BEL, HAL and 4 other defence stocks likely to benefit from ₹2.38 lakh crore DAC approvals

Synopsis:- Defence approvals worth ₹2.38 lakh crore, taking FY total to ₹6.73 lakh crore, signal strong military push. Key projects include S-400 systems ($6–7 billion), drones, and hovercrafts, boosting sector sentiment as India accelerates procurement and focuses on advanced, self-reliant defence capabilities.

Defence Minister Rajnath Singh cleared defence deals worth a staggering ₹2.38 lakh crore. The approvals were given through the Defence Acquisition Council (DAC), which is India’s highest body for making defence purchase decisions. With this latest clearance, the total defence approvals for this financial year have now crossed ₹6.73 lakh crore, more than three times last year’s figure of ₹2.2 lakh crore. This is a record-breaking number and signals just how seriously India is pushing to strengthen its military.

What Was Approved?

The approved projects cover a wide range of needs, from air defence systems and surveillance drones to communication equipment and coast guard vessels. The focus is clearly on making India’s armed forces more self-reliant and technologically advanced.

For the Indian Army

The army will benefit from an Air Defence Tracked System and High Capacity Radio Relay equipment, both designed to improve battlefield communication and protection. A Runway Independent Aerial Surveillance System has also been approved, which will help with aerial monitoring even without traditional runways.

For the Indian Air Force

The Air Force gets some of the biggest-ticket items. Five units of the S-400 air defence missile system, imported from Russia, are estimated to cost between $6 to $7 billion. The IAF also gets approval for a Remotely Piloted Strike Aircraft (essentially an armed drone) and an overhaul programme for Su-30 aircraft engines, which keeps India’s existing fleet in top shape.

For the Indian Coast Guard

Heavy-duty air cushion vehicles, commonly known as hovercrafts, have been approved for the Coast Guard. These can operate on both land and water, making them extremely useful for coastal operations and rescue missions.

Why Now?

This DAC meeting was the second high-level defence meeting in just three days. The first was held on March 24, where the minister reviewed India’s overall security preparedness. The back-to-back meetings suggest a deliberate push to accelerate defence procurement before the fiscal year ends.

Companies in the Spotlight

Following the announcement, several defence stocks came into sharp focus on Monday. Based on the approved projects and analyst views from Elara Securities, the companies likely to benefit from these approvals are Bharat Electronics Limited (BEL), Hindustan Aeronautics Limited (HAL), Garden Reach Shipbuilders and Engineers Limited (GRSE), Goa Shipyard Limited, and Ideaforge Technology.

Bharat Electronics stands to gain the most, with two major army projects directly linked to its capabilities. HAL benefits from both the drone aircraft project and the engine overhaul contract. Garden Reach Shipbuilders and Goa Shipyard are positioned to compete for the hovercraft orders, while Ideaforge, a drone startup, could benefit from the surveillance aircraft approval.

Conclusion

India’s massive ₹2.38 lakh crore defence approvals signal a strong, long-term push toward military modernisation and self-reliance. With total FY approvals at ₹6.73 lakh crore, execution will be key. If timely, this could drive sustained growth, improve order visibility, and keep defence stocks in focus ahead.

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