What is the story about?
India’s Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, has approved defence procurement proposals worth around Rs 79,000
crore. These approvals are meant to strengthen the operational capabilities of the Army, Navy and Air Force and support the government’s “Aatmanirbharta” (self-reliance) push. The approvals give Acceptance of Necessity (AoN), which is the first formal step before actual defence orders are placed.
What the Army will get
For the Indian Army, the DAC approved purchases of:- Loiter Munition Systems, which can carry out precision strikes on tactical targets
- Low-Level Light-Weight Radars to detect small, low-flying drones
- Long Range Guided Rockets for the Pinaka Multiple Launch Rocket System, improving range and accuracy
- Integrated Drone Detection and Interdiction System (IDDIS) Mk-II to protect key military assets
What the Navy will get
The Indian Navy received the largest share of approvals, estimated at around Rs 60,000 crore. Key clearances include:- Bollard Pull (BP) Tugs to help ships and submarines manoeuvre in harbours
- High Frequency Software Defined Radio (HF SDR) Manpack systems for secure long-range communication
- Leasing of High Altitude Long Range (HALE) drones to boost surveillance and maritime domain awareness
What the Air Force will get
For the Indian Air Force, approvals include:- Automatic Take-off and Landing Recording System to improve flight safety
- Astra Mk-II air-to-air missiles with a longer engagement range
- Full Mission Simulator for Tejas aircraft to support pilot training
- SPICE-1000 guidance kits for long-range precision strikes
Which defence companies will benefit
Several defence stocks are likely to remain in focus as most contracts are expected to go to domestic firms, according to Harshit Kapadia, Vice-President at Elara Securities, cited by the Economic Times.- Bharat Electronics Ltd (BEL): BEL is involved in several DAC-approved systems such as low-level radars, Pinaka long-range guided rockets, Automatic Take-off and Landing Recording Systems and Astra Mk-II missiles, making it a key beneficiary.
- Bharat Dynamics Ltd (BDL): BDL is a major missile supplier to the armed forces and is linked to projects such as Astra Mk-II missiles, Advanced Light Weight Torpedoes and the Nag Missile System (Tracked) Mk-II.
- Zen Technologies: Zen Technologies is associated with the Integrated Drone Detection and Interdiction System Mk-II and defence training solutions such as Full Mission Simulators and SPICE-1000 guidance kits.
- Larsen & Toubro (L&T): Increasingly acting as a lead integrator in complex defence projects, often working with global OEMs on high-technology programmes.
- Tata Group (via Tata Advanced Systems): Expanding role in advanced defence platforms, partnering with global OEMs to deliver technologically sophisticated systems.
- Adani Group (Adani Defence): Growing presence in defence manufacturing, participating as a lead integrator in complex projects through collaborations with global OEMs.
- Shipbuilders and defence electronics firms: Companies such as Mazagon Dock Shipbuilders, Cochin Shipyard and Garden Reach Shipbuilders are linked to naval projects, including Bollard Pull Tugs and large platforms, while Astra Microwave and Data Patterns are associated with radar and electronic intelligence systems, according to another report by ET.
What brokerages are saying
According to a report by Economic Times, domestic brokerage Motilal Oswal Financial Services remains positive on select defence stocks, including BEL, HAL, BDL and Astra Microwave Products, citing the strong pipeline created by these approvals.The brokerage pointed out that while AoN approvals do not mean immediate orders, they reduce uncertainty and improve visibility for order inflows over the next two to four years. Motilal Oswal noted that FY26 year-to-date defence capital approvals have reached Rs 3.3 trillion, nearly double the annual defence capital outlay of Rs 1.8 trillion.
