Archive · 7 Oct 2026
ICICI Securities Names Defence Picks Ahead of Q2 Results
ICICI Securities shared its expectations for defence companies before their September-quarter results.
It picked HAL, BEL and Azad Engineering as its preferred stocks.
The brokerage thinks government spending and possible new contracts could support the sector.
It expects many government-owned companies to have modest revenue growth this quarter.
Some private companies may grow faster.
It expects BEL and Mishra Dhatu Nigam to show steady progress, while HAL may have a quieter quarter.
It also expects BDL’s revenue and profits to fall compared with the same quarter last year.
These are forecasts from the brokerage, not reported results.
ICICI Securities named HAL, BEL and Azad Engineering as preferred defence picks, citing supportive policy and export opportunities.
The brokerage expects defence capital expenditure to grow at a sustained double-digit CAGR and order momentum to improve in H2FY27.
It said Rs 2–3 lakh crore of potential orders could become RFPs and contracts over the next 12–18 months.
For the September quarter, it expects PSU defence companies to report flat-to-lower-double-digit revenue growth, while some private firms could grow 10–50% year over year.
Its estimates include 15% revenue growth for BEL and Mishra Dhatu Nigam, 6% for HAL, and declines in BDL’s revenue, EBITDA and profit.
- Who
- ICICI Securities and the defence companies covered in its Q2 outlook.
- What
- The brokerage issued forecasts for September-quarter results and named HAL, BEL and Azad Engineering as preferred picks.
- When
- Ahead of the September quarter results; the article also discusses expected order activity over the next 12–18 months and in H2FY27.
- Where
- India’s defence sector.
- Why
- ICICI Securities cited supportive government policy, potential contract awards, export opportunities and geopolitical factors.
- Preferred picks
- HAL, BEL and Azad Engineering
- MoD capital outlay target
- Rs 3 lakh crore by 2029
- Defence procurement approvals
- Rs 8 lakh crore over the past 18 months, according to ICICI Securities
- Potential orders
- Rs 2–3 lakh crore could become RFPs and contracts over the next 12–18 months
- Expected PSU revenue growth
- Flat to lower-double-digit year over year
- BEL revenue forecast
- 15% year-over-year growth
- HAL revenue forecast
- 6% year-over-year growth
- BDL forecast
- Revenue down 2%, EBITDA down 15% and PAT down 17% year over year