This defence stock is bucking the trend in an extremely weak market

Shares of DCX Systems Ltd. climbed as much as 12% on Monday, March 23, outperforming a broadly weak market.

The rally comes after the company secured an order worth ₹564 crore for the manufacture and supply of Maritime Patrol Radar Systems for airborne applications.

Its order book stood at ₹2,582 crore at the end of the third quarter of fiscal 2025-2026.

DCX Systems operates in system integration across radar systems, sensors, electronic warfare, missiles and communication systems, and also manufactures cable and wire harness assemblies.

The business is largely export-driven, with a significant portion of revenue coming from global OEMs, particularly Israeli defence players such as Elta and IAI, along with clients in the US and Europe.

Weak financial performance historically -

Yearly

The company's revenue declined 24% in FY25, while margins shrank from 6-7% to near zero.

Quarterly

In Q3, revenue fell nearly 40%, and the company has reported a decline in revenue for seven consecutive quarters, barring Q1FY26. It continues to remain loss-making.

Despite a strong order book, which expanded 3.5 times year-on-year in FY25, execution concerns persist.

Order Book

The stock is up about 12% in today's session but remains down 32% over the past six months and 42% since its listing in November 2022. It is currently trading around ₹182.27, up 11.33%.