Analysts see strong growth for Indian defence PSUs after $8.8 billion acquisition approval

Hindustan Aeronautics

30/12/2025 05:23

** Analysts see upside for Indian defence public sector companies after 790 billion rupee ($8.79 billion) defence approvals

** Indian Defence Acquisition Council approved the capital acquisition proposals across the Indian Army, Air Force, and Navy on Monday

** Antique Stock Broking says with project approvals worth 3.3 trillion rupees in YTDFY26, we believe defence PSUs have strong growth opportunities

** Budget will not be a constraint for acquisitions, and double-digit growth in defence capex can be expected in the coming years, it adds

** Citi sees Bharat Electronics BAJE.NS to gain from multiple procurements, including radars and drone detection systems, while Hindustan Aeronautics HIAE.NS to benefit from orders related to Astra Mk-II missiles and Tejas aircraft simulators

** Goldman Sachs expects Solar Industries SLIN.NS, Bharat Electronics and Bharat Dynamics BARA.NS to benefit the most, which will then trickle down to Astra Microwave ASTM.NS and Data Patterns DATP.NS

** YTD, defence sub index .NIFTYINDDEFENCE rises 18.6%, beating benchmark Nifty 50's .NSEI 9.7% climb

($1 = 89.9220 Indian rupees)

(Reporting by Urvi Dugar in Bengaluru)

((UrviManoj.Dugar@thomsonreuters.com;))