INDIA'S NAVY EXPANSION PLAN OFFERS STRONG TAILWINDS FOR DOMESTIC SHIPBUILDERS

The Indian Navy is awaiting approval for placing order of 17 warships and 9 submarines. This is in addition to the 61 warships and submarines already under construction in India. The navy is focussing on strengthening its naval capacity to 175 ships by the year 2035. This expansion comes at a time when India wants to counter China’s growing naval presence in the Indian Ocean. Once approved, this move can greatly benefit three defence companies:

- a public sector undertaking, this company is India’s largest submarine manufacturer. It is the only shipyard company that has built destroyers, conventional submarines, and corvettes for the Indian Navy. It's revenue grew by 21% year-on-year (YoY) to Rs 11,400 crore and net profit grew by 24% to Rs 2,400 crore in FY25. As of 31 Mar 2025, the company's order book stood at Rs 32,260 crore suggesting strong revenue potential for the next 3 years - this company mainly constructs warships for the Indian Navy and the Indian Coast Guard. It also builds commercial ships and undertakes engineering and engine production activities. Notably, it was the first Indian shipyard to export warships. It's revenue grew by 41% year-on-year (YoY) to Rs 5,076 crore and net profit grew by 48% to Rs 527 crore in FY25. As of 31 Mar 2025, the company's order book stood at Rs 22,680 crore suggesting a strong revenue potential for the next 5 years - this is a leading shipbuilding and ship repair company in India. The company builds and repairs ships, including indigenous aircraft carriers, bulk carriers, next-generation missile vessels, anti-submarine warfare shallow-watercraft, and platform supply vessels used by the Indian Navy. It's revenue grew by 24% year-on-year (YoY) to Rs 4,528 crore and net profit grew by 4% to Rs 843 crore in FY25. As of 31 Mar 2025, the company's order book stood at Rs 22,500 crore suggesting a strong revenue potential for the next 4 years