Latest news with #S-500
News18
27-05-2025
- Business
- News18
After S-400, Is India Ready For The S-500 Air Defence? One Big Hurdle Remains
Last Updated: India may seek Russia's S-500 Prometheus after the S-400 Triumf air defence system played a crucial role in neutralising threats from Pakistan during Operation Sindoor. Operation Sindoor marked one of the most intense air confrontations between India and Pakistan in recent memory with precision airstrikes by the Indian Air Force (IAF) targetting multiple terrorist camps in Pakistan and Pakistan-occupied Kashmir (PoK). In retaliation, Pakistan launched several missiles and drones across border areas in Jammu and Kashmir, Rajasthan, and Punjab. But what could have been a devastating blow was largely neutralised in the skies, thanks to India's advanced air defence system, the S-400 Triumf. Deployed in layers across vulnerable sectors, the S-400 shield intercepted a barrage of enemy drones and missiles, forcing Pakistani jets to abandon or alter their flight paths. Military analysts say the system played a critical role in limiting civilian casualties and infrastructure damage during the retaliation phase of the operation. India's deployment of the S-400, a long-range surface-to-air missile system developed by Russia's Almaz Central Design Bureau, has transformed the dynamics of subcontinental air defence. Capable of detecting threats up to 600 kilometres away and engaging multiple aerial targets simultaneously, including stealth aircraft, cruise missiles, and even ballistic threats, the S-400 can destroy targets up to 400 kilometres away with pinpoint accuracy. Its rapid mobility ensures flexibility, allowing forces to reposition the system to match evolving tactical requirements. India had inked a Rs 35,000 crore (approximately $5.4 billion) deal with Russia in 2018 for five squadrons of the S-400. The first squadron was deployed in Punjab in 2021, strategically positioned to counter threats from both Pakistan and China. Three squadrons are now operational; the remaining two are scheduled for delivery by 2026. Within the Indian Army, the system is referred to as ' Sudarshan Chakra ', a symbolic nod to its devastating reach and precision. Designed not just to neutralise modern aerial threats but to dominate the near-space domain, the S-500 can intercept hypersonic glide vehicles, high-speed drones, and even satellites in low Earth orbit. This includes objects travelling at speeds and altitudes well beyond the interception capabilities of the S-400. With a detection range of up to 2,000 kilometres for ballistic targets and the ability to intercept them at distances up to 600 kilometres, the S-500 offers unmatched coverage and lethality. It includes the deadly 77N6 series of interceptors, capable of 'hit-to-kill" engagements, and can simultaneously track and engage up to 10 targets, more than enough to counter a multi-vector aerial assault. With this deal, India could become the first foreign customer of the S-500, should it formally express interest in acquiring the system. However, the path to procurement may not be straightforward. The United States' CAATSA (Countering America's Adversaries Through Sanctions Act), enacted in 2018, empowers the US to sanction nations that conduct significant defence transactions with Russia. Though a 2022 legislative amendment pushed by Indian-American Congressman Ro Khanna provided a temporary waiver for India's S-400 purchase, a similar exemption for the S-500 is not guaranteed. With the growing threat from hypersonic missiles and evolving space warfare capabilities, India's interest in the S-500 is more than a symbolic upgrade – it is a strategic imperative. But the geopolitical calculations around such a deal will be as complex as the technology itself. First Published:
Mint
19-05-2025
- Business
- Mint
Defence stocks are soaring again, but can fundamentals support the rally?
India's defence stocks are back in the spotlight. After cooling off for nearly a year, the Nifty India Defence Index soared nearly 15% last week, hitting a record high of 8,309 on 16 May—eclipsing its previous July 2024 peak. Garden Reach Shipbuilders led the charge with a 37% jump, followed by Cochin Shipyard (35%), Paras Defence (28%), Mazagon Dock (19%), and Bharat Dynamics (18%). With defence stocks back in the spotlight, the big question is—what's driving this sudden surge, and can it sustain? We break down the key triggers behind the rally and assess whether it has staying power. What's behind the surge in defence stocks? Operation Sindoor was a key trigger for India's defence manufacturing ambitions. It underlined the strength of its indigenous capabilities and drew global attention. Several countries are now reportedly in talks to purchase the BrahMos missile system. Russia has also proposed manufacturing its S-500 missile defence system in India. Also read: Indian defence firms skyrocket after Pakistan skirmish India's defence exports hit a record ₹23,622 crore in FY25—nearly triple FY21 levels—and are projected to more than double again to ₹50,000 crore by FY29. Exports surged 12% from last year and have nearly tripled from ₹8,435 crores in FY21. Most of this growth came from defence public sector undertakings (PSUs), whose exports rose 43% to ₹8,389 crore. This shows that indigenous defence products are gaining acceptance globally. However, the private sector's export remained flat at ₹15,233 crore. Despite that, they account for 64.5% of the total, while PSUs contribute the remaining 35.5%. India is also eyeing major export markets in Southeast Asia, Europe, and Africa—a shift that could open up new opportunities. The sector is also expected to benefit from NATO's planned spending of €800 billion over the next 3-4 years. Indian companies, mainly private players, will likely benefit from this increased spending. According to Nuvama, global defence spending is expected to grow at a compounded annual growth rate (CAGR) of 5% to $3.2 trillion in CY28, from $2.4 trillion in CY23. This suggests a long runway for export-driven growth and may remain a key driver of the ongoing rally. Budget boost India's FY26 defence budget may see a significant boost with a potential ₹50,000 crore supplementary allocation, raising the total to ₹7.3 lakh crore from the initial ₹6.8 trillion. This is expected to fuel defence research and weapons procurement, particularly benefiting indigenous manufacturing. But with valuations now stretched, investors may need to weigh optimism against earnings visibility. Valuations: Back in the danger zone This period saw a significant rerating of defence stocks (June 2023-July 2024). The rally was driven by low initial valuations, strong order inflows, better earnings visibility, and supportive government policies. However, this led to frothy valuations by July 2024, triggering a sharp correction where some stocks fell up to 50% before stabilising around their 3-year median P/E ratios. The recent rally has once again pushed valuations well above the historical average, setting a high bar for earnings growth. Take BEL, for instance– it's currently trading at a P/E of 53, implying investors are paying ₹53 for every ₹1 of profit. The valuation factors in a lot of earnings optimism. However, recent earnings show mixed performance. In FY25, Cochin Shipyard's profit surged just 3.6% from last year. Garden Reach Shipbuilders & Engineers Ltd (GRSE) fared better, reporting 46% profit growth, while Bharat Dynamics' profit declined by 15% in 9MFY25. Mazagon and BEL were the exceptions, with 64% and 46% profit growth, respectively. Still, except for Mazagon, these growth rates failed to justify their high P/E multiples. Improving earnings from a high base of FY25 will also be challenging. Another concern is the limited free float in many defence PSUs, which can distort price movements. For example, the Government of India holds 84.8% in Mazagon Dock, well above the 75% shareholding norms. This limits price discovery, allowing relatively small buying volumes to increase prices. It's not a surprise that Mazagon's share price has surged by about 10x in the last two years. Also read: Operation Sindoor: What's next for Indian defence stocks? More importantly, the earnings outlook now hinges on the strength of future order inflow. However, recent data suggests that order inflows may be slowing. This poses a risk to sustaining the current valuation levels, especially since much of the existing order book may already be priced in. Order book trends On the surface, order book-to-revenue ratios appear healthy across most defence companies and offer revenue visibility. However, a close look shows that the momentum in fresh orders has slowed over the last 12 months, partly due to elections-related disruption in FY25. Note: FY25 revenue data is used for GRSE and Cochin Shipyard; for other companies, the trailing twelve months (TTM) revenue ending December 2024 is considered. Adding to the sector's slowdown, the Union Budget 2025 allocated ₹1.8 trillion for military modernization capital expenditure in FY26, a modest 4.6% increase. This limited growth suggests potential constraints on near-term order inflows for defence companies. Company-level data supports this trend. Bharat Electronics Limited (BEL)'s order book decreased to ₹71,100 crore in Q3FY25 from ₹76,200 crore in Q3FY24. Garden Reach Shipbuilders & Engineers (GRSE)'s orders peaked at ₹25,231 crore in Q1FY25 and subsequently fell to ₹23,877 crore. Mazagon Dock Shipbuilders and Cochin Shipyard also experienced similar declines in their order books. While Bharat Dynamics saw its order book rise, its revenue declined from ₹2,817 crore in FY22 to ₹2,369 crore in FY24, though net profit grew modestly by over 20% to ₹613 crore. Its TTM figures show revenue at ₹2,422 crore and profit at ₹566 crore. Despite this mixed financial performance, BDL's stock delivered an impressive 73% CAGR between FY22 and FY25. Also read: Hindustan Aeronautics: Here's all you need to know before investing BEL demonstrated relatively stronger financials with a 13% revenue CAGR and a 24% profit CAGR over the same period, resulting in a 67% stock return CAGR. However, the shipbuilding companies significantly outperformed both BDL and BEL. Mazagon Dock Shipbuilders led with a 33% revenue CAGR and a 47% profit CAGR, and its stock price soared with a 190% CAGR. GRSE and Cochin Shipyard also witnessed their stock returns substantially exceed their financial growth, with GRSE compounding at 102% and Cochin Shipyard at 132%. Taken together, the data reveals a divergence. Barring Mazagon and GRSE, most companies have not seen an equivalent improvement in earnings. Yet, stock prices have surged, pushing valuations higher. That sets a high bar for future performance and leaves little room for disappointment. What's next? BEL management expects an order inflow of ₹25,000 crore from the Army and ₹15,000 crore from the Navy in FY26. Motilal Oswal Financial Services estimates an order inflow of ₹36,000 crores (in FY26) and ₹41,400 crores in FY27. Execution remains the key for Bharat Dynamics. Despite a strong order book, its execution remains patchy, mainly due to dependency on imported components. Nuvama expects about ₹32,000 crore of orders in FY26 and ₹24,000 crore in FY27. Shipbuilders may see stronger momentum. Antique estimates Mazagon's order book to grow to ₹1.3 trillion by FY27–3.7 times its current order book. GRSE's order book could swell to ₹1.2 trillion by FY27—about 5 times its current book. These inflows are crucial to justify the current valuation, as they can provide long-term revenue visibility. However, execution will still be key. Still, near-term earnings may slow down due to lower order flows, and higher base of FY25, which would be tough to beat. To conclude, the long-term prospects for the defence sector remain promising. But stretched valuations leave little room for error. This becomes even more challenging given the high base set in FY25, especially as order inflows have slowed. To sustain the rally, free order inflow and executions must accelerate. Also read: Drone startups looking beyond defence to serve agriculture, quick commerce About the author: Madhvendra has over seven years of experience in equity markets and has cleared the NISM-Series-XV: Research Analyst Certification Examination. He specializes in writing detailed research articles on listed Indian companies, sectoral trends, and macroeconomic developments. Disclosure: The writer does not hold the stocks discussed in this article. The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
India.com
16-05-2025
- Politics
- India.com
আরও দুর্ভেদ্য ভারতের আকাশসীমা, আসছে S 500, চাপে পাকিস্তান! Zee 24 Ghanta 24 Ghanta, Zee News
Videos S-500 ADS | আরও দুর্ভেদ্য ভারতের আকাশসীমা, আসছে S 500, চাপে পাকিস্তান! | Zee 24 Ghanta India's airspace gets stronger with arrival of S-500, Pakistan under pressure! India's airspace gets stronger with arrival of S-500, Pakistan under pressure! | Updated: May 16, 2025, 10:45 PM IST Advertisement India's airspace gets stronger with arrival of S-500, Pakistan under pressure!
India.com
15-05-2025
- Business
- India.com
Can eliminate enemies from 2000 km away..., this 'Brahmastra' is more deadlier than the S-400, nightmare for China and Pakistan due to...
When was India's defense shield S-400 purchased, which government took the initiative? During Operation Sindoor, the Indian Army carried out precision airstrikes on nine terrorist camps located across Pakistan and Pakistan-occupied Kashmir (PoK). In retaliation, Pakistan attempted to launch drone and missile attacks targeting several Indian cities near the borders of Jammu & Kashmir, Rajasthan, and Punjab. However, India's advanced air defense system, the S-400, played a game-changing role in neutralizing these threats. Often referred to in India as the 'Sudharshan Chakra', S-400 system is a long-range surface-to-air missile defense platform capable of detecting and destroying aerial targets with remarkable precision. It can track over 100 targets simultaneously and engage threats at a distance of up to 400 kilometers. This includes aircraft, drones, cruise missiles, and even ballistic missiles. It has a tracking range of 600 kilometers. India's S-400 deal with Russia India signed a USD 5.43 billion deal with Russia in 2018 to acquire five S-400 units. The first unit was deployed in 2021 in the Punjab sector, specifically to counter threats from both Pakistan and China. During Operation Sindoor, the S-400's quick response and interception capabilities proved crucial in protecting Indian airspace from Pakistani missile and drone attacks. Now, a more advanced version the S-500 is being talked about. As tensions continue to simmer in the region, the introduction of this next-generation air defense system could further boost India's strategic edge. About S-500 Prometheus The S-500, also known by its codename Prometheus is designed to address the rapidly evolving threats of modern warfare, it goes far beyond its predecessor the S-400 in scope, capability, and technological advancement. Whereas the S-400 is capable of tracking over 100 targets and neutralizing threats like aircraft, drones, and ballistic missiles up to 400 kilometers away, the S-500 is built for the future battlefield. It is specifically designed to intercept hypersonic glide vehicles, high-speed drones, and even low Earth orbit (LEO) satellites threats that are fast becoming a central challenge in global defense strategy. Key capabilities of the S-500 Prometheus: Target Range (Detection): Ballistic Missiles: Up to 2,000 km Aerial Targets (jets, UAVs, etc.): Up to 800 km Target Range (Interception): Ballistic Missiles: Up to 600 km Aerial Threats: Up to 400 km Advanced Radar Systems: Equipped with jam-proof, multi-frequency radars capable of detecting stealth aircraft, space-based threats, and hypersonic projectiles. Anti-Satellite Capability: Can engage and destroy LEO satellites, providing space denial and an edge in space warfare scenarios. Enhanced Altitude and Reaction Time: Can engage targets at altitudes of up to 200 km (vs. 30 km for the S-400) Has a reaction time of just 3–4 seconds, compared to 9–10 seconds for the S-400. S-400 vs S-500 Feature S-400 S-500 Prometheus Detection Range (Air) 600 km 800 km Interception Range (Air) 400 km 400 km Interception Range (Ballistic) 60 km – 250 km Up to 600 km Hypersonic Missile Intercept Not effective Yes Anti-Satellite Capability No Yes Reaction Time 9–10 seconds 3–4 seconds Altitude Engagement Up to 30 km Up to 200 km Stealth Tracking Moderate Advanced Multi-frequency Radar Simultaneous Target Tracking Very High (100+) High, but slightly less than S-400 While the S-400 remains one of the most powerful multi-role air defense systems especially suited for layered defense against aircraft, cruise missiles, and drones the S-500 is designed to set a new global standard.
India.com
14-05-2025
- Politics
- India.com
Forget S-400! India May Soon Go For Russian S-500 To Boost Its Air Defence
India's air defence systems have recently demonstrated immense power by successfully thwarting Pakistani attacks. Now, the responsibility to prevent future strikes with precision rests squarely on our armed forces. As you may know, the most lethal component of India's air defence system is the Russian-made S-400. According to sources, the S-400 was used during Operation Sindoor, and based on its performance, the Indian military is now looking to procure additional S-400 missiles. This system comprises four types of missiles capable of engaging targets at ranges between 50 km and 400 km, and India has already sent a request to Russia for more. In today's DNA, Rahul Sinha, Managing Editor, of Zee News, analysed the S-500 Project proposal: Watch DNA Episode Here #DNAWithRahulSinha | S-400 से ज्यादा मारक 'अस्त्र' Coming Soon!#DNA #IndiaPakistanNews #S400 #S500 #Russia #IndianArmy @RahulSinhaTV — Zee News (@ZeeNews) May 14, 2025 But now, it's time to prepare for the arrival of the 'Dada' of the S-400 in India—the S-500 Prometheus. In Greek mythology, Prometheus is known as the god of fire, and this missile system lives up to that name, raining fire upon enemies. Russia had previously offered India a joint production deal for the S-500. The S-500 is significantly more powerful than the S-400. Simply put, this development has likely raised alarm bells in countries like Pakistan and China. We are referring to the S-500 as the "Dada" of the S-400, not just for dramatic effect—but because in Bengali, "Dada" is a loving term for an elder brother, and in terms of capability, the S-500 is truly a more advanced big brother of S-400. Here's why: Range: While the S-400 can hit targets up to 400 km, the S-500 extends that to 600 km—an additional 200 km. Target Types: The S-400 can intercept missiles, fighter jets, and drones. The S-500, in addition to all these, can target satellites in Earth's orbit. Response Time: The S-400 takes about 9–10 seconds to strike a target. The S-500 cuts this down to 3–4 seconds, making it almost twice as fast. If deployed along India's borders, the S-500 would cover every corner of Pakistan, including areas near its borders with Afghanistan and Iran. According to Russian sources, the S-500 can also target stealth fighter jets that evade radar detection. China already possesses such jets, and Pakistan has begun efforts to acquire them from China. This makes the S-500 a strategic necessity for India. Experts believe that no other air defence system in the world rivals the S-500. To put things in perspective: The S-500's 600 km range dwarfs that of the American THAAD system, which only reaches 200 km. The S-500's missiles can reach speeds of 7 km per second, enabling them to destroy a target 600 km away in just 90 seconds. In contrast, THAAD's missiles max out at 2.5 km per second. Russian media claims that a single S-500 unit may cost around ?6,000 crore, while the American THAAD system is estimated at Rs 6,800 crore or more. Russia claims its air defense systems are the most powerful globally, and the data backs that up. The S-400 and S-500 can operate in tandem, and if India signs the deal, this "powerhouse duo" will be more than capable of defending our borders. Notably, Russia has never made an S-500 offer to any other country. In defence and diplomacy, permanent allies are the most trustworthy. It's due to the strong India-Russia ties that India boldly went ahead with the S-400 purchase in 2018, despite threats of American sanctions. Recently, you may have seen images of BrahMos missile strikes on Pakistan. India and Russia jointly developed the BrahMos, and it's quite possible that a "Make in India" version of the S-500 could be next. To counter Pakistani drone attacks, India is also developing another powerful weapon—the micro-rocket system 'Bhargavastra'. This is an anti-drone system that uses rocket fire to take down drone swarms. In a recent test on May 13, four rockets were fired, each hitting its target with precision. Senior Indian Army officials were present during the test. In the near future, Bhargavastra could be deployed along the border to eliminate Pakistani drones. But before that, legal drones are already descending on those plotting anti-national conspiracies in Uttar Pradesh.
