DPSUs’ turnover surges 15.4% to ₹1.29 lakh cr in FY26, MoD says ahead of annual review

(file photo) Defence Minister Rajnath Singh

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The annual turnover of 16 Defence Public Sector Undertakings have surged to ₹1.29 lakh crore in financial year 2025-26, up 15.4 per cent from the figure in financial year 2024-25, the Ministry of Defence said ahead of their annual performance review on Tuesday.Defence Minister Rajnath Singh will review annual performance with focus on developing new technologies and enhancing exports, the Ministry said. The DPSUs have recorded cumulative Profit After Tax in 2025-26 of ₹23,136 crore, registering a growth of 15.6 per cent over the previous year. In 2025-26, the DPSUs achieved an increase of 151.2 per cent in exports over the previous financial year, the MoD stated.However, over a period of time parliamentary standing committee on defence as well as CAG reports have been pointing out over the need to improve performance, plug systemic and operational loopholes.Public Accounts Committee (PAC) of parliament in its 49th Report tabled in the Lok Sabha in July, revealed that one of the seven DPSU, Advanced Weapons and Equipment India Ltd (AWEIL), incurred cumulative losses of ₹234 crore over three financial years due to high operational and administrative expenses. The committee also flagged concern over high overhead costs of operations at AWEIL’s small-arms factories which jacks up production expenses. A subsequent Public Accounts Committee (PAC) review in August 2026 —referencing underlying CAG observations — noted that $4.5 billion of $9.9 billion pending defence offset obligations remain unfulfilled.compliance reportThe CAG’s specific compliance report on DPSUs, tabled in parliament in late December 2025, examined procurement processes and noted delays in issuing 65 per cent of tender enquiries and 59 per cent of supply orders, directly hindering production targets. The audit also cited instances where failure to follow standard proof/testing guidelines led to financial losses.During the review meeting, the CMDs of seven DPSUs - Hindustan Aeronautics Ltd (HAL), Mazagon Dock Shipbuilders Ltd (MDL), Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd (BDL), Garden Reach Shipbuilders & Engineers Ltd (GRSE), BEML, and MIDHANI - will present dividend cheques for the Government’s equity shares to the Defence Minister for the FY 2025–26.Singh will release four books namely ‘Aatmanirbhar DPSU - A journey of DPSUs towards Self-Reliance’; DISHA, an initiative of DPSUs for students’ hands-on awareness on defence technologies & modern manufacturing processes; Modernisation roadmap of HAL; and Indigenisation Roadmap of HAL.Published on August 31, 2026