The defence sector maintained its strong momentum with Nifty India Defence index rising 2.9% on Thursday, building on the previous quarter's institutional investment unity. According to HDFC Securities, this sectoral performance was driven by strong earnings and positive brokerage commentary, with defence stocks continuing to attract investor attention. Bharat Electronics (BEL) featured among the top Nifty gainers, rising 2.4%, while Hindustan Aeronautics (HAL) surged after a broker upgraded the stock to 'Buy' citing improving execution of the Tejas Mk1A programme. The rally reflects sustained institutional interest in defence companies that demonstrated robust financial performance and strong order books.
Ideaforge Technology Limited stands as India's largest pure-play drone manufacturer with over 19 years of experience in the Unmanned Aerial Vehicles (UAV) industry. As reported by The Financial Express, the company ranks third globally in manufacturing dual-use drones, with more than 9,50,000 missions completed using its drones. During Q1 FY27, FIIs increased their stake by 7.54% points while DIIs raised their stake by 9.78% points, taking total holdings to 8.27% and 10.98% respectively. The company secured its first US order from Lamar Police Department, Texas, and became the first Indian drone manufacturer to train NATO forces at the US National Test Pilot School.
According to The Financial Express, Ideaforge demonstrated robust financial growth with sales growing 40.37% YoY to ₹226 crore in FY26 from ₹161 crore in FY25. The company's profit loss narrowed significantly from ₹62 crore to ₹17 crore during the same period. The company maintains a healthy orderbook of ₹310 crore at the beginning of FY27, with management expecting complete execution by the end of the fiscal year. The stock trades at an EV/EVITDA of 185.2x, significantly higher than the industry median of 39.2x, indicating premium valuation.
Paras Defence and Space Technologies Limited emerged as the leading submarine periscope manufacturer across Asia Pacific and the only private sector player in indigenous hyperspectral camera manufacturing. As reported by The Financial Express, the company secured orders worth ₹986 crore at the end of FY26, offering solid revenue visibility. During Q1 FY27, FIIs increased their stake by 3.23% points while DIIs raised their stake by 1.8% points. The company is venturing into semiconductors via its subsidiary Paras Semiconductors with a ₹6,200 crore investment and 50 acres of allocated land for an advanced semiconductor packaging facility.
Astra Microwave Products Limited secured a record ₹2,205.23 crore order from HAL for the Uttam Radar programme, representing one of the largest orders in company history. According to The Financial Express, this order is scheduled for execution over the next five years and exceeds the company's FY26 closing order book of ₹2,141 crore. The company's orderbook grew to ₹2,141 crore at the end of FY26, with defence and public sector orders comprising 54% and export orders contributing 33%. FIIs increased their stake by 3.18% points while DIIs raised their stake by 0.67% points during Q1 FY27.
