“HAL remains my top pick because we could see a surprise factor, with around 7-8 aircraft likely to be delivered by FY26–27. BEML’s second quarter may not be strong due to assembly issues, but I expect a recovery by quarter four,” Gupta said.
She added that BEL, Astra Microwave, and Data Patterns should continue to perform well, with Data Patterns offering the most upside surprise potential among electronic warfare firms.
In the missile segment, Gupta said Bharat Dynamics Ltd (BDL) could continue to deliver strong results.
“BDL has already surprised on the upside with better numbers. Any new orders will start reflecting from the fourth quarter onward,” she said, adding that investors should await the company’s next earnings call for guidance.Gupta also noted that Bharat Forge’s recent carbine order for the Indian Army was “massive,” with nearly 90% of the order expected to be executed by Bharat Forge and a smaller portion by Adani-owned PLR Systems.
The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, has cleared procurement proposals worth ₹79,000 crore to enhance the capabilities of India’s armed forces.
The approvals include acquisitions for the Indian Army, Navy, and Air Force, covering a range of systems such as missiles, lightweight torpedoes, high-mobility vehicles, and landing platform docks.
According to Gupta, around 50% of the allocation will go towards NAG missile systems, while the landing platform docks could account for nearly ₹28,000 crore. Ground-based air defence systems are estimated at ₹10,000 crore, with additional funds for mobility and material handling equipment.
Among the key beneficiaries, she expects Larsen & Toubro (L&T) and Cochin Shipyard to gain from the landing platform dock projects.
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