Indian Defence & Telecom Stocks Surge on Pinaka Rocket Success

Indian defence and telecom sectors are signaling bullish trends, with defence companies poised for significant growth driven by increasing domestic production and exports of advanced systems like the Pinaka rocket launcher. This surge reflects a broader transformation within India’s defence industry, moving towards self-reliance and global market expansion.

India’s defence manufacturing landscape has shifted dramatically, now focusing on the design, production, and export of complete defence systems rather than just reducing imports. This strategic pivot has led to substantial growth across the sector.

Defence Sector Growth Metrics

• Defence production reached ₹1.78 lakh crore in FY26, marking a 15.6% year-over-year increase.
• Exports surged by 62.7% to ₹38,424 crore in the same period.
• The private sector’s contribution to total defence production has climbed to 24%.
• Approximately 65% of defence equipment is now produced domestically, a reversal of previous import dependence.

The Pinaka Multi Barrel Rocket Launcher program, developed by DRDO, stands as a cornerstone of this domestic capability. The system has evolved into a family of longer-range and guided rocket systems, demonstrating India’s advanced defence technology.

Recent tests highlight the program’s progress, with DRDO successfully testing a 60 km Pinaka Long Range Guided Rocket in July 2026 and a 120 km variant in December 2025. Both utilized existing launchers, showcasing versatility, and India has begun exporting Pinaka systems to countries like Armenia.

Key Defence Beneficiaries

Two prominent listed companies, Solar Industries and Apollo Micro Systems, are direct beneficiaries of the expanding Pinaka program and broader defence initiatives.

Solar Industries India Ltd.

Solar Industries has successfully transitioned from industrial explosives to a major defence player, with its defence vertical now representing its highest-margin business. The company is deeply involved in the R&D, testing, and manufacturing of advanced Pinaka variants.

• Q1FY27 defence revenue soared by 123% year-over-year to ₹933 crore, comprising 26% of its total revenue.
• The company aims for ₹4,500 crore in defence revenue by FY27, which would constitute 32.1% of its total top-line.
• Solar Industries holds a defence backlog exceeding ₹18,000 crore within its total order book of ₹21,400 crore, ensuring revenue visibility for over two years.
• It was the first Indian private company to successfully test-fire the Pinaka multiple rocket launcher system and dispatch the Pinaka Enhanced Mk-I to the Indian Army.
• The firm secured a ₹6,084 crore contract from the Ministry of Defence for Pinaka Enhanced Range rockets and Area Denial Munitions, also exporting guided Pinaka rockets to Armenia.

Apollo Micro Systems Ltd.

Apollo Micro Systems maintains a diverse presence across defence technology, encompassing electronics design, manufacturing, weapon integration, and defence explosives. The company is preparing for significant operational expansion.

• Q1FY27 revenue grew by 88.1% year-on-year to ₹251.3 crore.
• Its consolidated order book stands at ₹1,704 crore.
• Apollo Micro Systems anticipates a substantial single order valued between ₹2,500 crore and ₹3,000 crore by the end of FY27.
• The company is expanding its operational capacity by 12x, with readiness expected by March 2027.

Telecom Sector Trends

Beyond defence, the Indian telecom sector is also exhibiting positive technical signals. Both Bharti Airtel and Vodafone Idea are showing similar bullish trends, indicating potential upside in the market.

The robust performance in defence, fueled by strategic domestic programs and international exports, alongside bullish indicators in telecom, highlights key growth pockets within the Indian market.