Defence Procurement Report – August 6, 2025 PART 2

Maintenance and Support • Approval for continued sustainment of strategic transport aircraft: C-17 Globemaster III and C-130J Super Hercules fleets. • Sanctioned annual maintenance contract for the S-400 Long-Range Air Defence System, ensuring full-time operational readiness. Strategic Strike Capability • Clearance for over 110 air-launched BrahMos supersonic cruise missiles, boosting long-range strike potential. • Procurement of 87 armed drones to enhance real-time situational awareness and precision targeting. Industry and Indigenous Focus • Most contracts are expected to be awarded to Indian firms including HAL, BEL, Bharat Dynamics, Adani Defence, and Solar Defence. • The move will significantly strengthen India's defence industrial base and reduce reliance on imports. Strategic Significance • The procurement enhances India’s readiness in land, sea, and air domains, especially in high-altitude and border-sensitive areas. • It reflects a proactive shift in defence planning post recent operational experience and geopolitical challenges. Impact on Defence Stocks & Breakout Levels 2. BEL (Bharat Electronics Ltd)

o Will likely gain from radar systems, missile system electronics, and integration projects. o Major Breakout Level: ₹392 o A breakout may lead to a rally toward ₹410–₹430 levels. 3. Bharat Dynamics Ltd o Expected to receive orders for BrahMos systems and missile-related contracts. o Major Breakout Level: ₹1,645 o Strong buying above this level could drive it toward ₹1,700–₹1,760 in short term. Broader Sector Outlook • Defence stocks are expected to gain momentum in coming sessions, with PSU stocks leading the charge. • Institutional accumulation is likely as the order flow becomes visible in quarterly earnings and order books. • Momentum traders and long-term investors will be watching the breakout levels closely for confirmation.