Why did defence stocks Avantel, Paras, Zen, Ideaforge zoom up to 10% today?

Private defence share price today
Shares of private defence companies Ideaforge Technology, Apollo Micro Systems, ZEN Technologies, Paras Defence and Space Technologies and Avantel rallied up to 10 per cent on the BSE in Monday's intra-day trade amid heavy volumes in an otherwise weak market. At 11:45 AM; the BSE Sensex was down 0.64 per cent at 81,880.
Reasons behind defence stocks rally?
Among individual stocks, Ideaforge Technology was locked at the 10 per cent upper circuit at ₹631.65 on the BSE after the company received an order worth approx. ₹137 crore (all inclusive) to supply Mini unmanned aerial vehicles (UAVs) with accessories to Ministry of Defence. The time period for the contract to be executed is 12 months. The average trading volumes at the counter jumped nearly four-fold fold with a combined 4.03 million shares changing hands. There were pending buy orders for a combined 300,000 shares on the NSE and BSE.
Shares of Apollo Micro Systems hit a record high of ₹213.85, as the surged 10 per cent on the back of four-fold jump in trading volumes. A combined 17.52 million shares representing 5.2 per cent to total equity shares of Apollo Micro Systems changed hands on the NSE and BSE.
In the past one month, the share price of Apollo Micro Systems has zoomed 54 per cent from a level of ₹138.65. Looking ahead, the management of Apollo Micro Systems expects revenue to grow at a compounded annual growth rate (CAGR) of 45 per cent to 50 per cent over the next two years - driven solely by the core business, excluding any contribution from the recent acquisition.
The growth in the forecast period can be attributed to an increase in territorial and political conflict, global population growth and urbanization, increasing infrastructure development expenditure by governments and increasing construction activities.
Shares of Avantel rallied 7 per cent to ₹166 on the BSE in intra-day trade after the company said it received a purchase order worth of ₹13.67 crore for development of Software Defined Radios (SDRs) from Defence Electronics Applications Laboratory (DEAL), Defence Research and Development Organisation (DRDO). The time period for the contract to be executed is August 2027.
Avantel has also received a purchase order worth of ₹11.06 crore from Mazagon Dock Shipbuilders Limited (MDL). The time period for the contract to be executed is from April 2026 to August 2029.
Specialising in wireless and satellite communication products, Avantel serves clients of strategic importance in aerospace and defence sectors. Key clientele includes Indian Navy (Material organisation, Indian Coast Guard etc), Cochin Shipyard Limited, Goa Shipyard Limited (GSL), Garden Reach Shipbuilders & Engineers Ltd (GRSE), Bharat Electronics Limited, Lockheed Martin, Satish Dhawan Space Centre (SDSC) SHAR, Indian railways (through L&T), and The Boeing Company, among others.
Shares of Zen Technologies were locked at the 5 per cent upper circuit at ₹1,995.30 after the company announced the approval of the acquisition of a majority stake in TISA Aerospace Private Limited (TISA), an emerging defence technology company specializing in indigenously developed loitering munitions and UAVs. TISA has already delivered systems meeting DRDO standards and is now developing new variants for the Indian Army, contributing to indigenous capabilities in next-gen tactical weaponry.
This move is well-aligned with India's urgent need for self-reliance in defence capabilities, particularly in drones and loitering munitions. The management said they see strong potential in product integration across platforms, enabling the company to scale faster and compete more effectively in both domestic and global markets.
Defence stocks look promising due to the ongoing geopolitical tussle between Iran and Israel. Moreover, the Indian government is likely to enhance defence spending from the current ~2 percent of GDP to 3 - 4 percent over the next decade. Further, the government has targeted ₹25,000 crore in defence exports by 2025-26, according to Sankhanath Bandyopadhyay, Economist at Infomerics Valuation and Ratings.
Investors can focus on export-driven defence stocks with long-term potential. In the current scenario, geopolitical tensions will likely be lingering between different countries, especially as being reflected in rising tensions in the Middle East. Investors should carefully assess the financials and outlook of such stocks before investing, and there should be judicious mix so that a healthy dividend can also be earned, said Sankhanath Bandyopadhyay.

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