Defence Stock Jumps After Its Arms Receives Manufacturing License from Min. of Home Affairs

Synopsis:- Defence stock moved 2% after securing a key manufacturing licence for firearms and ammunition. The approval enables entry into pistols, rifles and proof-testing. Recently, a ₹292.69 crore defence order with 12-month execution boosted long-term defence manufacturing visibility.

The shares of aerospace & defence component manufacturers gained up to 2 percent in today’s trading session after the Ministry of Home Affairs granted a manufacturing license to the company.

With a market capitalisation of Rs 1,742.98 crore, the shares of NIBE Ltd were trading at Rs 1,201.95 per share, decreasing around 1.80 percent as compared to the previous closing price of Rs 1,220.90 apiece.

Significant Order

According to the company filing, Nibe Defence and Aerospace Limited (‘NDAL’), a subsidiary of the company, has received a crucial manufacturing licence from the Ministry of Home Affairs through its subsidiary NDAL, enabling entry into firearms and ammunition manufacturing and proof-testing. This marks a strategic diversification into defence manufacturing, covering pistols, rifles, machine guns and key components. The licence strengthens Nibe’s long-term defence positioning and growth visibility.

Recently, the company bagged a significant order from the Indian Army, Ministry of Defence, Government of India, for Rs 292.69 crore for the manufacturing and supply of ground equipment, accessories, ESP, and ammunition for the universal rocket launcher system. The order will be executed and delivered in tranches within 12 months.

Financial & other updates

The company’s Q2FY26 performance reflects sharp stress, with revenue plunging 45% to  Rs 73.37 crore from  Rs 135.99 crore a year ago. Weak operating leverage and lower volumes pushed profitability into the red, as a  Rs 8.89 crore profit in Q2FY25 reversed to a  Rs 9.69 crore loss, highlighting significant near-term business challenges.

Over the last one year, the company’s operating performance has deteriorated sharply. Operating profit fell from  Rs 18.08 crore in Q2FY25 to a loss of  Rs 4.47 crore in Q2FY26, reflecting weaker scale and cost pressures. Correspondingly, OPM declined from 13.30% to -6.09%, indicating a significant erosion in operating efficiency and profitability.

NIBE Ltd is an Indian engineering and manufacturing company focused on the defence and aerospace sector. It specialises in precision fabrication, structural assemblies, and complex systems for military applications. With growing participation in India’s defence indigenisation push, NIBE is steadily expanding its capabilities, order book, and long-term growth potential.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Defence Stock Jumps After Its Arms Receives Manufacturing License from Min. of Home Affairs appeared first on Trade Brains.