Defence stocks rally: GRSE surges 13%, Data Patterns up 11%, Mazagon Dock jumps 10%

Defence sector stocks witnessed a strong rally in early trade on Tuesday, with several companies posting significant gains. As of 10:05 AM, Garden Reach Shipbuilders & Engineers (GRSE) soared 13.01% to ₹1,381.30, leading the surge in defence stocks. Data Patterns followed with an 11.09% jump to ₹1,581.60, while Mazagon Dock Shipbuilders rose 9.95% to ₹2,157.00. Zen Technologies also saw a sharp rise of 9.84%, reaching ₹1,067.65.

Other defence stocks also traded in the green, with Apollo Micro Systems climbing 8.35% to ₹114.90, Bharat Dynamics Limited (BDL) gaining 8.28% to ₹1,093.50, and Paras Defence & Space Technologies rising 6.31% to ₹898.50. Astra Microwave posted a 5.59% jump at ₹638.95, while BEML advanced 3.34% to ₹2,673.80.

Meanwhile, HAL gained 2.39% to ₹3,424.50, BEL rose 2.84% to ₹251.55, and Solar Industries moved up 1.46% to ₹8,734.70. The rally in defence stocks comes amid rising optimism in the sector, with increased government focus on self-reliance, robust order inflows, and expectations of further policy support.

The Indian defence industry is poised for significant growth, with Defence Secretary Rajesh Kumar Singh stating that the sector is at the “cusp of a massive expansion.” The Indian government is relaxing FDI policies and industrial licensing procedures, which are expected to provide a major boost to the domestic defence industry. Public-private partnerships will play a critical role in establishing India as a hub for advanced manufacturing in the sector.

The 2025-26 defence budget has been set at ₹6.81 lakh crore, a 9.5% increase from the previous year’s ₹6.21 lakh crore, which is also adding to the optimism surrounding the sector. This policy shift has fueled investor confidence, particularly in companies such as Mazagon Dock, HAL, and BDL, which had seen significant corrections from their highs earlier.

Investors continue to track developments in the sector, as defence companies benefit from strong earnings visibility and government-backed initiatives aimed at boosting indigenous manufacturing.

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