--- title: "Up to 37% returns, Rs 2.9 lakh cr m-cap added: How India's defence stocks performed in one year since Operation Sindoor" type: "News" locale: "en" url: "https://longbridge.com/en/news/285309494.md" description: "On the first anniversary of Operation Sindoor, India's defence stocks have seen returns of up to 37%, adding Rs 2.9 lakh crore in market capitalisation. The Nifty India Defence index recorded a 34.07% return. Key drivers include a record defence budget, emergency procurement, and indigenisation efforts. Major stocks like Cochin Shipyard and HAL saw significant gains. The FY27 budget allocated Rs 7.85 lakh crore for defence, the highest ever, enhancing military capabilities. MTAR Technologies stood out with a 337.76% return since Operation Sindoor." datetime: "2026-05-06T04:12:19.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285309494.md) - [en](https://longbridge.com/en/news/285309494.md) - [zh-HK](https://longbridge.com/zh-HK/news/285309494.md) --- # Up to 37% returns, Rs 2.9 lakh cr m-cap added: How India's defence stocks performed in one year since Operation Sindoor On the first anniversary of Operation Sindoor, India's military strike on terror infrastructure in Pakistan and Pakistan-administered Kashmir on the night of May 6-7, 2025, Indian defence stocks have delivered up to 37 percent returns, adding Rs 2.9 lakh crore in market capitalisation, according to a news report. A record defence budget, emergency procurement orders, and a sustained indigenisation push have driven the sector's performance over the past 12 months, reported Outlook Business **Defence stocks returns since Operation Sindoor: The headline numbers** India's defence stocks have risen 37 percent in the year since the Pahalgam attack and the subsequent Operation Sindoor, adding Rs 2.9 lakh crore in market capitalisation, according to Outlook Business. The Nifty India Defence index posted a 1-year return of 34.07 percent as of May 6, 2026, per Investing.com India, with a 52-week range of 6,621.8 to 9,195.15. The index was trading at 8,903.35 on May 6, 2026. "A rally in defence stocks is on. With India achieving all its avowed strategic objectives, Operation Sindoor was an unqualified and unequivocal success, a success in which India's growing technological self-reliance played a pivotal role," Dr Manoranjan Sharma, Chief Economist at Infomerics Valuation and Ratings, said in a note cited by Goodreturns. **Defence stocks surge post-Operation Sindoor: 15-40 percent in eight sessions** The initial market response to Operation Sindoor was immediate and broad-based. According to Goodreturns, Indian defence stocks rose 15 percent to 40 percent in just eight sessions following the operation, driven by investor anticipation of accelerated government defence spending and emergency procurement orders. Cochin Shipyard led the initial post-Sindoor rally with nearly 40 percent gains in eight sessions. Bharat Dynamics followed with over 27 percent, Paras Defence with over 22 percent, Mazagon Dock with 19 percent, BEL with 20 percent, and HAL with 16 percent. On May 16, 2025, HAL rallied 5 percent to an intraday high of Rs 5,110, BEL soared 4.4 percent to Rs 365.70, and BDL jumped 7.3 percent to Rs 1,938.60. **HAL, BEL, BDL, Mazagon Dock: Stock-by-stock gains in 2025** The rally sustained through the full calendar year 2025. According to Goodreturns, large-cap defence PSUs HAL, BEL, and BDL surged 15 percent, 40 percent, and 61 percent respectively in 2025. Garden Reach Shipbuilders outperformed the sector with nearly 79 percent returns in 2025, followed by Paras Defence at over 61 percent, and Cochin Shipyard and Mazagon Dock at 34-39 percent. Three events beyond Operation Sindoor sustained investor interest through 2025: the India-US defence framework agreement, an India-Russia deal on joint manufacturing of military hardware and spare parts, and a steady pipeline of Defence Acquisition Council order approvals. India's defence exports reached a record Rs 23,622 crore in FY25, a 34-fold increase over 11 years from Rs 686 crore in FY14 and a 12,04 percent year-on-year growth, according to the Ministry of Defence. The government also announced record defence production of Rs 1.5 lakh crore for FY25 in May 2025, triggering a further round of buying in the sector. **India defence budget FY27: Record Rs 7.85 lakh crore allocation** The Union Budget FY27, presented on February 1, 2026, delivered the largest-ever defence allocation in India's history. According to the Press Information Bureau (PIB), the Ministry of Defence received Rs 7.85 lakh crore, a 15.19 percent increase over FY26's Rs 6.81 lakh crore, and the highest allocation among all central government ministries at 14.67 percent of total Central Government expenditure. Of the total, Rs 2.19 lakh crore was allocated for capital outlay, a 21.8 percent increase from the FY26 revised estimate of Rs 1.86 lakh crore, per BusinessToday. The government had already spent approximately Rs 40,000 crore on emergency post-Sindoor procurement, including drones, ammunition, and critical weapon systems, before the Budget was presented, per Business Today. Defence Minister Rajnath Singh, in a PIB statement, said the budget "strengthens the security-development-self-reliance balance" and "further strengthens the Government's resolve to bolster the security system of the country and enhance military capabilities." The FY27 Budget also allocated a 31 percent increase in the Aircraft and Aero Engines head, sustained funding for the Naval Fleet at Rs 25,023.63 crore, and over Rs 82,000 crore under Other Equipments for army digitisation, drones, sensors, and high-altitude warfare upgrades, per CPPR. **MTAR Technologies share price: 337% return in one year** The standout performer in the post-Sindoor defence universe has been MTAR Technologies, a precision engineering company serving aerospace, defence, nuclear, and clean energy sectors. The stock delivered a 337.76 percent return in the year since Operation Sindoor, the highest in the defence-linked space. MTAR's 52-week low was Rs 1,350.25 on May 7, 2025, the day of Operation Sindoor, and the stock subsequently hit a record high of Rs 5,078, per Business Today. The stock rose 103 percent in 2026 alone, against a Nifty 50 that declined approximately 7.5 percent in the same period, per Business Standard. MTAR's revenue grew 60 percent year-on-year to Rs 280.3 crore in Q3 FY26, with net profit rising over 100 percent year-on-year to Rs 34.6 crore, per Business Standard. The company's order book exceeded Rs 2,395 crore, as per Business Today. A significant driver of MTAR's outperformance has been its expanding partnership with US-based Bloom Energy for AI data-centre fuel cells, alongside its core defence and aerospace business. According to Motilal Oswal, the expanded Bloom-Oracle agreement for 2.8 GW could translate into Rs 1,400-1,700 crore in incremental orders for MTAR. **Nifty India Defence Index: Where it stands today** The Nifty India Defence index's top constituents by free-float market capitalisation, per NSE Indices, are Bharat Electronics, Hindustan Aeronautics, Solar Industries India, Mazagon Dock Shipbuilders, Bharat Forge, and Bharat Dynamics. The index was trading at 8,903.35 on May 6, 2026, with a 52-week range of 6,621.8 to 9,195.15, per Investing.com India. **India defence stocks outlook: Long-term projections to 2047** According to a June 2025 report by the Confederation of Indian Industry and KPMG India titled Atmanirbhar, Agrani, and Atulya Bharat 2047, India's defence budget could rise to approximately Rs 31.7 lakh crore by 2047 from Rs 6.81 lakh crore in FY26, with defence production increasing over sixfold to Rs 8.8 lakh crore from Rs 1.46 lakh crore in FY25. Defence exports are projected to rise to Rs 2.8 lakh crore by 2047, up nearly twelvefold from Rs 24,000 crore in FY25. According to the NSE Indices factsheet dated March 30, 2026, the Nifty India Defence index has delivered a 1-year price return of 12.83 percent and a 5-year CAGR of 28.03 percent, with the index trading at a P/E of 45.72 and a P/B of 9.6 as of that date. The 1-year total return stands at 13.45 percent and the 5-year total return CAGR at 29.66 percent, per NSE Indices. Note: _The NSE Indices factsheet dated March 30, 2026 shows a 1-year price return of 12.83 percent, while the index's 1-year change as of May 6, 2026 stands at 34.07 percent, per Investing.com India, reflecting the sharp post-Sindoor rally that occurred after March 30, 2025._ ### Related Stocks - [IND.US](https://longbridge.com/en/quote/IND.US.md) - [NDIA.AU](https://longbridge.com/en/quote/NDIA.AU.md) - [NDIA.US](https://longbridge.com/en/quote/NDIA.US.md) - [PIN.US](https://longbridge.com/en/quote/PIN.US.md) ## Related News & Research - [India proposes interim cash settlement to boost liquidity in agri derivatives](https://longbridge.com/en/news/286101833.md) - [Indian regulator clarifies banks, brokers not liable for offshore funds' tax dues, sources say](https://longbridge.com/en/news/286253948.md) - [Axios Harris Poll Names Kroger One of America's Most Visible and Trusted Companies | KR Stock News](https://longbridge.com/en/news/286947368.md) - [USW 7-1 Says BP Gives No Clear Answer on Ending Whiting Lockout](https://longbridge.com/en/news/286812565.md) - [Europe's smelters need long-term price protection, Trafigura CEO says](https://longbridge.com/en/news/287026663.md)