07-07-2025
HAL, BEL, BDL shares in focus as Defence Ministry plans Rs 2 lakh crore contracts in FY26
By Aditya Bhagchandani Published on July 7, 2025, 11:19 IST
Shares of Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL) and Bharat Dynamics Ltd (BDL) were in focus today after the Ministry of Defence announced its intent to sign defence contracts worth Rs 2 lakh crore in the current financial year (FY26). The announcement is seen as a significant boost to Indian defence manufacturers.
Defence Secretary Giridhar Aramane stated that the ministry plans to maintain the momentum of indigenisation with these contracts, ensuring the majority of orders benefit Indian defence players. This comes after a robust FY25 in which the ministry placed substantial orders with domestic companies.
Earlier, in the Union Budget for FY26, the Ministry of Defence was allocated Rs 6.81 lakh crore — accounting for 13.45% of the total budget. Of this, Rs 3.11 lakh crore was earmarked for revenue expenditure, including salaries and maintenance. Defence pensions received Rs 1.61 lakh crore, while the Defence Research and Development Organisation (DRDO) saw its allocation rise 12.4% year-on-year to Rs 26,816 crore.
The fresh plan for Rs 2 lakh crore in capital contracts reflects the government's commitment to enhancing domestic capabilities under the 'Atmanirbhar Bharat' initiative, which prioritises self-reliance in defence production.
At 11:15 AM: Hindustan Aeronautics Ltd (HAL) traded at ₹5,009.50, up 0.33%
Bharat Electronics Ltd (BEL) was down 2.18% at ₹418.25
Bharat Dynamics Ltd (BDL) was down 1.60% at ₹1,945.90
Investors are keenly watching for further details of the contracts, which could significantly benefit these key defence stocks in the coming quarters.
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Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
