4	10.0
Return on equity (%)	3.4	4.6	5.6	6.1	9.3
Return on capital employed (%)	10.0	11.7	15.1	14.4	17.3

Source: Equitymaster

In the last five years, the company has delivered steady financial performance with sales registering a CAGR of 18% and net profit growing at a faster pace of 32.1%.

Its profitability ratios also remain healthy, with a five-year average ROE of 5.8% and ROCE of 13.7%.

Going forward, the company plans to increase its presence in the defence electronics space.

For more details, see the APOLLO MICRO SYSTEMS company fact sheet and quarterly results.

#3 Paras Defence and Space Technologies

Last on the list is Paras Defence and Space Technologies.

It is an Indian private sector company that designs, develops, and manufactures defence and space products, including a range of solutions in defence electronics such as High-Performance Embedded Computing Systems (HPEC), rugged displays, command & control consoles, and components for Electronic Warfare & Surveillance (EW).

The Company's Core Capabilities in Defence Electronics

• MIL-Grade Systems & Consoles - Ruggedised control systems and high-reliability operator consoles for secure and precise battlefield operations.
• Computing & Display Solutions - Hardened computers, servers, and rugged displays built to withstand extreme defence environments.
• Modular Platforms - Scalable VME/VPX hardware platforms enabling next-gen defence electronics integration.
• Software & Processing - Custom mission software along with advanced data, video, and image processing for surveillance and reconnaissance.
• Sensing Technologies - Acoustic and magnetic sensing products for detection, navigation, and enhanced situational awareness.

This wide range of solutions makes Paras Defence a comprehensive defence electronic solutions provider.

In the last five years, the company has delivered steady financial performance with sales registering a CAGR of 19.9% and net profit growing at a faster pace of 25.6%.

Paras Defence and Space Technologies Financial Snapshot (FY21-FY25)

Year	2021	2022	2023	2024	2025
Revenue (Rs in m)	1,433.0	1,826.0	2,224.0	2,535.0	3,647.0
Revenue Growth (%)	-	27.4	21.8	14.0	43.9
Net Profit (Rs in m)	158.0	271.0	359.0	300.0	615.0
Net profit margin (%)	11.0	14.8	16.2	11.8	16.9
Return on equity (%)	7.6	7.2	8.7	6.8	9.6
Return on capital employed (%)	15.4	11.9	13.2	10.8	14.5

Source: Equitymaster

Its profitability ratios also remain healthy, with a five-year average ROE of 8% and ROCE of 13.2%.

On 26 August 2025, Paras Defence and Space Technologies Limited has bagged an order worth about Rs 453.2 m (inclusive of taxes) from BEL, reinforcing its growing presence in advanced defence electronics.

The contract involves the supply of signal and data processing systems along with multi-sensor fusion systems.

These advanced technologies will strengthen next-generation air defence by improving situational awareness, integrating sensor data, and enabling faster, more effective decision-making.

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

Conclusion

The global EW market is projected to touch US$ 25 bn by 2028, with Asia-Pacific leading the growth.

India's share is poised to rise sharply, supported by over Rs 1.5 trillion earmarked for electronics-heavy modernisation, a positive indigenisation list that reserves key EW items for local production, and a defence budget prioritising network-centric warfare.

Industry estimates suggest India's EW systems market will expand at a CAGR of 8-10% over the next five years, making it one of the most promising defence sub-segments for B2B electronics companies.

At the same time, India's broader defence sector is in the midst of a transformation-fuelled by higher allocations, strategic expansion, and soaring exports.

Today, India supplies to more than 90 countries, with defence exports rising over 30-fold in the past decade. This momentum strengthens the outlook for defence electronics companies 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 decisions.

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