India’s defence sector is entering a new phase of expansion as geopolitical tensions, government procurement initiatives and a strong push for domestic manufacturing reshape the industry’s growth outlook. Rising global security concerns—particularly in regions such as the Middle East—are prompting nations to increase military spending, which in turn is creating opportunities for defence equipment manufacturers worldwide.

For India, this shift coincides with a policy framework that prioritizes self-reliance in defence production. The government’s continued emphasis on indigenisation, alongside initiatives aimed at strengthening domestic manufacturing capabilities, is expanding the sector’s addressable market. Increasing participation from private industry, start-ups and MSMEs is also improving the depth of the domestic defence ecosystem while encouraging innovation and cost efficiency across projects.

A key driver of sector growth is the steady pipeline of procurement programs and capital acquisition approvals across the armed forces. Recent approvals of large defence acquisition proposals underscore the government’s ongoing commitment to modernizing military capabilities and enhancing operational readiness. Such approvals not only support order inflows but also provide greater revenue visibility for the sector over the medium term.

Export opportunities are emerging as another significant catalyst. With several countries increasing defence spending and seeking diversified supply sources, Indian manufacturers are gradually expanding their presence in global markets. The Middle East already accounts for a significant share of global arms imports, and continued demand for equipment such as missiles, air-defence systems, surveillance technologies and electronic warfare solutions could open new avenues for Indian defence exporters.

At the same time, the sector continues to face certain operational challenges. Supply-chain constraints—particularly for specialized components and imported subsystems—could occasionally affect production schedules or execution timelines for complex defence platforms. Addressing these bottlenecks through greater localization and technology development remains a key priority for policymakers and industry participants alike.

Despite these near-term constraints, the broader outlook for the defence industry remains positive. Increasing budget allocations, emergency procurement programs and technology-focused development roadmaps are likely to sustain order inflows and improve long-term revenue visibility for sector participants.
Taken together, rising defence spending, a robust procurement pipeline and growing export opportunities suggest that India’s defence sector is transitioning into a structurally stronger growth phase. As indigenisation deepens and domestic capabilities expand across platforms—from electronics and missiles to aerospace systems—the sector appears well positioned to benefit from both domestic modernisation and global demand for defence equipment.

Bharat Electronics: Buy| Target Rs 520

Supported by a robust INR730b order book and sustained inflows, Bharat Electronics remains well placed to benefit from large platform programs across the Army, Navy, and Air Force. A strong addressable market underpins expectations of sustained revenue growth exceeding 15% over the coming years.
Strong execution drove revenues and margins above expectations, aided by disciplined cost control and operating leverage. Effective supply-chain management has insulated the company from semiconductor shortages and commodity volatility, while higher indigenisation levels continue to support better-than-expected profitability.

Looking ahead, Bharat Electronics is positioned to capitalise on sizable orders, including QRSAM, Akash-NG, next-generation corvettes, and base programs. Improved margins and healthy execution underpin management’s guidance, with revenue and PAT expected to grow at 18% and 16% CAGR over FY25–28.

Kirloskar Oil Engines: Buy| Target Rs 1600

Kirloskar Oil Engines continues to strengthen its market position across both low and high-horsepower power generation segments, supported by ongoing capability expansion and a consultant-led sales approach.

The company is witnessing improving order visibility driven by increasing opportunities in the nuclear and defence sectors, CPCB 4+ replacement demand, and growing export traction. The transfer of the B2C business enables a sharper focus on the higher-margin B2B portfolio.

In 3QFY26, revenue grew 35% YoY to INR13.8b, led by strong performance in the power generation and industrial segments. EBITDA margin stood at 12.2%, impacted sequentially by higher other expenses, while adjusted profit after tax was INR1,022m.

Over 9MFY26, revenue, EBITDA, and profit after tax recorded steady growth, reflecting healthy demand momentum and improving operating performance.

(The author Siddhartha Khemka, Head of Research – Wealth Management, Motilal Oswal Financial Services)

While traditional energy investors spent the past weekend counting down the minutes until futures markets reopened on Sunday, overseas crypto traders were already placing their bets on the direction of oil prices.

The cryptocurrency exchange Hyperliquid lists perpetual futures, a highly speculative flavor of derivatives, tracking West Texas Intermediate crude—the U.S. benchmark—and other commodities. And like other crypto-native contracts, perpetual futures trade 24/7.

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The shares of Metropolis Healthcare are set to go ex-record date for its 3:1 bonus issue on Friday. Only shareholders holding the stock as of the record date will be eligible for the first-ever bonus issue announced by the diagnostic services provider.

Earlier in February, the company had announced the bonus issue while releasing its October–December quarter results for FY26. The board approved the issue of bonus shares in the ratio of 3:1, meaning three fully paid-up equity shares of face value Rs 2 each for every one fully paid-up equity share of face value Rs 2 each held by shareholders.

Later, on March 10, the company announced that the record date has been fixed as March 20 (Friday).

What does this mean for shareholders?

If a shareholder owns one share of a company worth Rs 100, a 3:1 bonus issue will convert the holding into four shares worth around Rs 25 each. The total value of the holding remains unchanged at Rs 100.Once the stock begins trading ex-bonus, the price appears to fall sharply, but this simply reflects the adjustment following the corporate action.

Only shareholders who owned the stock on the record date are eligible to receive the bonus shares. Bonus issues consist of free shares distributed by a company from its reserves and are often seen as a sign of strong financial health and growth prospects.
While the issue of bonus shares increases the total number of outstanding shares, it does not change the company’s market capitalisation. However, it can improve liquidity and affordability, allowing more investors to invest in the stock.

Metropolis Healthcare share price:

Metropolis Healthcare shares have gained around 4% in the past five days, but declined around 7% in the past one month. The small-cap stock has dropped nearly 11% in the past six months, and around 5% in 2026 so far.The stock currently has a P/E ratio of around 56, and a market capitalisation of Rs 9,382 crore, as per data on NSE.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Basmati rice exporter Amir Chand Jagdish Kumar(Exports) Ltd is set to launch its Rs 440 crore initial public offering (IPO) on March 24.

The public issue will close on March 27, while the anchor investor bidding is scheduled to take place on March 23, according to the red herring prospectus (RHP).

The Haryana-based company’s proposed IPO will comprise a fresh issue of equity shares entirely, with no offer-for-sale (OFS) component.

The company plans to utilise the net proceeds from the issue to fund its working capital requirements and for general corporate purposes.

The Securities and Exchange Board of India (Sebi) granted its approval to the IPO in October 2025.

The offer size has been reduced to Rs 440 crore compared to the Rs 550 crore issue size proposed in the Draft Red Herring Prospectus (DRHP) filed in June 2025.
Ahead of the public issue, the company raised Rs 13 crore in a pre-IPO round by allotting 7.55 lakh shares at Rs 172 per share.Amir Chand Jagdish Kumar (Exports) Ltd is a processor and exporter of basmati rice in India. The company markets its products under the flagship brand “Aeroplane”.

It competes with the likes of other large basmati rice companies, including KRBL Ltd, LT Foods and Sarveshwar Foods, and various other unorganised processors.

Apart from its core basmati rice business, the company has diversified into FMCG products, offering staples and other essential kitchen items.

For the nine-month period ended December 31, 2024, the company reported revenue from operations of Rs 1,421.3 crore and a profit after tax of Rs 48.77 crore.

The company’s shares are proposed to be listed on the BSE and NSE.