Ammunition Stocks: 6 Arsenal Makers to Watch

Intro – Blast Off Begins

Operation Sindoor didn’t just shake bunkers—it shook Dalal Street too. As missiles flew, so did investor interest in India’s defence stocks. And leading the charge? Ammunition stocks—the companies that literally supply the firepower.

And why not? In FY25, India clocked a record ₹23,622 crore in defence exports, up 12% from the previous year and more than 30x higher than a decade ago. From a chronic arms importer, we’re now selling weapons-grade hardware to over 100 countries. Talk about a glow-up.

Meanwhile, the government’s big fat FY26 defence budget is making it rain for desi bomb-makers. With 75% of all capital procurement now reserved for domestic firms, ammunition stocks are no longer a niche—they’re the frontline.

So if you’re scouting for explosive growth potential, this is your warzone.

Let’s dive into the six listed players manufacturing India’s ammunition and why their stocks might just go ballistic.

Defence Budget 2026 – What’s Changing

India isn’t just spending more on defence—it’s spending smarter. The FY26 defence budget clocked in at a massive US $78.4 billion, a 9.5% jump from the previous year. But the real kicker? Over ₹1.6 lakh crore is earmarked for capital expenditure—the stuff that buys tanks, missiles, bullets, and bombs, not just boots and salaries.

And here’s the game-changer: 75% of this capital spend is locked in for indigenous procurement. That’s not a guideline—that’s policy. In other words, if India is buying missiles, artillery shells, or electronic fuzes, it’s buying them from homegrown suppliers.

This creates a predictable, sticky revenue stream for ammunition manufacturers—something rare in a sector once known for long delays and red tape. From smart bombs to proximity fuzes and rocket motors, Indian players are finally first in line.

And in case you were wondering whether there’s demand—Operation Sindoor made it pretty clear. With active borders and aging inventories, India’s defence forces are set for a shopping spree. And Ammunition Stocks could be the first beneficiaries.

How We Picked Our Stocks – Not Just Any Boom-Boom Business

Not every company that shouts “defence” deserves a spot in your demat. So, we didn’t just throw darts at a list of PSU names or small-cap flyers with missile emojis in their press releases.

Instead, we used four sharp filters to build this elite squad of Ammunition Stocks:

1. Listed on NSE/BSE main board – No obscure SME stocks with low liquidity and high “vanish risk.”
2. ≥10% revenue from ammunition, missile systems, or weapon-grade electronics – Not just defence adjacent, but defence embedded.
3. Order-book visibility ≥ 12 months of revenue – Because without future contracts, you’re just holding a fancy firecracker.
4. Return on Equity (RoE) > 12% – We love the army, but your portfolio deserves soldiers that actually earn their keep.

What made the final list? A mix of seasoned giants and ambitious specialists—six companies that don’t just make weapons; they make a business out of it.

Now, let’s lock and load… and meet the makers of India’s modern arsenal.

The Big Six – Ammunition Stocks in Focus

These aren’t just defence contractors—they’re the backbone of India’s ammunition ecosystem. Each company here brings a different calibre to the battlefield: from missile manufacturers and rocket-motor experts to precision electronics and explosive material specialists.

Let’s break down these six stocks that could turn your portfolio into a high-powered weapon.

Bharat Electronics (BEL): Brains Behind the Bullets

BEL isn’t making bombs—it’s making them smarter. As the go-to supplier for India’s missile guidance systems, proximity fuzes, and fire control radars, BEL’s role in ammunition is critical and irreplaceable.

• FY25 Revenue: ₹23,000 cr
• Order Book (Apr 2025): ₹71,650 cr
• 5-Year Net Profit CAGR: 16%
• Debt: Zero

The company just bagged ₹572 cr in fresh orders (May 2025), adding to its already loaded pipeline. And with defence electronics now accounting for over 90% of revenues, BEL is practically a precision-strike ETF in disguise.

Why it could explode (in a good way):
Every missile needs a brain. BEL is supplying those—and increasingly, to export markets too.

Bharat Dynamics (BDL): Missile Muscle with Navy Firepower

Bharat Dynamics is the only listed PSU focused exclusively on missiles—and that alone gives it an edge. Whether it’s Akash, Nag, or the Medium-Range SAMs for the Navy, BDL literally builds what flies and explodes.

• FY25 Revenue: ₹23,693 cr
• Latest Win: ₹2,960 cr MRSAM contract (Jan 2025)
• Order Book: Estimated ~₹50,000 cr
• RoE FY24: 17%

After a few wobbly years, margins are stabilizing, and with Make in India missile production ramping up, BDL is primed for a rerating.

Why it’s on target:
A solid, high-entry-barrier business with years of visibility and a clear seat at India’s growing export table.

Solar Industries: From Mining Explosives to Pinaka Rockets

Once known for mining detonators, Solar has now morphed into a strategic defence supplier. It makes rocket motors, warheads, and loitering munitions—plus it has serious export orders under its belt.

• FY25 Revenue: ₹60,695 cr
• Order Book: ₹15,000+ cr
• PAT CAGR (5Y): 26%
• Promoter Holding: 73.1%

Its standout win? A massive ₹6,084 cr Pinaka rocket order. Oh, and they also build explosive drone-killers.

Why it’s hot:
High growth, high tech, high promoter skin in the game. Basically, ammunition done right.

Premier Explosives: The Turnaround Dark Horse

Premier used to be a niche player struggling with profitability. Not anymore. With a ₹739 cr order book (₹575 cr from defence) and positive net profit in FY24, it’s now firmly in the game.

• FY25 Revenue: ₹2,717 cr
• FY24 Net Profit: ₹28.4 cr
• RoE: 13%
• Latest Win: JV for smart ammo with Global Munition

Why it matters:
Small base + new tech = potential multibagger. Especially if smart ammo exports take off.

Paras Defence & Space: The Loitering-Munition Lever

It’s the only listed firm with a full-stack portfolio for defence automation, electro-optics, and loitering munitions.

• FY25 Revenue: ₹2,535 cr
• Q4FY25 Profit: +97% YoY
• RoE: 6.8%
• Buzz: Upcoming stock split + Israel JV for drone kill-tech

Why it stands out:
If you’re betting on future warfare (drones, AI-guided ammo), Paras is a front-runner with first-mover advantage.

Bharat Forge (Kalyani Group): Forging the Future Shells

The ATAGS gun order in March 2025 worth ₹41.4 bn was a big deal—but Bharat Forge’s real story is its defence export pipeline.

• FY25 Defence Revenue: ~₹10,000 cr
• Export Wins: First-ever Indian artillery export to a NATO nation
• PAT CAGR (5Y): 24%
• RoE: 15%

Why it’s on fire:
Unlike others, this isn’t just about India—it’s about grabbing global market share from legacy US/EU players.

Quick-Fire Comparison – Who’s Got the Bigger Boom?

Let’s lay it all out. Here’s how our six Ammunition Stocks stack up across key financial and strategic metrics. Consider this your investor’s cheat-sheet:

Company	FY25 Revenue (₹ cr)	Order Book (₹ cr)	5-Yr PAT CAGR	Debt/Equity	ROE (FY24)
Bharat Electronics (BEL)	₹23,000	₹71,650	16%	0.00×	24%
Bharat Dynamics (BDL)	₹23,693	~₹50,000	9%	0.00×	17%
Solar Industries	₹60,695	₹15,000+	26%	0.30×	27%
Premier Explosives	₹2,717	₹739	—	0.20×	13%
Paras Defence	₹2,535	~₹1,100	10%	0.10×	7%
Bharat Forge (Defence)	~₹10,000 (defence)	~₹10,000+ (defence)	24% (consol.)	0.40×	15%

Pro tip: Order book strength is a leading indicator. The bigger and more diversified it is, the more stable and scalable the earnings pipeline becomes. Solar, BEL, and BDL shine here.

Use this table as your radar—each metric is a signal, and together they help you decide which stock deserves a place in your investing arsenal.

Risks – What Could Blow Up Your Portfolio

Before you start dreaming of multibaggers and missile-shaped candlesticks, here’s your mandatory trip to the risk briefing room.

Because even the most explosive Ammunition Stocks come with duds.

1. Budget Delays or Political Shifts

Defence allocations are subject to political moods. A sudden policy change, fiscal pressure, or shift in government priorities can delay procurement or trim capital budgets—even for mission-critical ammo.

🔁 Translation: contracts delayed = revenue delayed = stock price sulks.

2. Raw Material Price Shocks

Explosives need chemicals. Shells need steel. Chips need semiconductors.

A sudden spike in commodity prices—especially ammonium nitrate, copper, or imported chips—can crush margins for players like Solar, Premier, and even BEL.

3. Peace Breaks Out (Seriously)

Sounds weird, but it’s real. A cooling down of border tensions or reduced geopolitical friction could slow urgent procurement cycles.

If Operation Sindoor fades from the headlines, ammo orders might stretch out or get reprioritized in favour of drones, cyber-defence, or surveillance tech.

📉 Nothing tanks defence stocks faster than peace.
Well, maybe except for a bad earnings report.

4. Execution & Order Delays

Big order books are great—but can the company deliver? Players like Paras and Premier still face execution risk, especially on new tech platforms or joint ventures.

A single delay or test failure could eat up earnings and investor confidence.

In short: these stocks have massive upside, but they’re not “buy-and-forget” bets. Keep a close watch. Because in the defence game, it’s not just about who fires—it’s about who hits the target. 🎯

What To Do Now – Your Action Plan

So you’ve got the ammo (pun intended), now what’s the move? Here’s how to deploy your capital like a seasoned market general—without stepping on a landmine.

1. Stagger Your Entry

Defence stocks are prone to announcement spikes followed by silent stretches. Don’t go all in on a single green candle. Accumulate over time, especially around:

• Order win announcements
• Quarterly results
• Policy updates (budget / FDI caps / PLI schemes)

2. Watch the Order-to-Execution Cycle

Order books are nice. But only if they translate into revenue. Focus on companies converting orders into billable milestones—especially those with multi-year contracts and milestone-linked billing (like BEL and BDL).

3. Track Index Movements

Stocks like BEL and Solar are candidates for weight upgrades in the July 2025 Nifty Midcap and Smallcap reviews. If that happens, you may get a passive inflow pop from mutual funds and ETFs.

4. Review Government Announcements

Stay tuned to:

• MoD press releases
• DRDO trial updates
• Export approvals and Make-in-India bulletins

These often signal upcoming contracts—before they move the stock price.

5. Open a Broking Account with Powerful Research Tools

And if you’re still trading on gut feel and WhatsApp tips… maybe it’s time to upgrade.
An Angel One account gives you access to smart screeners, watchlists, and analyst research that tracks contracts, earnings, and delivery status in real time.

📍Because investing in Ammunition Stocks should feel like a precision strike—not friendly fire.

Conclusion – Don’t Let Your Portfolio Carry Blanks

India isn’t just arming its borders—it’s arming its balance sheets. From missile systems and electronic fuzes to loitering drones and rocket motors, Ammunition Stocks are no longer side shows—they’re centre stage.

And this is just the first act.

With a ₹78 bn capital budget, record-breaking exports, and an unwavering government push for indigenous manufacturing, these six companies are sitting on stockpiles of opportunity. Whether you’re a long-term compounder or a short-term tactical investor, there’s something explosive brewing here.

The only thing worse than missing a market rally… is missing a defence rally after a war.

So load up with knowledge, aim with conviction—and make sure your portfolio doesn’t go into the next rally holding blanks.

FAQs – Firing Straight Answers on Ammunition Stocks

🔍 Are Ammunition Stocks cyclical?

Yes—sort of. Demand spikes during geopolitical tension or after military operations (like Operation Sindoor), but the long-term growth is now steadier thanks to multi-year contracts, export orders, and mandatory indigenisation. It’s less “boom and bust” and more “boom and reload.”

📊 Which Ammunition Stock has the biggest order book?

Bharat Electronics (BEL) leads the pack with an order book of ₹71,650 crore as of April 2025. That’s more than 3× its FY25 revenue, giving it rock-solid visibility for the next few years.

🧮 How do I value ammunition makers?

Forget only P/E. Look at:

• EV/Order Book – The Street pays 0.6–1× for strong pipelines.
• Return on Capital Employed (RoCE) – Higher is better.
• Execution-to-order ratio – How much they’re actually converting to sales.

BEL and Solar score high here. Premier and Paras are catching up.

💸 Are capital gains from defence stocks taxed differently?

Nope. Same as regular listed stocks:

• Short-term (≤1 year): 15% tax
• Long-term (>1 year): 10% over ₹1 lakh gains (with no indexation)

No special treatment for patriotism on this one.

📰 Where can I track new ammunition orders and tenders?

Keep an eye on:

• Ministry of Defence (mod.gov.in)
• DRDO Press Releases
• Company Exchange Filings (NSE/BSE)
• PIB (pib.gov.in) for tender updates

Or use platforms like Angel One that aggregate and alert you in real time.

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