Defence Industry Stocks in India for 2025 | Defence Stocks List With Price

The defence industry stocks play a vital role in protecting a country from internal and external threats, making it an essential institution. As a developing economy, India recognises the importance of upgrading its defence industry stocks capabilities to become self-sufficient and modern, particularly in countering threats from neighbouring countries. The defence sector stock of India has witnessed a remarkable surge in stock prices as investors show strong confidence in its potential. 

In this blog, you will learn about the best defence stocks in India as per market capitalisation and analyst ratings that have caught the attention of investors in 2025 due to their promising prospects. 

Defence Industry Stocks in India – A Brief Introduction 

India has one of the strongest military forces in the world, and its growing focus on self-reliance has made the defence sector stocks an attractive option for investors. The Indian defence sector stocks are expanding rapidly, covering key areas such as military fixed-wing aircraft, missiles and missile defence systems, naval vessels, and more. Other important segments include military land vehicles, submarines, rotorcraft, tactical communication, and electronic warfare. 

With rising government support, the Union Budget 2025-26 allocated ₹8,100,000 crore towards defence modernisation and infrastructure, showing a 9.53% increase from the previous year. In FY 2024-25, India’s defence exports have grown by 12.04%, and the country now exports to over 100 countries. This rapid growth has increased investor interest in defence industry stocks, with many looking for the top 10 defence stocks in India. As a result, the best defence stocks in India are becoming a popular choice for long-term investment. If you’re looking to tap into this booming sector, exploring the best defence stocks in India could be a smart move for your portfolio.

Defence stocks List by Market Capitalisation

Here is the list of the top 10 defence industry stocks in India in 2025, with their updated price and market capitalisation for your reference.

Disclaimer: Please be aware that investing in defence industry stocks to buy now in 2025 comes with inherent risks due to volatile market conditions and low liquidity. It is recommended to conduct your own research on the best defence stocks in India to buy now to make an informed investment decision on the penny stocks list.

Best Defence Stocks in India: Company Overview

1. Bharat Electronics Ltd.

Founded: 1954

Headquarters: Bengaluru,  Karnataka

Market Capitalisation: ₹2,84,606.00 cr

Bharat Electronics Limited (BEL) is a top Navratna PSU under the Ministry of Defence, Government of India. It was established in 1954 and plays a major role in supporting India’s best defence industry stocks. BEL is mainly involved in making defence electronics that help strengthen the country’s armed forces. It is one of the best defence stocks in India. 

Bharat Electronics Ltd. has reported an operating margin of 28.6% for FY 2025. It compares to its guided range of 23%-25%, and Bharat Electronics Ltd. now expects the margin of 27% in FY2026. As per the Economic Times, Bharat Electronics Limited (BEL) has announced its Q1 results for FY 2025. The company’s standalone profit after tax (PAT) rose by 25.00% year-on-year, reaching ₹969 crore.

2. Hindustan Aeronautics Ltd. 

Founded: 1940

Headquarters: Bengaluru, Karnataka

Market Capitalisation: ₹3,01,480.00 cr

Hindustan Aeronautics Ltd. is an Indian public sector defence company that plays a major role in supporting India’s best defence industry stocks and aerospace company in Bengaluru. It is one of the oldest and largest aerospace and defence manufacturers in the world. It is one of the best defence stocks in India. Hindustan Aeronautics Limited (HAL) is expected to grow its revenue by 13.9% per year, which is faster than the average growth of the Indian market, estimated at 9.5% per year. 

3. Larsen & Tourbo Ltd.

Founded: 1946

Headquarters: Mumbai, Maharashtra

Market Capitalisation: ₹4,70,676.00 cr

Larsen & Toubro is an Indian multinational conglomerate with an interest in industrial technology, heavy industry, power, defence, and financial services. The current CEO of L&T is S.N. Subrahmanyan, who is also the company’s managing director. It is one of the best defence stocks in India. It plays a major role in supporting India’s best defence industry stocks. L&T has a plan to achieve carbon neutrality by 2040 and water neutrality by 2035. L&T is expected to deliver the Q1 FY 2026 financial results. Profit After Tax is forecast to increase by up to 23% YoY.

4. Cochin Shipyard Ltd. 

Founded: 1972

Headquarters: Kochi, Kerala

Market Capitalisation: ₹46,147.00 cr

Cochin Shipyard Ltd. is owned by the government of India. In the past 30 years, the company has become a leading name in India’s shipbuilding and ship repair industry. It has one of the biggest shipyards in the country and is capable of building and repairing the largest ships in India. It plays a major role in supporting India’s best defence industry stocks. This shows the company’s strong experience and important role in the Indian maritime sector. It is one of the best defence stocks in India. Cochin Shipyard Ltd. is under contract with the Indian Navy to build Next Generation Missile Vessels. As per Money Control, the share price fell by 2.02% on the Nifty Midcap 150.

5. Mazagon Dock Shipbuilders Ltd. 

Founded: 1934

Headquarters: Mumbai, Maharashtra

Market Capitalisation: ₹1,12,535.00 cr

Mazagon Dock Shipbuilders Limited (MDL) is a major shipbuilding company in India that plays a major role in supporting India’s best defence industry stocks and is mainly known for building warships and submarines for the Indian Navy. Along with defence vessels, MDL also makes offshore platforms used in the oil and gas industry. It is one of the best defence stocks in India. 

Mazagon Dock is expanding its role in the European defence market due to the rise in global demand for defence.  As per Money Control, Mazagon Dock announces the Q1 result: the net profit falls 35%, and the revenue of the company rises by 11%. 

6. Bharat Dynamics Ltd.  

Founded: 1970

Headquarters: Hyderabad, Telangana

Market Capitalisation: ₹59.412.00 cr

Bharat Dynamics is an Indian government enterprise. It manufactures guided missiles and allied defence equipment. It plays a major role in supporting India’s best defence industry stocks, and Bharat Dynamics manufactures and supplies guided missiles, underwater weapons, airborne products, and allied defence equipment for the Indian armed forces. It is one of the best defence stocks in India. Bharat Dynamics Limited (BDL) is showing strong future growth potential, making it one of the best defence stocks in India to watch. 

The company’s earnings are expected to grow by 21.2% per year, while revenue is forecast to rise by 18.1% annually. As per CNBC TV 18, based on the latest analysis from Elara Capital and recent news updates on the ₹1‑lakh‑crore defence procurement push.

7. Solar Industries India Ltd.

Founded: 1995

Headquarters: Nagpur, Maharashtra

Market Capitalisation: ₹1,30,825.00 cr

Solar Industries India is a leading company in the field of industrial and defence explosives. plays a major role in supporting India’s best defence industry stocks. It is known worldwide for its high-quality and reliable products. The company manufactures a full range of explosives, including packaged emulsion explosives, bulk explosives, and initiating systems. It is one of the best defence stocks in India. It has strong growth potential in diversified business sectors like industrial, explosive, and defence sectors.

8. Data Patterns India Ltd.

Founded: 1998

Headquarters: Chennai, Tamil Nadu 

Market Capitalisation: ₹14,394.00 cr

Data Patterns (India) Limited is a leading Indian company that provides advanced defence and aerospace electronics solutions. It plays a major role in supporting India’s best defence industry stocks. It designs and manufactures high-reliability systems like radar equipment, electronic warfare systems, rugged displays, and more, making it a key player in the defence sector. It is one of the best defence stocks in India. It has strong growth in the defence and aerospace sectors, and they have successfully increased its market share in the defence and aerospace electronics sector.    

9. Unimech Aerospace and Manufacturing Ltd. 

Founded: 2016

Headquarters: Bangalore, Karnataka 

Market Capitalisation: ₹5,851.00 cr

Unimech Aerospace and Manufacturing Ltd. is a global company known for providing high-precision engineering solutions. It plays a major role in supporting India’s best defence industry stocks. It focuses on making complex and high-quality products for the aerospace, energy, and semiconductor industries. It has achieved impressive growth with a 140% CAGR between FY 22 and FY 24. It is one of the best defence stock in India. As per the Business Standard, the net profit declined 7.32% in the June 2025 quarter. 

10. Paras Defence and Space Technologies Ltd. 

Founded: 2009

Headquarters: Mumbai, Maharashtra 

Market Capitalisation: ₹5,679.00 cr

Paras Defence and Space Technologies offers a wide range of products and solutions for defence & space applications. It plays a major role in supporting India’s best defence industry stocks. It also focuses on the defence and space sector. It is an Indian-based defence engineering company. Paras Defence & Space Technologies Limited reported a 12.64% year-over-year revenue growth in Q1. It is one of the best defence industry stocks in India. 

Features of Best Defence Stocks in India

1. Government partnerships and contracts

Defence sector companies in India mainly depend on orders and tenders from the government, especially from the Indian Army. These contracts can be long-term and include supplying the equipment, offering maintenance services, and providing technology upgrades. Government policies play a big role in the future of the best defence industry stocks.

2. Legal environment

The defence sector is highly dependent on weapons and equipment. This creates high entry barriers for new private companies. Also, joining the sector often requires large investments in facilities and research. These strict rules make the existing defence industry stocks more stable and trustworthy.

3. Technology Advancement 

Companies in the defence stock invest heavily in research and development. Their products, such as missile systems, radar, and electronic warfare solutions, need advanced technology. Innovation helps these companies for the future and attracts government policies and private contracts, which increase the price of defence industry stocks.

4. Long-term defence contract

Most of the defence sector stocks work on long-term contracts, which secure regular income from the best defence industry stocks. These contracts offer financial stability and help companies plan their growth. Investors often prefer the best defence stocks in India with strong and ongoing government deals.

5. Collaboration and alliances

To grow faster, the best defence stocks in India often enter partnerships with Indian or global firms. These joint ventures in industry acquire new technologies, develop better products from others, and expand into new markets. Such collaborations improve the overall value and growth potential of defence industry stocks.

Benefits of Defence Industry Stocks

1. Stable Growth Potential

Defence industry stocks show increased growth because of regular orders from the government. These companies work on long-term contracts, which means they get a fixed income from the years. Countries can spend the income on their best defence stocks in India to increase the growth of the country. 

2. Resilience in Economic Slowdown

When the economy is downward, many defence industry stocks are facing issues, but defence  stocks usually remain stable. This is because defence budgets are down, even during tough times. That makes best defence industry stocks a good choice when other investments are risky.

3. Support from Government Policies

Defence industry stocks that are backed by the government could prove to be safe investments for investors with low risk tolerance. And investing in such stocks might be the stepping stone for investors to generate multibagger returns. Look for best defence industry stocks with low prices and the ultimate support of the government for portfolio diversification.

4. Long-Term Opportunities from Geopolitical Tensions

Global tensions and rising security needs are increasing the demand for advanced defence technologies. Companies that develop modern defence systems are well-positioned to benefit. It means more growth in the best defence industry stocks; investors can buy the best defence stocks in India.

Invest in the best defence stocks in India to buy now to get these benefits!

Best Defence Industry Stocks to Buy With P/E Ratio

Here are the best defence stocks in India to buy now, with their P/E ratios.

Best Defence Industry stocks in India 

Explore the best defence stocks in india to buy now in 2025 with their 5-year return

5-Year CAGR in Defence Industry Stocks to Buy 

Have a look at the best defence stocks in India to buy now in 2025 with their 5-year compound annual growth rate (CAGR).

Other Defence Industry Stocks to Buy Now in 2025

Explore the other best Defence stocks in India to buy now for substantial returns in the coming decades.

Factors Affecting Defence Industry Stocks to Buy Now

Image 4: Factors Affecting Defence Industry Stocks to Buy Now

Explore the major factors essential to be considered when investing in the best defence stock in India to buy now. 

1. Potential Return

Analyse the potential return of the defence stock companies; while investors are investing in the stocks, they see the revenue growth, profitability, and debt levels, which can give a better result of the companies’ financial performance and potential return. 

2. Advance technologies

Analysing the technological advancement in the defence stock is important. Companies invest in research and development and also focus on innovation for the future. Investing in these companies can give long-term returns to the investors. 

3. Government policies

Defence industry stocks that are backed by the government could prove to be safe investments for investors with low risk tolerance. And investing in such stocks might be the stepping stone for investors to generate multibagger returns. Look for the best defence industry stocks with low prices and the ultimate support of the government for portfolio diversification.

4. Foreign geopolitical environment 

If changes in the foreign environment can affect the defence industry stocks. You should know that global tensions, conflicts, and defence deals between countries can increase the demand for the best defence industry stocks and boost company growth.

Risk of defence industry stocks to buy now?

Investors may encounter some common risks in the best defence stocks in India to buy now. An assessment of these risks may help them avoid significant losses in the investment journey. Explore the major risks with their mitigation strategies. 

1. Government policies

Defence industry stocks are influenced by the policy of the government, which can be based on the political factors, changes in political leaders, and shifting priorities. Changes in government regulations, procurement processes, or military spending cuts can have an impact on the revenues and profitability of the defence sector stock. 

2. Geopolitical Factors

Geopolitical instability, such as conflicts or wars, can create uncertainty in the best defence industry stocks; these factors can lead to an increase in demand for defence products in the short term but can also disrupt supply chains and international trade, affecting long-term investment outcomes in the best defence stocks in India.

3. High Dependence on Government Contracts

The defence industry stocks are dependent on government contracts, which represent a large part of revenue. Any reduction in defence industry stocks spending or delays in government approvals will affect the company’s financial performance.

4. Volatility  

The best defence stocks in India to buy may suffer high volatility, i.e., prices can fluctuate significantly in the short run. Such ups and downs in the stock prices may incur investors’ losses. 

Who Should Invest in Defence Industry Stocks in India?

Here is the list of investors who should invest in the best defence industry stocks to buy in India. Explore them. 

1. Long-term investors

Those with large capital amounts and looking for the best defence industry stocks to buy in 2025 can consider high-priced best defence stocks in India. Defence stocks to buy often come with low acquisition costs and may deliver long-term returns to generate wealth for their investors. 

2. Low-risk investors

Defence industry stocks backed by the government could prove to be safe investments for investors with low risk tolerance. And investing in such stocks might be the stepping stone for investors to generate multibagger returns. Look for the best defence industry stocks with moderate prices and the ultimate support of the government for portfolio diversification.

3. Portfolio Diversifier

Do you want a diversified investment portfolio for balanced returns? If yes, explore the best defence stocks in India to buy now in 2025 and select and add some of them to your portfolios. These low-priced stocks often come with higher risks but have the potential to deliver tremendous returns over the long term.

How to Invest in the Defence Industry Stocks Now?

Investing in the best defence industry stocks now is not as complex as it seems. You just need to follow the steps mentioned below. 

• Step 1: Conduct research on the best defence stocks in India to buy now. 
• Step 2: Open a demat account on Univest and place an order for the defence stocks in 2025. 
• Step 3: Get your order executed for the quantity you wish to buy. 
• Step 4: Monitor your portfolio to track the returns and wait for the right time to book a profit. 

Try Univest screeners to get real-time insights on oversold stocks, multibagger stocks, daily breakouts, etc.

Common Mistakes Investors Should Avoid in Defence Industry Stocks to Buy Now

Here are some of the common mistakes investors should avoid when exploring the best defence industry stocks to buy now in 2025. 

1. Ignoring government policies

If the company is not tracking the government policies, the best defence stocks in India are heavily regulated, and the budget is not updating, it can lead to poor investment decisions in the defence industry stocks.

2. R&D Investment

In today’s world the company is not investing in upcoming and new technology. To face the issues, always do one thing: check the company’s focus on innovation. Defence industry stocks help the future growth of the best defence stocks in India. 

3. Short-term gains

Some investors have a short-term mindset with low-priced stocks in India. However, it should be noted that the best defence industry stocks to buy now come with low prices and high potential to deliver returns over the longer period of time. One should have to wait for 3 years or 5 years to generate higher capital gains from such stocks. 

4. Financial Health

It is essential to review the company’s finances before investing in it. Likewise, explore the financial statements of the best defence industry stocks to buy now and compare them with those of other firms operating in the same sector. 

Essential Tips to Invest in Defence Industry Stocks to Buy Now in 2025

Image 5: Invest in Defence Industry Stocks to Buy Now

Here are the essential tips to potentially invest in defence industry stocks in 2025. 

1. Select stocks with higher brand value 

Invest in best defence industry stocks to generate higher returns in the long term. Investors look at the brands that maintain the market share, deliver higher returns, and have a good customer base.  

2. Select stocks with adequate liquidity 

The best defence industry stocks to buy now tend to have low trading volumes, which may raise certain liquidity issues. Investment in these stocks could make it complex for investors to buy or sell their holdings.

3. Select stocks with strong financial

It is essential to review the company’s finances before investing in it. Likewise, explore the financial statements of the best defence industry stocks to buy now and compare them with those of other firms operating in the same sector. 

4. Select stocks with robust technical

Explore the fundamentals and technical aspects of the best defence stock in India to buy for the long term, and you can consider the technical parameters such as P/E ratio, P/B ratio, earnings per share, etc. This technical analysis would likely give you a better idea about the trends of the best defence industry stock.

Let’s Wrap

In conclusion, the defence stock in India is evolving with investments in domestic production and technological advancements. With the government’s focus on self-reliance through initiatives like “Atmanirbhar Bharat,” companies in this sector are likely to continue attracting attention. Factors such as financial health and sector performance are essential to consider when evaluating the best defence stocks in India. It helps in analysing defence industry stocks using various filters and data.

Try Univest, the No. 1 stockbroker or advisory platform, to research the best defence stocks in India to buy now!

FAQs on Penny Stocks to Buy Now

1. What are the best defence stocks to buy now?

Ans. Here are some of the best defence industry stocks to buy now in 2025. 

Which defence stocks will boom in 2025?

Ans. Here are the best defence stocks in India that could boom in 2025. 

Are Defence industry stocks safe to invest in?

Ans. Yes, Defence industry stocks are safe to invest in because there is a steady performance and they have long-term contracts with the government. It has a strong market demand for the demand and services of the defence equipment. 

Which defence stocks are undervalued?

Ans. Undervalued defence stocks in India.

Which stock will rise during war?

Ans. Defence stocks are in the industry that produces weapons and equipment related to defence; they will increase the price of the products during the war. Energy companies also increase the price of oil and commodities during the war. 

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Disclaimer: This is for general information and education purposes only. The Securities quoted (if any) are for illustration only and are not recommendatory. Past performance does not guarantee any future returns. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.