Investors are watching a key meeting that could bring huge defence contracts to Indian manufacturers.
What the Defence Acquisition Council could decide
The council, led by Defence Minister Rajnath Singh, will discuss emergency purchases of critical military systems. The proposals on the table total around Rs 80,000 crore (about $10 bn). If approved, the orders would flow mainly to domestic companies that make missiles, radars and electronic warfare gear.
Key companies in focus
- Hindustan Aeronautics Limited (HAL) – aircraft and aerospace equipment.
- Bharat Electronics Limited (BEL) – radars, missiles and electronic systems.
- Bharat Dynamics Limited (BDL) – missile and defence hardware.
- Data Patterns – defence electronics and software.
- Astra Microwave – radar and sensor technology.
Possible new deals
The council may also approve:
- A three‑year lease of two US‑made Sea Guardian MQ‑9B drones, adding to a larger deal for 31 drones expected from 2028.
- Large‑scale procurement of Astra Mark‑2 air‑to‑air missiles (range >200 km) for the Indian Air Force.
- A set quantity of Meteor air‑to‑air missiles.
Why the orders matter
India is pushing to boost its own defence manufacturing and cut reliance on imports. Approving these contracts would create a strong order pipeline through 2026, giving a clear growth path for the companies listed above.
Recent stock performance
- HAL shares up about 6% YTD.
- BEL surged more than 35%.
- BDL rallied over 30%.
- Data Patterns gained roughly 7%.
Policy backdrop – Defence Procurement Manual 2025
Earlier this year, the Defence Procurement Manual (DPM) 2025 was approved. It aims to speed up buying for the armed forces, encourage private firms, MSMEs and startups, and support the "Aatmanirbharta" (self‑reliance) drive in defence.
What investors should watch
Keep an eye on the council’s decisions, especially any approvals that involve large orders for missiles, radars or drones. Such outcomes could push the share prices of HAL, BEL, BDL and related firms higher.
Disclaimer
Remember, this is my perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.