Synopsis: India’s defence push, backed by a ₹7.85 lakh crore budget and ₹2.19 lakh crore capital outlay, is strengthening sector visibility. Select players hold robust order books of ₹23,758 crore, ₹21,200 crore, ₹18,482 crore and ₹2,394 crore, ensuring multi-year execution momentum and strategic growth stability.
India’s defence sector is booming with self-reliance at its core. The FY26-27 budget allocates a record Rs 7.85 lakh crore to the Ministry of Defence, including Rs 2.19 lakh crore for capital outlay, a 21.84% jump to fuel modernisation. Production eyes surpassing Rs 1.75 lakh crore target amid rising exports and reforms. This push strengthens security amid global tensions.
Mazagon Dock Shipbuilders Ltd
Mazagon Dock Shipbuilders is one of India’s premier defence public sector shipyards, specialising in building submarines and frontline warships for the Indian Navy. With a strong multi-year order book, the company plays a crucial role in India’s naval modernisation and indigenous defence manufacturing push under the Atmanirbhar Bharat initiative.
With a market capitalisation of Rs 89,869 crore, the shares closed at Rs 2,228 per share, decreased around 1.03 percent as compared to the previous closing price.
Total order book stands at Rs. 23,758 crore as on 31st December 2025, reflecting a strong pipeline across shipbuilding and submarine segments. Major contributions come from P17A Stealth Frigates and P75 Kalvari Submarines, along with P15B Destroyers. Moreover, multiple ongoing contracts with the Ministry of Defence enhance revenue visibility and execution stability.
Furthermore, the order mix includes refit and life certification projects, offshore contracts from ONGC, and AIP systems, indicating diversified capabilities. While several vessels are pending delivery, substantial balance values remain across key programs. Therefore, the healthy backlog not only ensures steady cash flows but also strengthens long-term growth prospects.
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Garden Reach Shipbuilders & Engineers Ltd
Garden Reach Shipbuilders & Engineers is a key defence PSU engaged in constructing advanced warships, patrol vessels, and auxiliary ships. The company has strengthened its execution track record in recent years, backed by steady naval orders and export opportunities, positioning itself as an important contributor to India’s maritime defence capabilities.
With a market capitalisation of Rs 27,868 crore, the shares closed at Rs 2,433 per share, decreased around 1.51 percent as compared to the previous closing price.
The total order book of Garden Reach Shipbuilders & Engineers stands at Rs 18,482 crore as of 31 December, marking the first dip below Rs 20,000 crore. However, management views this positively, attributing it to faster execution and improved delivery momentum. The backlog spans 10 projects across 42 platforms, reflecting strong operational traction rather than demand weakness.
Moreover, defence continues to dominate with Rs 14,276 crore, nearly 77% of the order book, led by P-17A, ASW-SWC, and NGOPV programs. Exports contribute Rs 1,481 crore, while non-defence and other verticals add stability. Therefore, the mix signals healthy conversion of orders into revenue, reinforcing execution strength and long-term visibility.
Solar Industries India Ltd
Solar Industries India is a leading manufacturer of industrial explosives that has significantly expanded into the defence and ammunition segment. With growing domestic and export orders, the company is emerging as a strong private-sector player in defence manufacturing, supported by its technological capabilities and diversified product portfolio.
With a market capitalisation of Rs 1,22,157 crore, the shares closed at Rs 13,500 per share, decreased around 1.76 percent as compared to the previous closing price.
The company’s order book stands at over Rs. 21,200 crore, highlighting strong business visibility and execution strength. A significant portion comes from CIL and SCCL projects, along with a growing presence in the defence segment. This diversified exposure across mining and defence reduces risk concentration and supports long-term revenue stability, positioning the company for sustained growth.
MTAR Technologies Ltd
MTAR Technologies operates in precision engineering, supplying critical components to the defence, aerospace, nuclear, and clean energy sectors. Known for its high-precision manufacturing expertise, the company benefits from long-term institutional clients and a healthy order book that supports steady revenue visibility and strategic growth opportunities.
With a market capitalisation of Rs 11,712 crore, the shares closed at Rs 3,808 per share, increased around 3.37 percent as compared to the previous closing price.
The company’s total order book stands at Rs. 2,394.9 crore as of 31st December 2025, reflecting a strong build-up during Q3FY26. The company added Rs.1,368.8 crore of fresh orders across clean energy, civil nuclear power, fuel cells, hydel, aerospace and defence segments. Consequently, the diversified mix strengthens revenue visibility and reduces dependency on any single sector.
Moreover, the order book expanded from Rs. 1,296.6 crore in September 2025, supported by robust inflows and Rs. 270.5 crore of restated sales adjustments. Clean energy contributes the largest share at 49.3%, followed by civil nuclear power and aerospace. Therefore, the healthy pipeline indicates sustained growth momentum and improved execution visibility ahead.
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