Overview

• Order books are projected to reach about Rs 55,000 crore by the end of the current fiscal, up from roughly Rs 40,000 crore at the end of FY24.
• Operating profitability is expected to stay range‑bound near 18–19%, supported by revenue growth and built‑in price escalation clauses in contracts.
• The forecast builds on roughly 20% compound annual revenue growth recorded between FY22 and FY25 across private defence players.
• About Rs 3,600 crore of equity raised over the past three fiscals funded working capital as well as capex and R&D, strengthening firms’ ability to win larger orders.
• Growth and order visibility are being driven by domestic procurement policies such as the Emergency Procurement Plan, Atmanirbhar Bharat, the Defence Acquisition Policy, and the Defence Production and Export Promotion Strategy, with momentum led by electronic warfare, C4 systems and aerospace components.