BEL and 4 Defence Stocks where FIIs and MFs Increased Stake in Q3 to Keep on Your Radar

Synopsis: In Q3FY26, defence stocks like MTAR Technologies, NIBE Ltd, Bharat Electronics, Astra Microwave Products, and Hindustan Aeronautics saw higher FII and MF holdings, reflecting strong institutional confidence.

In Q3 FY26, select Indian defence stocks attracted notable interest from both Foreign Institutional Investors (FIIs) and Mutual Funds (MFs), reflecting growing confidence in the sector’s long-term growth prospects amid strong order pipelines and the government’s focus on defence modernisation. 

Rising institutional ownership often signals robust fundamentals and investor conviction, as large fund houses increase exposure to firms poised to benefit from rising defence budgets, indigenisation initiatives, and strategic contracts

MTAR Technologies Ltd

MTAR Technologies is a precision engineering company that manufactures high-complexity components and assemblies for critical sectors like nuclear power, aerospace, defence, and clean energy. It is known for its niche capabilities in machining and assembling tight-tolerance parts, supplying both Indian government entities and global OEMs.

With a market capitalisation of Rs. 8,413 cr, the shares of MTAR Technologies Ltd closed at Rs. 2,735.20 per share, up from its previous close of Rs. 2,700.65 per share. FII’s shareholding increased from 9.21% in Q2FY26 to 12.24% in Q3FY26, which is an increase of 3.03%.

NIBE Ltd

NIBE Ltd operates primarily in the defence and aerospace manufacturing space, focusing on fabrication, machining, and integration of components and systems. The company has been expanding across defence electronics, structures, and systems, with growing participation in India’s indigenisation and “Make in India” defence initiatives.

With a market capitalisation of Rs. 1,473 cr, the shares of NIBE Ltd closed at Rs. 1,015.95 per share, down from its previous close of Rs. 1,028.95 per share. FII’s shareholding increased from 4.77% in Q2FY26 to 5.99% in Q3FY26, which is an increase of 1.22%.

Bharat Electronics Ltd (BEL)

Bharat Electronics Ltd is a leading defence public sector undertaking (PSU) specialising in defence electronics. It develops and manufactures radars, communication systems, electronic warfare systems, and other strategic equipment for the Indian armed forces, while also having a growing presence in civilian electronics and homeland security.

With a market capitalisation of Rs. 3,24,919 cr, the shares of Bharat Electronics Ltd closed at Rs. 444.50 per share, down from its previous close of Rs. 453.40 per share. FII’s shareholding increased from 18.14% in Q2FY26 to 18.51% in Q3FY26, which is an increase of 0.37%.

Astra Microwave Products Ltd

Astra Microwave Products designs and manufactures high-frequency and microwave subsystems used in radar, space, defence, and satellite communication applications. The company works closely with ISRO, DRDO, and defence PSUs, and is known for its strong in-house design and RF/microwave engineering expertise.

With a market capitalisation of Rs. 9,157 cr, the shares of Astra Microwave Products Ltd closed at Rs. 964.55 per share, up from its previous close of Rs. 962.25 per share. Mutual Fund shareholding increased from 11.24% in Q2FY26 to 12.33% in Q3FY26, which is an increase of 1.09%.

Hindustan Aeronautics Ltd (HAL)

Hindustan Aeronautics Ltd is India’s premier aerospace and defence PSU, engaged in the design, manufacture, and maintenance of aircraft, helicopters, aero-engines, and avionics. HAL plays a central role in India’s defence aviation ecosystem, supporting indigenous platforms as well as licensed production for global aerospace programs.

With a market capitalisation of Rs. 3,07,773 cr, the shares of Hindustan Aeronautics Ltd closed at Rs. 4,602.05 per share, down from its previous close of Rs. 4,625.80 per share. Mutual Fund shareholding increased from 4.87% in Q2FY26 to 5.78% in Q3FY26, which is an increase of 0.91%.

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