Indonesia has entered into an agreement with India to procure the BrahMos missile system, according to the country’s defense ministry spokesperson Rico Ricardo Sirait, who spoke to Reuters. The development could have a positive impact on several Indian defense companies that supply key components for the missile system.
Indian defense stocks such as Hindustan Aeronautics, Data Patterns (India), Paras Defense and Space Technologies, Premier Explosives and PTC Industries are part of the broader BrahMos supply ecosystem and could benefit if the deal moves forward.
Sirait said the agreement is “part of the modernization of military hardware and defense capabilities, especially in the maritime sector,” the Reuters report added.
If finalized and executed, Indonesia would become the second export customer for the BrahMos missile after the Philippines. However, the exact value of the deal and the number of systems to be procured have not yet been finalized.
The development comes at a time when Indian defense stocks are already drawing investor attention amid rising geopolitical tensions globally due to the ongoing US-Iran war in the Middle East.
According to recent annual reports and order disclosures, companies that may benefit from higher production activity related to the BrahMos program include Hindustan Aeronautics, Bharat Electronics, Data Patterns (India), Paras Defense and Space Technologies, Premier Explosives and PTC Industries.
The BrahMos missile is produced by BrahMos Aerospace, a joint venture between India’s Defense Research and Development Organization and Russia’s NPO Mashinostroyenia.
“If the order materialises, it could incrementally benefit Indian defense suppliers involved in the broader missile electronics and subsystem ecosystem. Under our coverage, companies such as Bharat Electronics and Data Patterns (India), which participate in defense electronics and mission-critical systems, could see potential opportunities from higher production activity linked to the BrahMos programme,” said Putta Ravi Kumar, Defense Analyst at Choice Institutional Equities.
Krishna Doshi, Defense Analyst at Ashika Institutional Research, highlighted the important role played by the BrahMos missile during Operation Sindoor, where it was used to strike Pakistani air bases and other military infrastructure.
“We expect Data Patterns India and Bharat Electronics to benefit from the deal as they are suppliers to BrahMos. We have a ‘Buy’ rating on Data Patterns as it is well paced for sustained growth owing to multiple potential opportunities,” said Doshi.
Here are key Indian defense stocks that may benefit:
Hindustan Aeronautics (HAL)
Hindustan Aeronautics designs and manufactures military and civil aircraft, helicopters, aero-engines, avionics and related aerospace systems. The company is part of the BrahMos ecosystem through its role in integrating the missile with the Sukhoi Su-30MKI fighter aircraft.
HAL modifies the Su-30MKI jets to carry and launch the BrahMos missile, turning them into long-range strike platforms. The company also contributes to the development of critical electronic systems for the missile and provides long-term maintenance support for various BrahMos variants.
While HAL is not the manufacturer of the missile itself, its role in aircraft integration, electronic systems development and lifecycle support makes it an important part of the programme.
Data Patterns (India)
Data Patterns (India) has developed a Fire Control System for the BrahMos missile and has also tested a seeker, a key component responsible for the missile’s guidance and targeting. In FY25, the company received orders worth ₹14.4 crore from BrahmMos Aerospace.
Premier Explosives
Premier Explosives manufactures high-energy materials, explosives and allied products used in tactical and strategic missile systems, including BrahMos, Astra, Akash, LRSAM and Agni.
For the BrahMos programme, the company contributes through the production and integration of rocket motors used in the missile system.
Paras Defense and Space Technologies
Paras Defense and Space Technologies develops defense automation and control systems, rugged command-and-control consoles and avionics suites.
The company works with several government organizations, including DRDO, ISRO, Hindustan Aeronautics, Bharat Electronics and BrahMos Aerospace.
Although not directly associated with the missile’s final assembly, Paras Defense plays an important role in the broader supply chain through its work in advanced optoelectronic systems, border surveillance technologies, high-power laser systems, EMP protection solutions, defense electronics and anti-drone technologies.
Given its existing vendor relationship with BrahMos Aerospace, the company could potentially benefit if the missile system sees wider deployment across India’s armed forces and international markets.
PTC Industries
PTC Industries is a manufacturer of high-performance materials and engineered components for various critical and super-critical aerospace and defense applications. PTC’s association with BrahMos dates back to 2019, and the company has consistently supported the program through the supply of specialized titanium components and raw materials like Titanium mill forms.
Catch Stock Market Live Updates here
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
