3 Forgings and Artillery, Defence Optics and Explosives Stocks With a Strong Future Roadmap: Bharat Forge, Paras Defence and Space Technologies and Solar Industries India
- October 21, 2026
- Posted by: Lakshit Sharma
- Category: Best Stocks
Bharat Forge, Paras Defence and Space Technologies and Solar Industries India: ROE of 11.3% to 26.7% and FY22 to FY26 revenue CAGR of 12.4% to 27.6%. Prices as of 20 Oct 2026.
Quick Answer
The three defence and forging stocks to watch are Bharat Forge, Paras Defence and Space Technologies and Solar Industries India. Their return on equity ranges from 11.3% to 26.7%, and their revenue compound annual growth from FY22 to FY26 ranges from 12.4% to 27.6%. Solar Industries India has the highest return on equity at 26.7%, while Paras Defence and Space Technologies has the fastest revenue growth at 27.6% a year. Prices are based on the 20 October 2026 close, and this article is educational, not investment advice.
Defence and forging stocks let investors follow companies that supply armed forces with systems, optics and explosives. Bharat Forge, Paras Defence and Space Technologies and Solar Industries India cover forgings and artillery, defence optics and commercial and defence explosives.
This list covers three defence and forging stocks with complete current figures: Bharat Forge, Paras Defence and Space Technologies and Solar Industries India. Every figure comes from the latest reported financials and the 20 October 2026 market close. Companies without complete current figures were left out.
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What Are Defence and Forging Stocks?
Defence and forging stocks are listed manufacturers that supply heavy components, weapon systems, optics or explosives to defence and industrial customers. Their earnings depend on order books, execution speed and export demand.
Defence and Forging Stocks at a Glance
| Company | CMP (Rs) | Market Cap (Rs Cr) | P/E | Industry P/E | ROE (%) | D/E |
|---|---|---|---|---|---|---|
| Bharat Forge | 1,798.6 | 87,540 | 122.4 | 50.7 | 11.3 | 0.76 |
| Paras Defence and Space Technologies | 1,265.1 | 10,193 | 106.3 | 48.1 | 12.1 | 0.04 |
| Solar Industries India | 19,803 | 178,992 | 87.3 | 48.1 | 26.7 | 0.24 |
On valuation, all three trade at a P/E above their industry P/E, which reflects the growth the market already expects from them. Readers comparing defence and forging stocks should look at return on equity and debt together, since a high return earned with low debt is easier to sustain.
Why Do Defence and Forging Stocks Have a Strong Roadmap in India?
Defence and forging stocks have a strong roadmap in India because the push for local production and rising defence budgets are giving private manufacturers longer and larger order pipelines.
- Local production push. Government policy favours Indian-made equipment and components.
- Export orders. Indian makers are winning supply contracts from overseas buyers.
- Technology depth. Optics and advanced forgings are hard for new entrants to match.
Why Bharat Forge Features Among These Defence and Forging Stocks
Among the defence and forging stocks on this list, Bharat Forge is a Pune-based maker of forgings, axles and chassis components for automotive and industrial customers, and it has a growing defence and aerospace business that includes artillery systems and components.
The company has a return on equity of 11.3%, a debt to equity ratio of 0.76 and a market capitalisation of Rs 87,540 crore. The stock trades at a P/E of 122.4, above the industry P/E of 50.7.
Revenue rose from Rs 10,657 crore in FY22 to Rs 17,010 crore in FY26, a compound annual growth rate of 12.4%. Net profit grew from Rs 508 crore in FY23 to Rs 1,089 crore in FY26, which works out to a compound annual growth rate of 28.9%. In the June 2026 quarter, revenue grew 18.7% year on year to Rs 4,697 crore.
Roadmap: The company is widening its mix beyond automotive into defence, aerospace and industrial products, where programmes run for many years. Its forging expertise and global customer base support a range of applications.
What to watch: Check order inflow in defence and aerospace and the share of non-automotive sales.
Why Paras Defence and Space Technologies Features Among These Defence and Forging Stocks
Among the artillery and forging shares on this list, Paras Defence and Space Technologies makes optics and electro-optics, defence electronics, heavy engineering products and space optics, and serves the defence, space and homeland security markets.
Revenue rose from Rs 186 crore in FY22 to Rs 493 crore in FY26, a compound annual growth rate of 27.6%. Net profit grew from Rs 27.1 crore in FY22 to Rs 89.5 crore in FY26, which works out to a compound annual growth rate of 34.8%.
In the June 2026 quarter, revenue grew 35.9% year on year to Rs 130 crore, while net profit rose 45.3% to Rs 20.7 crore. The company has a return on equity of 12.1%, a debt to equity ratio of 0.04 and a market capitalisation of Rs 10,193 crore. The stock trades at a P/E of 106.3, above the industry P/E of 48.1.
Roadmap: The company is among the few Indian private players in defence optics and has been adding capabilities in thermal imaging, anti-drone systems and space applications. Its products meet a steady need for indigenous sensors, optics and surveillance equipment.
What to watch: Track new order wins in optics and the progress of its newer product lines such as anti-drone and space-grade systems.
Why Solar Industries India Features Among These Defence and Forging Stocks
Among the three companies on this list, Solar Industries India is the country’s largest maker of commercial explosives and also produces defence products such as ammunition, rockets, propellants and warheads for domestic and export customers.
Revenue rose from Rs 3,967 crore in FY22 to Rs 9,966 crore in FY26, a compound annual growth rate of 25.9%. Net profit grew from Rs 455 crore in FY22 to Rs 1,737 crore in FY26, which works out to a compound annual growth rate of 39.7%.
The company has a return on equity of 26.7%, a debt to equity ratio of 0.24 and a market capitalisation of Rs 178,992 crore. The stock trades at a P/E of 87.3, above the industry P/E of 48.1.
Roadmap: The company serves mining and infrastructure customers with bulk and packaged explosives and has grown its defence business with large export orders. Capacity additions in defence manufacturing and a global presence widen its reach.
What to watch: Monitor the defence order book and the pace of new capacity in ammunition and rocket systems.
Bharat Forge vs Paras Defence and Space Technologies vs Solar Industries India on Key Financials
The table below sets the three defence and forging stocks side by side on revenue, profit and margin, using reported figures.
| Company | FY22 Revenue (Rs Cr) | FY26 Revenue (Rs Cr) | Revenue CAGR (FY22-FY26) | FY26 Net Profit (Rs Cr) | FY26 Net Margin |
|---|---|---|---|---|---|
| Bharat Forge | 10,657 | 17,010 | 12.4% | 1,089 | 6.4% |
| Paras Defence and Space Technologies | 186 | 493 | 27.6% | 89.5 | 18.2% |
| Solar Industries India | 3,967 | 9,966 | 25.9% | 1,737 | 17.4% |
Solar Industries India posts the highest return on equity in this group at 26.7%. Bharat Forge has the largest FY26 revenue at Rs 17,010 crore, and Paras Defence and Space Technologies shows the fastest revenue growth with a 27.6% compound annual rate. A useful habit with defence and forging stocks is to check each new quarterly result against the capacity plans the company described earlier.
Key Risks to Check Before Investing in Defence and Forging Stocks
Every theme carries risks that deserve a check before any decision. For these defence and forging stocks, the main points are: Long-term artillery and forging shares holders usually track revenue growth, margins and cash flow side by side rather than relying on a single ratio.
- Order timing. Defence contracts can be lumpy and may shift between quarters.
- Execution demands. Large programmes need strict delivery and quality schedules.
- Valuation levels. Some of these companies trade at high earnings multiples, so growth must continue to justify them.
Treat this list as a starting point for research and not as a recommendation. Read the latest results presentation, check the management commentary on order books or capacity plans, and compare each company with its peers before you decide anything.
Use the Univest Stock Screener to filter defence and forging stocks by market capitalisation, P/E, ROE and growth, and build your own shortlist.
Final Thoughts on Defence and Forging Stocks
Defence and forging stocks reward investors who follow order books, deliveries and export wins. Bharat Forge, Paras Defence and Space Technologies and Solar Industries India each play a different part of the supply chain. Based on the 20 October 2026 close, Bharat Forge trades at Rs 1,798.6, Paras Defence and Space Technologies at Rs 1,265.1 and Solar Industries India at Rs 19,803. Valuation matters as much as growth, so compare each company’s P/E with its industry P/E before adding any of these defence and forging stocks to a watchlist.
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Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
What are defence and forging stocks?
Ans. Defence and forging stocks are listed manufacturers that supply heavy components, weapon systems, optics or explosives to defence and industrial customers. Their earnings depend on order books, execution speed and export demand. This list looks at three of them, Bharat Forge, Paras Defence and Space Technologies and Solar Industries India, using reported FY22 to FY26 financials and the 20 October 2026 closing prices.
Which defence and forging stocks are covered in this list?
Ans. This list covers Bharat Forge, Paras Defence and Space Technologies and Solar Industries India. Based on the 20 October 2026 close, Bharat Forge traded at Rs 1,798.6, Paras Defence and Space Technologies at Rs 1,265.1 and Solar Industries India at Rs 19,803. Their return on equity ranges from 11.3% to 26.7%, and their revenue compound annual growth from FY22 to FY26 ranges from 12.4% to 27.6%.
Why do defence and forging stocks have a strong future roadmap in India?
Ans. Defence and forging stocks have a strong roadmap in India because the push for local production and rising defence budgets are giving private manufacturers longer and larger order pipelines. The main drivers are as follows. Local production push. Government policy favours Indian-made equipment and components. Export orders. Indian makers are winning supply contracts from overseas buyers. Technology depth. Optics and advanced forgings are hard for new entrants to match. Together these factors give the companies on this list a visible path for growth over the coming years.
How has Bharat Forge performed financially?
Ans. Revenue rose from Rs 10,657 crore in FY22 to Rs 17,010 crore in FY26, a compound annual growth rate of 12.4%. Net profit grew from Rs 508 crore in FY23 to Rs 1,089 crore in FY26, which works out to a compound annual growth rate of 28.9%. In the June 2026 quarter, revenue grew 18.7% year on year to Rs 4,697 crore. The company has a return on equity of 11.3%, a debt to equity ratio of 0.76 and a market capitalisation of Rs 87,540 crore. The stock trades at a P/E of 122.4, above the industry P/E of 50.7. Looking ahead, the company is widening its mix beyond automotive into defence, aerospace and industrial products, where programmes run for many years. Its forging expertise and global customer base support a range of applications.
How has Paras Defence and Space Technologies performed financially?
Ans. Revenue rose from Rs 186 crore in FY22 to Rs 493 crore in FY26, a compound annual growth rate of 27.6%. Net profit grew from Rs 27.1 crore in FY22 to Rs 89.5 crore in FY26, which works out to a compound annual growth rate of 34.8%. In the June 2026 quarter, revenue grew 35.9% year on year to Rs 130 crore, while net profit rose 45.3% to Rs 20.7 crore. The company has a return on equity of 12.1%, a debt to equity ratio of 0.04 and a market capitalisation of Rs 10,193 crore. The stock trades at a P/E of 106.3, above the industry P/E of 48.1. Looking ahead, the company is among the few Indian private players in defence optics and has been adding capabilities in thermal imaging, anti-drone systems and space applications. Its products meet a steady need for indigenous sensors, optics and surveillance equipment.
How has Solar Industries India performed financially?
Ans. Revenue rose from Rs 3,967 crore in FY22 to Rs 9,966 crore in FY26, a compound annual growth rate of 25.9%. Net profit grew from Rs 455 crore in FY22 to Rs 1,737 crore in FY26, which works out to a compound annual growth rate of 39.7%. The company has a return on equity of 26.7%, a debt to equity ratio of 0.24 and a market capitalisation of Rs 178,992 crore. The stock trades at a P/E of 87.3, above the industry P/E of 48.1. Looking ahead, the company serves mining and infrastructure customers with bulk and packaged explosives and has grown its defence business with large export orders. Capacity additions in defence manufacturing and a global presence widen its reach.
What risks should investors check before buying defence and forging stocks?
Ans. Investors should check a few risks before buying defence and forging stocks. Order timing. Defence contracts can be lumpy and may shift between quarters. Execution demands. Large programmes need strict delivery and quality schedules. Valuation levels. Some of these companies trade at high earnings multiples, so growth must continue to justify them. Reading the latest results presentation and comparing each company with its peers helps judge how these risks apply to each stock.
Is this list of defence and forging stocks investment advice?
Ans. No. This article is educational and uses publicly available data as of the 20 October 2026 close. Please verify figures on NSE and BSE, read company filings and consult a SEBI registered adviser before investing. Univest is SEBI registered research analyst INH000013776.