Arms have long been a critical part of a country’s military preparedness, but they are more specific than the broader term defence.
While the defence sector covers everything from aircraft, naval systems and radar to communications and military infrastructure, arms primarily refer to weapons and weapon systems used by armed forces.
India has been strengthening its domestic arms manufacturing capabilities amid rising geopolitical tensions and the experience of Operation Sindoor in 2025.
The shift is also visible in India’s defence exports, with the country moving from being a major importer of military equipment to supplying systems such as the BrahMos missile to other countries.
As demand for military weapons and systems rises both domestically and globally, Indian arms manufacturers are gaining greater attention.
Here are four Indian arms manufacturing companies to watch.
#1 Bharat Dynamics
First on the list is Bharat Dynamics.
Bharat Dynamics Limited (BDL) is a Government of India enterprise under the Ministry of Defence and specialises in manufacturing missiles, torpedoes, anti-tank guided missiles (ATGMs) and other weapon systems.
Its product portfolio includes Akash, MRSAM, QRSAM, Astra, NAG and Amogha ATGMs, along with Varunastra and TAL torpedoes.
Data source: Annual Report FY25
The company also provides product life-cycle support, including refurbishment and life extension of missiles already in service with the armed forces.
Alongside manufacturing, BDL has built in-house R&D capabilities focused on design and engineering.
With its strong presence across India’s guided weapons and underwater weapons segments, BDL remains a stock to watch in the country’s growing arms manufacturing space.
On the financial front, Bharat Dynamics’ revenue remained broadly stable over the past three years, while net profit grew at a CAGR of around 6.1% between FY23 and FY26. Revenue stood at Rs 2,489 crore in FY23 compared with Rs 2,442 crore in FY26.
Bharat Dynamics Financial Snapshot (FY23–26)
| Particulars | FY23 | FY24 | FY25 | FY26 | CAGR (FY23–26) |
| Revenue (Rs million) | 24,894 | 23,693 | 33,451 | 24,420 | -0.6% |
| Revenue Growth (%) | -11.7 | -4.8 | 41.2 | -27.0 | – |
| Net Profit (Rs million) | 3,522 | 6,127 | 5,496 | 4,203 | 6.1% |
| Net Profit Growth (%) | 14.1 | 25.9 | -10.3 | -23.5 | – |
Source: Equitymaster
#2 Solar Industries
Next on the list is Solar Industries.
Founded in 1995 in Nagpur, Solar Industries India has grown from an industrial explosives manufacturer into a diversified company with a strong presence in the defence and ammunition space.
The company has an integrated manufacturing setup covering explosives, ammunition, rocket systems, propellants, unmanned systems and other defence technologies.
Its defence portfolio includes high-energy materials such as HMX, RDX and TNT, composite propellants for systems such as Akash, Pinaka and BrahMos, rockets, ammunition, grenades, mines, bombs and warheads.
Solar Industries also manufactures drones and UAVs, pyros and ignitors, and propellants used in space applications.
With its growing capabilities across ammunition, explosives, missiles, rockets and unmanned systems, Solar Industries has established a strong position in India’s arms manufacturing ecosystem, making it a stock to watch in the space.
On the financial front, its revenue has grown at a CAGR of 12.4%, while profit has seen growth of 28.9% in the past three years.
Solar Industries Financial Snapshot (FY23–26)
| Particulars | FY23 | FY24 | FY25 | FY26 | CAGR (FY23–26) |
| Revenue (Rs million) | 69,225 | 60,695 | 75,403 | 98,377 | 12.4% |
| Revenue Growth (%) | 75.4 | -12.3 | 24.2 | 30.5 | – |
| Net Profit (Rs million) | 8,112 | 8,752 | 12,879 | 17,366 | 28.9% |
| Net Profit Growth (%) | – | 7.9 | 7.9 | 7.9 | – |
Source: Equitymaster
#3 Nibe
Next on the list is Nibe.
NIBE Limited has established a growing presence in India’s defence and arms manufacturing ecosystem, with its capabilities spanning advanced weapon systems, ammunition, counter-drone technologies and naval defence solutions.
The company develops and manufactures products for the Air Force, Army and Navy, giving it exposure to multiple segments of the country’s defence requirements.
Its portfolio includes SuryaAstra, Garudastra, VayuAstra and MeghAstra, along with Pinaka-related systems, artillery shells and energetics, 30mm proximity fuzes, naval ammunition and counter-UAS systems.
NIBE is also involved in autonomous surface vessels, satellite-based intelligence and other technology-driven defence solutions.
The company’s presence across air, land and naval weapon systems gives it exposure to a broad range of India’s arms requirements.
Its financial performance has weakened, with revenue and profitability declining.
Nibe Financial Snapshot (FY23–26)
| Particulars | FY23 | FY24 | FY25 | FY26 | CAGR (FY23–26) |
| Revenue (Rs million) | 1,053 | 2,818 | 5,073 | 4745 | 64.9% |
| Revenue Growth (%) | 395.7 | 167.6 | 80 | -6.5 | – |
| Net Profit (Rs million) | 16 | 185 | 274 | 0.6 | -70.5% |
| Net Profit Growth (%) | 1,056.3 | 1,056.3 | 1,056.3 | – |
Source: Equitymaster
#4 Bharat Forge
Last on the list is Bharat Forge.
The company has been expanding its presence in India’s arms manufacturing space through its defence subsidiary, Kalyani Strategic Systems Limited (KSSL).
The company is involved in the development and manufacture of artillery guns, small arms, defence vehicles and other weapon systems, along with products for naval applications.
Bharat Forge is also building capabilities in ammunition and defence energetics. Through KSSL, it incorporated Agneyastra Energetics Limited in July 2025 to manufacture high-energy explosives, ammunition, gun propellants and rocket propellants.
The company is developing an integrated defence energetics manufacturing complex in Andhra Pradesh, which is expected to include facilities for explosives, ammunition filling and gun propellants, with scope for future expansion into rocket and missile energetics.
With exposure to artillery, ammunition, explosives and propellants, Bharat Forge has a growing presence across India’s arms manufacturing value chain.
On the financial front, its revenue has grown at a CAGR of 9.2%, while profit has seen growth of 28.9% in the past three years.
Bharat Forge Financial Snapshot (FY23–26)
| Particulars | FY23 | FY24 | FY25 | FY26 | CAGR (FY23–26) |
| Revenue (Rs million) | 129,103 | 156,821 | 151,228 | 168,117 | 9.2% |
| Revenue Growth (%) | 23.4 | 21.5 | -3.6 | 11.2 | – |
| Net Profit (Rs million) | 5,084 | 9,102 | 9,133 | 10,894 | 28.9% |
| Net Profit Growth (%) | 3.9 | 5.8 | 6 | 6.5 | – |
Source: Equitymaster
Conclusion
India’s growing focus on indigenous arms manufacturing and defence exports could support companies operating in the weapons and ammunition space.
The government is targeting Rs 3 trillion (tn) in annual defence production and Rs 500 billion (bn) in defence exports by 2029, highlighting its push to strengthen domestic defence capabilities.
The defence budget has also increased significantly, rising from Rs 2.53 tn in 2013–14 to Rs 7.85 tn in 2026–27.
With rising defence spending, growing military requirements and a continued push towards self-reliance, Indian arms manufacturers could remain in focus in the coming years.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy investing.
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