Indian defence stocks have shown significant gains in 2025, with the Nifty India Defence index rising 19%. This rally is driven by geopolitical uncertainties, strong government policy support, and a focus on domestic procurement and exports. Recent defence procurement clearances worth Rs 79,000 crore are expected to boost order visibility for companies like HAL, BEL, GRSE, and MTAR Technologies. While many stocks have seen double-digit returns, some, like Zen Technologies, have experienced declines.