Shares of Bharat Dynamics Ltd. (BDL) rallied 6% on Friday, reaching ₹2,082.75 on the BSE, following reports that the Indian government is set to increase defence R&D spending to ₹40,000 crore next year. The move is part of a broader strategy to double R&D investments over the next five years, ensuring private sector participation alongside public sector firms.
Key Highlights of the Defence R&D Push
- Current R&D Spending: ₹27,000 crore, set to rise to ₹40,000 crore in FY26.
- Long-Term Target: ₹70,000–80,000 crore over the next four to five years.
- Private Sector Inclusion: New policies will allow private companies to bid for defence projects, competing with PSUs like HAL, BEL, Mazagon Dock, and BDL.
- Procurement Reforms: The government aims to simplify defence acquisition rules, ensuring faster approvals and streamlined processes.
Market Reaction & Industry Impact
BDL’s stock surge reflects strong investor confidence in India’s defence modernization drive. The company is also in focus due to a potential ₹2,000–3,000 crore order for 500 Invar anti-tank guided missiles, which will be deployed on India’s T-90 battle tanks.
Future Outlook
With India’s defence sector expanding rapidly, BDL is well-positioned to benefit from increased R&D funding and procurement reforms. The company’s order book stands at ₹3,110 crore, and it is targeting 28–30% revenue growth in FY25.
