India’s Rs 79,000 Crore Defence Boost: Key Equipment Procured, Top Companies Set to Benefit

Piyush Dubey
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Piyush Dubey
Piyush Dubey is a financial writer and market analyst who specializes in covering the latest IPO updates, stock market insights, and investment opportunities. With a strong...
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The latest Defence Acquisition Council (DAC) approval worth Rs 79,000 crore marks a major boost for India’s armed forces with procurement proposals aimed at enhancing capabilities of the Army, Navy, and Air Force. The government is purchasing key military equipment including landing platform docks (LPDs), advanced lightweight torpedoes, Nag Missile System (Tracked) Mk-II, ground-based mobile ELINT systems, and high mobility vehicles among others. The Navy is the largest beneficiary with the biggest share of around Rs 60,000 crore allocated for projects such as construction of four large amphibious warfare ships (LPDs), 30mm naval surface guns, electro-optical infrared search systems, and smart ammunition. The Army’s purchases focus on Nag missiles, ELINT capabilities, and high mobility vehicles, while the Air Force will get cutting-edge systems like the Collaborative Long Range Target Saturation/Destruction System (CLRTS/DS) for enhanced autonomous operations.

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Several prominent Indian defence companies stand to benefit significantly from this procurement spree. Major contenders for the naval LPD construction include Mazagon Dock Shipbuilders (MDL), Cochin Shipyard Limited (CSL), Larsen & Toubro (L&T) Shipbuilding, and Garden Reach Shipbuilders & Engineers Ltd (GRSE). Bharat Dynamics Limited (BDL) will benefit from orders linked to the Nag missile system and advanced lightweight torpedoes. Bharat Electronics Limited (BEL) and Astra Microwave are expected to gain from ELINT system projects, while Bharat Heavy Electricals Limited (BHEL) and BEML are poised to benefit from the naval guns, high mobility vehicles, and other equipment contracts. Data Patterns will benefit through contracts related to electro-optical infrared search and tracking systems.

This Rs 79,000 crore investment underlines the government’s focus on self-reliance (“Aatmanirbharta”) in defence manufacturing, with over 90% of procurement contracts expected to go to domestic companies, progressively reducing dependence on imports while strengthening indigenous defence production capabilities. The mix of projects aims to improve operational readiness across land, sea, and air domains, contributing to India’s strategic military strength and future readiness.

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Piyush Dubey is a financial writer and market analyst who specializes in covering the latest IPO updates, stock market insights, and investment opportunities. With a strong focus on technical analysis, he breaks down complex market trends into simple, actionable insights for readers. His articles provide in-depth analysis of upcoming listings, trading strategies, and stock recommendations to help investors make informed decisions in a fast-moving market.