$HAL

### Defence Stocks Rally as India's Defence Production Hits Record ₹1.78 Lakh Crore in FY26 Defence stocks witnessed strong buying interest after the Ministry of Defence announced that India's defence production reached an all-time high of **₹1.78 lakh crore in FY26**, registering **15.6% growth** over ₹1.54 lakh crore in FY25. The figure also represents a **110% increase** from ₹84,643 crore recorded in FY21, highlighting the rapid expansion of the domestic defence manufacturing ecosystem. Among the top gainers, **PARAS** surged nearly 12%, while ** $HAL **, ** !BDL **, ** !MAZDOCK **, ** !BEL **, and ** !BHARATFORG ** also traded firmly higher. Defence Minister Rajnath Singh attributed the milestone to the government's strong focus on self-reliance, indigenous manufacturing, and sustained policy support under the Make in India initiative. Notably, private sector participation continued to rise, with private defence production reaching a record **₹42,000 crore**, accounting for 24% of total output. The sector also received a boost from robust export growth, with India's defence exports touching a record **₹38,424 crore in FY26**, reflecting increasing global acceptance of domestically manufactured defence products. ### Impact on Defence Stocks Higher defence production strengthens long-term order visibility. Rising exports improve growth prospects for domestic manufacturers. Increased private sector participation benefits companies like Paras Defence and Bharat Forge. Continued government focus on indigenisation supports sustained sector growth. ### Market View **Short-Term:** Positive **Long-Term:** Strongly Positive The record production and export figures reinforce expectations of stronger order inflows, higher capacity utilisation, and long-term growth opportunities across India's defence manufacturing ecosystem.