India's top defence companies are positioned for a ₹15 trillion revenue opportunity over the next five fiscal years, driven by surging government capital expenditure and defence exports, according to brokerage Dam Capital. The windfall is being distributed across five major firms: Hindustan Aeronautics, Bharat Electronics, Bharat Dynamics, Mazagon Dock Shipbuilders, and Larsen & Toubro's Precision Engineering & Systems division. Exports are projected to exceed ₹72,000 crore for the period, with the government targeting ₹50,000 crore in defence exports by FY29 at a compounded annual growth rate of 9%.
Export performance remains highly uneven across defence companies. Bharat Dynamics leads export orientation with 38% of its ₹3,345 crore FY25 revenue derived from overseas sales, while Hindustan Aeronautics earned only 1.06% of its ₹37,729 crore FY25 revenue from exports. Mazagon Dock Shipbuilders performed worse with just 0.53% of operating income from exports. According to Dam Capital, private players are positioned to rapidly close this export gap, with Larsen & Toubro's Precision Engineering & Systems division targeting nearly 5% of its expected ₹9,400 crore annual revenue from defence exports.
Defence exports reached ₹38,424 crore in FY26, as per defence ministry data, with the government implementing restrictions on imports to enhance indigenization for self-reliance. As reported by Bharat Dynamics chairman A. Madhavarao, the company is aggressively pursuing exports to consolidate its ₹22,814 crore order book, with products like the Akash Weapon Systems finding strong international interest. Bharat Electronics chairman Manoj Jain noted that the company's annualized defence exports crossed $100 million for the first time, with increased acceptance in France, the US, Spain, Israel, China, Mauritius, Sri Lanka, ASEAN, the UK, and Sweden.
Private players are building significant defence production capabilities through strategic partnerships. Larsen & Toubro's Precision Engineering & Systems division has partnered with South Korea's Hanhwa Aerospace to build Howitzers locally, supplying the K-9 Vajra tank to the Indian Army with 60% of artillery production by value currently built domestically. Industry consultant Chaitanya Giri from the Observer Research Foundation highlighted that India's growing export success stems from commercializing DRDO-developed technologies through private channels, providing geopolitical influence advantages that purely private conglomerates may not fully capitalize on.
This represents a fundamental shift for India, which was historically among the world's largest arms importers but is now positioning itself as a global supplier. As reported by industry experts, India is courting buyers across West Asia, Southeast Asia, Central Asia, and Africa with domestically produced systems ranging from surface-to-air missiles to self-propelled artillery. The transformation is being driven by geopolitical tensions and indigenization policy, with the country now exporting India-made defence equipment to regions including West Asia, central and southeast Asia, and Africa, marking a significant change in India's defence sector landscape.
