Bharat Electronics, Bharat Forge, Mtar Technologies: Five defence stocks surge up to 58% so far this year, here are key things to know

Shares of defence equipment makers such as Bharat Electronics, Bharat Forge, Mtar Technologies, Data Patterns and Solar Industries have outperformed the NIFTY50 index so far this year. These shares have surged between 11% and 58% compared with 2.2% decline in the benchmark NIFTY50 index, data compiled by the National Stock Exchange showed.

Shares of defence equipment makers have been witnessing buying interest for quite some on the back of government's focus to indigenise the defence industry and steadily rising defence spending in the Budget has also ignited investor interest towards defence shares.

Analysts have been bullish on India’s defence sector because India’s defence production, modernisation and exports are growing rapidly and government initiatives like Make in India and defence industrial policies are encouraging domestic manufacturing and tech capability.

The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh in December last year cleared capital acquisition proposals worth about ₹79,000 crore to boost the operational capabilities of the country’s armed forces.

The Council accorded “acceptance of necessity”, the first formal step in India’s defence procurement process, for a range of weapons, platforms and systems for the army, navy and air force at a meeting held on December 29, the defence ministry said.

Here are top five defence stocks that have outperformed this year:

The company posted reported a consolidated net profit of ₹1,579 crore in third quarter of the current financial year, marking an increase of 20.4% from ₹1,311 crore in the same period last year.

The order book position of Bharat Electronics as of January 1, 2026, stood at ₹73,015 crore, the company said.

Bharat Forge won contracts for the Indian Army and also for end use at the Indian Navy, covering a range of indigenous unmanned systems, including Intelligence, Surveillance, and Reconnaissance (ISR) platforms and loitering munitions.

Its revenue from operations in October-December period advanced 61% to ₹274 crore from ₹170 crore in the same period last year.

Its EBITDA for the quarter increased 44% to ₹78crore in Q3 and EBITDA margin came in at 45%.

Its defence revenue came in at ₹700 crore and its order book jumped to over ₹21,000 crore.