New Delhi: Defence stocks are set to remain in focus as Antique Stock Broking reiterated its bullish stance on leading players, citing the Ministry of Defence’s recently released Technology Perspective and Capability Roadmap (TPCR) 2025. The brokerage has retained its Buy rating on Mazagon Dock Shipbuilders Ltd, Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd (BDL), PTC Industries, and Zen Technologies, underlining strong earnings visibility from India’s expanding defence procurement pipeline.
HAL: Monopoly in aerospace manufacturing
Hindustan Aeronautics Ltd, which holds a monopoly in defence aerospace, is seen as one of the biggest beneficiaries of the ongoing ordering momentum. Antique maintained its positive stance on the Tejas fighter jet manufacturer with a target price of ₹6,360, valuing it at 40 times its H1FY28E EPS.
BEL: Riding the wave of electronics in warfare
With modern warfare systems increasingly dependent on electronic components, Bharat Electronics Ltd (BEL) is expected to materially benefit across platforms. Antique retained a Buy rating with a target price of ₹454, pointing to steady order inflows and a healthy balance sheet.
Mazagon Dock: Margin recovery ahead
Mazagon Dock’s March and June quarter margins were impacted by outsized provisions linked to two specific orders. However, Antique expects these elevated provisions to taper off sharply from the September quarter. If procurement costs for key equipment come in lower than projected, the brokerage believes there may even be scope for a provision write-back, boosting profitability.
PTC Industries: Big growth potential
Highlighting the strategic importance of aerospace materials, Antique noted that PTC Industries is on the verge of a major growth phase. At near-optimal and full utilisation of its under-implementation mega aerospace materials complex, the company’s consolidated revenue could expand 10–20 times over the next five to six years, according to the brokerage.
Zen Technologies: Temporary pause, long-term promise
Zen Technologies, which has delivered strong profit growth in recent years, faces some near-term headwinds due to delays in order finalisation. Antique expects this to lead to a temporary pause in FY26E growth. However, with large opportunities in the Simulation and ADS (Air Defence Systems) segments, the firm anticipates a rebound from FY27E.
TPCR 2025: Defence needs mapped out
The Ministry of Defence’s TPCR 2025 lays out the Indian Army, Navy, and Air Force’s requirements over the next 15 years, covering quantity, life cycle, and preferred technologies. Compared with 221 products listed in the 2018 edition, the latest roadmap identifies 453 items, reflecting a stronger emphasis on indigenous research, development, and private sector participation under the Atmanirbhar Bharat initiative.
The Indian Navy’s requirements include one aircraft carrier, five to ten destroyers and frigates, 200–250 long-range missiles, and up to 50,000 anti-tank guided missiles. The Army has called for 300–400 light tanks and up to 1,800 Future Ready Combat Vehicles (FRCVs) to replace ageing T-72s. The Air Force’s focus spans stratospheric airships, tactical high-energy laser systems, long-range cruise missiles, and hardened precision-guided munitions.
Cochin Shipyard and the third aircraft carrier
Despite earlier reports suggesting the shelving of a third indigenous aircraft carrier, the TPCR confirms the Navy’s intent to acquire one, potentially nuclear-powered and equipped with an electromagnetic launch system. With a projected cost of up to ₹50,000 crore, the order could significantly benefit Cochin Shipyard, the builder of INS Vikrant.
Defence Procurement Manual 2025: Easing rules for private sector
Alongside the TPCR, the Ministry has unveiled the Defence Procurement Manual 2025, which governs revenue procurement worth nearly ₹1 lakh crore annually. The new manual simplifies rules for private players by removing the requirement to secure no-objection certificates from defence PSUs before bidding. It also introduces a collaborative approach during prototype development, with capped damages replacing the punitive measures of the 2009 manual.
Conclusion
With Antique Stock Broking’s top picks aligned to the defence procurement roadmap, the outlook for India’s defence sector remains robust. The combination of ambitious procurement plans under TPCR 2025 and a more industry-friendly procurement manual is expected to provide strong tailwinds to established players like HAL, BEL, Mazagon Dock, and BDL, while also opening doors for emerging companies such as PTC Industries and Zen Technologies.