Defence Stocks Rally Up to 6% on Order Wins and Heavy Volumes

Defence sector stocks surged on September 12, 2025, driven by strong order wins, heavy trading activity, and upcoming dividend record dates. The rally pushed the Nifty India Defence index higher by nearly 3 per cent in morning trade, reflecting broad-based investor interest in the sector.

At around 10:42 a.m., the Nifty India Defence index climbed to 7,922, led by sharp gains in Garden Reach Shipbuilders & Engineers (GRSE), MTAR Technologies, and Mazagon Dock Shipbuilders, among others.

GRSE Leads Gains with 6% Surge

Garden Reach Shipbuilders & Engineers (GRSE) shares were the top gainers on the index, jumping nearly 6 per cent to trade at ₹2,490.20 apiece.

• Trading activity was robust, with nearly 13 lakh shares changing hands on the NSE.

• This volume was almost double the stock’s 10-day average trading levels, highlighting the surge in market participation.

• September 12 also marked the record date to determine shareholder eligibility for a ₹4.9 per share dividend, adding to investor enthusiasm.

MTAR Technologies Gains on Order Win

MTAR Technologies shares followed closely, also advancing nearly 6 per cent to trade at ₹1,619 apiece.

• Earlier this week, MTAR announced order wins worth $43.87 million (approximately ₹386 crore) from Bloom Energy Corporation.

• The news spurred a sharp rise in trading, with volumes reaching three times higher than the stock’s 10-day average.

Astra Microwave and Mazagon Dock Rise

• Astra Microwave Products shares surged around 5 per cent on strong volumes.

• Mazagon Dock Shipbuilders advanced more than 4 per cent to extend gains in the defence pack.

• Investors are also eyeing the September 19 record date for Mazagon Dock’s ₹2.71 per share dividend.

Paras Defence Secures Fresh Orders

Paras Defence announced on September 12 that it has bagged incremental orders worth ₹26.6 crore from the Opto Electronics Factory (OLF).

• The orders involve the supply of Electronic Control Systems used in Thermal Imaging Fire Control Systems (TIFCS) for Battle Tank applications supplied by OLF to the Indian Armed Forces.

• The announcement triggered fresh buying interest in the stock, adding to the sector’s rally.

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Bharat Dynamics and HAL Edge Higher

• Bharat Dynamics (BDL) and Hindustan Aeronautics (HAL) shares each gained around 3 per cent.

• For BDL, September 19 has been set as the record date for determining eligibility for a ₹0.65 per share dividend.

Other Defence Stocks Join the Rally

The positive sentiment extended across the board:

• Solar Industries, Cochin Shipyard, and Bharat Electronics (BEL) gained more than 2 per cent each.

• Notably, September 12 is also the record date for Cochin Shipyard’s dividend of ₹2.25 per share, which added momentum to its stock performance.

Broader Sectoral Impact

The rally in defence stocks was underpinned by:

1. Robust order inflows – MTAR’s international orders and Paras Defence’s incremental orders boosted confidence in revenue visibility.

2. Dividend record dates – Multiple companies, including GRSE, Mazagon Dock, BDL, and Cochin Shipyard, had upcoming or current record dates, attracting dividend-seeking investors.

3. High trading volumes – Several stocks, such as GRSE and MTAR, witnessed trading volumes far above their averages, indicating strong institutional and retail participation.

Summary of Key Stock Moves

• GRSE: +6% to ₹2,490.20; record date for ₹4.9 dividend; 13 lakh shares traded (double 10-day average).

• MTAR Technologies: +6% to ₹1,619; won $43.87m orders from Bloom Energy; volumes 3x higher.

• Astra Microwave: +5%.

• Mazagon Dock: +4%; record date Sept 19 for ₹2.71 dividend.

• Paras Defence: new ₹26.6 crore order from OLF for tank systems.

• BDL: +3%; record date Sept 19 for ₹0.65 dividend.

• HAL: +3%.

• Cochin Shipyard: +2%; record date Sept 12 for ₹2.25 dividend.

• Solar Industries & BEL: +2% each.

Conclusion

Defence stocks witnessed a sharp rally on September 12, with several companies hitting high volumes and strong gains. Order wins, particularly MTAR’s large international deal and Paras Defence’s incremental orders, combined with multiple dividend record dates, kept investor sentiment upbeat.

The Nifty India Defence index’s nearly 3 percent rise to 7,922 underlined the sector’s broad strength. With GRSE and MTAR leading gains of up to 6 percent, the defence pack emerged as one of the day’s top-performing themes in the Indian equity markets.