Stories
What to Expect From Three Major Defence Stocks in Q2
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CNBC TV18•07-10-2026, 13:16
What to Expect From Three Major Defence Stocks in Q2
- •India's defence stocks are anticipated to deliver a positive September quarter driven by improved execution and revenue growth as the sector shifts towards actual deliveries.
- •Brokerage firm Motilal Oswal notes that healthy defence order inflows will continue, backed by Defence Acquisition Council approvals worth around 1.6 lakh crore rupees in FY2027.
- •Bharat Electronics Ltd remains the top pick with expected revenue growth of about 16 percent year-on-year supported by its robust opening order book.
- •Hindustan Aeronautics Ltd is projected to report around 14 percent year-on-year revenue growth driven by Light Combat Aircraft deliveries and margin improvements.
- •Bharat Dynamics Ltd is expected to face a mixed quarter with a potential year-on-year revenue decline due to a high base effect while sequential performance improves.
Key Questions Answered
Motilal Oswal expects Bharat Electronics Ltd. (BEL) to post year-on-year revenue growth of around 16%, supported by its ₹72,000-crore opening order book, while margins could moderate to about 27.7% due to an unfavourable product mix.
Hindustan Aeronautics Ltd. (HAL) is projected to report about 14% year-on-year revenue growth and a 100 basis point margin improvement to 24.5%, driven largely by Light Combat Aircraft (LCA) Mk1 and other deliveries.
Bharat Dynamics Ltd. (BDL) is expected to experience a sequential improvement, but its revenue could decline by roughly 19% year-on-year due to a high base effect.
