5 Aerospace and Defence Stocks With Order Books Worth Up to ₹2.5 Lakh Cr to Keep on Your Radar

Synopsis: Five defence companies with strong order books and visibility, including HAL, Apollo Micro Systems, and others are showing robust order inflows, diversified defence exposure, and healthy execution pipelines supporting long-term growth potential.

Strong government support and expanding ecosystem initiatives are significantly boosting the defence sector’s growth. The Union Budget for FY26 has allocated Rs. 6,81,000 crore (US$ 78.7 billion), marking a 9.5% rise over FY25. 

Programs such as the SRIJAN portal are driving indigenisation, with over 34,000 items listed and around 10,000 already indigenised. Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu are strengthening manufacturing clusters, while the iDEX initiative has enabled 430 contracts with startups and MSMEs to promote innovation. 

Backed by Goldman Sachs’ projection of 32% EPS growth for private defence companies between FY25 and FY28, and expectations of the domestic market reaching Rs. 10,00,000 crore (US$ 122 billion) over the next two decades, the sector’s long-term outlook remains highly positive.

Hindustan Aeronautics Ltd

Hindustan Aeronautics Limited (HAL) is India’s premier aerospace and defence company engaged in the design, manufacturing, and maintenance of aircraft, helicopters, engines, and defence systems. The company plays a crucial role in supporting India’s defence modernisation and indigenous manufacturing initiatives. With a market capitalisation of Rs. 2,87,620 cr, the shares of the company closed at Rs. 4,300 per share, down from its previous close of Rs. 4,414.55 per share.

The company’s order book strengthened significantly to Rs. 2,54,538 crore, compared to Rs. 1,89,302 crore as of 1 April 2025, even after executing turnover worth Rs. 31,792 crore during the year. This reflects robust order inflows and sustained business momentum.

During the year, the company secured fresh orders worth Rs. 97,028 crore, including manufacturing orders valued at Rs. 69,668 crore and ROH (Repair and Overhaul) orders of Rs. 26,539 crore. Key contracts received included the supply of 97 LCA Mark-1A aircraft to the Indian Air Force, 6 ALH Mark III MR helicopters and 8 Do-228 aircraft to the Indian Coast Guard, 10 ALH Dhruv NG helicopters to Pawan Hans, and 2 Hindustan-228 aircraft to Guyana.

The future order pipeline also remains strong, with several major projects at different stages of approval. These include orders for 143 ALH helicopters for the Army, upgrades for IAF Su-30 aircraft, and modernisation of 40 Do-228 aircraft. Overall, the company expects to receive nearly Rs. 90,000 crore worth of orders, including ROH contracts, over the next two years.

Bharat Electronics Ltd

Bharat Electronics Limited (BEL) is a leading public sector defence electronics company specialising in radar systems, communication equipment, electronic warfare systems, and advanced defence technologies. It supplies critical products and solutions to the Indian armed forces and government agencies. With a market capitalisation of Rs. 3,00,358 cr, the shares of the company closed at Rs. 410.90 per share, down from its previous close of Rs. 419.05 per share.

The company’s order book stood at Rs. 73,882 crore as of 1 April 2026, while order inflows during FY26 totalled Rs. 30,045 crore. The current order backlog is largely driven by several high-value defence and aerospace projects scheduled for execution over the next two to three years.

Key projects in the order book include electronic fuses, LRFM systems, LCA Mark 1/1A LRUs for Tejas aircraft, BMP-II upgrades, spare services, Ashwini radar systems, and EW Suites for Mi-17 V5 helicopters. Most of these projects are expected to be executed within the next one to one-and-a-half years, while select long-term projects will continue for a longer duration.

Among the major pending orders, electronic fuses account for nearly Rs. 4,300 crore and are expected to continue over the next seven years. Other significant projects include LRSAM orders worth Rs. 3,500 crore, LCA-related orders of Rs. 3,200 crore, BMP-II upgrades of Rs. 2,800 crore, Ashwini radar systems of Rs. 2,460 crore, Mi-17 V5 EW Suites of Rs. 2,200 crore, and spare services and miscellaneous orders totalling around Rs. 2,500 crore.

Apollo Micro Systems Ltd

Apollo Micro Systems is a technology-driven company focused on the design, development, and manufacturing of electronic and electro-mechanical systems for defence, aerospace, and homeland security applications. The company caters to both government and private sector defence programs. With a market capitalisation of Rs. 14,607 cr, the shares of the company closed at Rs. 408.85 per share, down from its previous close of Rs. 417.80 per share.

The company’s order book stood at Rs. 1,432 crore as of 31 March 2026, reflecting a healthy pipeline of ongoing projects. It recently secured a major order worth approximately Rs. 421 crore from Coal India Ltd, further strengthening its business outlook and revenue visibility.

Zen Technologies Ltd

Zen Technologies develops advanced defence training and simulation solutions for military and security forces. Its portfolio includes combat simulators, anti-drone systems, and virtual training platforms designed to enhance operational readiness and modern warfare capabilities. With a market capitalisation of Rs. 15,043 cr, the shares of the company closed at Rs. 1,666 per share, down from its previous close of Rs. 1,694 per share.

The company reported a consolidated order book of Rs. 1,336 crore as of 31 March 2026, while the standalone order book stood at Rs. 1,222.6 crore. Of the total order book, nearly Rs. 1,000 crore is expected to be executed and dispatched during FY2027, with the remaining Rs. 326 crore mainly comprising AMC contracts that will be recognised over their contract tenure. Deliveries are expected to be largely concentrated in Q2 and Q3 of FY2027.

The management highlighted a strong bidding pipeline, including competitive bids worth around Rs. 1,500 crore and additional single-vendor opportunities potentially amounting to a few thousand crores. The pipeline mix is estimated at nearly 55% anti-drone systems and 45% simulators. The company also reiterated confidence in achieving its projected cumulative turnover target of Rs. 4,000 crore across FY2027 and FY2028, while indicating that the order book could potentially reach Rs. 3,000 crore in the future.

MTAR Technologies Ltd

MTAR Technologies is a precision engineering company serving sectors such as aerospace, defence, clean energy, and nuclear power. It manufactures highly specialised components and equipment for critical applications while maintaining strong partnerships with leading Indian and global technology organisations. With a market capitalisation of Rs. 24,198 cr, the shares of the company closed at Rs. 7,867 per share, down from its previous close of Rs. 7,887.60 per share.

The company reported strong order inflows in FY26, receiving its highest-ever inflows of Rs. 2,453.3 crore during the year. In Q4 FY26 alone, it secured fresh orders worth Rs. 481.6 crore across multiple business segments, reflecting healthy demand momentum.

The overall order book built up to Rs. 2,581.9 crore as of 31 March 2026. This growth was driven by Rs. 481.6 crore in incoming orders during Q4, adjusted for sales restatement of Rs. 294.6 crore and supported by a strong opening base of Rs. 2,394.9 crore as of 31 December 2025.

In terms of business mix, the order book is well diversified, with Clean Energy (Fuel Cell, Hybrid and related segments) contributing the largest share at 51.2%. Clean Energy Civil Nuclear Power accounts for 26.3%, Aerospace & Defence contributes 14%, and Products & Others make up 8.5%, highlighting a balanced portfolio across sectors.

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