₹18,101 Crore Mega Order Boosts Shipbuilding Stocks
India’s defence and shipbuilding sectors have received a significant boost as the Indian Navy is set to induct nine new vessels by the end of 2025. This development is not only critical for strengthening national maritime security but also signals a massive opportunity for domestic shipbuilding companies.
According to reports, these new warships will be commissioned before December 2025 and are part of a large-scale naval expansion plan.
Three major Indian shipbuilding companies will be involved in the execution of this project: Mazagon Dock Shipbuilders Limited (MDL), Hindustan Shipyard Limited (HSL), and Garden Reach Shipbuilders & Engineers (GRSE).
Here is a breakdown of the vessel production and their financials:
Mazagon Dock Shipbuilders will construct two stealth frigates under Project 17A. The estimated cost for these two warships is around ₹8,000 crore.
Hindustan Shipyard Limited will manufacture one Survey Vessel Large (SVL) and two Diving Support Vessels (DSVs). The DSVs are valued at ₹2,050 crore, while the SVL alone is worth ₹2,435 crore.
Garden Reach Shipbuilders & Engineers will build three shallow water crafts out of a larger order for eight vessels. The total contract value for all eight shallow water crafts stands at ₹6,311.32 crore, while the three vessels expected in 2025 are worth approximately ₹2,366 crore.
In addition to these eight vessels, the Indian Navy will also acquire one more ship named INS Tamal from Russia. This vessel will arrive in India in a flyaway condition, meaning it will be delivered fully operational.
This brings the total number of ships to be commissioned in 2025 to nine, at a combined cost of ₹18,101 crore. These ships include stealth frigates, survey vessels, diving support vessels, and shallow water crafts, highlighting a comprehensive maritime upgrade across multiple operational capabilities.
Industry experts believe this move is highly favorable for the Indian shipbuilding sector, especially companies like Mazagon Dock and GRSE, which are set to benefit significantly. Mazagon Dock, in particular, is expected to receive the largest chunk of the order, reinforcing its position as a preferred government contractor.
According to analysts, the entire shipbuilding segment is in the spotlight following the recent Operation Sindoor, which showcased the strategic and tactical capability of Indian defence firms. The government's continued emphasis on domestic manufacturing under the 'Make in India' initiative and a growing export focus—₹23,000 crore in defence exports last year and ambitious new targets—are also adding momentum to this sector.
Experts recommend long-term investment in these defence stocks. Companies like Mazagon Dock, GRSE, Hindustan Aeronautics Ltd (HAL), Bharat Electronics Ltd (BEL), and Bharat Dynamics Ltd (BDL) are considered strong performers with robust order books. In fact, many of these firms have order books that are five times their current revenue, ensuring steady growth for years to come.
As more large-scale contracts are awarded in regular intervals, investors may view any short-term correction as a strategic buying opportunity with a 2-3 year investment horizon.
In conclusion, the Indian Navy’s induction of nine new warships in 2025 not only strengthens the country’s maritime capabilities but also acts as a catalyst for India's defence manufacturing sector. This mega-order worth ₹18,101 crore is a testament to the government's commitment to self-reliance and technological advancement in the defence space.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisors before making any investment decisions based on this content.
