Explosive Growth in PSU Defence Stocks: HAL, BEL, BDL Rally Up to 60% in 2025; BUY/SELL Defence Stocks?

Defence sector stocks in India are on fire in 2025, with several PSU defence stocks delivering multibagger returns. With the rising geopolitical tensions in India and a strong order inflows, this sector has become a hot favourite among retail and institutional investors.

The Nifty Defence Index touched a new 52-week high of 8258.90 today, giving a 38.2% gain in the last six months, due to strong performance in key defence counters like HAL, Bharat Electronics (BEL), and Bharat Dynamics Ltd (BDL).

Why Are Defence Sector Stocks Rallying in 2025?

The surge in Indian defence stocks came post the India-Pakistan border tensions followed by Operation Sindoor, which was a response to the barbaric Pahalgham attack in Kashmir in April.

Additionally, defence sector companies reported strong Q4 results for the financial year 2025. The Indian government's push for Atmanirbhar Bharat in defence is another major factor for the surge in investor interest in these stocks. The PSU defence stock has been receiving bulk orders and a healthy execution pipeline this year, which also adds to the optimism .

Hindustan Aeronautics Ltd (HAL) Share Price Performance

HAL shares are currently trading at Rs 5,031.50, down 1.88% intraday as of May 19. However, in the last five days, HAL stock has jumped 11%, and over the past six months, the stock has surged 24%, proving itself as a top-performing PSU stock in 2025.

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HAL Q4 Q4FY25 Results & Order Book Update

According to Nuvama Research, HAL outperformed expectations in Q4 Q4FY25, with a revenue beat of 4% and an EBITDA beat of 42%. The company has also reported a strong Operating Profit Margin (OPM) of 38.7%.

HAL secured orders worth Rs. 1.2 lakh crore in FY25, raising its total order backlog to Rs. 1.89 lakh crore.
Nuvama has maintained a BUY rating on HAL shares with a revised target price (TP) of Rs 6,000.

While Antique Stock Broking is even more bullish, upgrading HAL's target to Rs 6,545, projecting FY26/27 earnings growth of 20% to 34%.

Bharat Electronics Ltd (BEL) Share Price Today

The BEL share price today rose to Rs. 368, up 1.13% intraday. Over the last week, BEL shares have jumped 11%, and in one month, the stock has gained 22%.

BEL Secures Rs 572 Crore Order; Q4 Q4FY25 Results Awaited

BEL announced a fresh order win worth Rs 572 crore, fuelling investor sentiment. The company is also expected to report Q4FY25 results today (May 19), which may further impact the stocks.

Antique Stock Broking issued a BUY call on BEL shares with a target price of Rs. 353. Similarly, Motilal Oswal also reiterated the BUY rating with a target price of Rs 360, suggesting an upside of 17%.

Bharat Dynamics Ltd (BDL) Share Price Performance

BDL shares have been the surprise performer, rising nearly 62% in 2025 YTD, mainly because of strong demand for missile systems. Bharat Dynamics Ltd (BDL) share price today is trading at Rs 1,823.60, down 1% intraday at the time of writing. Despite today's minor dip, BDL shares have surged 15% in the last week alone and delivered an impressive 88% gain over the past six months. BDL currently is one of the top-performing PSU defence stocks in 2025.

Antique Stock Broking has issued a BUY recommendation for BDL shares, expecting continued upside amid strong defence allocation and export opportunities.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor GoodReturns. The author, nor the brokerage firm nor GoodReturns would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.