Shares of Bharat Dynamics Ltd (BDL) rose nearly 5% on March 21 after the Defence Acquisition Council (DAC) granted Acceptance of Necessity (AoN) to eight major defence procurement proposals worth over ₹54,000 crore. The approvals, announced on March 20, aim to enhance India’s defence capabilities across the Army, Navy, and Air Force while boosting indigenous manufacturing.
One of the key approvals includes the procurement of Varunastra, an indigenously developed ship-launched anti-submarine torpedo designed to counter underwater threats. Bharat Dynamics is the primary manufacturer of the Varunastra torpedo, and this contract is expected to strengthen the company’s order book significantly.
For the Indian Army, the DAC approved the acquisition of 1,350 HP engines to upgrade the existing 1,000 HP engines in T-90 tanks. This enhancement will improve battlefield mobility, particularly in high-altitude areas, by increasing the power-to-weight ratio of the tanks.
Additionally, the Indian Air Force (IAF) received approval for the procurement of Airborne Early Warning & Control (AEW&C) Aircraft Systems. These advanced radar-equipped aircraft will enhance the IAF’s capability to detect and track potential threats from long distances. The IAF already operates Netra AEW&C systems, which are mounted on Embraer aircraft.
The DAC also introduced guidelines to accelerate the defence acquisition process, making it more efficient and aligned with the government’s push for self-reliance in defence manufacturing. The Indian government has been focusing on modernizing its defence infrastructure, with increased emphasis on cyber warfare, space security, and emerging technologies such as Artificial Intelligence (AI) and Machine Learning (ML).
Following these developments, Bharat Dynamics saw increased investor interest, pushing the stock price up by nearly 5% in early trading on March 21. The company’s strong involvement in India’s indigenous defence programs positions it as a key player in the sector’s long-term growth.
