6 Defence Stocks to Watch as India Signs ₹6,000 Cr BrahMos and Astra Missile Deal with Indonesia

Synopsis: Defence stocks are in focus after India signed a $630 million missile export deal with Indonesia, covering BrahMos and Astra systems, strengthening India’s defence exports, strategic presence in Southeast Asia, and boosting prospects for domestic defence manufacturers.

India’s defence exports continue to gather momentum as the country secures a $630 million (around Rs. 6,000 crore) missile deal with Indonesia, reinforcing its position as an emerging global defence exporter and advancing the government’s Atmanirbhar Bharat and Make in India initiatives.

The agreement, which includes the export of BrahMos supersonic cruise missiles and Astra beyond-visual-range air-to-air missiles, is expected to strengthen India’s defence manufacturing ecosystem while creating opportunities for domestic public and private sector defence companies involved in missile systems, electronics, radar, and aerospace.

With the government targeting Rs. 50,000 crore in annual defence exports by 2029, compared to around Rs. 23,600 crore in FY25, such high-value international orders could accelerate India’s emergence as a major global defence supplier while expanding the order books and long-term growth prospects of the country’s defence ecosystem.

Overview of the Deal

India is set to secure a major defence export agreement with Indonesia valued at approximately $630 million. Signed following bilateral talks between Indian Prime Minister Narendra Modi and Indonesian President Prabowo Subianto at the Istana Merdeka in Jakarta, the deal marks one of India’s largest defence export milestones to date. 

The comprehensive package includes the supply of missile systems, supporting infrastructure, operator training, as well as maintenance and long-term technical support. Indonesia is expected to adopt a phased acquisition model to gradually scale up its missile capabilities over time.

Key Missile Systems Included

The strategic package primarily features two advanced missile systems:

• BrahMos Supersonic Cruise Missiles: Jointly developed by India and Russia through BrahMos Aerospace, the BrahMos is regarded as one of the world’s fastest operational supersonic cruise missiles and can be deployed across land, sea, and air platforms.
• Astra Beyond-Visual-Range (BVR) Air-to-Air Missiles: Developed indigenously by India’s Defence Research and Development Organisation (DRDO), these missiles are designed for integration with Russian-origin Sukhoi fighter aircraft, which are currently operated by the Indonesian Air Force.

Strategic Impact on Southeast Asia

With this agreement, Indonesia becomes the third country to procure the BrahMos missile system, following the Philippines (which signed a $375 million deal in 2022) and Vietnam (which is moving forward with an acquisition valued at around $620 million). 

This deal significantly expands India’s strategic and geopolitical footprint in Southeast Asia, aligning closely with New Delhi’s Act East Policy and its MAHASAGAR (Mutual and Holistic Advancement for Security Across Regions) vision to support a free, open, and inclusive Indo-Pacific.

Prime Minister Modi described the agreement as the beginning of a “golden chapter” in India-Indonesia relations. Beyond the missile exports, the two nations signed pacts to boost maritime safety and expand space sector cooperation, with the Indian Space Research Organisation (ISRO) assisting Indonesia in peaceful space exploration and capacity building. 

This deepening defence tie is mirrored by robust economic relations, as bilateral trade between the two countries reached $28.15 billion in 2024-25, making Indonesia India’s second-largest trading partner within ASEAN.

Stocks in watch 

Bharat Electronics Ltd

Bharat Electronics Ltd is a Navratna Defence PSU engaged in the design, development, and manufacture of advanced electronic systems for the Indian Armed Forces. Its portfolio includes radar systems, communication equipment, electronic warfare solutions, missile electronics, and command-and-control systems.

With a market capitalisation of Rs. 3,00,212 cr, the shares of Bharat Electronics Ltd closed at Rs. 410.70 per share, down from its previous close of Rs. 414.90 per share.

Bharat Dynamics Ltd (BDL)

Bharat Dynamics Ltd is a Defence PSU specialising in the manufacturing of guided missiles and allied defence equipment. It produces missile systems such as Akash, Astra, and anti-tank guided missiles, while also undertaking missile integration, testing, refurbishment, and life-cycle support for the Indian Armed Forces.

With a market capitalisation of Rs. 47,741 cr, the shares of Bharat Dynamics Ltd closed at Rs. 1302.40 per share, down from its previous close of Rs. 1,344.85 per share.

Zen Technologies Ltd

Zen Technologies Ltd develops defence training and simulation solutions for military and security forces. The company offers combat simulators, anti-drone systems, virtual training platforms, and live-range solutions to enhance operational readiness.

With a market capitalisation of Rs. 16,549 cr, the shares of Zen Technologies Ltd closed at Rs. 1832.90 per share, down from its previous close of Rs. 1,880.10 per share.

Hindustan Aeronautics Ltd (HAL)

Hindustan Aeronautics Ltd is India’s leading aerospace and defence company engaged in the design, development, manufacture, repair, and overhaul of military aircraft, helicopters, aero-engines, avionics, and related aerospace systems for the Indian Armed Forces.

With a market capitalisation of Rs. 3,01,323 cr, the shares of Hindustan Aeronautics Ltd closed at Rs. 4505.60 per share, down from its previous close of Rs. 4,506.55 per share.

Astra Microwave Products Ltd

Astra Microwave Products Ltd designs and manufactures high-frequency radio frequency (RF) and microwave components, subsystems, and electronic equipment. It supplies critical radar, missile, space, and electronic warfare systems to defence organisations, including DRDO, ISRO, and the armed forces.

With a market capitalisation of Rs. 16,188 cr, the shares of Astra Microwave Products Ltd closed at Rs. 1705 per share, down from its previous close of Rs. 1,803.80 per share.

Paras Defence and Space Technologies Ltd

Paras Defence and Space Technologies Ltd develops defence engineering solutions across the defence and space sectors. Its business includes defence electronics, optics and optronics, electromagnetic pulse (EMP) protection systems, heavy engineering, and space-related components for strategic applications.

With a market capitalisation of Rs. 9,867 cr, the shares of Paras Defence and Space Technologies Ltd closed at Rs. 1224.45 per share, down from its previous close of Rs. 1,252.30 per share.

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