Defense stocks end sharply higher; Garden Reach Shipbuilders jumps 20%

The Nifty India Defence index gained 5.32%, closing at 7,597.90 on the NSE. This recovery came on the back of a 5.27% decline over the prior two sessions, during which the index had slipped to 7,214.30 on 31 March 2026 from its recent closing high of 7,615.60 on 25 March 2026.

Among individual stocks, Garden Reach Shipbuilders & Engineers led the charge with a 20% surge, followed by Mazagon Dock Shipbuilders (up 12.43%), Cochin Shipyard (up 12.31%), Bharat Dynamics (up 10.36%), and BEML (up 8%).

Broader participation was also strong, with Apollo Micro Systems (up 7.38%), Paras Defence and Space Technologies (up 7.34%), Mishra Dhatu Nigam (up 6.77%), Solar Industries India (up 6.40%), Hindustan Aeronautics (up 5.67%), Zen Technologies (up 5.49%), and AXISCADES Technologies (up 4.99%) all closing in positive territory.

Sentiment in the sector also drew support from a major policy development late last week.

Late last week, the Defence Acquisition Council (DAC), chaired by Raksha Mantri Rajnath Singh, granted acceptance of necessity (AoN) for various proposals worth an estimated cost of about Rs 2.38 lakh crore.

In the Financial Year 2025-26, AoN for 55 proposals amounting to Rs 6.73 lakh crore has been accorded by the DAC. Moreover, capital procurement contracts have been signed for 503 proposals amounting to Rs 2.28 lakh crore in the current fiscal year.

Both the quantum of AoN given and capital contracts signed, so far, have been the highest in any given Financial Year,' the Ministry of Defence said in a statement.

Several company-specific catalysts further underpinned the day's rally. Garden Reach Shipbuilders & Engineers set the tone by reporting its highest-ever annual turnover for FY26 at Rs 6,400 crore, which is a 26% jump from Rs 5,076 crore in the previous year.

The strong showing lifted sentiment across the broader shipbuilding segment, with Mazagon Dock Shipbuilders and Cochin Shipyard both closing the session with healthy gains.

The rally wasn't limited to shipbuilders alone. Defence electronics and manufacturing names also joined in, adding further breadth to the move.

Bharat Electronics (up 4.83%) announced fresh orders worth Rs 6,795 crore since its update just a day prior. Concurrently, Hindustan Aeronautics released its provisional FY26 numbers, reporting revenue of Rs 32,250 crore against Rs 30,981 crore in the year before.