India’s Defence Electronics Boom: The future of warfare will not be defined by boots on the ground or the number of tanks in motion. It will be dictated by the quiet hum of circuits, the precision of radar waves, and the invisible web of data linking satellites to submarines. At the heart of this shift is the rise of defence electronics—and India is stepping up to play a critical role.
Long considered the steel-and-gunpowder domain, India’s defence sector is undergoing a metamorphosis. Electronic warfare, intelligent communication platforms, surveillance grids, and simulation modules are not just support functions anymore—they are becoming the nucleus of strategic decision-making.
In this electrified battlefield, India’s ambition to become self-reliant (Atmanirbhar Bharat) is creating both momentum and opportunity for domestic defence electronics players. Strategic partnerships, favourable policies, and a rise in export inquiries are making defence electronics one of the most exciting growth stories in India’s stock market.
Here’s a look at five publicly listed Indian defence electronics companies with the largest order books as of April 1, 2025, and what makes them tick.
1. Bharat Electronics Ltd (BEL): The Nucleus of India’s Military Circuits
- Market Cap: ₹2,93,122 Cr
- Order Book FY25: ₹71,650 Cr
BEL is the big brother of India’s defence electronics sector. Since its founding in 1954, it has evolved into the go-to supplier for high-value systems including software-defined radios, radar systems, electronic warfare modules, and command control networks.
Despite being primarily a defence player, BEL’s consistent focus on R&D and indigenous innovation gives it unmatched credibility. With exports rising to $106 million in FY25 and ambitious projects like the QRSAM and Project Kusha in the pipeline, BEL is building towards a future defined by smart combat systems.
That said, BEL’s dependence on government clearances can be a bottleneck. Execution speed and global competitiveness will determine its next growth leap.
2. DCX Systems: From Cables to Cutting-Edge Radar
- Market Cap: ₹3,242 Cr
- Order Book FY25: ₹2,855 Cr
DCX Systems may be relatively young (founded in 2011), but it’s already making waves. With clients like Lockheed Martin and Israel’s Elta Systems, DCX’s export order book is impressive for its size.
Its transition from a “build-to-print” cable harness supplier to a JV-based radar manufacturer under the ‘Make in India’ framework is a strategic pivot. A 37% stake in its radar JV with Elta is a bold step into core defence IP territory.
The company’s profitability is currently challenged by cost escalation and payment delays, but the long-term trajectory points toward deeper integration into global defence supply chains.
3. Astra Microwave Products: The RF-Microwave Specialist Going Global
- Market Cap: ₹10,902 Cr
- Order Book FY25: ₹2,304 Cr
Astra Microwave has carved out a niche in RF and microwave systems—a backbone for radars, missiles, and satellite communication.
With 90% of its revenue coming from domestic orders and a healthy order pipeline of ₹2,304 crore, Astra is well-positioned. Its capex strategy to invest ₹90 crore into futuristic tech (anti-drone, space-grade subsystems) signals its readiness for the next frontier.
However, export revenue remains below 10%, and scaling globally is an area it must crack to achieve long-term resilience. Execution delays and payment lags in defence procurement remain key risks.
4. Cyient DLM: Electronics Design Meets Global Diversification
- Market Cap: ₹3,680 Cr
- Order Book FY25: ₹1,906 Cr
Cyient DLM is an electronics system design and manufacturing (ESDM) company that thrives in high-reliability sectors like defence, aerospace, and medical electronics.
FY25 saw revenue of ₹1,520 crore, but the order book dipped slightly due to the completion of a massive Indian defence project. With 35% revenue now coming from medical electronics and growing traction in the U.S. and European markets (helped by the Altek acquisition), Cyient DLM is evolving into a diversified EMS powerhouse.
Still, with order coverage at ~80%, the company needs fresh wins to sustain growth. The next two quarters are critical for securing new contracts.
5. Paras Defence and Space Technologies: Punching Above Its Weight
- Market Cap: ₹6,579 Cr
- Order Book FY25: ₹900+ Cr
Paras Defence is a diversified player across four verticals: optics, electronics, heavy engineering, and EMP protection. Its recent profit growth and operating leverage gains have caught market attention.
Though its order book (~₹900 crore) is modest, management is eyeing a jump to ₹1,500-2,000 crore. The conversion of a ₹2,000+ crore opportunity funnel will be key. Most of its business is India-focused, and absence of notable exports restricts its global footprint.
However, with projects like submarine periscopes in production, margin expansion to 27%, and strategic intent intact, Paras is one to watch—provided it delivers on scale and cost control.
The Bigger Picture: Defence Electronics is India’s Strategic Future
India’s defence electronics sector stands at a fascinating juncture. The focus is clearly shifting from “development-led contracts” (long gestation) to “production-led deals” (faster margins). Export potential is rising but still forms a small part of overall revenue.
At the macro level, India’s geopolitical positioning, massive defence budget, and push for indigenization under the DAP (Defence Acquisition Procedure) and IDDM (Indigenously Designed Developed and Manufactured) policies are creating fertile ground.
But growth will not come easy.
This is a capital-intensive industry, where delays in order conversion, lumpy inflows, and long receivable cycles are common. Working capital management and disciplined execution will separate the serious contenders from the speculative plays.
Know the Circuit Before You Bet
India’s defence electronics journey is only beginning. As Peter Lynch famously said, “Know what you own, and why you own it.” Investors would do well to dig beyond just market caps and order books. Understand execution capabilities, export pipelines, technology differentiation, and operational discipline.
Each of these five companies brings something unique to the table—but their success depends not just on patriotic capital, but on competitive capital. One thing is clear: as the next war moves to the digital domain, the real battlefield may be fought and won in India’s electronic foundries.
Disclaimer: This article is for informational purposes only and is not investment advice.
