India's defence production hits record, boosting Paras Defence stock surge

India’s Ministry of Defence announced that defence production reached a record Rs 1.78 lakh crore in the 2025‑26 fiscal year, a 15.6% year‑on‑year increase. The milestone, celebrated by Defence Minister Rajnath Singh, was attributed to the Atmanirbhar Bharat programme and a rise in private‑sector participation to 24% of total output.

The data sparked a rally in defence‑related equities. Paras Defence and Space Technologies saw its share price jump 28% over three sessions, surging more than 10% in a single day to Rs 1,439 on the BSE. The broader Nifty Defence Index hit fresh lifetime highs, with several small‑cap stocks posting double‑digit gains. Analysts linked the optimism to growing domestic manufacturing capacity and the geopolitical backdrop of the Russia‑Ukraine conflict, which positions India as an emerging sourcing hub for defence products.