Indian defence stocks have been on a tear in 2025, with Apollo Micro Systems, Axiscades Technologies and Sika Interplant Systems emerging as the sector’s biggest gainers. Apollo Micro Systems has surged 182% year-to-date, Axiscades has climbed 156%, and Sika Interplant has rallied 133%, reflecting investor enthusiasm for India’s military modernisation drive and a wave of corporate developments

Apollo’s rally has been driven in part by its May acquisition of IDL Explosives in an all-cash Rs 1.1 billion deal, giving it backward integration into propellants and warheads and transforming it into a fully integrated Tier 1 manufacturer. Axiscades, which focuses on aerospace, defence, electronics and semiconductors, has benefitted from demand for its end-to-end technology services, while Sika Interplant has gained on optimism over India’s indigenisation push and investor appetite for niche defence supplier

The broader momentum was evident on Wednesday, as the Nifty Defence index rose as much as 2.6% intraday, marking its fourth consecutive day of gains. Cochin Shipyard shares have risen 18% over the past six days, while year-to-date gains stand at 20.6%. GRSE has outpaced the sector with a 58% rally so far in 2025.