Defence Stocks Soar: Apollo Micro, GRSE, HAL Rally Up to 8% - Here’s What’s Driving the Surge

Shares of defence companies jumped sharply on Friday, pushing the Nifty India Defence index up nearly 3% in morning trade. Heavy volumes and optimism over government spending and new orders boosted investor sentiment in the sector, making defence stocks some of the most actively traded on the National Stock Exchange.

Apollo Micro Systems, GRSE Top Gainers
Stocks like Apollo Micro Systems and Garden Reach Shipbuilders & Engineers (GRSE) rose between 5% and 8%, hitting intra-day highs. Apollo Micro touched a record Rs 321.70 following an 8% rally, marking a 17% gain over the past three sessions.

The rally followed a technology transfer deal signed at DSEI London 2025 between Apollo’s subsidiary, Apollo Strategic Technologies, and U.S.-based Dynamic Engineering and Design. The deal focuses on co-developing rocket motors to indigenise propulsion systems for multi-barrel rocket launchers, with full-scale production expected by mid-2026.

MTAR Technologies Jumps on New Orders
MTAR Technologies surged 14% over three days after announcing Rs 386 crore of fresh orders in the clean energy fuel cells segment, which the company plans to expand further. Analysts say such announcements strengthen the long-term growth narrative for defence stocks.

HAL Progress Supports Jet Production Ramp-Up
Hindustan Aeronautics Ltd (HAL) gained 3% to Rs 4,707 as it received the third GE-404 engine from the U.S. for the Tejas Mk1A programme, with another expected this month. HAL is on track to stabilise deliveries under its 99-engine contract with GE, supporting a ramp-up to 30 jets annually by FY27. HAL’s September gains now stand at 9%.

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Other Defence Stocks Also Rally
Other key players, including Paras Defence and Space Technologies, Mazagon Dock Shipbuilders, Astra Microwave Products, and BEML, rose between 2% and 8%, reflecting broad-based investor interest in defence stocks. Analysts highlight that despite near-term volatility, the sector continues to be a structural growth bet in India’s equity market.

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