Reliance Defence secures Rs 600cr Rheinmetall order, fueling Reliance Infrastructure’s export ambitions

Why has Reliance Infrastructure’s share price surged following the Rheinmetall export announcement?

On June 25, 2025, Reliance Infrastructure Limited saw its shares rally nearly 5%, closing at ₹404.65 on the National Stock Exchange, after its wholly owned defence arm Reliance Defence Limited secured an ammunition export order worth ₹600 crore from Rheinmetall Waffe Munition GmbH, a subsidiary of Germany’s Rheinmetall AG. The stock’s move from ₹385.40 in the previous session to a fresh high coincided with the market’s positive response to what is being positioned as one of the largest outbound ammunition contracts handled by an Indian private-sector defence manufacturer. The sharp upward momentum reflected institutional confidence in the order’s financial significance and long-term strategic implications for Reliance Infrastructure’s diversification into high-margin defence exports.

What is the strategic importance of the ₹600 crore export order secured by Reliance Defence Limited?

The ammunition export contract with Rheinmetall Waffe Munition GmbH represents a defining milestone for Reliance Defence Limited, and by extension, for India’s private-sector capabilities in advanced weapons manufacturing. Valued at ₹600 crore, the order underscores Reliance Defence’s emergence as a serious player in the high-technology munitions segment, an area traditionally dominated by public-sector undertakings and foreign OEMs. This deal follows the announcement of a broader strategic partnership between Reliance Defence and Rheinmetall AG, a German defence conglomerate with a market capitalization of approximately EUR 80 billion (₹7.99 lakh crore). Rheinmetall operates across 171 global locations and closed calendar year 2024 with revenues of EUR 9.8 billion.

The scale of this order is seen as a validation of Reliance Defence’s production quality, compliance infrastructure, and geopolitical alignment. It also signifies deeper European engagement in India’s munitions production ecosystem, with Germany’s largest defence manufacturer betting on a privately promoted Indian entity to meet global standards.

How does this deal align with India’s defence export policy and national manufacturing goals?

The strategic ammunition export order aligns with the Indian government’s broader push under the Atmanirbhar Bharat (Self-Reliant India) and Make in India programs. Reliance Defence Limited has explicitly stated its ambition to become one of the top three defence exporters from India, and the deal with Rheinmetall provides both the revenue visibility and validation to accelerate that trajectory.

By securing a deal in a domain historically sensitive to end-use compliance, international controls, and quality benchmarking, Reliance Defence is effectively demonstrating the maturation of India’s private defence manufacturing ecosystem. Institutional investors interpret this as a signal that India’s shift from defence importer to exporter is transitioning from policy narrative to economic execution.

What are the long-term infrastructure plans supporting this defence export growth strategy?

A key enabler behind Reliance Defence’s scale-up ambitions is the planned Dhirubhai Ambani Defence City (DADC), an integrated greenfield complex being developed in the Watad industrial area of Ratnagiri, Maharashtra. Once operational, DADC will become the largest defence manufacturing facility established by a private company in India. The facility is expected to produce explosives, small arms, and high-tech ammunition for both domestic and export markets.

The DADC is being positioned as a cornerstone for innovation, precision production, and global compliance, catering to strategic partners like Rheinmetall while advancing India’s industrial defence export capabilities. Its infrastructure blueprint includes modular lines for diversified ordnance production and export-oriented supply chain integration, signaling that the Rheinmetall order could be the first of several such deals over the next decade.

How is this order expected to affect Reliance Infrastructure’s financial profile and institutional sentiment?

Reliance Infrastructure Limited, which owns Reliance Defence, stands to benefit materially from the execution of this contract. The listed entity is debt-free, with group-wide annual turnover and net worth each standing at ₹33,000 crore. The Reliance Group’s market capitalization currently hovers around ₹45,000 crore, with over 4 million shareholders.

From a market perspective, this deal enhances Reliance Infrastructure’s export-led revenue diversification and positions it as an early beneficiary of India’s defence manufacturing liberalization. Institutional investors have responded with optimism, as evidenced by the nearly 5% spike in RELINFRA stock price on the day of the announcement. The VWAP (volume-weighted average price) stood at ₹397.71, indicating sustained accumulation through the trading session.

Analysts noted that such export-linked contracts provide both order book strength and credibility in discussions with additional foreign buyers. They further suggested that Reliance Infrastructure’s valuation premium could widen if additional defence export orders are disclosed over the coming quarters.

What has been the public and executive reaction to the Reliance–Rheinmetall defence export partnership?

Anil D. Ambani, Chairman of Reliance Group, characterized the Rheinmetall partnership as a “defining milestone” for India’s private defence sector. He emphasized that the alliance would bring cutting-edge technologies into India’s manufacturing ecosystem and enable the country to meet both domestic requirements and international demand with confidence. Ambani reaffirmed the group’s ambition to place Reliance Defence among the world’s top three defence exporters under the guidance of Prime Minister Narendra Modi’s Atmanirbhar Bharat vision.

Rheinmetall CEO Armin Papperger echoed the sentiment, stating that the partnership represents the German group’s commitment to working with India as a reliable defence collaborator under the country’s current leadership. The joint export contract is seen as a cornerstone of longer-term engagement between Europe and India’s private sector in strategic manufacturing domains.

What is the forward outlook for Reliance Defence and India’s ammunition export landscape?

The future outlook for Reliance Defence is shaped by its ability to execute on the Rheinmetall contract while scaling up capacity at the Dhirubhai Ambani Defence City. Analysts expect the DADC to reach partial operational readiness by late 2026, with ammunition lines becoming the first vertical to achieve production milestones.

If execution matches the scale of ambition, Reliance Defence could emerge as a template for other private-sector firms seeking to enter the defence export market. Additionally, its partnership with a global brand like Rheinmetall de-risks regulatory and end-user scrutiny—an area that often hinders cross-border defence commerce.

Institutional investors are closely watching for updates on production schedules, capacity expansion, and follow-on orders. A multi-contract roadmap involving Rheinmetall or additional Western OEMs could unlock re-rating potential for Reliance Infrastructure as a diversified defence–infrastructure–energy conglomerate.

How could Reliance Defence’s Rheinmetall deal redefine its role in India’s strategic export economy?

The ₹600 crore export order secured by Reliance Defence Limited from Rheinmetall AG has catalyzed a sharp rally in Reliance Infrastructure’s stock while signaling a new phase of private sector-led defence manufacturing in India. Backed by the upcoming Dhirubhai Ambani Defence City and supported by Germany’s largest defence conglomerate, Reliance Defence’s ambition to be among the top three Indian defence exporters is no longer aspirational—it’s now firmly on the execution path.

If subsequent orders and execution timelines hold up, Reliance Infrastructure may soon redefine its narrative—not just as a power and infra player, but as a leading stakeholder in India’s strategic export economy.