Defence stocks stay upbeat: Nifty India Defence surges 20% YTD, beats NIFTY50 returns; key triggers

The defence stocks were also witnessing positive momentum in the market on account of the one year of Operation Sindoor, where India carried out a calibrated response to terrorism and the Pahalgam attacks in Jammu & Kashmir in 2025.

NSE data showed that the sectoral index, Nifty India Defence, has outperformed the benchmark NIFTY50 in terms of returns delivered to investors so far in the calendar year 2026.

The Nifty India Defence has gained 20% on a year-to-date (YTD) basis in 2026, while the benchmark NIFTY50 index lost 7% in the same period amid the West Asia crisis and supply chain impact on domestic stocks, as per the exchange data.

As of 1:07 pm, the Nifty India Defence was trading 1.62% higher at 9,290.95 points on Thursday, May 7, compared to 9,142.65 points at the previous stock market close, as per NSE data.

In contrast, the NIFTY50 index was down 0.33% to 24,411 points as of 1:07 pm, compared to 24,330.95 points at the previous market close. The Indian stock market was witnessing downward pressure from the rapidly changing global dynamic amid hopes of an upcoming peace deal between the US and Iran.

Latest updates

The Indian defence sector has witnessed strong order book inflows in the March quarter of the fiscal year ended 2025-26, as well as in April and early May 2026, which has increased the momentum of the sector this year.

Top companies like Bharat Electronics Ltd (BEL), Hindustan Aeronautics Ltd (HAL), Mazagon Dock, Cochin Shipyard are among several others which have received major orders from the domestic and international markets, resulting in the overall push in inflows for the period.

On May 5, BEL announced that the company received a ₹1,251 crore order from the Indian Army to supply key defence equipment. In April, the company bagged another ₹569 crore order for a series of defence equipment at the start of the fiscal year 2026-27.

Data also showed that the company bagged orders worth ₹30,000 crore, including exports, in the financial year ended 2025-26.

Recent filings also showed that Mtar Tech bagged a ₹35.56 crore international order to supply data centre infrastructure to an undisclosed foreign entity.

HAL’s Q4 net profit after tax (PAT) witnessed a 21% rise to ₹2,994 crore, compared year-on-year with ₹2,475 crore in the same period a year ago, driven by a 42% surge in core revenues from operations.

Mazagon Dock’s Q4 net profits rose 107% to ₹674 crore, driven by a 21% rise in its revenues from core operations in the period. Other results, like that of GRSE, showed that the Q4 profits rose 24% to ₹303 crore, as the revenues rose 29% YoY in the fourth quarter.

Looking at the Q4 results season, experts said that the fourth quarter of any particular financial year is typically the strongest quarter for sectors like defence and railways as the government aims to wrap up placing its orders before the end.

Although the defence sector is not expected to stay immune to the West Asia supply chain impact in the domestic market, the companies are estimated to recover quicker due to the overall order book momentum amid the increasing input costs concerns.

Trending defence stocks today

Paras Defence stock has delivered 26% returns YTD, 34% gains in the past one month, and the company’s stock was trading over 8% higher over the last five market sessions.

Mtar Tech shares have delivered more than 179% returns so far in 2026, 70% gains in the past one month, and 3.6% returns in the last five trading sessions.

Astra Microwave shares have gained 27% YTD, and over 15% returns in the past one month. The company’s stock was trading 2.4% higher over the last five market sessions.

The company’s stock gained 41% year-to-date in 2026, and over 58% returns in the last one month period. Aequs shares were trading 3.7% higher over the last five market sessions on NSE.

Zen Tech shares have gained 19% YTD in 2026, and over 13% in the past one-month period. However, the aerospace & defence stock was down 3% over the last five markets sessions.