Bharat Dynamics shares rise 2% in a weak market after bagging Rs 811 crore order from Ministry of Defence

Shares of Bharat Dynamics gained 2% to Rs 1,181 on the BSE on Thursday after the Ministry of Defence awarded an Rs 810.79 crore contract for 160 Satellite Smart Anti-Airfield Weapons (SAT-SAAW) along with associated equipment for the Indian Air Force, further supporting India's push towards indigenous defence manufacturing. The gains occurred despite a weak market as Sensex and Nifty declined up to 1%.

SAT-SAAW is an air-to-ground precision-guided glide bomb that can be launched from platforms including the Jaguar, Hawk and Su-30 MKI. The weapon is designed to strike enemy airfields from a long stand-off range.

The weapon has been designed and developed by the Defence Research and Development Organisation (DRDO) and will have 60% indigenous content. The programme also includes the indigenisation of key sub-systems such as the Inertial Measurement Unit, Long Impact Delay Fuse and Twin Store Carrier.


Deliveries are scheduled for 2027-28 and 2028-29. The Defence Ministry said that the induction of SAT-SAAW will strengthen IAF's operational capabilities and bolster India's defence preparedness.

Defence stocks outlook

The order comes just days after the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, approved acquisition proposals worth around Rs 1.10 lakh crore for the Indian defence forces, with around 98% of the approved procurements set to be sourced from Indian industry.

India’s defence industry is entering a new phase of growth, with the combat deployment of indigenous weapons giving locally developed systems a stronger stamp of credibility in global markets.

The shift is backed by a sharp increase in defence spending. India’s defence budget has surged from Rs 2.53 trillion in FY14 to Rs 6.81 trillion in FY26, reflecting the Narendra Modi-led government’s strong focus on military modernisation and national security.

$60 billion domestic opportunity

India’s domestic defence opportunity could exceed $60 billion over the next four years. Domestic defence capital spending is expected to grow at a 16% compound annual growth rate between fiscal 2026 and fiscal 2030, significantly ahead of the 10% growth expected in overall defence capital expenditure.

Order visibility is also improving. More than $120 billion of acquisition proposals cleared during fiscal 2025-26 provide visibility for medium-term order flows, international brokerage Jefferies said. Private companies are already making inroads. The revenue share of private players among key listed defence companies rose from 9% in fiscal 2023 to 16% in fiscal 2026.

“The government has been taking steps to open missile production to Indian private players. These initiatives improve order inflow visibility for the defence sector,” Motilal Oswal said in a note.

Jefferies believes Indian defence companies could see growing demand for missiles, artillery and electronic systems following successful deliveries to Armenia. Europe’s rearmament cycle may not immediately translate into large platform exports because of established supplier relationships, but it could open the door for Indian companies to participate as component and subsystem suppliers.

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