Defence public sector undertakings (PSUs) like Hindustan Aeronautics Limited, Bharat Electronics, Mazagon Dock Shipbuilders have long been among the leading players in India’s defence sector, enjoying significant investor attention. However, as the focus shifts on ‘Make in India’, several private defence players are also playing a crucial role in India’s defence ecosystem.
Listed firms like Apollo Micro Systems, Astra Microwave, MTAR Technologies, Data Patterns, and Zen Technologies are among the top defence players that are on experts’ radar for their long-term growth outlook. For investors who closely track defence theme, here are 5 defence stocks to track beyond established players.
MTAR Technologies
MTAR Technologies has a strong overall visibility and growth setup. Its order book is large relative to the company’s revenue base, stated Vinit Bolinjkar, Head of Research, Ventura, highlighting that the second half of financial year 2026-27 is expected to be stronger.
The expert also mentioned that MTAR Technologies has a diversified engineering order book, which includes 67% order form clean energy, hence “it should not be treated as defense backlog. Growth depends on timely execution and the planned capacity ramp-up.”
The Hyderabad-headquartered precision engineering and manufacturing firm is also poised to benefit the most from India’s defence localisation push, according to Soumitra Sengupta, smallcase manager, Founder & CEO, Lamron Analysts. MTAR Tech share price closed 4.33% lower at ₹6037.65 per share on BSE on Wednesday, November 4.
Zen Technologies order book and growth outlook
With a consolidated order book of ₹1,375.7 crore at 30 September, 2026, Zen Technologies offers best near-term revenue-conversion visibility.
The company’s guidance is supported by Q2 revenue surge and margin recovery. Zen Technologies share price closed 1.18% higher at ₹1725.70 per share on BSE on Wednesday, November 4.
“The current order book is only modestly above the revenue target, so fresh orders remain important for FY28 visibility. Procurement timing and lumpy government orders are the key risks,” added Vinit Bolinjkar.
Astra Microwave order book and growth outlook
Astra Microwave enjoys strong multi-year programme visibility, although conversion into revenue in FY27 remains less certain, noted Bolinjkar. He added that while the company’s order book remains attractive, the execution of large radar programmes is spread over multiple years.
Shares of Astra Microwave closed 3.36% higher at ₹1578.60 per share on BSE with a market capitalisation of ₹14,988.02 crore on Wednesday.
Data Patterns
Data Patterns’ performance in FY27 is expected to be promising, but headline visibility is less firm than it appears, pointed out Bolinkjar. “Data Patterns has meaningful opportunity, though its headline order figure includes negotiated orders and Q2 confirmation was pending,” noted the expert. Data Patterns share price closed 3.47% higher at ₹4082 per share on BSE on Wednesday.
Apollo Micro Systems
Shares of Apollo Micro Systems rallied nearly 8.58% and ended at ₹434.80 per share on BSE on Wednesday. According to Soumitra Sengupta, AMS is among the two top stocks which can benefit the most from indigenisation.
“Two companies that stand to benefit from India’s defense localisation push- driven by Make in India, Atmanirbhar Bharat, import ban lists (Positive Indigenisation Lists), and higher capital expenditure allocation for domestic defense procurement- are Apollo Micro Systems and MTAR Technologies,” explained Sengupta.
Do private defence stocks offer better growth potential than established defence PSUs?
Smaller defence players like Data Patterns, MTAR Tech, Zen Tech offer promising growth potential due to their focu on high margin niches, highlighted Sengupta.
“While PSUs trade at relatively moderate P/E multiples backed by massive state order pipelines, these specialised mid-caps often trade at premium valuations. However, they deliver faster top-line earnings acceleration, superior product-mix margins, and higher export optionality over the long run,” stated Soumitra Sengupta.
