Stocks of major Indian defence companies drew investor attention on Monday, December 29, 2025, ahead of the Defence Acquisition Council (DAC) meeting, which is expected to consider several high-value defence procurement proposals that could boost the order pipeline for domestic manufacturers.
Shares of defence firms such as Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), Data Patterns, and Astra Microwave were in focus as markets anticipated announcements from the DAC that could materially impact their future contracts and revenues.
The DAC meeting, chaired by Defence Minister Rajnath Singh, was expected to take up high-value proposals related to the emergency procurement of critical military systems and equipment, potentially unlocking orders worth roughly Rs. 80,000 crore. These approvals come amid India’s broader strategic push to enhance indigenous defence manufacturing and reduce reliance on imports.
Key items on the agenda reportedly included possible leasing of Sea Guardian MQ-9B HALE drones from the United States for around three years, with an earlier deal signed for 31 drones that are expected to begin arriving from 2028. The Defence Ministry was also likely to clear the development and procurement of large numbers of Astra Mark 2 air-to-air missiles with a strike range of over 200 km for the Indian Air Force, alongside select Meteor air-to-air missiles.
India’s ongoing policy efforts, including the Defence Procurement Manual (DPM) 2025, aim to fast-track revenue procurement, enhance participation from private players and MSMEs, and modernise procurement processes in line with evolving operational requirements. Domestic defence stocks had largely delivered positive performance in 2025, with HAL up about 6 %, BEL surging more than 35 %, BDL up over 30 %, and Data Patterns gaining modestly, reflecting investor optimism around the sector’s prospects.
The focus on defence equities reflects expectations that approvals from the DAC could set a strong tone for the sector heading into 2026, particularly for companies with established capabilities in missile systems, radars, electronics warfare and other critical defence technologies.
