Defence Stocks Worth Watching: Bharat Dynamics, BEL, GRSE & Cochin Shipyard

India's defence sector is going through a significant change. The changing global dynamics, a bigger emphasis on local manufacturing by the government, and investor-friendly policies make defence stocks quite attractive, particularly for long-term investors. Some of the major public sector players that will be in the spotlight are Bharat Dynamics Ltd (BDL), Bharat Electronics Ltd (BEL), Garden Reach Shipbuilders & Engineers Ltd (GRSE), and Cochin Shipyard Ltd (CSL). These stocks can capitalise on increased defence expenditure and India's push for self-reliance as part of the 'Aatmanirbhar Bharat' mission.

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Let’s break down what makes each of these companies worth watching.

Bharat Dynamics Ltd (BDL): The Missile Maker

Based in Hyderabad, BDL plays a crucial role in India’s missile systems. It builds a range of guided weapons in partnership with DRDO, the country’s top defence R&D agency.

How It’s Performing:

BDL’s revenue jumped over 20% in FY2024- 25 compared to the previous year, thanks to strong order fulfillment and a growing backlog. It also continues to post healthy profit margins, showing that it runs efficiently.

What’s Fuelling the Growth?

• Partnerships with global defence companies
• Moving into underwater and aerial weaponry
• Strong support for indigenous systems like Akash and Astra

Why Investors Are Interested:

With orders worth over ₹20,000 crore already in hand and exports on the rise, BDL is becoming a high-tech, long-term growth story.

Bharat Electronics Ltd (BEL): The Tech Powerhouse

BEL, headquartered in Bengaluru, is the brain behind many of India’s defence technologies—from radar systems and avionics to electronic warfare and communication tools.

How It’s Performing:

In FY2024- 25, BEL saw consistent growth with double-digit revenue gains and a solid 21.4% return on equity. Revenue crossed ₹20,000 crore, and interestingly, part of that came from smart infrastructure and cybersecurity in the civilian space.

What’s Fuelling the Growth?

• Key role in upgrading defence systems
• Bigger defence tech budgets
• Diversification into civilian tech backed by strong R&D

Why Investors Are Interested:

With no debt, reliable dividends, and steady performance, BEL offers both safety and growth—a rare combination in the stock market.

Garden Reach Shipbuilders & Engineers Ltd (GRSE): Naval Shipbuilding Specialist

Operating out of Kolkata, GRSE is a significant force in India’s shipbuilding scene, producing everything from patrol boats to high-tech warships.

How It’s Performing:

In FY2024- 25, GRSE saw an 18% increase in revenue, driven by timely deliveries and a full project pipeline. Its order book has crossed ₹25,000 crore, giving it clear revenue visibility for years.

What’s Fuelling the Growth?

• Regional maritime security concerns
• Export orders from Southeast Asia and Africa
• Modern, eco-friendly shipbuilding techniques

Why Investors Are Interested:

With strong strategic relevance and growing global interest, GRSE looks solid in India’s expanding naval defence landscape.

Cochin Shipyard Ltd (CSL): The Sea Giant

Located in Kochi, CSL is India’s largest public-sector shipyard. It famously built the INS Vikrant, India’s first homegrown aircraft carrier. CSL also operates in the defence and commercial shipbuilding arenas.

How It’s Performing:

FY2024- 25 was a strong year for CSL, with profits rising 25% year-over-year. Ship deliveries and new defence contracts powered revenue growth, while smart cost controls boosted profits.

What’s Fuelling the Growth?

• Getting into submarine and advanced naval vessel projects
• Orders for missile-equipped and support ships
• Diversification into green shipping and inland water transport

Why Investors Are Interested:

CSL’s blend of defence and commercial work makes it a smart investment for those interested in long-term infrastructure and maritime growth.

Big Picture: The Winds Are Favourable

India’s defence budget for FY2025 is a massive ₹6.2 lakh crore, with over 70% of that set aside for domestic defence purchases. That’s a big boost for companies like BDL, BEL, GRSE, and CSL.

Other key trends helping the sector grow include:

• Rising border tensions pushing for faster modernisation
• Increased defence exports to nations like Vietnam, Mauritius, and the Philippines
• Policy reforms (like DAP and PLI) encourage innovation and scale

Bottom Line

India’s defence PSUs are evolving fast. BDL, BEL, GRSE, and CSL aren’t just government-owned manufacturers anymore—they’re becoming tech-forward, globally relevant growth companies. Together, they cover everything from precision missiles and digital defence to next-gen warships.

If you’re an investor looking for stability backed by strong government support—and potential upside from a global shift toward local defence production—these stocks might deserve a spot on your radar.