India’s push for self-reliance under the Atmanirbhar Bharat initiative is transforming the defence sector from an import-dependent industry into a manufacturing and export hub.
The country is not only meeting a larger share of its own defence requirements but is also steadily expanding its presence in international markets.
Macro Momentum: Mapping India’s ₹38,424-Crore Defence Export Shift
The numbers reflect this shift. India’s defence exports surged 63% year-on-year to a record-high ₹38,424 crore in FY26. Indian made defence products are now exported to over 80 countries. Products range from defence electronics and radar systems to missiles, ammunition, aerospace components, and naval equipment.
Decoupling Private vs. Public Export Drivers
The growth was driven by both Defence Public Sector Undertakings (DPSUs) and private companies. DPSUs contributed 55% of total exports, up from 43.8% in the previous year, while the private sector accounted for the remaining 45%. This suggests that India’s defence export story is increasingly creating opportunities for private manufacturers.
The export momentum comes alongside a rise in domestic defence production. India’s defence production hit ₹1.5 lakh crore in FY25, nearly 3X the level seen a decade ago. The production is expected to have hit ₹1.7 lakh crore in FY26.
Higher indigenisation, strong order inflows, and a growing preference for locally manufactured equipment are behind the growth. Today, around 65% of the country’s defence equipment requirements are met through domestic production, a significant improvement from the heavy import dependence of the past.
The government’s focus is now on becoming a globally competitive defence manufacturer. With a target of ₹50,000 crore in defence exports by FY29, India is looking to strengthen its position in global defence supply chains.
How India’s Defence Export Story Is Changing
| Metric | FY17 | FY26 |
| Defence Exports (₹) | 1,522 crore | 38,424 crore |
| Export Growth | Base Year | ~25x Higher |
| Countries Served | Limited | 80+ Countries |
| Defence Production (₹) | 50,621 crore | 1,75,000 crore (Estimated) |
| Domestic Equipment Share | Import Dominated | 65% Indigenous |
As export opportunities continue to grow, several listed defence companies are positioning themselves to capture a larger share of this expanding market. Here are three companies with among the highest export shares in their revenue/order books.
#1 Astra Microwave Products: 40% Margin IP Pivot Accelerates
Astra Microwave manufactures defence, aerospace, and space electronics. This is one of the select companies in India that design and develop radar, tactical, and space electronics systems and subsystems. Astra operates across several key sectors, including Defence, Aerospace, Space, Meteorology, and Telecom.
Mapping the Margin Pivot: Moving Beyond Build-to-Print
Astra exports its products mainly to three countries: the US, Singapore, and Israel. In FY26, exports (including deemed exports) accounted for 11.9% of standalone revenue. The company is undergoing a strategic pivot regarding its exports. Historically, Astra relied on low-margin Build-to-Print (BTP) offset-based export contracts.
Astra Revenue-Mix
In this, it was compensated only for conversion costs, resulting in single-digit margins. Astra has actively stepped away from these arrangements. Instead, Astra is now focusing on IP-driven products and co-development projects for the export market.
For instance, Astra is co-developing the RF portion of Software-Defined Radios with Rafael, delivering significantly higher value-add and gross margins close to 40%. In this way, it expects to secure complex export orders that could yield greater profitability.
Scaling the Export Engine: IP-Owned Products on the Horizon
Astra is heavily accelerating its export engine, shifting from being a subsystem supplier to a maker of complete solutions for global markets. As of 31 March 2026, the export segment has grown strongly, now representing 33% of Astra’s total standalone order book.
During FY26, one of the company’s top 10 orders was an export order worth ₹138 crores via Astra Rafael Comsys. Astra exports radar, telemetry, and hydrology components to nations, including Israel, the U.S., and Singapore.
Furthermore, the company is preparing to launch multiple fully Astra-owned, Astra-branded IP products for the global market before Diwali, with the first NCNC (No Cost No Commitment) demo planned in Q1FY27.
Importantly, management noted that not a single rupee from these future proprietary IP-led export opportunities has been factored into their long-term growth guidance, meaning it acts as pure potential upside.
Deconstructing the Balance Sheet: Backlog and Baseline Order Mix
As of 31 March 2026, Astra’s consolidated order book is ₹2,600 crore. Further, the company concluded Price Negotiation Committees for another ₹300 crores, which are expected to be formally received in the coming months.
The Financial Execution: Revenue Expansion and Cash Flow Reversal
Astra concluded FY26 with strong financial performance. Consolidated revenue for the full year grew 10.6% year-over-year to ₹1,163 crores. Strong execution and a favorable revenue mix improved operating leverage.
EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) jumped 24.1% to ₹334 crore, with margins expanding to 28.7% (up from 25.6% in FY25). The company also generated an operating cash flow of ₹387 crores, compared to a negative ₹90 crores in the previous year.
Breaking Down Astra’s FY27 Order Pipeline
Looking ahead to FY27, Astra has clear visibility into booking ₹1,600 crore-plus in new orders. Management remains confident in its future trajectory. Astra projects top-line growth of 15-20% in FY27. Furthermore, the joint venture (Astra Rafael Comsys) is expected to outperform, targeting a 50% growth to cross ₹600 crores in sales in FY27.
Structural Horizon: Quantifying the FY28 Total Addressable Market
Over the next 3 to 4 years (by FY30 to FY31), Astra is structurally positioned to nearly triple its turnover. This aggressive growth will be driven by just 4-5 major rear-ended programs, including QRSAM, Uttam Radars, Su-30 Virupaksha, Su-30 Angad, and electronic warfare upgrades.
Astra estimates its major opportunities and Total Addressable Market (TAM) to be around ₹24,000-25,000 crores across all sectors through FY28. Radar programs represent the largest chunk (₹10,000-11,000 crore), followed by turnkey projects (₹5,000-6,000 crore), and significant opportunities in special projects, space, meteorology, and exports.
#2 Bharat Electronics: Massive ₹73,882-Cr Backlog Secures Revenue
Bharat Electronics (BEL) is actively working to expand its footprint in international markets. The company views exports as a crucial component in maintaining steady, double-digit revenue growth.
Global Footprint: Analyzing BEL’s $96 Million Export Backlog
As of April 2026, BEL holds an export order book of US$495 million (around ₹4,700 crore). These orders are slated for execution over the current year and the subsequent 2 to 3 years. This year, it expects 1-2 large export orders.
According to HDFC Securities, BEL’s export revenue grew 48% year-on-year to US$106 million in FY25, up from US$33 million in FY22. Exports have surged to US$ 142 million (around ₹1,350 crore) in FY26, accounting for about 5% of revenue. Management aims to grow export revenue at a 20% CAGR going forward.
In the near term, over the next 1-1.5 years, the export share is expected to increase by about 1-2 percentage points. Over a longer horizon of 4-5 years, BEL has set a strategic goal to steadily grow its export business so that it constitutes more than 10% of its total turnover.
Management stated that the export segment’s contribution is clearly on an upward trajectory relative to total revenues. BEL is pursuing several substantial export opportunities alongside its regular flow of smaller contracts.
Partnering with Global Defense Tier-1 OEMs
BEL aims to leverage its established position as a Tier-1 supplier to global defence companies such as Thales, Saab, Rafael, Airbus, and Elbit Systems. The company also plans to partner with other global defence companies for “build-to-spec” manufacturing and technology tie-ups.
Most importantly, BEL is a key supplier of electronic subsystems and components for the BrahMos missile program. As India has been signing deals to export BrahMos to friendly nations, BEL indirectly gains substantial business from these international defense deals. Other key areas of focus include communication equipment, C4I Solutions, and Repeat Business.
Tactical Pipelines: Communication Equipment and Operation Sindoor Leads
The company sees highly significant potential in communication equipment. BEL focuses on Software-Defined Radios and satellite communication systems, for which large, high-ticket orders are expected. The company noted that one lead in this segment recently materialized into an order, specifically in March.
BEL treats potential export opportunities as leads until a formal order is secured. Further, following “Operation Sindoor,” it is pursuing strong leads to provide tailored Command, Control, Communications, Computers, and Intelligence (C4I) solutions for various countries.
The company is actively tracking one or two big-ticket items in this pipeline for FY27. Alongside pursuing new major leads, BEL benefits from consistent regular business in the form of repeat orders from existing international customers. These clients have engaged with the company over the last 5 years.
Financial Summary: Margin Resiliency and Long-Term Order Visibility
From a financial perspective, BEL delivered a strong financial performance in FY26. Revenue grew by 16% year-on-year to ₹27,480 crore. The EBITDA margin expanded to 30%, up from 29% in FY25. Favourable product mix and indigenous efforts helped sustain the margin. Net profit surged by 14% to ₹6,048 crore.
BEL maintains a project pipeline to support its ongoing revenue targets. As of 1 April, 2026, the company’s total order book stood at ₹73,882 crore. This order book provides revenue visibility of over 2 years, based on FY26 revenue. It is aiming to grow its FY27 revenue by over 15%.
#3 Data Patterns: Record ₹2,062-Cr Order Book Peaks
For Data Patterns, exports have emerged as a key strategic pillar for the long-term growth roadmap. The company exports to Asia-Pacific and Southeast Asia and is expanding its presence in Europe, the UK, and the US.
Managing Clearance Timelines and Revenue Swings
In FY25, exports accounted for 15% of revenue, which fell to 6.7% in FY26 due to extended timeline clearances. As of 12 May 2026, its export order book stands at about ₹53 crore. Starting in FY27, the company expects export revenue to increase meaningfully.
Higher global defence spending and the maturity of its complete system capabilities will be key drivers. The company notes that its in-house developed complete systems and intellectual property across radar, avionics, and electronic warfare hold significant export potential.
Global Client Validations: Radar Clearances and European Inquiries
The transportable precision approach radar exported to a European customer has successfully received client acceptance. And the company expects positive traction from it, going forward. This achievement reflects growing international acceptance of Indian defence systems. It is also continuing to execute repeat business from the UK.
To this end, several global Original Equipment Manufacturers (OEMs) have visited Data Patterns’ plants and shown interest in its capabilities. The company expects to start securing contracts from these OEMs in the next 2 to 4 months.
Alongside, it is receiving new product inquiries from other European countries. Furthermore, representatives from the US civil aviation sector have visited and submitted inquiries. It is also looking to expand its reach to additional countries such as Japan and Korea.
To this end, the company is currently building and expanding a dedicated export marketing and business development team. Further, Data Patterns believes it is well-positioned to compete internationally, as its fully in-house-developed systems meet world-class specifications and can be offered at highly competitive prices.
Financial Execution: Auditing Data Patterns’ 40% EBITDA Performance
On the financial front, revenue grew by 30.6% year-on-year to ₹925 crore, driven by order book execution. EBITDA surged by 34.9% to ₹371 crore with margins at 40%. Consequently, net profit grew by 22% to ₹221.8 crore. Its order book (received and negotiated) was the highest ever at ₹2,062 crore.
It expects an additional order inflow of approximately ₹2,000 crore in FY27. Looking ahead, Data Patterns estimates consistent revenue growth of 20-25% over the next two to three years. This will be supported by strong profits, and targets EBITDA margins in the range of 35% to 40% for FY27.
To sum up, all three companies are positioning themselves to tap the export market, given the increasing defence spending globally. The table below summarizes their export exposure, strategy, export pipeline, and order book.
India’s Defence Export Contenders: Comparing the Opportunity
| Particulars | Astra Microwave | BEL | Data Patterns |
| FY26 Revenue (₹) | 1,163 crore | 27,480 crore | 925 crore |
| Export Exposure | 11.9% of revenue | ~5% of revenue | 6.7% of revenue |
| Export Strategy | IP-led products & co-development | Global defence partnerships & BrahMos ecosystem | Complete systems & radar exports |
| Current Export Pipeline | 33% of the order book | ₹4,700 crore export backlog | ₹53 crore export order book |
| FY27 Revenue Outlook | 15-20% growth | >15% growth | 20-25% growth |
| Key Export Trigger | Proprietary Astra-branded products | Large export orders & C4I solutions | Radar exports & OEM contracts |
Valuation Benchmarks: Comparative P/E Matrices and Return Profiles
BEL’s return ratios (Return on Capital Employed and Return on Equity) are the strongest among peers, followed by Data Patterns and Astra. In terms of valuation, all three companies are trading at a premium to both their 5-year historical multiples and the industry median.
The valuations reflect investor optimism regarding the long-term opportunity from the defence indigenisation drive. To justify these premiums, they will need to consistently deliver on order inflows, execution, and margins. Any miss on these fronts could affect their share prices.
| Valuation Comparison (X) | ||||
| Company | P/E | 5Y Median P/E | RoCE (%) | RoE (%) |
| Astra Microwave | 71.8 | 56.4 | 20.2 | 16.0 |
| Data Patterns | 90.6 | 69.8 | 23.3 | 16.9 |
| BEL | 49.4 | 36.4 | 36.5 | 27.6 |
| Industry Median | 62.5 | NA | 15.5 | 12.6 |
India’s defence export story is still in its early stages. Exports have grown nearly 25x over the last decade to ₹38,424 crore in FY26. This reflects the country’s emergence as a reliable defence manufacturing hub.
With the government targeting ₹50,000 crore of exports by FY29 and domestic production continuing to scale up, the opportunity remains significant. Companies with established export capabilities, differentiated technologies, and expanding global footprints are likely to be among the biggest beneficiaries of this long-term structural shift.
It’s worth keeping them in your watchlist.
Disclaimer
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data were not available have we used an alternative, widely used, and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
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