Which three Indian defence PSUs are climbing the world’s top-100 list?

Kolkata: A report by SIPRI (Stockholm International Peace Research Institute) has said that the cumulative arms revenues of the world’s biggest weapons manufacturers -- in fact of the top 100 -- went up to $679 billion in 2024, which is the highest every recorded. According to reports, this amount indicates a 26% rise over the 10-year period between 2015 and 24. In the case of in India, the total weapons arms revenue rose 8.2% to touch $7.5 billion in 2024. In the global scale, India is way behind accounting for just 1.1% of the revenue. However, at least three hardware manufacturers are coming up fast.

Rank 44

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Hindustan Aeronautics tops the list from India and it is ranked 44. HAL is the country's biggest arms producer with revenues of $3.8 billion. It is a monopoly so far as far as fighter jets are concerned. Reportedly, the revenues of the company are assured FY33 and it only goes to show the muscle of the order book position of HAL. The company’s business is divided into five complexes: Bangalore Complex, MiG Complex, Helicopter Complex, Accessories Complex and Design Complex. HAL currently obtains 70% of its revenue from repair/overhaul of aircraft, helicopters, and engines. Design and development activities and exports accounts for another 7%. It also manufactures Tejas aircraft and Sukhoi fighter aircraft.

Reports state that as on Nov 14 this year, the size of the HAL order book stood at Rs 2.3 lakh crore. It also assures revenue for more than six years. HAL is benefitting immensely from the Make in India initiative and technology tie-ups with Russia to put together fighter jets in India. The company has orders of 97 Light Combat Aircraft. There are Su-30 upgrade projects too which are valued at more than Rs 60,000 crore. The Medium Altitude Long Endurance UAVs (unmanned aerial vehicles) could be an opportunity for this company.

Rank 58

The revenues of Bharat Electronics (BEL) rose the highest among Indian companies which appear in the global top 100. It rose by 24% to touch $2.5 billion, thanks to orders from the Indian government for the supply of electronic warfare systems and radars. The core competence of this company lies in advanced electronics equipment and systems for the country's defence sector -- for radars, missile systems and communication systems used by defence teams. In modern system, electronics is at the heart of defence systems and BEL has a talent pool in this domain.

BEL, in keeping with the mantra of the government, focusses on self-reliance and three-fourths of its revenue in FY25 originated from indigenously made products. As of Oct 31 this year, the order book of BEL was valued at Rs 75,600 crore. In this financial year itself, the company expects more orders of Rs 57,000 billion. This gives assurance of revenue for more than five years. This year's additional orders could come from QRSAM orders, Shatrughat and Samaghat projects, NGC-related subsystems, ground-based mobile ELINT system, mountain radar and HAMMER. In FY27, new orders could flow in from next-generation corvette. Reports state that in the long-term, annual fresh orders for BEL could rise to Rs 25,000-30,000 crore.

BEL is also engaged in developing subsystems related to radar and control for project Kusha/Sudarshan Chakra, which is an air defence program. The first batch of production orders for Kusha could come in around Dec 2029. BEL also has a role in supplying electronic modules to encompass system integration, aircraft integration, testing etc but it wants to move up the value chain and expand its role. BEL also plans to boost its non-defence business to about 20% of total turnover in FY27. The stock will also be positively impacted by the gorwing importance in the global league. 

Rank 91

This is a premier defence production company in the country since it is the only Indian company to build destroyers and submarines. Like the two companies discussed above, Mazagon dock has immensely benefitted from the Make in India and Atmanirbhar Bharat programmes. Accordingly the company is opting for more and more indigenous content of warships -- 75% indigenous content for P17A Nilgiri-class frigates and 42%+ indigenous content for P15 Delhi-class destroyers.

Mazagon Dock has an order book of Rs 27,420 crore. By FY27, it is supposed to sail past the psychologically important mark of Rs 1 lakh crore. The company is now setting up a mega shipbuilding cluster in Tuticorin to lessen dependence on the Indian Navy. Mazagom Dock wants to build VLCCs (Very Large Crude Carriers) which can capable of carrying up to 300,000 deadweight tons. The company is going to invest Rs 15,000-18,000 crore in this project. According to reports, the first phase will be completed in five years. Investors must be happy the way things are shaping up in these defence manufacturing companies.