Investing in the Age of Conflict: The 2026 'Wartime Portfolio' 🛡️🚀

In 2026, peace is expensive, but preparation is profitable. With global flashpoints active and a "Two-Front" threat on our borders, the Government of India has allocated a record ₹7.85 Lakh Crore to defense in the 2026 Budget.

At Radii Labs, we believe every portfolio needs a "Iron Dome." Here is how to build it.

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The "Indigenization" Supercycle 🇮🇳

The days of importing weapons are over. The 2026 theme is Make in India, for the World.

• Export Target: ₹50,000 Crore by 2029.
• Key Shift: From simple ammunition to complex systems (Drones, Missiles, Fighter Jets).

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Top 5 "Generals" for Your Portfolio 🎖️

We have identified 5 stocks that form the backbone of India's military-industrial complex in 2026.

Company	Role	Why We Like It (2026)
Hindustan Aeronautics (HAL)	Air Superiority	Monopoly in fighter jets (Tejas Mk2). Order book full for 5 years.
Bharat Electronics (BEL)	The "Eyes & Ears"	Radars & Electronic Warfare. 15% margins. ZERO debt.
Mazagon Dock	Naval Power	Submarines & Destroyers. Key beneficiary of the Indian Ocean naval push.
Solar Industries	Ammunition	Drones & Warheads. The only private player with this scale.
Data Patterns	Tech/Space	Defense electronics for satellites and missiles.

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Strategy: The 10% Rule

We recommend allocating 10% of your equity portfolio to the Defense theme.

• Volatile but Necessary: These stocks can be volatile based on order news, but the structural trend is up.
• The Hedge: Defense stocks often rise when the broader market falls due to war fears. They are your portfolio's hedge.

Conclusion

War is terrible, but ignoring the geopolitical reality is financial negligence. In 2026, a strong nation needs a strong military, and a strong portfolio needs exposure to the companies building it.

Disclaimer: Defense stocks are subject to government policy risks. Invest wisely.