BEL, Zen Technologies, Data Patterns: Select defence stocks rally, others see profit-booking; check latest updates

The Nifty India Defence index was trading 0.68% lower at 8,252.50 levels, with nine constituents rising and the remaining nine scrips trading in the red. The index has jumped a whopping 26% in the past 30 days, NSE data show.

Buzzing Stocks

Its earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at ₹162.74 crore as compared to ₹53.08 crore a year ago, and EBITDA margin stood at 50.08% as against 37.54% in the March 2024 quarter.

The company's management commentary was also encouraging, which boosted the sentiment further.

“Zen Technologies has surpassed its guidance for FY25, achieving a top line of over ₹900 crore, along with EBITDA and profit after tax (PAT) margins exceeding the guided 35 per cent and 25%, respectively, the highest-ever quarterly and annual performance in the company’s history," said Ashok Atluri, chairman and managing director, Zen Technologies.

During the quarter, the company secured a significant order from the Ministry of Defence for Integrated Air Defence Combat Simulators (IADCS) for the L70 gun, which it expects to execute within this financial year.

Bharat Electronics (BEL)

Shares were trading in the green but were off the day's high levels. On May 16, the company announced that it had secured additional orders worth ₹572 crore since the last disclosure on April 7, 2025. Major orders received include Integrated Drone Detection and Interdiction System (IDDIS), Software Defined Radio (SDR) and Data Communication Unit (DCU) for attack guns,

AI-based solutions for ships, simulators, communication equipment, jammers, spares, services, etc.

Besides, the Navratna PSU is slated to announce its Q4 FY25 numbers today.

Data Patterns

The defence and aerospace electronics system provider had earned a profit after tax of ₹71.10 crore registered during the corresponding quarter of the last financial year.

For the financial year ending March 31, 2025, the profit of the company surged to ₹221.81 crore, from ₹181.69 crore registered in the year-ago period.

The total income for the quarter under review grew to ₹406.83 crore from ₹194.57 crore registered during the same quarter of last year. For the financial year ending March 31, 2025, the total income grew to ₹754.69 crore from ₹565.83 crore registered in the corresponding period of the previous fiscal year.

Commenting on the financial performance, company Chairman and Managing Director, Srinivasagopalan Rangarajan, said, "We are happy to have delivered excellent growth in revenue while maintaining consistent bottom line performance. Quarter 4 was on expected lines. The EBITDA (earnings before interest, taxes, depreciation and amortisation) for the quarter and full year 2024-25 was also as per our guidance. This achievement underscores the strength of our strategy, execution capabilities and commitment to operational excellence."

"Looking ahead, we are optimistic about robust order inflows and remain confident in our ability to sustain this growth trajectory," he added.

Paras Defence and Space Technologies

Shares of Paras Defence were trading 1.34% higher at ₹1,823.70 apiece on the NSE. The company reported a consolidated net profit of ₹19.72 crore for the quarter ended March 31, 2025 (Q4 FY25) on Wednesday, April 30. This translates to an increase of 97.79% year-on-year (YoY) against the ₹9.97 crore profit logged in the year-ago period.

Revenue from operations came in at ₹108.23 crore, up 35.8% from ₹79.69 crore registered in the corresponding period of the previous fiscal year.

Total income for the quarter under review stood at ₹112.28 against ₹85.17 seen in the year-ago period. This shows a rise of 31.8% YoY.

Why defence stocks are surging

Defence stocks have seen a phenomenal rise over the last few sessions as buying interest in these stocks jumped after Operation Sindoor. The government's focus on the country's defence sector and the 'Make in India' push for the defence equipment have propelled the stocks.

Further, according to news reports, after Operation Sindoor, India's defence budget may receive an additional allocation of ₹50,000 crore under a supplementary budget.

The boost will take overall defence allocation past ₹7 lakh crore for the financial year 2025–26.

According to a press release by the Press Information Bureau (PIB) issued on May 16, 2025, India’s defence production touched a new milestone in the financial year 2023–24, with the value of indigenous manufacturing rising to ₹1,27,434 crore. This represents a remarkable increase of 174% compared to 46,429 crore logged in 2014-15.

The country’s defence exports have also seen exceptional growth. From a modest ₹686 crore in 2013-14, exports skyrocketed to ₹23,622 crore in 2024-25. This amounts to a thirty-fourfold increase over the past decade. Indian defence products are now being shipped to nearly 100 countries, reflecting India’s rising stature as a global supplier of strategic defence equipment.

"This expansion in both production and exports underscores India’s commitment to building a robust and self-sufficient defence industrial base. Strategic policy interventions have played a key role in strengthening this sector, boosting not just domestic capability but also enhancing India’s presence in the global defence market," the press release added.