5 Defence stocks to benefit as DAC approves ₹54,000 Cr defence acquisitions to strengthen India’s military

The Defence Acquisition Council (DAC), led by Defence Minister Rajnath Singh, has approved capital acquisitions exceeding ₹54,000 crore to strengthen India’s defence capabilities. The approvals, granted on March 20, include critical procurements for the Indian Army, Navy, and Air Force, reinforcing the country’s military preparedness and modernization efforts. 

The DAC approved procuring 1,350 HP engines to upgrade T-90 tanks from 1,000 HP, enhancing battlefield mobility. This upgrade boosts the power-to-weight ratio, enabling better performance in tough terrains, especially high-altitude regions, strengthening the Indian Army’s operational capabilities. 

Furthermore, the Indian Navy is bolstering its anti-submarine warfare capabilities with the approved acquisition of Varunastra torpedoes. Developed by the Naval Science & Technological Laboratory, these indigenously designed, ship-launched combat torpedoes will enhance the Navy’s effectiveness in countering submarine threats and strengthening maritime defense. 

Meanwhile, for Indian Air Force’s surveillance and operational strength will improve with the DAC’s approval of AEW&C aircraft systems. These advanced systems are vital in modern warfare, enhancing combat effectiveness across multiple platforms and providing a strategic edge in real-time battlefield awareness and coordination. 

Additionally, as part of the Ministry of Defence’s ‘Year of Reforms’ initiative for 2025, the DAC has approved new guidelines to streamline capital acquisitions. The revised framework aims to reduce procedural delays, enhance efficiency, and ensure faster procurements for improved defense readiness. 

Here are the Defence stocks to benefit from DAC’s nod for Rs 54,000 crore acquisition plans:

1. Lokesh Machines Ltd 

Lokesh Machines contributes to the defense sector by manufacturing precision components, special-purpose machines, and tooling solutions for defense equipment. The company supplies critical parts for missile systems, armored vehicles, and aerospace applications, supporting India’s defense modernization through advanced machining and automation technologies. With a market capitalization of Rs 285 crore, the shares were trading at Rs 151 crore, increasing around 5 percent as compared to the previous closing. 

2. Solar Industries India Ltd 

Solar Industries India Limited is an India-based integrated global explosives company. The Company is primarily involved in the manufacturing of a complete range of industrial explosives

and explosive-initiating devices. Its segment is Explosives and its accessories. The Company’s products include industrial explosives and defense. With a market capitalization of Rs 96,503 crore, the shares were trading at Rs 10,664 crore, increasing around 2.19 percent as compared to the previous closing. 

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3. Hindustan Aeronautics Ltd 

Hindustan Aeronautics Limited is an Indian firm that designs, develops, manufactures, repairs, overhauls, upgrades, and services a variety of goods such as airplanes, helicopters, aero-engines, avionics, accessories, and aerospace structures. With a market capitalization of Rs 2.61 lakh crore, the shares were trading at Rs 3,907 crore, increasing around 2.34 percent as compared to the previous closing. 

4. Bharat Dynamics Ltd 

Bharat Dynamics Limited is engaged in the manufacturing of missiles and allied defense equipment. The Company provides the majority of its goods and services to the Indian Armed Forces and the Government of India.

The Company has facilities for manufacturing and supplying guided missiles, underwater weapons, air-borne products, and allied defense equipment for the Indian armed forces. With a market capitalization of Rs 46,737 crore, the shares were trading at Rs 1,275 crore, increasing around 2.27 percent as compared to the previous closing. 

5. Paras Defence and Space Technologies Ltd 

Paras Defence and Space Technologies Limited is engaged in designing, developing, manufacturing, testing, and commissioning of products, systems and solutions for defense and space applications. The Company operates through two segments: Optics and Optronic Systems, and Defence Engineering. With a market capitalization of Rs 4,074 crore, the shares were trading at Rs 1,011 crore, increasing around 1.77 percent as compared to the previous closing. 

Written by – Abhishek Singh

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