Archive · 11 Oct 2026
ICICI Securities Names HAL, BEL and Azad Engineering Picks
ICICI Securities has shared its expectations for Indian defence companies in the September quarter of FY27.
It thinks some private companies may grow faster than government-owned defence companies.
Zen Technologies, Solar Industries India and Azad Engineering are forecast to have especially strong revenue growth.
BEL and MIDHANI are expected to grow steadily, while HAL may have a slower quarter partly because Tejas Mk-1A deliveries have been delayed.
New defence orders were limited in the first half of the financial year.
The government has approved proposals worth ₹8–9 lakh crore, which may lead to large orders from the second half onward.
The brokerage’s preferred stocks are HAL, BEL and Azad Engineering.
The timing of orders and how quickly companies complete them will matter for future growth.
ICICI Securities expects many private defence companies to outgrow public-sector peers in Q2 FY27.
Zen Technologies, Solar Industries India and Azad Engineering are forecast to post revenue growth of 55%, 52% and 30%, respectively.
BEL and MIDHANI are each projected to deliver about 15% revenue growth, while HAL’s revenue is expected to rise 6%.
Fresh order awards were muted in the first half, but government approvals worth ₹8–9 lakh crore could lead to major contracts from H2 FY27.
The brokerage’s preferred defence stocks are HAL, BEL and Azad Engineering.
- Who
- ICICI Securities and Indian defence companies, including HAL, BEL and Azad Engineering.
- What
- A brokerage preview forecasts mixed Q2 FY27 results and names its preferred defence stocks.
- When
- The September quarter of FY27; large order awards are expected from H2 FY27 onwards.
- Where
- India.
- Why
- Company performance is expected to vary with execution, product mix, costs, delayed deliveries and the timing of new defence contracts.
Private-sector outlook
Public-sector outlook
Expected Q2 FY27 performance
Private-sector outlook
Many private defence companies are forecast to deliver higher double-digit growth, with select firms benefiting from stronger execution and company-specific drivers.
Public-sector outlook
PSU defence companies are expected to post flat to low-double-digit growth, with execution uneven and some companies facing mix, cost or delivery pressures.
Order-book outlook
Private-sector outlook
Private-sector players could fare marginally better while order books remain broadly flat.
Public-sector outlook
Fresh order awards were muted in the first half, and delayed large contracts leave PSU order books broadly flat.
- Brokerage
- ICICI Securities
- Preferred stocks
- Hindustan Aeronautics (HAL), Bharat Electronics (BEL) and Azad Engineering
- Forecast revenue growth
- Zen Technologies: 55%; Solar Industries India: 52%; Azad Engineering: 30%
- PSU revenue forecasts
- BEL and Mishra Dhatu Nigam: about 15% each; HAL: 6%
- BDL forecasts
- Revenue down 2%, EBITDA down 15% and profit after tax down 17% year-on-year
- Government approvals
- Acceptance of Necessity proposals worth ₹8–9 lakh crore since the beginning of FY26
- Potential order timing
- Meaningful order awards are expected across segments from H2 FY27 onwards