The Ministry of Defence is in the final stages of preparing a major procurement order worth ₹2,000 crore to ₹3,000 crore for the acquisition of 500 Invar anti-tank guided missiles (ATGMs) from Bharat Dynamics Ltd (BDL), as part of its ongoing efforts to upgrade India’s armoured warfare capabilities. A senior official confirmed that the proposal, currently under financial vetting, is intended to equip frontline T-90 main battle tanks with high-precision missile systems that significantly enhance their strike power and battlefield survivability.
Highlights:
Government preparing ₹2,000–₹3,000 crore order for 500 Invar missiles from Bharat Dynamics Ltd.
Invar missiles will be deployed on T-90 tanks to improve anti-armour capabilities.
Final approval route depends on cost: Defence Minister (up to ₹2,000 crore), Finance Minister (up to ₹3,000 crore), or Cabinet (above ₹3,000 crore).
Invar Missiles to Sharpen India’s Armoured Edge on Western and Northern Fronts
The Invar missile, capable of being fired from the barrel of T-90 tanks, has been in active deployment by Indian forces and is known for its long-range precision strike capability. With India’s mechanised formations stationed along critical border zones with Pakistan and China, the proposed procurement reflects a focused strategy to enhance deterrence and operational readiness through advanced guided munitions. The order will be placed with Bharat Dynamics, which has an established record of delivering such systems, aligning with the defence establishment’s broader focus on indigenisation and domestic capability enhancement.
Highlights:
Invar ATGMs are precision-guided and integrated into India’s T-90 main battle tanks.
Strengthens Indian Army’s combat readiness along strategic borders.
Part of a broader post-Operation Sindoor military modernisation initiative.
Procurement to Follow Defence Acquisition Protocols, Awaiting Financial Clearance
The Defence Acquisition Council (DAC), which authorises capital procurement proposals up to ₹2,000 crore, has previously cleared emergency defence purchases worth ₹40,000 crore this month. The final route for approving the Invar missile deal will depend on the assessed contract value. If the amount remains below ₹2,000 crore, Defence Minister Rajnath Singh can provide clearance. However, contracts valued between ₹2,000 crore and ₹3,000 crore will require Finance Minister Nirmala Sitharaman’s nod. Proposals exceeding ₹3,000 crore will be escalated to the Union Cabinet.
Highlights:
Proposal currently undergoing financial vetting to determine level of final approval.
Approval protocol: DAC (up to ₹2,000 crore), Finance Minister (up to ₹3,000 crore), Cabinet (above ₹3,000 crore).
Part of the broader procurement reform under the Defence Ministry’s protocols.
Post-Operation Sindoor Context: Indigenous Systems Gain Strategic Momentum
The missile procurement comes in the immediate aftermath of Operation Sindoor, a retaliatory precision strike launched by Indian forces following a deadly terrorist attack in Pahalgam that killed 26 civilians. The operation, which targeted terrorist infrastructure in Pakistan and Pakistan-occupied Jammu and Kashmir, was notable for its reliance on domestically-developed platforms including drones, layered air defences, and electronic warfare systems. The Ministry of Defence’s decision to advance the Invar missile purchase underscores its confidence in domestic defence producers and reflects a shift toward high-impact, indigenous responses to regional threats.
Highlights:
Operation Sindoor showcased use of indigenous military tech in counter-terror operations.
New missile order reinforces India’s post-operation push for self-reliant defence preparedness.
Reflects growing emphasis on precision strikes and electronic warfare integration.
Bharat Dynamics Positioned for Expansion Amid Soaring Defence Orders
Bharat Dynamics Ltd stands to benefit significantly from the impending missile contract. The Hyderabad-based state-owned defence manufacturer, with an existing order book of ₹3,110 crore, expects revenue growth in the 28–30% range for FY25. The company has successfully indigenised several critical components and is rapidly expanding its production capacity. It plans to double output in the next three to five years and triple it over the next decade to meet increasing domestic and export demand. The Invar missile order will reinforce its role as a cornerstone of India’s Make in India defence strategy.
Highlights:
BDL order book at ₹3,110 crore with FY25 revenue expected to grow 28–30%.
Company plans to double production in 3–5 years, triple it in 10 years.
Aggressively expanding manufacturing and supply chain capacity amid growing demand.
Defence Ministry Plans ₹2,000–3,000 Crore Missile Order from Bharat Dynamics Ltd
Strategic Development Overview:
The Indian government is finalising a major procurement order for 500 Invar anti-tank guided missiles from Bharat Dynamics Ltd (BDL), estimated between ₹2,000 crore and ₹3,000 crore, to enhance the strike capability of T-90 tanks. The deal aligns with India’s push for defence indigenisation under the Make in India initiative and follows the successful execution of Operation Sindoor, which showcased the deployment of indigenous military systems.
Impact on Stock Market & Investors:
Positive Sentiment for BDL Stock: The anticipated large-scale order enhances revenue visibility for BDL and reinforces investor confidence in defence sector stocks.
Strengthens Order Pipeline: The procurement adds to BDL’s already strong order book of ₹3,110 crore, potentially supporting its projected FY25 revenue growth of 28–30%.
Favourable Policy Backdrop: With the Centre’s emphasis on indigenous procurement and recent emergency allocations of ₹40,000 crore for defence, investor interest in domestic defence stocks may rise.
Boost for Defence Manufacturing Theme: Broader market themes like Atmanirbhar Bharat and national security may drive investor reallocation toward public sector defence stocks.
Investor Focus Points:
BDL’s Revenue Visibility: Track approval and finalisation of the missile order, as it may lead to upgrades in earnings estimates.
Order Execution & Capacity Expansion: BDL’s plan to double capacity in 3–5 years and triple it in a decade underpins a strong long-term growth story.
Policy & Budgetary Trends: Watch upcoming defence budgets and procurement clearances, especially if more orders are fast-tracked.
Export Opportunities: BDL’s growing export prospects and component indigenisation efforts reduce dependency on foreign supply chains, enhancing operational resilience.
Geopolitical Tailwinds: Rising regional threats and India’s proactive military posture may sustain multi-year tailwinds for defence-linked stocks.
Highlights:
Govt to procure 500 Invar ATGMs from BDL for ₹2,000–₹3,000 crore
Part of Make in India, post-Operation Sindoor defence build-up
Order to boost T-90 tank firepower, national preparedness
BDL stock in focus with strong order pipeline and 28–30% FY25 growth
Positive outlook for defence sector amid sustained geopolitical tensions
