Top Defence Stocks to Watch in 2025: HAL, BEL, Mazagon Dock, BDL, PTC Industries & Zen Tech

Hindustan Aeronautics (HAL): Monopoly in Defence Aerospace

HAL remains a monopoly in the Indian defence aerospace segment, making it a unique long-term play. The company is expected to be a key beneficiary of rising ordering momentum, especially with indigenous fighter jets like Tejas gaining prominence.

Antique Stock Broking retained its positive stance on HAL, assigning a target price of ₹6,360, valuing the company at 40 times its 1HFY28E EPS. With expanding demand for combat aircraft and helicopters, HAL is strategically placed to capture a large share of defence aerospace manufacturing.

Bharat Electronics (BEL): Rising Demand for Electronic Warfare Systems

The growing integration of electronics into warfare systems provides a strong growth path for BEL. From radars and missile systems to advanced communication equipment, BEL is expected to benefit materially across key platforms.

Antique has maintained a BUY rating with a target price of ₹454, highlighting its leadership in electronic defence systems and strong order pipeline.

Mazagon Dock Shipbuilders: Provisions to Ease, Growth Outlook Strong

Mazagon Dock faced pressure in the March and June quarters due to heavy provisioning against two orders, impacting its EBITDA margins. However, these elevated provisions are expected to taper off sharply from the September quarter onwards.

If the actual cost of procurement for these projects comes in lower than estimates, Mazagon Dock may even see a provision write-back, boosting profitability. Given India’s growing naval requirements, including destroyers, frigates, and aircraft carriers, Mazagon Dock stands to benefit significantly.

Bharat Dynamics (BDL): Strong Position in Missiles and Ammunitions

BDL plays a critical role in India’s missile and ammunition programs. With the TPCR 2025 outlining the need for 200–250 long-range missiles and up to 50,000 anti-tank guided missiles, BDL is expected to see strong order inflows. Its established expertise in missile manufacturing keeps it at the heart of India’s self-reliance in defence weaponry.

PTC Industries: Aerospace Materials Powerhouse

PTC Industries is working on a mega aerospace materials complex, and once it reaches near-optimal utilization, its consolidated revenue could grow 10–20 times in the next 5–6 years, according to Antique.

With the global and domestic aerospace industry expanding, PTC is poised to become a strategic supplier of high-grade materials for defence and aerospace, a critical enabler of self-reliance.

Zen Technologies: Short-Term Pause, Long-Term Growth

Zen Tech has shown remarkable profit growth in recent years, but near-term earnings visibility is clouded by delays in order finalization. FY26 may witness a temporary pause in growth. However, given its strong presence in simulation and anti-drone systems (ADS), the company is expected to rebound strongly from FY27 onwards.

Its products align well with India’s growing need for UAVs, anti-drone systems, and electronic warfare equipment, which makes Zen Tech a strong long-term play despite short-term hurdles.

TPCR 2025: Defence Roadmap for the Future

The Technology Perspective and Capability Roadmap (TPCR) 2025 provides a detailed outline of India’s defence requirements over the next 15 years. Compared with 221 products in 2018, the new TPCR lists 453 products, highlighting the sharp acceleration in India’s defence modernization drive.

Key highlights include:

• Indian Navy: Plans for one additional aircraft carrier, 5–10 destroyers and frigates, 200–250 long-range missiles, and advanced nuclear propulsion systems.

• Indian Army: Induction of Future Ready Combat Vehicles (FRCVs), 20,000–50,000 anti-tank guided missiles, 300–400 light tanks for high-altitude operations, and advanced cyber-hardened communication systems.

• Indian Air Force: Deployment of stratospheric airships, cruise missiles, tactical high-energy laser systems, and enhanced UAVs with precision-guided munitions.

Defence Procurement Manual 2025: A Game-Changer

The Defence Procurement Manual 2025 has restructured procurement rules worth nearly ₹1 lakh crore annually. Key changes include:

• Removal of the requirement for private companies to secure No Objection Certificates (NOCs) from defence PSUs.

• A collaborative approach with minimal penalties during prototype development.

• Replacement of punitive damages with capped limits, encouraging private sector innovation.

This change is expected to attract more private participation and accelerate the defence indigenization push.

Conclusion: Defence Stocks Ready for Long-Term Growth

India’s defence modernization, rising indigenous production, and the government’s push for self-reliance create a strong investment theme in the sector. Among the top picks, HAL, BEL, Mazagon Dock, BDL, PTC Industries, and Zen Technologies stand out with robust fundamentals and growth potential.

For investors with a medium to long-term horizon, defence stocks represent a compelling opportunity to participate in India’s strategic growth story.