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The Defence Acquisition Council (DAC) is expected to consider multiple capital acquisition proposals

ICICIdirect Research 03 Jul 2026 DISCLAIMER

News: The Defence Acquisition Council (DAC) is expected to consider multiple capital acquisition proposals, including procurement of indigenous Man-Portable Anti-Tank Guided Missiles (MP-ATGM) worth over ₹2,600 crore for the Indian Army, with Bharat Dynamics (BDL) as the production agency. Other proposals include procurement of around 600 HAMMER precision-guided munitions worth ~₹2,400 crore for the IAF and Indian Navy under a Bharat Electronics (BEL)–Safran manufacturing partnership, additional K9 Vajra 155mm/52-calibre tracked self-propelled howitzers manufactured by Larsen & Toubro in collaboration with Hanwha Aerospace, Verba V-SHORADS to be produced by Adani Defence & Aerospace, along with proposals for fixed-wing pseudo satellites, naval shipborne aerial systems, software-defined radios, kamikaze drones, drone detection systems and Scorpene-class submarines. In a separate development, India and Japan operationalised their first defence co-development project for the Indian Navy’s UNICORN (Unified Complex Radio Antenna) mast, which will be integrated on future naval warships to enhance secure communications and reduce radar signature. Both countries also agreed to expand cooperation in defence technologies and manufacturing.

View: The proposed DAC approvals reinforce the government’s continued focus on indigenous defence procurement and are expected to create opportunities across the domestic defence ecosystem. Apart from BDL and BEL, companies such as HAL (platform integration), Larsen & Toubro, Data Patterns, Astra Microwave, Zen Technologies, Solar Industries, Premier Explosives and Dynamatic Technologies could benefit over the medium term through participation in missile subsystems, electronics, avionics, propulsion, ammunition, drones, sensors and system integration across these programmes. For the UNICORN programme, companies such as BEL, Data Patterns and Astra Microwave are expected to be key beneficiaries given their capabilities in naval communication systems, defence electronics and RF/microwave technologies.

Impact: Positive

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