Cochin Shipyard, Garden Reach Shipbuilders & Engineers, BEL, HAL and other defence-related shares witnessed sharp gains, climbing up to 7% in Wednesday’s sessions, as investor optimism strengthened across the sector.
The Nifty India Defence index saw substantial momentum, jumping 1.86% reaching a 2-month high, while in September, the index was up by over 12%. On Wednesday, the Nifty Defence index was led by key players like Garden Reach Shipbuilders & Engineers, BEL, Unimech Aerospace and Manufacturing Ltd, and MTAR Tech, which recorded gains of 3% to 7%.
The surge follows reports that the Defence Ministry is reviewing a major proposal from the Indian Air Force (IAF) to acquire 114 “Made-in-India” Rafale fighter jets, valued at over ₹2 lakh crore. More than 60% of the components for this deal are expected to be produced domestically, in collaboration with France’s Dassault Aviation and Indian aerospace firms.
The proposal is anticipated to be reviewed by the Defence Procurement Board and then sent to the Defence Acquisition Council for approval. If it gets cleared, the Indian Air Force’s Rafale fleet could grow from 36 jets to 176, which also includes aircraft for the Navy.
The defence companies have strong order books, citing HAL holding orders worth ₹1,89,300 crore. The company signed an SSLV technology transfer with ISRO to manufacture and operate SSLV. Mazagon Dock and Cochin Shipyard have backlogs of ₹32,000 crore and ₹13,700 crore in defence orders, respectively. On September 15, Mishra Dhatu Nigam secured an order worth ₹136 crore, increasing the opening of its order book to ₹1,983 crore.
BEL has secured new orders worth ₹712 crore since September 1, 2025, spanning IT infrastructure, cybersecurity, Electronic Support Measures systems, blockchain-based platforms, and communication equipment. Apollo Micro Systems surged 13% over three days after its subsidiary signed an MoU with US-based Dynamic Engineering and Design.
Garden Reach Shipbuilders & Engineers share price surged 7.26% to ₹2,617.40, gaining ₹177.10 from the previous close of ₹2,344. Traders pushed the stock toward the day's high of ₹2,624 on a volume of 3.90 million shares.
Cochin Shipyard rose 4.11% to ₹1,896.400, up ₹74.80. The stock tested a high of ₹1,923.80 on 3.22 million shares. In the last 4 days, the stock price has surged over 16%.
Zen Technologies advanced 3.66% to ₹1,524.40, up ₹53.8 from Tuesday’s close. It touched a high of ₹1,528 with a modest volume of 0.45 million shares. The stock price of the company has surged over 18% in the last 6 months.
The broader narrative reflects India’s continued push for indigenisation under the Make in India and Aatmanirbhar Bharat programs. With the possibility of large-scale deals like the Rafale project, defence stocks may continue to attract long-term investor interest, reinforcing India’s emerging position as a global defence manufacturing hub.
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