Defence stocks to buy NOW? Motilal Oswal bets big after Rs 2.38 lakh crore push… these names may surprise you

Defence stock to buy: India’s defence story just got a massive boost. The government has cleared proposals worth Rs 2.38 lakh crore, and that’s not just a big number on paper. It’s a signal that spending on military capability is about to pick up in a serious way.

And naturally, the market is asking one question: which companies stand to gain the most?

A report by Motilal Oswal breaks it down, and the takeaway is pretty clear for several defence players, the order book may not run dry anytime soon.

A full-scale upgrade across forces

This isn’t a one-sided push. The Army, Air Force and Coast Guard all have something big coming their way.

The Air Force is looking to replace its ageing fleet with new transport aircraft. Add to that more S-400 missile systems and artillery upgrades like the Dhanush guns.

On the ground, the Army is set to get better air defence systems and stronger anti-tank firepower. Along the coast, faster and more versatile vehicles will boost surveillance and rescue operations.

Put simply, this is a broad-based upgrade of India’s defence capability.

BEL could quietly be the biggest winner

If there’s one company that seems perfectly placed, it’s Bharat Electronics Limited. Here’s why. Even when ships or missiles are built by others, the electronics and control systems often come from BEL. That means it sits right in the middle of multiple projects. With big naval programmes like next-gen corvettes in the pipeline, the company could see a steady stream of orders coming in over the next few years.

Add to that upcoming projects like QRSAM, and the growth visibility looks quite solid.

HAL has its eyes on Tejas moment

Then there’s Hindustan Aeronautics Limited, where all eyes are on the Tejas Mk-1A fighter jet. The key milestones are lined up. Trials are expected to wrap up soon, and if things go as planned, deliveries could start from early 2027.

There are also helicopter orders and other defence programmes in the pipeline. Yes, delays are something the market keeps an eye on, but the bigger picture still shows a packed order book.

BDL’s quiet transformation

Bharat Dynamics Limited is another interesting story, though it doesn’t always grab headlines. The company has managed to localise a large chunk of its missile components. It is important in the sense that it may happen to reduce dependence on imports and avoids supply chain disruptions.

With new facilities coming up and demand for missile systems rising, the company seems to be building a strong base for future growth.

The under dog defence companies in the spotlight

The not so big players like Astra Microwave Products and Zen Technologies are also going to gain. These firms are also expected to gain from radar systems to anti-drone tech and simulators, which are seen as important in modern warfare.

The long term story seems interesting

Right now, the defence sector is finding itself in a comfortable position. Orders are coming in, the government is pushing for more local manufacturing, and companies are building capabilities at home.

Of course, there are things to watch like global tensions, supply chains, execution timelines. But the direction is clear.

Bottom line

This isn’t just another round of spending. It’s a long-term shift. And if things play out the way they are expected to, the companies that execute well today could end up being the biggest winners of tomorrow.