India‘s defense sector is experiencing unprecedented growth, driven by government initiatives such as “Make in India” and “Atmanirbhar Bharat,” which emphasize self-reliance and indigenous manufacturing. For Muslim investors seeking ethical and Sharia-compliant opportunities, halal stocks in this sector offer a unique blend of financial capability and alignment with Islamic principles. Click to learn about Halal Stocks
According to the Ministry of Defence, India’s defence industry is set to grow to a turnover of $26 billion by 2025, including $5 billion in exports. With rising geopolitical tensions and focus on modernisation of the armed forces, defence stocks offer stable revenue streams and long-term growth potential. For halal investors, this is a great opportunity to support India’s self-reliance goals by investing in the sector and add defence sector halal stocks to your portfolio.
Here are the Top 5 Halal Stocks in India’s Defence Sector
Defence Sector Halal Stock List
- Hindustan Aeronautics Limited
- Bharat Electronics Limited
- Bharat Dynamics Limited
- Mazagon Dock Shipbuilders Limited
- Paras Defence and Space Technologies Limited
Full details of these 5 Halal stocks are given below
Hindustan Aeronautics Limited (HAL)
Sector: Aerospace & Defence
Market Cap: ₹2,83,000+ crore
Debt to Equity: 0.00
Is HAL a Halal Stock:
HAL focuses on manufacturing aircraft, helicopters and avionics for India’s armed forces, which does not fall under haram activities. Its debt level is minimal, which is in line with Sharia principles. Therefore HAL can be considered a Halal Stock
Bharat Electronics Limited (BEL)
Sector: Defence Electronics
Market Cap: ₹2,13,000+ Crore
Debt to equity: 0.00
Is BEL a Halal Stock:
BEL specialises in radar systems, communication equipment and electronic warfare equipment, and has no involvement in restricted industries. Its financial position shows low dependence on interest-based debt. Hence BEL is a Halal Stock
Bharat Dynamics Limited (BDL
Sector: Missiles & Ammunition
Market Cap: ₹45,700+ Crore
Debt to equity: 0.00
Is Bharat Dynamics Halal Stock:
BDL manufactures guided missiles and underwater weapons permitted under Islamic law for national defence purposes. Its debt level is within Sharia limits. With defence exports growing by 31% in FY24, BDL offers halal investors an opportunity to invest in a high-growth segment of the industry.
Mazagon Dock Shipbuilders Limited (MDL)
Sector: Naval Systems
Market Cap: ₹1,04,000+ Crore
Debt to equity: 0.01
Why Mazagon Dock is Halal stock:
MDL focuses on shipbuilding and submarine construction while avoiding haram activities. Its financial structure complies with Sharia debt and income limits. Known for building warships such as INS Vikrant, India’s first indigenous aircraft carrier. With a growing order book and government support for naval modernisation, Mazagon Dock Shipbuilders Limited is a Halal stock
Paras Defence and Space Technologies Ltd
Sector: Defence Technology
Market Cap: ₹4,000+ Crore
debt to equity: 0.15
Is Paras Defence a Halal Stock:
Paras Defence focuses on optics, electronics and space technologies for defence applications, staying away from prohibited sectors. Its low debt profile ensures Shariah compliance. Paras Defence and Space Technologies is a rising star in India’s defence sector, providing cutting-edge solutions such as thermal imaging systems and satellite components. Which makes it an attractive Halal stock.
How to Invest in Halal Defence Stocks
Investing in these halal stocks requires a strategic approach:
- Screen for Compliance: Use tools like the Islamicly app or Tickertape Stock Screener to verify Shariah compliance based on debt and income ratios.
- Monitor Financials: Focus on companies with low debt, high profitability, and stable revenue from government contracts.
- Consult Experts: Seek advice from financial advisors specializing in Islamic investing to ensure alignment with your values.
- Diversify: Balance your portfolio with stocks from different defence sub-sectors (aerospace, electronics, naval) to mitigate risks.
Conclusion
India’s defense sector holds plenty of opportunities for halal investors in 2025. Companies like Hindustan Aeronautics, Bharat Electronics, Bharat Dynamics, Mazagon Dock Shipbuilders and Paras Defence have emerged as Shariah-compliant options with strong growth prospects. By investing in these stocks, you can support India’s national security goals while adhering to Islamic ethical standards.
