India-Israel deal: Israel’s defence company Elbit Systems’ stock price surged 2.5% to 2,35,490 ILA in Thursday’s trading session, on India-Israel defence deal buzz. The stock rallied despite the Tel Aviv index falling by over 1.16% on February 26.
The defence PSU stock has delivered positive gains of over 2.3% in the past five sessions and 4.5% in a month. Zooming out further, the stock has delivered multibagger returns of 440% over the past 5 years.
What’s behind the rally?
The rally in the Elbit Systems shares came ahead of India and Israel signing a new defence deal.
According to The Times of India report, the deal between both countries is expected to involve agreements in the offensive weapons segment, covering Rafael Advanced Defence Systems’ SPICE 1000 guidance kits, Elbit Systems’ Rampage air-to-ground missiles, Ice Breaker naval cruise missiles, and Israel Aerospace Industries’ supersonic Air LORA missiles.
However, the defence company has remained tight-lipped about any such deal.
Rampage air-to-surface missiles, produced by Elbit Systems, have an operational range of roughly 250 kilometers and are deployed by the Indian Air Force on Sukhoi-30 and MiG-29 fighter aircraft. With an effective strike range of about 150–250 kilometers and high precision, the system is designed to help India safeguard its fighter jets from air defense systems operated by Pakistan, many of which are supplied by China, according to the report.
On Wednesday, the company said it has secured a three-year contract worth $277 million from an international client to supply UT30 MK2 turrets along with ammunition, according to reports.
The UT30 MK2 is equipped with a range of weapon systems, including a 30-millimetre (mm) primary cannon, a coaxial 7.62mm machine gun, and anti-tank guided missiles (ATGMs).
Bezhalel Machlis, CEO of Elbit Systems, said the deal highlights strong confidence in the company’s advanced land systems and munitions technologies, while also demonstrating its capability to deliver high-performance, operational solutions to armed forces globally.
The turret agreement follows the company’s announcement on Tuesday that it had secured several contracts worth $435 million from an international client. Under the six-year deals, it will supply a range of advanced systems, including land-based solutions, and undertake the development of an innovative defence program.
About the India-Israel deal
According to the report, the India-Israel deal is likely to emphasise the transfer of technology for highly advanced weapons systems, some of which Israel has not offered to any other country so far.
TOI report further noted that the latest defence cooperation between India and Israel, formalised through a memorandum of understanding (MoU), is likely to focus on two key areas: partnerships in defensive systems and collaboration on offensive weaponry, according to Israeli media sources.
India has remained the largest defence customer of Israel for several years, accounting for 34% of its total arms sales between 2020 and 2024, according to the Stockholm International Peace Research Institute.
Data from the Ministry of Defense International Defense Cooperation Directorate (SIBAT) indicates that Israel’s arms exports to India during this period were valued at roughly $20.5 billion. However, recent trends suggest that Israeli defence sales to India continue to rise further.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
